PETALING JAYA: Plantation group Felda Global Ventures Holdings Bhd (FGV) is believed to have been offered up to 15% discount on its planned purchase of PT Eagle High Plantations Tbk despite seeking a higher reduction in the price, according to sources.
The 15% discount would mean FGV would be paying around US$578mil (RM2.39bil), compared with the original price tag of US$680mil (RM2.8bil).
StarBiz had first reported in November 2015 that FGV was seeking to secure a discount in the price of its 37% stake purchase in the Indonesian planter.
Recall that on June 12, 2015, FGV had proposed to acquire from Rajawali Group a 37% stake in Eagle High – the third-largest plantation group listed in Jakarta – for US$631.5mil (RM2.37bil) cash and 95.44 million new FGV shares, representing 2.55% of the enlarged and issued share capital of the group. It also plans to buy 95% of a sugar project from Rajawali for US$67mil.
The proposed deal was not well received by investors because of its valuation and the impact on FGV’s balance sheet.
Recently, a business weekly speculated that FGV was working with its parent, Federal Land Development Authority (Felda), to secure a 30% discount on the Eagle High deal.
In early December, FGV had said that there might be “a different mode of investment” in Eagle High.
Instead of the 37% stake, FGV could be taking a much smaller stake, with the larger stake being taken by Felda Investment Corp (FIC), which could take away a large portion of the risk from the former, which has been hit hard by weaker crude palm oil prices. FIC is Felda’s main investment arm and has made numerous strategic investments in recent years.
Following the news, CIMB Research said if this transaction were to materialise as reported and if FGV were to buy a 10% stake in Eagle High for around 563 rupiah per share (30% discount to the last proposed price), it would be negative for FGV as this could potentially dilute FGV’s value by RM416mil.
CIMB Research said this is because at 563 rupiah per share, the group would be paying a premium of 410% above Eagle High’s current market price of 137 rupiah per share, for a small stake.
“The persistent news flow on its plans to acquire Eagle High at a premium over its market price may dampen sentiment on share prices of the company. On top of this, the group’s FY15 results are likely to remain weak as it posted a 6% year-on-year decline in fresh fruit bunch (FFB) output for the 11 months of FY15, which is sharper than our estimate of a 5% decline for the full year as well as below Malaysia’s palm oil output growth of 1% in 11 months of FY15. We suspect this could be due to declining FFB yields at its estates,” it adds.
CIMB Research had cut its FGV target price to RM1.49 from RM1.73 while maintaining a “reduce” call for the stock. It raised FGV’s discount to sum-of-parts (SOP) valuation from 30% to 40% over concern about the company’s plan to acquire a stake in Eagle High.
“We are keeping our earnings forecasts, but lower our target price as we raise the discount to our SOP valuation from 30% to 40%. The higher discount was to reflect our concerns over its plans to buy Eagle High as well as for its lower-than-expected FFB output,” it said.
FGV shares have rebounded from RM1.45 on Jan 26 to RM1.72 on Friday giving the company a market capitalisation of over RM6.2bil.
PETALING JAYA: Plantation group Felda Global Ventures Holdings Bhd (FGV) is believed to have been offered up to 15% discount on its planned purchase of PT Eagle High Plantations Tbk despite seeking a higher reduction in the price, according to sources.
The 15% discount would mean FGV would be paying around US$578mil (RM2.39bil), compared with the original price tag of US$680mil (RM2.8bil).
StarBiz had first reported in November 2015 that FGV was seeking to secure a discount in the price of its 37% stake purchase in the Indonesian planter.
Recall that on June 12, 2015, FGV had proposed to acquire from Rajawali Group a 37% stake in Eagle High – the third-largest plantation group listed in Jakarta – for US$631.5mil (RM2.37bil) cash and 95.44 million new FGV shares, representing 2.55% of the enlarged and issued share capital of the group. It also plans to buy 95% of a sugar project from Rajawali for US$67mil.
The proposed deal was not well received by investors because of its valuation and the impact on FGV’s balance sheet.
Recently, a business weekly speculated that FGV was working with its parent, Federal Land Development Authority (Felda), to secure a 30% discount on the Eagle High deal.
