March 15, 2012
Daim-He Believes So
Daim Zainuddin, who apparently was given credit for predicting the losses of BN in the last election, is now giving his prediction for the 13 GE.
The forthcoming GE will be held in mid 2012,he forecasted. And his premise for saying so?
He believes the longer the wait, the greater the possibility that Barisan Nasional (BN) would make more mistakes.Similarly, he foresee the Pakatan Rakyat (PR) would bicker among its component parties, as time goes by.As such, a long wait has no advantages to both sides.Very ambivalent observation-not very helpful.
He believes Najib who is seeking a new mandate for the first time, has the edge but the ambition to get back its two-thirds majority in the Parliament is "not very practical". What underpins this observation?
He paints the following scenario.
Daim said PR parties are beginning to fight among themselves for seats as every one of them wants to form the government, wants to have more people's representatives because they are confident the Chinese will vote for them. I do not know how he has read these.
This happens all the time in every election but finally a decision, however difficult, has to be made. If at all Daim is correct, it will be true for Keadilan candidates with its 'frog' problems and the situation may be faced in Sabah.
Daim must also remember that some section of UMNO is now asking for a review of the seat arrangement for BN's component parties; possibly taking over some of the seats of its BN friends. This could caused issues and problems particularly between UMNO, MCA and Gerakan.
However, to my mind, there could be little conflict between PAS and Keadilan if the latter takes on suburban constituencies which are urbane in nature and favours their political approach and stance while PAS take on the more rural constituencies that continues to be steep in religion. This is one aspect that BN should really focus upon.
Daim has ruled out the dissolution of the Parliament this month or the next and believes the general election would most likely be held during the next school holidays (May 26 to June 10).
He said the prime minister can call for the election the moment he thinks BN has a very good chance to win.Timing is all important for BN to win.
He said irrespective of race, the urbanites are angry about traffic jams, criminal activities and high living costs, but Umno does not understand this, believing that the Malays will forever support the party. Daim, you have this spot on. Education, information and communication technology can be real equalizers, don't you agree?
Once you have achieved a certain level of education and can go and surf the internet,the premise that voters will vote solely on racial lines becomes untenable.
Daim said BN was able to win with two-thirds majority for five consecutive times under Mahathir because he made sure the issues facing the people were addressed before calling for elections.
"You must understand how the people feel. The needs of young people, urbanites, and the Malays, Chinese and Indians who live in flats are the same.
"But the kampung folk are different. As such Najib needs to visit them, talk to them and understand their needs."
Daim said although BN still has the edge in the next general election, if the BN performs worse than before Najib may have to step down. Asked if BN can regain the two-thirds majority, Daim said it is "a good vision, but (BN) should be more practical". I think Daim is being a realist here.
He said BN must fight in order to win.
"Should it lose more seats, Umno will let him (Najib) go, this is politics."
Asked for the possible successor should this happen, Daim quoted the Malay proverb "Patah tumbuh, hilang berganti" (whatever broken will grow back, whatever lost will be replaced), saying that, for better or worse, someone will take over.
Najib said he wants two-thirds majority, he must do better than former prime minister Tun Abdullah Ahmad Badawi did, otherwise he will only have to say bye-bye, opined Daim.
However, he said, if the country's economy is strong, Umno is united and the BN displays team spirit, Najib will have the advantage. I find these 3 ifs really troubling right now.
If Najib goes, then according to Daim; by convention, the party No 2 would take over, but anything can happen, there may be challenger which is not new in politics, he said, adding that this is politics, and everyone wants to be the prime minister. I like his angle about a potential third man hiding in the arras. Who can he be? What has Daim against Muhyiddin?
According to Daim, Najib's administration has performed better than the previous administration. You can see changes, he listens to the people, abolished the Internal Security Act, and declared war on corruption. All these are what the people want. Because you represent the people, you must listen to their voices. I wonder whether what Najib has done so far has really endeared himself to the multi-racial voters. [Many are of the opinion that he has done PR work and re-packaging but the contents remain dismally the same.]
"If you hold a differing view, you must explain the reasons and use logic to convince them. The public is rational, if you want to convince them, explain to them nicely, reach out to them, tell them your plans and that you are aware of the consequences." Is Najib doing this? Again, many do not like his transactional approach.
