June 30, 2010

BERKSHIRE HATHAWAY letter to shareholders 2000

pg11
To get back to our examination of GEICO: There are at least four factors that could account for the increased costs we experienced in obtaining new business last year, and all probably contributed in some manner.
First, in our advertising we have pushed “frequency” very hard, and we probably overstepped in certain media. We’ve always known that increasing the number of messages through any medium would eventually produce diminishing returns. The third ad in an hour on a given cable channel is simply not going to be as effective
as the first.
Second, we may have already picked much of the low-hanging fruit. Clearly, the willingness to do business with a direct marketer of insurance varies widely among individuals: Indeed, some percentage of Americans ¾ particularly older ones ¾ are reluctant to make direct purchases of any kind. Over the years,however, this reluctance will ebb. A new generation with new habits will find the savings from direct purchase of their auto insurance too compelling to ignore.
Another factor that surely decreased the conversion of inquiries into sales was stricter underwriting by GEICO. Both the frequency and severity of losses increased during the year, and rates in certain areas became inadequate, in some cases substantially so. In these instances, we necessarily tightened our underwriting standards.
This tightening, as well as the many rate increases we put in during the year, made our offerings less attractive to some prospects.A high percentage of callers, it should be emphasized, can still save money by insuring with us. Understandably, however, some prospects will switch to save $200 per year but will not switch to save $50. Therefore, rate increases that bring our prices closer to those of our competitors will hurt our acceptance rate, even when we continue to offer the best deal. Finally, the competitive picture changed in at least one important respect: State Farm ¾ by far the largest personal auto insurer, with about 19% of the market — has been very slow to raise prices. Its costs, however, are clearly increasing right along with those of the rest of the industry.

pg12
And, when a company is selling a product with commodity-like economic
characteristics, being the low-cost producer is all-important.

In 2000, we sold nearly all of our Freddie Mac and Fannie Mae shares, established 15% positions in several mid-sized companies, bought the high-yield bonds of a few issuers (very few — the category is not labeled junk without reason) and added to our holdings of high-grade, mortgage-backed securities. There are no “bargains”
among our current holdings: We’re content with what we own but far from excited by it.
Many people assume that marketable securities are Berkshire’s first choice when allocating capital, but that’s not true: Ever since we first published our economic principles in 1983, we have consistently stated that we would rather purchase businesses than stocks. (See number 4 on page 60.) One reason for that preference is
personal, in that I love working with our managers. They are high-grade, talented and loyal. And, frankly, I find their business behavior to be more rational and owner-oriented than that prevailing at many public companies.

pg13
Leaving aside tax factors, the formula we use for evaluating stocks and businesses is identical. Indeed, the formula for valuing all assets that are purchased for financial gain has been unchanged since it was first laid out by a very smart man in about 600 B.C. (though he wasn’t smart enough to know it was 600 B.C.).
The oracle was Aesop and his enduring, though somewhat incomplete, investment insight was “a bird in the hand is worth two in the bush.” To flesh out this principle, you must answer only three questions. How certain are you that there are indeed birds in the bush? When will they emerge and how many will there be? What is the risk-free interest rate (which we consider to be the yield on long-term U.S. bonds)? If you can answer these three questions, you will know the maximum value of the bush ¾ and the maximum number of the birds you now possess that should be offered for it. And, of course, don’t literally think birds. Think dollars.

Common yardsticks such as dividend yield, the ratio of price to earnings or to book value, and even growth rates have nothing to do with valuation except to the extent they provide clues to the amount and timing of cash flows into and from the business. Indeed, growth can destroy value if it requires cash inputs in the early years of a project or enterprise that exceed the discounted value of the cash that those assets will generate in later years.
Market commentators and investment managers who glibly refer to “growth” and “value” styles as contrasting approaches to investment are displaying their ignorance, not their sophistication. Growth is simply a component ¾ usually a plus, sometimes a minus ¾ in the value equation.
Alas, though Aesop’s proposition and the third variable ¾ that is, interest rates ¾ are simple, plugging in numbers for the other two variables is a difficult task. Using precise numbers is, in fact, foolish; working with a range of possibilities is the better approach. Usually, the range must be so wide that no useful conclusion can be reached. Occasionally, though, even very conservative estimates about the future emergence of birds reveal that the price quoted is startlingly low in
relation to value. (Let’s call this phenomenon the IBT ¾ Inefficient Bush Theory.) To be sure, an investor needs some general understanding of business economics as well as the ability to think independently to reach a wellfounded positive conclusion. But the investor does not need brilliance nor blinding insights.

pg14
Now, speculation — in which the focus is not on what an asset will produce but rather on what the next fellow will pay for it — is neither illegal, immoral nor un-American. But it is not a game in which Charlie and I wish to play. We bring nothing to the party, so why should we expect to take anything home?
The line separating investment and speculation, which is never bright and clear, becomes blurred still further when most market participants have recently enjoyed triumphs.