In early December, FGV had said that there might be “a different mode of investment” in Eagle High.
Instead of the 37% stake, FGV could be taking a much smaller stake, with the larger stake being taken by Felda Investment Corp (FIC), which could take away a large portion of the risk from the former, which has been hit hard by weaker crude palm oil prices. FIC is Felda’s main investment arm and has made numerous strategic investments in recent years.
Following the news, CIMB Research said if this transaction were to materialise as reported and if FGV were to buy a 10% stake in Eagle High for around 563 rupiah per share (30% discount to the last proposed price), it would be negative for FGV as this could potentially dilute FGV’s value by RM416mil.
CIMB Research said this is because at 563 rupiah per share, the group would be paying a premium of 410% above Eagle High’s current market price of 137 rupiah per share, for a small stake.
“The persistent news flow on its plans to acquire Eagle High at a premium over its market price may dampen sentiment on share prices of the company. On top of this, the group’s FY15 results are likely to remain weak as it posted a 6% year-on-year decline in fresh fruit bunch (FFB) output for the 11 months of FY15, which is sharper than our estimate of a 5% decline for the full year as well as below Malaysia’s palm oil output growth of 1% in 11 months of FY15. We suspect this could be due to declining FFB yields at its estates,” it adds.
CIMB Research had cut its FGV target price to RM1.49 from RM1.73 while maintaining a “reduce” call for the stock. It raised FGV’s discount to sum-of-parts (SOP) valuation from 30% to 40% over concern about the company’s plan to acquire a stake in Eagle High.
“We are keeping our earnings forecasts, but lower our target price as we raise the discount to our SOP valuation from 30% to 40%. The higher discount was to reflect our concerns over its plans to buy Eagle High as well as for its lower-than-expected FFB output,” it said.
FGV shares have rebounded from RM1.45 on Jan 26 to RM1.72 on Friday giving the company a market capitalisation of over RM6.2bil.
Showing posts with label malaysia. Show all posts
Showing posts with label malaysia. Show all posts
1 February 2016
22 November 2015
李克強：中國願買大馬國債
中國國務院總理李克強指出，中國願意加強與大馬的金融合作，中國願意按市場購買大馬的國債，並且在大馬發放人民幣債券。
李克強指出，中國希望內需可成為大馬的商機，他有信心中馬的投資前景廣闊。 中國國務院總理李克強趣談大馬果王榴槤時說，很多中國人告訴我，第一次吃（榴槤）可能會很難受，第二次吃會很難忘，而第三次吃就會忘不了。” 中國總理李克強今早10時抵達吉隆坡香格里拉大酒店，並趕在馬中經濟高層開始前，與副首相拿督斯里阿末扎希、第二貿工部長拿督斯里黃家泉及大馬10大富豪進行短時間會面。 這10人包括常青集團兼世華媒體集團執行主席丹斯里張曉卿爵士、丹斯里郭鶴年長子郭孔丞、楊忠禮集團創辦人丹斯里楊忠禮、IOI集團主席丹斯里李深靜、亞航集團創辦人丹斯里東尼費南達斯、馬來西亞中華總商會（中總）總會長拿督戴良業、吉隆坡甲洞首席執行員拿督斯里李愛賢、聯昌銀行首席執行員拿督蘇萊曼及國庫控股首席執行員等。
李克強指出，中國希望內需可成為大馬的商機，他有信心中馬的投資前景廣闊。 中國國務院總理李克強趣談大馬果王榴槤時說，很多中國人告訴我，第一次吃（榴槤）可能會很難受，第二次吃會很難忘，而第三次吃就會忘不了。” 中國總理李克強今早10時抵達吉隆坡香格里拉大酒店，並趕在馬中經濟高層開始前，與副首相拿督斯里阿末扎希、第二貿工部長拿督斯里黃家泉及大馬10大富豪進行短時間會面。 這10人包括常青集團兼世華媒體集團執行主席丹斯里張曉卿爵士、丹斯里郭鶴年長子郭孔丞、楊忠禮集團創辦人丹斯里楊忠禮、IOI集團主席丹斯里李深靜、亞航集團創辦人丹斯里東尼費南達斯、馬來西亞中華總商會（中總）總會長拿督戴良業、吉隆坡甲洞首席執行員拿督斯里李愛賢、聯昌銀行首席執行員拿督蘇萊曼及國庫控股首席執行員等。
31 October 2015
A story of Inflation...