On the other hand, if those in power adopt the "shut up and toe the line, we are the best" attitude, they would be in danger. My fears,exactly.
He said the country needs political stability and economic growth, otherwise we will face many problems as the world economic slows down. [I think the economy will really slow down in the next half of 2012.]
As a country which depends a lot on exports, we will be in trouble if we cannot export, but the government has done its best, he said. On the next general election, Daim said BN should go all out to win in Sabah and Sarawak, keep its current seats in the peninsula as well as pay attention to seats that it lost narrowly in the 2008 polls. [Very perceptive as a strategist but what about all those unresolved issues like the native customary lands and wanton logging].
"If I were the PM, I will focus on Sabah and Sarawak to keep the status quo; seats won here (peninsula in the last election); and some seats that MCA lost narrowly the last time.
My comments:
After the last Sarawak state elections, I think status quo in urban and semi-urban seats are at risk to BN.
If you go all over the country, you are not sure where you can get the votes, it is just a waste of time," he said on campaign strategy.So much for turun padang.
Asked to rate BN's chances according to states, he said it will be hard for the coalition to recapture Penang and Kelatan but it has a 50-50 chance in Kedah and Selangor.
My comments:
I think Selangor is difficult to penetrate unless BN promises super goodies. As for Kedah, there could be turncoats there that can make Pakatan to have a tough time but they may scrap through.
He said BN will find it tough to retain Perak given the anti-BN sentiment there as a result of the power grab after the 2008 general election. No denial syndrome here. I think, you have a good head on your shoulder, my good man!
On the National Feedlot Corporation (NFCorp) scandal, he warned that it can affect the BN more than the Lynas issue if not handled well as the loan for NFCorp comes from the government, and indirectly out of the people's pockets. Right here, again.
Daim also warned that if Umno does well in the next general election but MCA and Gerakan get routed, it will be very unfortunate and sad, as such an outcome shows racial voting which will divide the country along racial lines. I think the fate of MCA and all other parties except for UMNO has already been sealed asv they have passed their political shelf-life. They are not Terminators,they are likely the terminated in the 13th GE.
Strangely, Daim did not mention the possibility of a hung Parliament this time around. This is a very likely possibility.
Labels:
Politics
An Indian Giver?
Now that the new Public Services have been withdrawn, the government demands that the two month's additional pension payments paid out to Civil servants be returned.
Apparently, the new amended SSM may not include pension payment review and adjustment.
The Malaysian Government Pensioners Association president Datuk Paduka Raja Wan Mahmood Pawan Teh said the association will meet the Pensions Department on March 20 to discuss issues related to the SBPA.
Hopefully, some arrangements can be made to ensure pensions are also adjusted with the new amended SSM.
If not, then it will be the unkindest cut of all for 580,000 pensioners.
Labels:
Perspectives
A Free Lunch from Kayu
Established in 1974 as a small stall in the now defunct Chow Yang Restaurant, the Kayu Restaurant has grown by leaps and bounds. It has sprouted franchise branches almost every where.
Today, 15 March 2012, it celebrates its 39th Anniversary.
As it did last year, they gave free lunch to all and sundry who care to come by their premise from 12 noon to 3 pm.
So, with my wife and son in tow, I went to the Kayu Restaurant in SS2.
Fortunately, it was not the uneartly 1 pm lunch hour and so there was no crowd as we lined up and got our food.
They served us a choice piece of chicken keel and a hard-boiled egg; with pickled salad of cucumber, carrots and pineapple at the side.
They also served you a glass of orange cordial and a cup of iced Nescafe.
We thank God for little mercies such as today's good lunch.
Certainly better than 1Malaysia menu.
Labels:
Food
YTL-Retail Risk Takers
Eye-balling the deals done today on YTL, there were some big deals-some were in 1,000s while there was one in a 3,000 lot tranche.
Apart from that, it was mere nibblings; very likely, from retail buyers angling for some quick profits if the counter should move up quickly to RM2.00; and possibly some day traders hopping in to cash in from some arbitrage gains if foreign funds and other local institutional funds should start taking up positions.
