Spelling Disorder

Yes, this is certainly plaguing the Gen Y of Malaysia.

The lack of English language skills and the pollution brought about by the widespread usage of inter-language among Malaysians have led to many who may be able to speak but when it comes to writing English, it is a different matter.

The spelling capability of young Malaysians are getting unstuck.

This cartoon speaks volumes.

Wholesome Rebuttal to Zeti?

I took this from the Malaysian Insider dated 29 November 2014. In this article, the writers of  the report on lack of savings among Malaysian households took the opportunity to rebut the Governor of BNM on the origins of their data.

In defending their data in the Malaysia Human Development Report 2013, the joint writers-Kamal Salih,Dr. Lee Hwok Aun and Dr. Muhd Adb Khalid put paid that their findings were based on inclusive and reliable sources.

I thought it make interesting reading especially when the rebuttal is intellectually stimulating.

It's a classic of the proverbial Davidian three pebbles against a Goliath.

Here is the article.

Do You Believe?

That the filthiest item you would touch in a restaurant is the menu?

But it's true.

Movies for Armed Forces and Servicemen

Interesting Throwback to the War Years

This credit is often seen at the end of movies that were made during the war years.

They were meant to boost the morale of fighting men as well as to entertain them.

On of these movies was Rodgers and Hammerstein's State Fair with its wonderful melodies and lyrics of yester-years.

ACCA and MIA To Boost Accountant Supply

More Business for ACCA

I plucked this from Bernama News dated 3 November 2014.

It seems that the Malaysian Institute of Accountants (MIA) and the Association of Certified Accountants (ACCA) have inked a strategic memorandum of understanding (MOU), a deal that could help boost the supply of accountants come 2020.

This deal intends to redouble efforts to develop 60,000 accounting professionals by that target year.

A  Interim 3-Year Pathway

Under this MOU, eligible MIA members will be incentivised to take the ACCA qualification. It will entail an exemption of 9 out of a total of 14 ACCA papers.

Initial registration fees and exemption fees will also be waived.

This special pathway will be in force for 3 years from today.

Stephen Heathcote,the ACCA executive director remarked that the exemption will hasten the certification process while simultaneously produce able and qualified accountants for Malaysia.

Currently, Malaysia has only to reach the half-way mark in meeting the targeted number of professionals required in the accounting field.

Signed by Heathcote and MIA President, Johan Idris, the former believed that this partnership would provide a sustainable pipeline of qualified accountants to support the government's development plans.

Meanwhile, Johan in his speech said that with this MOU, it will leverage each party's strengths and bring the accounting profession to the next level.

Beware,Odd Lot Counter Players

Stuck on One!

If you think that you can bargain on the Odd Lot Counter of BSKL, you may have to think twice.

I have played the odd lot counter quite frequently and this is the third time that the sellers had ensnared me.

I started by playing a counter called Gas Malaysia. I asked for 50 units and they gave me 7 units only.

The same goes for Bank Islam Malaysia Berhad (BIMB),where I got another 7 units only in spite of the 50 units I wanted to buy.

Then, there was  IHH Holdings (IHHH). They gave me only one unit of it, while holding the selling price at about 10 times the price I bid.

This late afternoon, they had me again. They gave me again one share at 57 sen while holding the balance at 80 sen for the counter I wanted to buy. I need to buy another 49 units.

What are the implications?

If you are satisfied with what you get,then take no more action.

That was what I did with Gas Malaysia and BIMB.

However, I could not do the same with IHH Holdings (IHHH).

Why?

If I did not buy in a trading 100 unit on the Main Board. it would mean my share would be the price of that unit plus RM 30 for overheads such as brokerage, clearing fees and stamp duty.

Let us assume you bought one unit of IHHH at RM 4.50. Failure to take follow up action to buy more will mean that your IHHH share is priced at RM 34.50 .This would means it cost about the price of KLK and most other blue chips. Big loss, my friend!

So,what do I have to do today for that counter that I have been ensnared?

If I lucked out, it can only mean I would have to buy it at a much higher price than currently on offer.

On the Main Board,the offer price is 58.5 sen. Perhaps, I would have to take up the seller's offer before trading ends at 5 p.m. today.

So,watch your steps when playing in this no-holds barred; anything can happen to you God-forsaken Odd lot counter on BSKL.

Post-script:

I had to buy 100 more shares at 57.5 sen on the main board and 9 more shares at 57 sen on the odd-lot board. He gave to me the 9 units in the afternoon session.

What a hassle.

Strangely, the seller threw in the towel and gave his shares even at 33 sen for a 24 sen loss.

So, I may not have gained but those who bought at 33 sen certainly did!

Hot Seats on MAS!

Going Nowhere?

On 6 November 2014, the same Board of Directors of MAS will again face the bitter minority shareholders.

Unless they can say something pleasing and reassuring to the ears of the minority shareholders or give them a handsome subsidised flight ticket to partly off-set their massive losses holding below par value MAS shares for ages, expect fireworks just like what MAS experienced at their recent rowdy AGM.

This time around-will the minority shareholders allow Khazanah to take MAS shares off their hands for a song? Will Khazanah succeed in privatising MAS?

While independent adviser AmInvest Bank may verbalise the obvious financial platitudes to placate minority shareholders and that the Khazanah offer is prima facie both 'fair' and 'reasonable', I think it will be an uphill task as the shareholders may be looking for a better deal.

Khazanah proposes paying 27 sen per MAS share to take it private so that they can restructure the company and resuscitate it back to financial health. 

It involves both a capital reduction and repayment exercise. 

Let us look at the forces of Khazanah and the minority shareholders.  While Khazanah owns 69.37% interest in this airline, the next 29 biggest shareholders sadly only hold an aggregate quantum of 6.57% of MAS shares. Strangely, 4 billion shares or 24% lie in the hands of the average Joe and Jane investor. They are  an absolutely unhappy lot!

To get through its SCR proposal, Khazanah needs at least 50% in numbers as well as 75% in value acceptance (Likely through a poll with proxy strength). 

I am not sure about what 50% in number means? Does it mean Khazanah and the 29 biggest shareholders of MAS? Or the 4 billion share bloc? Or those who are attending in person and through a vote of hands?

Apart from that, Khazanah needs 90% acceptance from shareholders to de-list MAS from Bursa Malaysia. This may be a tall order again if the mood and tide goes awry on 6th November with the average Joe and Jane shareholder. 

As part of the new plan to salvage MAS, Khazanah will invest RM6bil more, cut 6,000 jobs and migrate the airline’s into a new company which will be operational on July 1,2015.

Interestingly, the circular warned that if Khazanah failed to get the votes it needed to push through its plan, MAS would remain listed and there would be no RM6bil cash-injection from Khazanah, and if MAS continued to incur heavy losses coupled with its cash reserves of RM2.4bil depleting over the next 12 months, the airline could become a PN17 company.

I wonder how the minority shareholders will hold up against this serious scenario.

Will they bite the bullet and go down with the airship or will they run helter skelter with 27 sen to a dollar?

This is an EGM that will  likely see conflagration,not a whimper. 

All minority shareholders should attend!

Can the Chairman, CEO and Board members of MAS willing and ready to be on these hot seats to be grilled once more on 6 November?

The jury is out on that one.