Today went out lunch with colleague nearby Jalan Ampang. Mixed rice always come to my mind as I can choose the dishes I like to eat. This time I've taken a vege(KaiLan) and mushroom chicken, 1 vege and 1 meat with a small rice cost me about RM6 and bought a RM1.5 pack of fruit(a less quarter of pineapple) later. Well... RM6 + RM1.5 doesn't sound expensive now a day especially area nearby KLCC.
Unfortunately, we were forced to take shelter inside the old building(Wisma Central) by a heavy rain. So, we all snakes(lazy to get back to work) and yumcha(drink tea) for a while at the mamak store. While everyone were talking, I suddenly raised a question to them... "hey, how much was the cheapest per pack of fruit you guys bought last time and when was it?" while pointing the one I bought earlier. They replied "RM1 or RM0.50 long ago la". However, I told them the lowest price I got was RM0.50 during my primary education(which was around 18 years passed). The figure doesn't seems too big, but it'd got 200% increased when you calculate in terms of percentage. Well, that means a lot to me :P...
Besides that, lets take the price of mixed rice for the calculation... my lowest for 1 vege and 1 meat 10 years back was about RM3.5(I think lesser than this) which equivalent around 50% la...
Meaning to say, you are using twice the money to buy the same or even lesser quantity for the same thing 10years after. Somehow I thought this way... my RM10k saving 10years back has became a "value" of RM5k even tough you still can see the figure of RM10k in the bank book.
Eh, not saying that saving is not good here or not asking you to stop saving... Personally thinks saving is a must and is so important especially for the young one. But saving blindly without a plan is very dangerous as you don't realized the value of your money has become lesser than before. Suggest, to save for a purpose, such as for any types of investment, or something you think is worth buying that can create value for you....
Unfortunately, we were forced to take shelter inside the old building(Wisma Central) by a heavy rain. So, we all snakes(lazy to get back to work) and yumcha(drink tea) for a while at the mamak store. While everyone were talking, I suddenly raised a question to them... "hey, how much was the cheapest per pack of fruit you guys bought last time and when was it?" while pointing the one I bought earlier. They replied "RM1 or RM0.50 long ago la". However, I told them the lowest price I got was RM0.50 during my primary education(which was around 18 years passed). The figure doesn't seems too big, but it'd got 200% increased when you calculate in terms of percentage. Well, that means a lot to me :P...
Besides that, lets take the price of mixed rice for the calculation... my lowest for 1 vege and 1 meat 10 years back was about RM3.5(I think lesser than this) which equivalent around 50% la...
Meaning to say, you are using twice the money to buy the same or even lesser quantity for the same thing 10years after. Somehow I thought this way... my RM10k saving 10years back has became a "value" of RM5k even tough you still can see the figure of RM10k in the bank book.
Eh, not saying that saving is not good here or not asking you to stop saving... Personally thinks saving is a must and is so important especially for the young one. But saving blindly without a plan is very dangerous as you don't realized the value of your money has become lesser than before. Suggest, to save for a purpose, such as for any types of investment, or something you think is worth buying that can create value for you....
Hope you enjoy reading, good luck and to be continued...
Still learning and always will be :)
11 October 2015
Stock Quick Glance: L&G[3174]
LAND & GENERAL BHD
Background:
A property and development company(which also involving in Education and other segments like plantations, hospitality and part of oversea development in Australia)
1. Why should we quick glance of this company?
- High ROE, PE <10, and got dividend!
- Huge cash flow(Total of 363mil of cash and not to mentioned the inventories, receivables and the tax that the company going to get back)
363mil/1078mil of shares = 33cents of cash per share
This means paying 41cents(current share price) to owned 33cents of cash and 8cents worth of stocks!
Anyway, this does not mean anything but obviously this counter is undervalued!
Besides, the health financial reports and the growing revenue speak louder than words!