At Berkshire, we make no attempt to pick the few winners that will emerge from an ocean of unproven enterprises. We’re not smart enough to do that, and we know it. Instead, we try to apply Aesop’s 2,600-year-old equation to opportunities in which we have reasonable confidence as to how many birds are in the bush and when they will emerge (a formulation that my grandsons would probably update to “A girl in a convertible is worth five in the phonebook.”). Obviously, we can never precisely predict the timing of cash flows in and out of a business or their exact amount. We try, therefore, to keep our estimates conservative and to focus on industries where business surprises are unlikely to wreak havoc on owners. Even so, we make many mistakes: I’m the fellow, remember, who thought he understood the future economics of trading stamps, textiles, shoes and second-tier department stores.
Lately, the most promising “bushes” have been negotiated transactions for entire businesses, and that pleases us. You should clearly understand, however, that these acquisitions will at best provide us only reasonable returns. Really juicy results from negotiated deals can be anticipated only when capital markets are severely
constrained and the whole business world is pessimistic. We are 180 degrees from that point.

pg17
At Berkshire, full reporting means giving you the information that we would wish you to give to us if our positions were reversed. What Charlie and I would want under that circumstance would be all the important facts about current operations as well as the CEO’s frank view of the long-term economic characteristics of the business.
We would expect both a lot of financial details and a discussion of any significant data we would need to interpret what was presented.
When Charlie and I read reports, we have no interest in pictures of personnel, plants or products. References to EBITDA make us shudder ¾ does management think the tooth fairy pays for capital expenditures? We’re very suspicious of accounting methodology that is vague or unclear, since too often that means management
wishes to hide something.

GENTING MALAYSIA BERHAD (“GENM”) DEVELOPMENT AND OPERATION OF A VIDEO LOTTERY FACILITY AT AQUEDUCT RACETRACK

On 10 June 2010, GENM had announced that its indirect wholly-owned subsidiary, Genting New York LLC (formerly known as New Quest, LLC) (“Genting NY”) had submitted a US$1 million entry fee to the New York State Division of Lottery on 1 June 2010 (“Entry Fee”). Payment of the Entry Fee was made to allow Genting NY to participate in the bidding process to develop and operate a Video Lottery Facility at the Aqueduct Racetrack in the city of New York, United States of America (“Project”). Genting NY had until 29 June 2010 to evaluate the Project before deciding on the submission of its bid for the Project.

We wish to announce that Genting NY had submitted a formal bid for the Project on 29 June 2010.

This announcement is dated 30 June 2010.

ASNB Declares 6.35 Sen Dividend for ASD in 2010

Amanah Saham Nasional Bhd (ASNB), a wholly-owned unit of Permodalan Nasional Bhd (PNB), announced an income distribution of 6.35 sen per unit for Amanah Saham Didik (ASD) for the financial year ending June 30 2010.

The income distribution would involve a total payment of RM207.75 million, an increase of 33.50 per cent compared with RM155.59 million paid last year. As of June 2010,there are 293,504 unit holders who collectively owned 3.59 billion units.

Until June 11, 2010, ASD recorded a gross income of RM258.33 million with dividend income from investee companies contributing RM89.09 million or 34.49 per cent to the total income.

Profits from the sale of shares contributed RM149.00 million or 57.68 per cent while the remaining income of RM20.24 million or 7.83 per cent was derived from investments in short-term instruments.

Since its launch in 2001, ASD has always been the preferred fund for Bumiputera investors who were interested to invest in their children’s education.

Up to May 31, 2010, the fund had received a total of 67,403 new unitholders, an increase of 29.96 per cent while net inflow of new funds also increased by 603.22 million units or 21.26 per cent.

ASD is a fixed priced equity-income fund aimed at providing investment opportunities which can generate long-term growth and competitive returns to unitholders.

The income distribution of ASD will be automatically re-invested in the form of units and credited into the unit holders’ accounts on July 1, 2010.

All transactions for ASD will be suspended between June 23 and June 30, 2010 to facilitate calculation of income distribution.

June 29, 2010

Hai-O share value drops RM50.5m

Hai-O Enterprise Bhd (7668) lost RM50.55 million in market value yesterday after reporting weak fourth quarter numbers as its direct selling business was affected by tougher government rules.

