Felda Global Ventures Holdings IPO

Felda Global Ventures Holdings (FGV) is expected to list by April or May 2012.

IPO-Boon or Bane?

 Three foreign and two local merchant bankers are tasked with the job as to the timing of the IPO.

The FGV will involved the leasing of  only FELDA-owned land to FGV.

As Koperasi FELDA is the biggest owner of FGV, their rights on the surface seems quite protected.

According to government sources, FELDA  cannot hold on only to oil palm and rubber as their chief money earners as high prices cannot be guaranteed all the time

It added it pays for FELDA to look beyond bottom line earnings from just these two commodities and FGV is poised to go beyond this horizon by looking at other potential earning sources.

Digi: The Retailer Selldown

Retailers' Selldown?

The number of sellers and buyers were not disproportionate. The number of deals done were certainly biased towards the belligerent buyers who brought Digi slowly down by the sen.

Though the market is still riding on a positive note, that Digi could spin down despite yesterday's good closing beckons the RM64,000 question. What gives?

Digi lost a clean 6 sen to RM3.82 at its lowest and it is now trading at the RM3.83-RM3.84 range.

As the morning moves along, will there be an abatement of weak sellers?

The afternoon session was as lacklustre with bargain hunters calling the shots.

Digi lost 2 sen to RM3.86 for the week.

Digi: Is this a Solid Beginning for 2012?

Two false starts. That is what happened to Digi when trading resumed during the new year. On 3 January, it touched RM3.89 before falling back to RM3.81.

Ibex style

Then yesterday, it went out bungee jumping without a rope after touching a new high of RM3.95. Then is lost its pants to close at RM3.79.

Today, it started more somberly. Every step it took was more sure footed like a mountain ibex. From a good 2 sen start at RM3.81, it is now hovering at the RM3.85 to RM3.86 divide.

By day's end, Digi touched RM3.88 and sat there prim and proper with a 9 sen gain.

Time for Myself

This year I have set time for myself.

From Monday to Friday, it is time for myself. To do what I want and to fulfil family obligations.

This year, I have to chart a path for my son's tertiary education and to support the growth of my daughter's career.

This year, I intend to do local travel before proceeding beyond the national borders.

This year, I intend to read more of the Bible and through it to know more about myself.

This year, I intend to see more of my parents.

As for Saturdays and Sundays, I devote these two days to teaching the students who are still under my tutelage.

As for the stocks, I must practise patience for good entries and exits.

Easier said than done but I must attempt to ensure there are more hits than misses.

Berjaya Foods: Defreeze?

A Gathering Storm

In slumber mode for a long time, Berjaya Foods finally reared its head. It started gathering buyers and there was an apparent push to RM1.05.

This is a good start for the new year given the rights issue must be completed by the first quarter of 2012.

To make the rights attractive, Berjaya foods must be sprung to at least RM1.30 to ensure full uptake.

Roasty Flavour profits

I am sure this counter is well controlled by some majority shareholders given the long dull period of inactivity which is so convenient for them to collect the stock.

Frappacino

If the buying trend does not subside, expect action on this counter. Maybe some angpow for you to spend by 20th January?

Is this an uptrend indicator?

Digi: The January Defect?

When global news turn positive,punters will play up stocks-especially day traders who will square off their position by day's end.

New benchmark at RM3.95

Also, this is driven by the more than anticipated January effect. Fund managers will have been given their war-chest to play into stocks to spin profits for their stakeholders.

And so it seems.

Yesterday, market went down marginally but today, it took off whirl-wind like pushing stocks to high heaven. Look at Genting, massive non-stop punting push the stock to beyond RM11.32. Similarly Digi shot up to no man's land of RM3.95. And then the sellers arrived to profit take all the way down until crimson colour rules these stocks.

Digi finished lower by 2 sen to RM3.79 while Genting was pruned by some 10 sen to RM11.14.

I go up, I go down

The bigger boys also had their gains trimmed such as BAT, Dutch Lady,KLK and Nestle.

Lousy day for trading. What January effect....more like a maddening January defect!

Adventa: Loss Recognition

Dismal Future?

 Despite rising revenue to RM430 million, representing an uptick of 25%,brought about by high shipments and better prices, Adventa experienced a dismal net profit of RM4.2 million in fiscal year ended October 2011. This is an 88% drop from RM35 million earned in the foregoing year.

After writing off exceptional losses of RM9.23mil, the current quarter ended Oct 31 closed with a first time quarterly loss of RM3.66mil, with pre-tax profit standing at RM5.57mil before exceptional losses.

Adventa blamed the losses to a small fire incident at one of the factories. A damaged storage unit took a hit loss of RM2.12mil in fixed assets while goods damaged came up to RM4.61mil.

“While insurance claims are processed, these are written off as a loss. In addition, an investment bond of RM2.50mil which was part of a CLOP arrangement loan five years ago was declared a total loss in October 2011 upon maturity by the trustees and this is written off in this quarter,” it said.

As at fiscal year ended Oct 31, its total borrowings rose to RM189.28mil, compared with RM130.6mil, while cash and cash equivalents dwindled down to RM13.3mil from RM41.5mil recorded previously. Last December, the group issued RM30mil in nominal value Islamic medium-term notes from the Islamic commercial papers/Islamic medium-term notes programme with a give-day tenure.

Moving forward, the group said the erratic dynamism of commodities and currencies created a difficult environment for management control in cost and sales prices.

“To find a sure formula to manage these factors well is a challenging task in view of the commodity and foreign exchange markets reacting very sensitively to news with less valuation based on fundamentals,” it said.

So, it is rough waters for Kelantan-based Adventa until better times come. Otherwise, do not expect magic here!