2. Future developments:
- Astoria Project(GDV of 845mil)
- Foresta Phase 2(GDV of 490mil)
- Landed residential(GDV of 280mil)
- so on...
*btw, don't forget their NTA of around 60cents(which considered the share is also trading at 35% discount of current price)
There are few things to take not about the company are:
- weak property market sentiment
- material mitigation(late completion of project)
- not to forget the low debts of 85mil
- ICULS will also dilute the EPS in future
Property is expensive now? perhaps considering invest in the company with cheap price?
*I do holding L&G shares but just wanted to share what is noticed, it's not a buy/sell call as just for reference only
A property and development company(which also involving in Education and other segments like plantations, hospitality and part of oversea development in Australia)
1. Why should we quick glance of this company?
- High ROE, PE <10, and got dividend!
363mil/1078mil of shares = 33cents of cash per share
This means paying 41cents(current share price) to owned 33cents of cash and 8cents worth of stocks!
Anyway, this does not mean anything but obviously this counter is undervalued!
Besides, the health financial reports and the growing revenue speak louder than words!
2. Future developments:
- Astoria Project(GDV of 845mil)
- Foresta Phase 2(GDV of 490mil)
- Landed residential(GDV of 280mil)
- so on...
*btw, don't forget their NTA of around 60cents(which considered the share is also trading at 35% discount of current price)
There are few things to take not about the company are:
- weak property market sentiment
- material mitigation(late completion of project)
- not to forget the low debts of 85mil
- ICULS will also dilute the EPS in future
Property is expensive now? perhaps considering invest in the company with cheap price?
*I do holding L&G shares but just wanted to share what is noticed, it's not a buy/sell call as just for reference only
Hope you enjoy reading, good luck and to be continued...
Still learning and always will be :)
6 October 2015
YTL Power deal expires, bids for 'short-term' contract
PETALING JAYA: Tenaga Nasional Bhd (TNB) has stopped buying electricity from YTL Power International Bhd following the expiry of a power purchase agreement (PPA) between the two companies.
“With the expiry, YTL no longer exports power to the grid effective Oct 1, 2015,” TNB said in a statement yesterday.
It is unclear how the latest development would impact YTL Power. The company had previously said it was in discussions with the Energy Commission (EC) for an extension of the PPA.
Shares in YTL Power were unchanged at RM1.52, with 4.26 million shares being traded. The stock price was adjusted from its Friday’s closing price of RM1.62 as it was traded ex-dividend yesterday.
In the statement, TNB said the PPA, which was signed back on March 31, 1993 with YTL Power’s subsidiary – YTL Power Generation Sdn Bhd – expired on Sept 30, 2015.
“Concurrently, a leasing agreement which YTL had entered into with TNB to lease the latter’s land in Paka in Terengganu and Pasir Gudang in Johor to build its power stations was also affected,” TNB said.
The power giant said that the PPA signed with YTL Power was its first PPA with an independent power producer (IPP), and the only PPA that was based on a take-or-pay mechanism for a period of 21 years.
It has been reported that YTL Power has been selected under a “short-term capacity” bid by the EC to continue to supply electricity from its existing facility.
YTL Power had previously been quoted as saying that the company was currently in discussions on the terms and conditions and that the new PPA was expected to be signed for the period from March 1, 2015 to Dec 31, 2018.
According to sources, the bidding process for the new PPA has already closed and the result is expected to be announced soon.
“The short-term contract is expected to supply about 580MW of electricity, and should YTL bag the contract, it will continue to supply electricity from its existing power plants,” sources said.
YTL Power has two gas-fired power plants in Malaysia - one in Paka, Terengganu, and another in Pasir Gudang, Johor – with a combined generation capacity of 1,212MW.
Other IPPs, namely, Powertek Bhd, controlled by 1Malaysia Development Bhd (1MDB) and Malakoff Corp Bhd’s Port Dickson Power Sdn Bhd are also bidding for an extension of their PPA contracts.
Meanwhile, it is believed that YTL Power has received a conditional offer from the EC.
Among the conditions include YTL Power resolving land issues with TNB, as well as its gas supply agreement with Petroliam Nasional Bhd.