Analysts who attended a company briefing yesterday said Hai-O's multi-level marketing (MLM) unit was recruiting fewer agents.

"They are recruiting about 3,000 new agents a month from the average 5,000 agents a month before," an analyst who attended the briefing said, adding that this was a pre-emptive move by the company against the government's plan to amend the Direct Sales Act.

Business Times understands that Hai-O had taken several measures to ensure that agents were not loading on stocks, which also led to the lower number of agents recruited.

Analysts were also not optimistic of sales in the coming quarters, as they expect a couple of quarters to pass before sales start stabilising.
Hai-O's MLM unit contributes about 80 per cent of group sales. Sales fell 26 per cent to RM98.8 million in the fourth quarter ended April 30 2010.

Net profit eased to RM14.3 million from RM15.8 million in the same quarter a year ago.

The stock closed 25 sen lower at RM3.87 a share due to the poor results as well as concerns over its future prospects.

Hai-O was not the only direct marketing company which has been underperforming so far this year.

Amway (M) Holdings Bhd, the country's largest publicly traded direct sales company, saw fourth quarter net profit for the quarter ended March 31 2010 falling to RM16.85 million from RM19.40 million.

Smaller companies like DXN Holdings Bhd and CNI Holdings Bhd also suffered dips.

DXN's sales for the fourth quarter ended February 28 2010 fell to RM60.13 million from RM60.87 million previously, while net profit fell to RM5.12 million from RM6.36 million.

CNI Holdings Bhd's first quarter ended March 31 2010 saw sales slipping to RM37.25 million from RM41.09 million in the same period a year ago, while net profit dropped to RM1.01 million from RM3.69 million before.

BSports 'very likely' to give higher dividends

Berjaya Sports Toto Bhd will “very likely” give higher dividend payments in future, RHB Research Institute Sdn Bhd said in a report today after meeting Vincent Tan, who chairs its parent company.

Google sent me an email informing me violating the rules.

您好:

在審查您的帳戶時,我們注意到您目前顯示 Google 廣告的方式不符合我們的政策規定。 例如,我們注意到 http://heaven-otaku.blogspot.com/2010/06/blog-post_6130.html 等網頁違反了 AdSense 政策規定。

如 AdSense 計劃政策所述,AdSense 發佈商不可以將 Google 廣告顯示在包含成人或限制級內容的網頁上,包括含有猥褻或挑撥姿勢,或是乳房、臀部或胯部的特寫圖片或影片內容。

因此,我們已經停止在這個網站上刊登廣告。

您的 AdSense 帳戶還是有效。 不過,我們強烈建議您撥冗檢視我們的計劃政策 (https://www.google.com/support/adsense/bin/answer.py?answer=48182&stc=aspe-2pp-zh_TW&hl=zh_TW),以確保您其餘的網頁都符合規定。

請注意,如果我們日後發現有任何違規的情形,將停止您的帳戶。

June 26, 2010

Google adsense withdrawal in Malaysia

I have run through many bloggers' comments. I've found out that Western Union payment for adsense earning is a way much easier and efficient way. Although this is the first time I am withdrawing money from Google adsense, but I would want the money come to me soonest possible. Thus I have give up the idea of waiting for cheque sent far from US. And to my surprise Western Union are quite near my places of living, mostly just beside CIMB bank branches.

Here are a few reasons to change your payment method to Western Union if you’re a Malaysian because:
1. It's FREE. No fee, no charge. With checks, you will ended up with RM 70 less because of the bank charges here and in the US. Exchange rate will depend on when Adsense issued payment, NOT when you withdraw.
2. You get your payment the day after the status in your Adsense account changes to "Payment Issued".
3. No more waiting and wondering if your Adsense check has been cleared. If there's any problem with your check, then you have to request for a re-issue and that will mean another month or so before you get a new check.It’s great for those who are excited and impatient about their first payment. No need to wait for the long clearing times. Receive your payment on the spot, cold hard cash!
4. It makes your financial planning and recording so much easier. With Adsense checks, I had to "forecast" my bank balance because it takes 2 months before we see the cash from Adsense checks.
---------------------------------------
So what is Western Union? Look at Google explanation:
Western Union Quick Cash is a payment method that allows you to receive your AdSense payments in cash using the worldwide Western Union money transfer service. Payments will be available for pick up at your local Western Union Agent the day after they are sent according to our normal payment schedule.

This means that you won't have to wait for a check to arrive in the mail. Choosing to receive your payments by Western Union can also cut down on the bank fees and long clearing times associated with depositing checks.