Right now, they are trading at the RM1.75 sen, about 7 sen from the all-time high of RM1.82.
If the tsunami surge should come perhaps in a week's time, then this counter may move up with traction; at least to the next rung of RM1.80.
We really do not know what Francis is up to but we know that those who converted from YTL Cement have already had a profit of 32 sen in their pockets.
Though, the conversion has resulted in a massive influx of new shares into YTL Corp,this has been ambivalently balanced by the cash horde that has been remitted into the coffers of YTL Corp.
Also the net asset of the share will have gone up with the injection of YTL Cement's assets.
I am pretty sure that YTL is in the market to buy Treasury shares after amassing 6.77% of the entire shares as of yesterday.
The market has just ended with YTL Corp pegging on 7 sen to RM1.80. This is earlier than I have anticipated.
That it has ended at RM1.80 is indicative of a support price likely from Treasury buys, mopping up day traders who have taken profit from arbitrages.
Tomorrow is Friday. In all likelihood, there will be profit taking all round.
I believe, if world markets continue to be supportive, YTL Corp may spring up to RM1.90; before settling down at RM1.80 or better.
A self-fulfilling prophecy of RM2.00 is just about to come true.
That will be next week's action.
Labels:
Stocks
March 14, 2012
Achilles Heels and Bad Leadership
As the 13 GE looms near, speculated to be held sometime in May or June, whether BN wins back some of its lost state governments or reclaim its two-third majority in Parliament is anybody's guess.
In evaluating the likely chances of BN coming back into strength, do read the mainstream media with a chunk of salt. Similarly those who read the alternative media, expect speculation galore too as most of the premises they are built upon may also be suspect.
Be that as it may,let me also do my own so-called fair bit of crystal gazing and musings while the authorities put their thinking hats to call the election in the near term or to serve the full term till April 2013.
I believe that lately, the BN government has been on the defensive. The flip-flops; while good for the targeted segments of the Malaysian population, does not augur well for the BN leadership. Perception is very important and the current report card shows that BN is assailed from all directions.
These range from the volte-face capitulation in education-where English will continue to be used for the teaching of Science and Maths except for those in Std 1 and Std 2. So much gung-ho from the Education Minister and then he bucked! Now the opposition civil society groups such as PAGE has now galvanised with other like-minded groups to form a bigger group to fight for the liberation of education; and the use of English in the national education system for the sake of the future of Malaysian children in a competitive globalised world.
The second is the complete reversion of the Public Services Salaries Scheme to square one; albeit with some new changes that would appease the lower rungs of civil servants. Where the government is going to obtain the extra RM3 billion to foot the bill only Houdini can conjure up!
The others imbroglios include the RM300 million loans to buyers of KL City Hall flats which has yet to take off because of the supposedly sub-prime status of its borrowers and the ineffective 1Malaysia First Home Purchases for graduates which has yet to see some semblance of success. Here, Bank Negara is not moving an inch from its new lending guidelines in order to check the increasing household debt.
The controversial Felda Global Ventures listing is still stormy as the courts will be used again and again to stall the listing. Side-lining the Felda settlers will be a bane to BN. Failing to resolve this problem amicably will mean FELDA-driven constituencies may fell to the Opposition,regardless whether Pakatan is weak or strong in those areas.
The protest against the Gebeng Lynas project is still smouldering and may cost seats particularly in constituencies around Kuantan and in Pahang. There is also the likelihood that the effects may also reverberate to other constituencies nation-wide.
As I have written in an earlier post,as the razor-sharp no-stones un-turned PR investigative teams zoom in from one issue to another, the BN is forced into an Alamo siege mentality of of sorts. The 'Cowgate' scandal has been a field day for the PR faction. They have got some of the protagonists turned antagonists into courts and more may be charged.
The winds is in their sails as they now take on the PM exposing his birthday and his daughter's engagement party do. How will the PM re-act on this? Elegant silence or take the bulls by its horns and expose the PR investigators?