Recall, the EC had earlier announced that it would be conducting an open-bidding exercise to extend expiring PPAs to address a power shortage due to a delay in two major power plants and to maximise the use of the existing assets.
The two plants are 1MDB’s 2,000MW coal-fired power plant called Project 3B, and Project 4A, which is a 1,000MW-1,400MW gas-fired power plant to be built in Johor.
StarBiz had reported that while fast-tracking the construction of new power plants was one way of addressing the problem, industry players have opined that a more immediate solution was to look at repowering expiring power plants such as YTL Power, Powertek and Port Dickson Power.
“It may not be a long contract. They could just tap the existing plant to fill up the gap should there be a shortfall in the energy-generation capacity in view of the delays,” said an industry observer.
So far, the EC has extended the concession agreement for five IPPs, with a generating capacity of 2,915MW. The extension has been ongoing since 2011 when the EC took over the awarding of new power plants in the country in a move to revamp the national electricity-generation sector.
According to an analyst, about 15% of YTL Power’s profits are from its local power plant business, while the remaining comes from its overseas assets.
In the financial year ended June 30, 2015 (FY15), YTL Power’s net profit fell 25% to RM901mil from RM1.2bil in FY14. Its revenue was also down to RM11.93bil from RM14.44bil a year ago due to the lower units of electricity sold and the lower electricity price as a result of lower fuel prices.
5 October 2015
Stock Quick Glance: GOB[1147]
GLOBAL ORIENTAL BERHAD
background:
4 core business segments:
- property development, which is engaged in the development of residential and commercial properties, and sale of development land(highlighted red is contributed largely for the current revenue, refer to Q1 2016)
- construction, which is engaged in the construction of property development projects and other similar construction activities
- property letting, which is engaged in the rental of properties
- investment holding
Quick glance:
What is the Company's plans:
- Clear off debts & future development plan (Source)
- highlighted below shows they are desperate to clear the debts as last Q2 sold two more lands for cash...
How much debts?
- 262.8mil
How to clear?
- Cash from balance sheet shows that the company has 69mil (not to mention 39mil inventories and 35mil of receivable)
- selling da:men for 488mil
Total of cash = 557mil(assume if da:men confirmed sold)
Net cash total/share is 0.647(12.5% upside of current 0.575) as 294.2mil(557mil-262.8mil) / 454.7(mil of shares)
However, I can also conservatively calculate GOB share price at around 0.78 per share(regardless of other segment's revenue, see Pic A) by Q2 2016 as 353.1mil/454.7(mil of shares)
353.1mil = 488mil + 39mil inventories + 35mil of receivable +16.3mil cash coming in future(see below) - total of debts
Pic A:
Conclusion: GOB is considered undervalue even current weak market sentiment for property segment!
*I didn't hold any share of GOB as just write for fun, it's not a buy/sell call as just for reference only
*too bad no dividend
Other info:
btw, sharing a chart of after AMPROP sold off Kesas for 280mil cash last time at April 2014.
- estimated upside of 80-90%
- property development, which is engaged in the development of residential and commercial properties, and sale of development land(highlighted red is contributed largely for the current revenue, refer to Q1 2016)
- construction, which is engaged in the construction of property development projects and other similar construction activities
- property letting, which is engaged in the rental of properties
- investment holding
Quick glance:
What is the Company's plans:
- Clear off debts & future development plan (Source)
- highlighted below shows they are desperate to clear the debts as last Q2 sold two more lands for cash...
How much debts?
- 262.8mil
- Cash from balance sheet shows that the company has 69mil (not to mention 39mil inventories and 35mil of receivable)
Total of cash = 557mil(assume if da:men confirmed sold)
Net cash total/share is 0.647(12.5% upside of current 0.575) as 294.2mil(557mil-262.8mil) / 454.7(mil of shares)
However, I can also conservatively calculate GOB share price at around 0.78 per share(regardless of other segment's revenue, see Pic A) by Q2 2016 as 353.1mil/454.7(mil of shares)
353.1mil = 488mil + 39mil inventories + 35mil of receivable +16.3mil cash coming in future(see below) - total of debts
Pic A:
Conclusion: GOB is considered undervalue even current weak market sentiment for property segment!
