Berjaya Foods-Will it Reward Shareholders?

Food for Thought

Yesterday, the counter could not cling to its gains and slid more than 5.7%. From RM1.38, Berjaya Foods (BJF) lost 8 sen to RM1.30, touching a low of RM1.29. Fortunately, there was no volume. Like an occasional rain in the desert, it will stay ever illusive on low volume trading; this time about 1,450 lots of 100 units each.

I think this is symptomatic of a tightly held counter by possibly a major shareholder or by reluctant minority shareholders who are not desperate to sell. That it has gone down may be indicative of some day traders disposing  to take advantage of the declining trend to get back on the bandwagon at a much lower price. Simple economics and might just work if selling persists.

At 65 sen for a right share,  this current price will fetch a clean 100% profit. So, a good strategy is to dispose a 1,000 unit lot  when it goes ex, collect the  800 rights at RM520, collect the warrants for free and subscribe for excess shares; hopefully they give you.

Today is the last day for the tax exempt dividend of 2.5 sen. So, any purchase price is effectively 2.5 sen cheaper. Fro instance, if you buy at RM1.30; it means it is a purchase of  RM1.275 which can offset a big portion of your overhead charges.

My guesstimate, they will still hold it above RM1.00 until it goes ex, giving you a profit berth of RM0.35 sen. This is a very conservative stand.

Happy speculating but caveat emptor!


PS: BJF declined by another 5 sen today to RM1.25 before ex-dividend day tomorrow.

Telecommunication Sector upgrade?

Revenue Churner with UNIFI

Just when you thought that with the breaching of the 1600 index would spell some sort of selling,more prophets are coming out of the woodwork.


The latest seems to be Kenanga Research  throwing in the gauntlet for the telecommunication sector. 


It is giving an  'overweight' to the sector based on the first quarter profit results ; the dividend yields and also what they have termed,"robust operating cash flow"


“These (factors) will provide the much-needed defensiveness required during the current volatile market,” so said Kenanga  in a note to clients. 

So let us see what Kenanga sees in their crystal gazing exercise.


The target price for GLC Telekom Malaysia Bhd is now moved up to RM6.36 (US$2.02) from RM5.65, another 10% while the much sought after third-largest Malaysian mobile phone operator  DiGi.Com Bhd is given a marginal push of 28 sen to RM4.68 from RM4.40. 

Well-Run, No Foreign Exchange Losses

Top mobile operator Maxis is now given a 30 sen price hike to RM6.76 while Axiata is now adjusted upwards to almost RM6.00(RM5.95) from the current RM5.52 price

Silent Climber, Superb Dividend Giver

Target price for Malaysia’s top mobile operator Maxis Bhd was also raised to RM6.76 from RM6.00 while Axiata had its target increased to RM5.95 from RM5.52. 

Growth Stock

What about the effect of YTL Power (Yes! 4G) then, and Time dot Com?

YTL Corp-Pushy and Cheeky

So, what do you know?

It wanted to reward its shareholders. So, it gave RM20.00 for 1000 shares as  dividend and 1 dividend share in specie  for every 15 shares held. To top it, it gave an nice icing equivalent of YTL Power warrants of 1 warrant for every 15 YTL Corp shares held; at a steep discount of a honest-to-goodness 20 sen when YTL Power warrants is currently trading about 52 sen

At the same time, while the Treasury shares are not distributed, it continued amassing some more Treasury shares.

Yesterday it was still in the 8% region and perhaps has another less than 2% before it hits the target allowable 10% before the next AGM.

So the price went up to RM1.12 after a slight dip below RM1.90 went it went ex-dividend.

So, as I wrote in an earlier posting, minority shareholders are praising Francis as a benevolent demigod of sorts. A person who bought 1000 shares at RM1.96 before it went ex-dividend has now got his share dividend in specie, his 2 sen dividend for every 10 sen share, his YTL Power warrants at a cheap 20 sen and now a capital gain as well of  16 sen.

Expect more action on YTLPower as their Yes 4G broadband wifi roll-out gathers traction; and once its capital outlay is returned, it may blast off with the power and water utilities leading the revenue chase.

Nature of engagement: Do not sell any YTL Corp shares for I believe Francis is brewing something  "sweeter than honey", as deftly as he can with that RM14 billion cash hoard of his.

Bamboozled by an Email Hacker

When I received the email from a friend seeking help, I was more compassionate than thinking. What should I do? Who can  help me to assist my friend over there in  a remote country?

This happened on 19 June when I opened by email.

Let me show you the massage.

Hi,


Hpe you get this on time. I made a trip to Madrid, Spain and had my
bag stolen from me with cash and credit cards in it. I've made
contact with my bank but they are not providing a quick solution.
I'm physically ok and fine but I'm urgently in need of some money to
sort my self out of this predicament, I will pay back as soon as I
return.

Kindly let me know if you would be able to help me out so I can
forward you the details required for a wire transfer via the western
union as it is the best option to send money to me. I don't yet have a
local phone (still gathering my bearings and such), so email is
probably the best form of contact for now. I will expect your response
soon


Thanks SAS

And so a gullible me replied like this.


How much do you need. I will ask around to see how many of out friends can help pool some.


The next response from the hacker goes like this.


Thanks  for checking, I need just €950 euros to cover my traveling expenses, I will pay back as soon as I get back home. Let me know how possible this could be so i can send you the western union details.

