Homeward Bound in the Dragon Year 2012

Glorious Dragon

We started off for Malacca to see my Father at 9.45 am. Though we had planned to be ready by 8.30 am, it was akin to building castles in the sky to have that realised.

Traffic was okay and my wife took over the driving from Nilai onwards. Except for two near-driving mishaps, all turned out well. Traffic however slowed down to a crawl at the toll plaza at Ayer Keroh. We lost some 40 minutes here.

We were fortunate to meet up with my younger brothers and their families. There was great bonding and we had our traditional CNY lunch. We also met up with some nephews-Alan, William and Patrick.

My wife and I took turns to drive back home at 3.30 pm. Traffic was choke-a-block from Pedas-Rasah to Seremban.

After a short rest at the Seremban R and R area, my wife took over the wheel. We got home at almost 6.45 pm.

Altogether an eventful first day of Chinese New Year in the year of the rain dragon.

Welcoming The Water Dragon

Dragon Glory 2012

Yes, in twenty five minutes, the water dragon of 2012 will rear its head.

For many, they pray for good fortune as well as good things for their loved ones.

Some believe the Mayan year in 2012 will spell the end of the earth.

For me, I will enter the fifth cycle of the dragon and pray that this will be a good year for me, my family and my good friends.

Digi: Another Dividend for Shareholders

Yest Another Dividend

Isn't this not a good share or what?

Having some 9.9 million phone subscribers of both voice and non-voice, Digi achieved better results this time around.

Mobile data revenue exceeded 30% of the group's service revenue for the fourth quarter. Revenue fro the group upped 10.3% to 6.0 billion while EBITDA was RM2.8 billion.

Capex investment was also stepped up from RM550 million to RM660 million. This is done to step up site  roll-out and to increase capacity. Operating cash flow rose to RM2.2 billion.

Digi currently has 5.2 million active mobile internet users.

So, it is now giving out another generous interim dividend. A 6.5 % dividend for the new 1 sen par share.

Digi has been re-rated to a new target price of RM4.40 by some analysts.

When will this new Rubicon be attained or crossed?

Currently, Digi is priced at RM3.93 as it closed for the long Chinese New Year break.

Many analysts expects the Bursa to climb steadily after this long break.

Will Digi move up beyond RM4.00 in the near term? Only hindsight can tell.

Happy Chinese New Year of the Water Dragon to you!

Berjaya Foods: Sizzling Mood

Adding value in Indonesia

Yes, after a quiet start last week when it showed life after a long period of hibernation, the counter rocketed 9 sen today to touch RM1.10 after the company announced it has successfully inked a deal with the franchise holder of Kenny Rogers Restaurants (KRR) in Indonesia.

Taking over 51% of the shares of the franchise holder, PT Boga Lestari Sentosa  is definitely going to add a fat bottom-line to Berjaya Foods given Indonesia's huge population.

As Indonesia is showing more prudent economic development these days, the income of the local Indonesian will definitely improve giving them affordability to dine in KRR joints.

I think the time for a re-rating of the counter is close at hand as BJ Foods ready itself for the 4 for 5 rights issue of RM0.65 sen per share.

BJ Foods closed at a good price of RM1.09 this evening.

Mesiniaga-Superior Dividends?

Dividend Payor

If you look at the dividend trend of Mesiniaga, you will be persuaded to invest in this RM2.00 plus counter.

Let us look at the dividend track record of the company from 2003 to 2010.

2010: 20 sen less 25% tax (15%)
2009:19 sen less 25% tax (14.25%)
2008:19 sen less 26% tax(14.06%)
2007:19sen less 27% tax(13.87%)
2006:19sen less 28% tax(13.68%)
2005:19 sen less 28% tax(13.68%)
2004:13sen less 28% tax(9.36%) + 3 sen tax exempt > 12.36%
2003:13sen less 28% tax(9.36%) + 3 sen tax exempt > 12.36%

Thus it can be seen that the average dividend received is 12.36% to 15%. This will work out to 13.65 sen per share

Assuming that you have expended RM2.00 to buy 1000 shares of Mesiniaga in 2003, you would have received 13.65 sen of dividend per share per year.This will work out to RM135.50 per year times 6 years which should earn you a tidy sum of RM813.

Compared to a fixed deposit rate of say, 3%, you would have earned 6.83 sen per RM1 investment or an equivalent of 3.83% more for every ringgit invested.

If Mesiniaga can maintain its dividend policy and rate payout, then we can say that it is one great stock to derive returns from!

Standard and Poor's European Downgrade

Making Everyone Poorer!

When the news came into the market that Standard and Poor's have downgraded the credit ratings of some major European economies, everyone expected the backwash effects to overwhelm Asian markets and Wall Street.Only Germany withstood the downgrade.

As there were no illuminating news from Wall Street, today saw a swath of red ink encompassing major regional markets.

So Bursa went down more than 14 points at today's close.

Even resilient shares like Digi got hit and went down 3 sen.

 The big boys like BAT,Genting Berhad, GAB and Dutch Lady took wallops at their broadsides.

Interestingly shares such as Maybulk bucked the trend. What is happening here? Is Kuok taking this counter private as well? Good to watch for any developments here.

Also shares such as LPI recovered on closing to end unchanged at RM14.00 as the dividend payout of 50 sen occur on this Friday, 20th January.

Genting Cheapens!

I was in Genting Highlands last week-end and yesterday as well.

Cheapened Product

What I have noticed is there is a lot of cost cutting.

For instance, there is no longer any Milo for casino patrons. The tea once served with sugar and cream  is now without sugar and the coffee with sugar taste like it has been recycled many times over.

Then, let us look at the New Orleans Restaurant in Monte Carlo Casino.

Where in the past, you can have any numbers of refills of soup, salad and coffee, they have now put up signs that forbade any refills. Charges or surcharges are posted on the tables and well as at the place where the soup is ladled and at the salad bar;so if you are caught infringing this new condition, you pay the price-lah.

I think Genting is not being productive to maintain quality but just cheapening itself.

How sad!