*I didn't hold any share of GOB as just write for fun, it's not a buy/sell call as just for reference only
*too bad no dividend
Other info:
btw, sharing a chart of after AMPROP sold off Kesas for 280mil cash last time at April 2014.
- estimated upside of 80-90%
Hope you enjoy reading, good luck and to be continued...
Still learning and always will be :)
2 October 2015
EcoWorld: 刘启盛重提实达集团遭恶意收购 “财富可夺团队抢不走”
The "Team" is the key of making EcoWorld so successful. EcoWorld the "shadow" of SP Setia has potentially becoming the "taikor" of the property sector in very short of time. Impressively, they have planned to go beyond Malaysia(as targeted oversea spots like Hong Kong, London, Singapore and many more). Not to forget the future plan for setting up the first property investment SPAC(special-purpose acquisition company). I would say he is a guy with great vision and undeniable he is a well-planner. Salute!
（吉隆坡27日讯）你可拿走我的资产，却带不走我的团队！
针对一手苦心经营成功的实达集团被“恶意收购”，丹斯里刘启盛今日开腔评论此事，声称没人可带走曾与他打拼天下的团队。
他说，在2012年，实达集团被“恶意收购”，然后他在短短3年内创办绿盛世集团，并达到今天的成就。
“你可以拿走我的资产，但就是带不走我的工作人员、我的团队。”
绿盛世集团主席刘启盛今日出席安联银行中小企业革新挑战比赛宣布20人入围名单大会时，与入围者这么指出。出席此大会的嘉宾包括安联银行执行副总裁兼交易及中小企业金融组主任许永瑞。
团队是成功关键
刘启盛呼吁企业家重视栽培团队里的人才，因现在创业不如以前，并非有金钱就能取代人才。
“以前的年代，身为老板的你只要有钱，就能裁掉你的员工再聘请新的一位来取代，但现在却不同了。
“你的企业是否成功，与你的团队有莫大关系，因此你们要专注在培训及留住这些团队。”
刘启盛表示重视年轻人才，他们能提供很多创新点子，有助于企业发展。
努力改善生意
刘启盛也鼓励没有成功入围20强决赛的企业家勿放弃，并继续努力改善其生意。
他也提醒出席者，要成为卓越的企业家并不容易，并形容一名企业家每天都会面对新的问题及新挑战。
与此同时，他呼吁企业家，在成功后，不要忘了回馈社会。
24 September 2015
[Reshare] Nazir Razak: Moody's 'junk' rating due to negative coverage of Malaysia
"PETALING JAYA: Financial controversies in Malaysia need to be addressed, urges prominent banker and CIMB Group chairman Datuk Seri Nazir Razak.
"This is worrying. The market is much more negative about Malaysia than the rating agencies, taking us into 'junk' category, way below our fundamentals," said the brother of Prime Minister Datuk Seri Najib Tun Razak in a post on his Instagram on Thursday.
Nazir, who is also CIMB group chairman, suspects that credit-default-swap traders have placed Malaysia in the "junk" category due to the large amount of negative coverage in publications such as the Wall Street Journal, Financial Times, and the New York Times.
"All 'capital' people read at least one, if not all of them. We have to change the current narrative about Malaysia with answers or legal suits; can't just ignore them," he warned.
Though Nazir did not specify what Malaysia had to answer for, the country has made international headlines for controversies involving the Government-owned investment arm 1Malaysia Development Berhad (1MDB)." source
23 September 2015
Days after the RM20bil donkey show
Just about a week after the fund of RM20bil announced to save the day. However, the market somehow behaved unexpectedly when everyone still enjoying the ride back above 168X. KLCI has been consecutively dropped for the pass few days and MYR weaken to 4.33+ against USD. Besides, the foreign fund were also found retreating...
Up until now, we never hear of any news from the ValueCap but merely based on own imagination. Many so called GLC related counters were already rebound for more than 20% within days after the announcement. But things seems to be so abstract as no one know where it gone. @.@a
Well, stock market really is a place full of excitement. It can climb up few hundred points up because of some "news" and also can back to square within days. Somehow questions still remained blurred, where and when this RM20bil be rolling out? Donkey show were about to be over and it's time for the real call. Show time's coming, either it is a bull or a bear? we shall see... enjoy it...