Then a smarter me put on the verification process like this.

SAS,

Verify this and I will take action to raise the sum among friends:


Who was ECOoi?
Name of your three children.
Name of my children
Name the exminister of H whom I worked for
The name of my sister who worked for the H Division of the T
Name of your church


GB
XXXX

No response thereafter.

I phoned my friend SAS after a friend of mine told be that it could be a scam. SAS then told me someone has hacked into  his email compromising his address book.

What a lesson!

Berjaya Foods-Good Cooking?

News must be around the corner. Also, this must be one cornered stock. So the share goes up on small volume. Let's take today. Berjaya Foods went up 7 sen-more than 5%.

As the rights issue is pegged at 4 shares for every 5 held at 65 sen per share. That means that theoretically for 800 shares you will stand to gain 48 sen. Another bonanza if the matadors and Greek Gods and Titans don't give us any trouble from the Eurozone.

Good cooking so far.

YTL Corp: Is it Magic?

The Malay word for it is lekat. Will the price hold? Will the stock price holds traction?

Today, 14 June 2012, YTL Corp went ex-all, to the chagrin of all its shareholders.

As the counter started trading there were lots done below the RM1.89 ex- theoretical price. Most were done at a loss of 2 sen at RM1.87. Slowly, buyers came out to square of the price at RM1.89 with some heavy volume trade of tranches of 1,000 and 2,000 lots. As the morning session drew to a close, buying were mostly done by retailers. The counter clinched 4 sen to RM1.93 at the 12.30 noon-day close. Will it stay at this price or will power buying in the next few days propel it to higher prices?

I do not believe that YTL Corp  is conducting Treasury buys as yet.

A person who buys a 1000 shares at RM1.96 just before it went ex-dividend of 2 sen per share (RM20.00), would have paid circa  RM1,990 for that transaction. With the proposed payment of the RM20.00 dividend, his share purchase price will be lowered now to RM1.97 per share.

Factoring in his gains of 66 dividend share at RM1.93, this will come to a profit of RM127.38.

Seen in another perspective,this profit of RM127 will help further reduced his purchase price by  another 12 sen or effectively at a lower purchase price of  RM1.84.

Then, there is the 66 YTL-Power warrants to be issued at only 20 sen. At the current price of 43 sen, that means he would have made a further gross profit of  RM15.18 after subscribing for it. After deducting  RM10.00 for government stamp duty, his net profit will be RM5.18 sen.

There is again, the opportunity for him to buy excess shares if he is daring enough.

Assuming there is mass selling by the YTL Corp shareholders of the distributed warrants and it goes down by 30 percent (13 sen), the warrant  could still be sold at 30 sen to reap at least 10 sen gross profit or about RM100.00 per 1,000 shares which can be considered great as it reflects a return of 10% on such a short duration!

I expect YTL Power shares to move upward as more than 75% of YTL Corp's revenue comes for the overseas utilities in UK and Singapore.

Moreover, Francis Yeoh, with a thumping war chest of RM14 billion, is definitely looking out for bargains given the background of the current fall-out of the Eurozone which now includes Spain and Cyprus! Assets can now be purchased at really fair prices! So, Francis is looking high and low  for low, low prices!

Do not be surprised to see YTL Corp, YTL Power and the YTL Power warrants going up soon.

So, the backdoor way to amassing YTL Power stocks will strategically be through YTL Warrants.The exercise price is RM1.21.

The current price of YTL Power is RM1.64.

Theoretically the conversion into YTL Power  will involved cash of RM1,210 and twenty dollars of warrant or altogether an outlay of RM1,230.

This means that given today's price of RM1.64, there is a further discount of RM410.00 if the warrants are converted.

So, what should be the strategy now?

For me, buy YTL Power and YTL Power warrants!

PS:

At the end of the day, there was a barrage of sellers selling it down to RM1.86 again. It ended up at RM1.91 for a two sen gain though there were only buyers at RM1.87;indicating possible Treasury buy in to support the price for some reason only 'those people' knew.

Anyway, let us see whether there is improved traction tomorrow which is a freaky Friday for stocks.

Translation: Be Smart!

Yes, be smart. Don't do what I did.


Cari pasal.

I thought I was a wonder kid.

When I was offered an Annual Report of 172 pages to translate from Bahasa Malaysia to English , what did I do? My response?

"Boleh," I replied.

"Can-ah, do in ten days?"

"Can,can!"

Then when I got your teeth into it, I found it was more than I could chew!

Cough, cough; choke,choke...............

It was not the many pages, my friend.

Literal direct translation without  any need for referencing and looking for the equivalents in nomenclature would have made this translation assignment a breeze.

But I think I got the short end of the stick.

This was an official document of  a government agency with all those weird sounding names of committees, panels, programmes, activities  and minutes too  et al  and just cross referencing using a dictionary or Google and internet search can wear one down.

Sheer murder!

Then there is that need to ensure uniformity of terminology which you can only do so at the end of the project.

Thus far it has been a hassle and I am pretty sure that 'sepuluh hari tak jadi-lah" and with bowl in hand, I will have to beg for an extension.

Poor me. Having backache now from seating and slumping  in front of the keyboard for too long.

So, if you intend to get into translation, be smart. Know what you are in for.

Make sure that you ask for a longer time and make your agreement flexible enough to accommodate that.!

Lastly, ask for more money!