In Sarawak. BN may have a fighting chance in Sabah as the Opposition is yet to show any strength. Also, you have leaders such as Jeffrey Kitingan and Yong Teck Lee and their counterparts that are coming up from hibernation mode to throw a spanner into the works further confusing the Sabahan voters as they grappled with the need for an RCI to look into the ugly problem of illegal immigrants being fast-tracked into becoming voting citizens.
It will be BN's bulwark in Sarawak helmed by 'Peh Moh' which will help BN to make it its day or break its back in this coming elections. Intrepid and adept in politics as he is, this veteran is putting his finger to the wind. He may jump ship if the Titanic sinks! As they say, politics is the art of the possible!
For PR,which is the weakest party in the Pakatan Rakyat alliance, they have to ensure potential frogs are weeded out from their candidate list. Most ex-UMNO candidates may have to be thoroughly vetted before they can be considered as deserving candidates. That is Keadilan's Achilles heel.
Will history repeat itself and cause another Perak debacle?
In evaluating the likely chances of BN coming back into strength, do read the mainstream media with a chunk of salt. Similarly those who read the alternative media, expect speculation galore too as most of the premises they are built upon may also be suspect.
Be that as it may,let me also do my own so-called fair bit of crystal gazing and musings while the authorities put their thinking hats to call the election in the near term or to serve the full term till April 2013.
I believe that lately, the BN government has been on the defensive. The flip-flops; while good for the targeted segments of the Malaysian population, does not augur well for the BN leadership. Perception is very important and the current report card shows that BN is assailed from all directions.
These range from the volte-face capitulation in education-where English will continue to be used for the teaching of Science and Maths except for those in Std 1 and Std 2. So much gung-ho from the Education Minister and then he bucked! Now the opposition civil society groups such as PAGE has now galvanised with other like-minded groups to form a bigger group to fight for the liberation of education; and the use of English in the national education system for the sake of the future of Malaysian children in a competitive globalised world.
The second is the complete reversion of the Public Services Salaries Scheme to square one; albeit with some new changes that would appease the lower rungs of civil servants. Where the government is going to obtain the extra RM3 billion to foot the bill only Houdini can conjure up!
The others imbroglios include the RM300 million loans to buyers of KL City Hall flats which has yet to take off because of the supposedly sub-prime status of its borrowers and the ineffective 1Malaysia First Home Purchases for graduates which has yet to see some semblance of success. Here, Bank Negara is not moving an inch from its new lending guidelines in order to check the increasing household debt.
The controversial Felda Global Ventures listing is still stormy as the courts will be used again and again to stall the listing. Side-lining the Felda settlers will be a bane to BN. Failing to resolve this problem amicably will mean FELDA-driven constituencies may fell to the Opposition,regardless whether Pakatan is weak or strong in those areas.
The protest against the Gebeng Lynas project is still smouldering and may cost seats particularly in constituencies around Kuantan and in Pahang. There is also the likelihood that the effects may also reverberate to other constituencies nation-wide.
As I have written in an earlier post,as the razor-sharp no-stones un-turned PR investigative teams zoom in from one issue to another, the BN is forced into an Alamo siege mentality of of sorts. The 'Cowgate' scandal has been a field day for the PR faction. They have got some of the protagonists turned antagonists into courts and more may be charged.
The winds is in their sails as they now take on the PM exposing his birthday and his daughter's engagement party do. How will the PM re-act on this? Elegant silence or take the bulls by its horns and expose the PR investigators?
In Sarawak. BN may have a fighting chance in Sabah as the Opposition is yet to show any strength. Also, you have leaders such as Jeffrey Kitingan and Yong Teck Lee and their counterparts that are coming up from hibernation mode to throw a spanner into the works further confusing the Sabahan voters as they grappled with the need for an RCI to look into the ugly problem of illegal immigrants being fast-tracked into becoming voting citizens.
It will be BN's bulwark in Sarawak helmed by 'Peh Moh' which will help BN to make it its day or break its back in this coming elections. Intrepid and adept in politics as he is, this veteran is putting his finger to the wind. He may jump ship if the Titanic sinks! As they say, politics is the art of the possible!
For PR,which is the weakest party in the Pakatan Rakyat alliance, they have to ensure potential frogs are weeded out from their candidate list. Most ex-UMNO candidates may have to be thoroughly vetted before they can be considered as deserving candidates. That is Keadilan's Achilles heel.