Well, stock market really is a place full of excitement. It can climb up few hundred points up because of some "news" and also can back to square within days. Somehow questions still remained blurred, where and when this RM20bil be rolling out? Donkey show were about to be over and it's time for the real call. Show time's coming, either it is a bull or a bear? we shall see... enjoy it...
Hope you enjoy reading, good luck and to be continued...
Still learning and always will be :)
20 September 2015
Invest in GOLD?
I'm still remember 3 years back, I'd invested into Gold(paper terms) when the price was about RM165/g. Back then, fuyoh... many banks were offering gold account for you to hedge against inflation(they said). However, my thought that time was just to keep some of my saving in other types of portfolio rather than property as many seniors were still not encouraging me in stock trading yet. Soon, I'd began to buy into gold and have waited for it to hit another height(RM180/g - 2012). Unfortunately, gold price later was not as how beautiful it's looks and the spread(buy/sell rate) was not that good(RM7 of spread) to an ordinary man like me. Why not good? For example, Banks selling at RM10 to you but you can only sell to them at RM3(take a look at below screenshot taken just now)...
Well, the charges is quite expensive as every transactions(buy and sell) imposed a 4.24%... Meaning I need to earn more than 4.24% only can considered as profit. Somehow, things has not gone as good as it was expected, and sadly the gold price kept dropping after I'd bought in(stupid me). Months later, I decided to sell all after it dropped to RM155/g(forced to sell at RM148/g, due to the spread) which equivalent to 10.x% loss(hmm...just realised I know cut loss even before stock trading... hahaha).
After this experience, I would only think that gold as an jewellery which for you to display or show off(but some time keep, like the old folks do). Besides, I will not think this as an type of investment anymore since then. Why? because it's actually has no appreciate value but merely depend on the supply and demand. In fact, it will not generate you passive income like stock giving out dividend/bonus/free gift or eat(during AGM).
Anyway, not to admit that gold is really a beautiful metal when you are holding it physically. That why I've just bought some to wear regardless it will appreciate or not. kikiki... it's still shinning :)
Well, don't get mad at me as it's just my opinion or you can share your view if you disagree with me. Sorry ya...
After this experience, I would only think that gold as an jewellery which for you to display or show off(but some time keep, like the old folks do). Besides, I will not think this as an type of investment anymore since then. Why? because it's actually has no appreciate value but merely depend on the supply and demand. In fact, it will not generate you passive income like stock giving out dividend/bonus/free gift or eat(during AGM).
Anyway, not to admit that gold is really a beautiful metal when you are holding it physically. That why I've just bought some to wear regardless it will appreciate or not. kikiki... it's still shinning :)
Well, don't get mad at me as it's just my opinion or you can share your view if you disagree with me. Sorry ya...
Hope you enjoy reading, good luck and to be continued...
Still learning and always will be :)
16 September 2015
The RM20bil
Ever wonder, why government intervened the stock market by injecting RM20bil?
To be honest, I'm quite worried and not sure how this will help our economy fundamentally. However, the market is positively behaved after the government's announcement. The ValueCap emerged out of nowhere with this huge capital like GOD. Khazanah, PNB and also KWAP suddenly became the saviour from certain point of view. Why RM20bil but not RM40bil directly push above 1700? What's the point if not focusing on the exact issue causing the foreigns retreat unconfidently? The stock market is actually reflecting on how well Malaysia economy is doing. I maybe wrong, but am pretty sure is due to your politics, your economic policy and part of the overall sentiment. The government should come out with something really help or boost the economy. As the matter of facts, government can do something like promoting local products oversea, improving the infrastructure, subsidise anything that benefits to the citizen and many more. Sorry to say that, obviously the government have no care to the people but to own benefits(GLC)! The people don't feel secure/safe while you became trader yourself to earn some handsome profits huh? The foreigns fund would be so happy when you helps them to unload more. This is definitely a short term solution only. And is not a wise play after all. Let we all see how long the government can play...
feeling disappointing...
feeling disappointing...
Hope you enjoy reading, good luck and to be continued...
Still learning and always will be :)
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