Will history repeat itself and cause another Perak debacle?
Labels:
Politics
Random Walks and Oil and Gas Adventures
For the last few months, the market has been rumbling with rumours about corporate takeovers and asset injections. But do take notice, they are mostly penny stock counters.
Some parties have seen it worthwhile to take over these loss-making entities and in the process push their prices sky-high. Remember Tri-cubes and Karambunai? The latest to join the adventure is Naim Indah Corp (Nicorp)and Envair.
Nicorp has been invited by a party to tender for a takeover of some oil and gas facilities while Envair has a new majority shareholder in a politically connected carpet man.
The other phenomenon happening lately is called, in stock market parlance, the 'random walk'. Here, all stocks will naturally get out of hibernation and have their day of fame on the bourse's 'catwalk'. They prices will start to move up with heavy volume and then spurt upwards like a fountain only to fell back bringing losses to the uninitiated. Be careful. One such counter is Metronic Global. Is it doing a random walk or is it also embarking on an oil and gas adventure as it is an UMNO vehicle?
Now,both types of developments will occur in timely fashion,just before an impending general elections and since the election is looming closer every day, such counters are made into 'race-track horses' to make hay for the politically connected at the behest of greedy retail buyers and day traders. Once, they have amassed sufficient political funds to donate to their Godfather parties, the stocks will wither in price, lose momentum and be back to square one in no time. Look at Harvest Court,no one is interested really in it these days, though it has escalated so high because of some personalities. Money have been made, money have been lost!
For the weak hearted and weak-kneed, do stay away from these games.
Some parties have seen it worthwhile to take over these loss-making entities and in the process push their prices sky-high. Remember Tri-cubes and Karambunai? The latest to join the adventure is Naim Indah Corp (Nicorp)and Envair.
Nicorp has been invited by a party to tender for a takeover of some oil and gas facilities while Envair has a new majority shareholder in a politically connected carpet man.
The other phenomenon happening lately is called, in stock market parlance, the 'random walk'. Here, all stocks will naturally get out of hibernation and have their day of fame on the bourse's 'catwalk'. They prices will start to move up with heavy volume and then spurt upwards like a fountain only to fell back bringing losses to the uninitiated. Be careful. One such counter is Metronic Global. Is it doing a random walk or is it also embarking on an oil and gas adventure as it is an UMNO vehicle?
Now,both types of developments will occur in timely fashion,just before an impending general elections and since the election is looming closer every day, such counters are made into 'race-track horses' to make hay for the politically connected at the behest of greedy retail buyers and day traders. Once, they have amassed sufficient political funds to donate to their Godfather parties, the stocks will wither in price, lose momentum and be back to square one in no time. Look at Harvest Court,no one is interested really in it these days, though it has escalated so high because of some personalities. Money have been made, money have been lost!
For the weak hearted and weak-kneed, do stay away from these games.
Labels:
Stocks
YTL Corp-From RM1.55 to RM2.00
For those who bought YTL Corp shares cum share split of 1 into 5 way back in April 2011, you would have average about RM1.55 per share.
Subsequent to that, it rose as high as RM1.82 and went down as low as RM1.29. Currently it is back at RM1.73. [on 20 March 2012, it ended at RM1.76.]
If RHB IB forecast price of RM2.00 is achieved within 2012, that would mean that an investor who bought the share just after ex-split would have made RM0.45 sen per share. Assuming that you bought the share today at RM1.73, it means there is another 17 sen to be made if the share price moves and stays at that price of RM2.00.
So, let us re-calculate:
For the investor who made 0.45 sen, it meant a return of 29% gross or 23% nett.
For the investor who bought in today at RM1.73;with a potential 17 sen to be had, it means a return of 9.8% gross. Minusing brokerage and administrative charges, it means a return of 3.8%.This is still better than the current bank rate of 3%.
Today(20 March 2012)OSK IB predicts that YTL Corp will go further to a new top price of RM2.10.
So, would you still buy into YTL Corp at this stage?
Labels:
Stocks
Subscribe to:
Posts (Atom)