Your Western Union Quick Cash payment will be made in US dollars. However, at most Western Union Agent locations, you may have the option to receive your payment in your local currency. Conversion rates will be calculated according to the rate used by the Western Union Agent on the day you pick up your payment.
------------------------------------------------------
How do I sign up for payments by Western Union?
If you would like to receive your earnings by Western Union Quick Cash, please complete the following steps. Please note that at this time, this payment option is only available to individual publishers.

1. Sign in to your account at www.google.com/adsense.
2. Visit the My Account tab.
3. Click the 'edit' link adjacent to the 'Payment Details' header.
4. Select the Western Union Quick Cash radio button.
5. Click 'Continue'.
6. Click 'Save Changes' to save your payment type.

Please make sure that the name on your account exactly matches that on the government issued ID card that you will bring to pick up your Western Union Quick Cash payments.
-----------------------------------------------------------
How do you know when your Adsense payment is available for withdrawal?

When you log into you Adsense account, you should see a "View Payment History" link that will take you to your payment details page. If you see a "Payment Issued" statement, that means your payment has is ready for withdrawal (if you have opted to receive your payment via Western Union).This means your balance must reach at least $100 by the end of the previous month in order to receive payment this month. Simply put, if your balance at the month of January reaches $100.10, Google will send you your payment by the end of February.


Clicking on the "details" link will take you to the details of your payment. This page contains important information that you will need when you fill in the Western Union form to receive money, the most important being the Money Transfer Control Number.

------------------------------------------------
How to withdraw your payment via Western Union at CIMB Bank?

Fill in the Western Union form to receive money from CIMB Bank. There are 2 types of forms. The Yellow one is for receiving money. The Green one is for sending money. Here's a tip so you don't make a silly mistake like me. The Western Union forms are carbon copy forms - one copy for the bank and one copy for you. The one I took from the counter only had 1 sheet (I assume it was messed up). NO problems though, because CIMB's staff are really helpful. The form is straightforward.

Be sure to take the correct form with “To receive money” clearly stated at the upper right corner of the form. If you unsure, the form looks like the one shown above.
Fill in your name, address, telephone number and the sender’s information. This is where the info you written on a paper earlier comes handy. This is what I have filled in for the sender’s information:
First name: Google Inc
Last Name: (blank)
Address: 1600 Amphitheatre Review
Street: Mountain View
City: CA
Country: USA
Postal Code: 94043

Next, fill up the “Amount expected” field with your payment amount. Then fill in the most important detail, Money Transfer Control No., as specified in your payment history. I hope you wrote down this number in a piece of paper before going to the bank.
Lastly, sign the form and present it to the teller with your Identification Card (IC). Wait for five to ten minutes for the processing, and receive your payment in CASH!

My Online income June 2010--Nuffnang target Achieved!!

My online income 2009:
Nuffnang--RM26.67(Unrealized)
Google Adsense--US$4.17(Unrealized)

My online income Jan 2010-June2010:
Nuffnang--RM49.28(Cheque cleared)+RM59.90(Waiting Cheque)+RM101.92(Campaign running)=RM211.11
Google Adsense--US$101(Unrealized)

My online income target 2010 for Nuffnang=RM200.00(Achieved!!)
Google Adsense =USD 200.(Half achieved)

I am still waiting for Nuffnang cheque, while accumulating another month's cheque as RM100.00. My adsense finally pass through USD100, still need to wait for it to realised into my account as USD100 before I can get the number for Western Union withdrawal.

Currently, most of my blogs pass through unique visitor per day 100 benchmark I set myself. In coming month, I will stop or close down a blog that is not generating good traffics which I feel really piss off. I need to consolidate some blogs and hopefully a few generate stably 500++unique visitors per day in future.

My target is to generate 2 blogs with 600-1000++ visitors per day in order to improve my online income and earning.Some taiwanese bloggers are generating 10,000++ visitors per day, a really great achievement. I think they must have been earning a lot from the adsense.

I have look for a good guideline for Google adsense withdrawal. Kindly check out my another post on Google adsense withdrawal in Malaysia

June 25, 2010

Haio announce 4Q2010 results.

Full year EPS=0.3552,4thQ result came much weaker as 0.0714.If future EPS is as weak as this quarter,current pricing is too high. 0.0714*4=0.2856, If current Rm4.00, p/e is as high as 14-15.

Have a look on the notes:
B1 Review of performance of the Company and its principal subsidiaries for the current quarter and financial year-to-date
Current quarter compared to the preceding year’s corresponding quarter
For the fourth quarter ended 30 April 2010, the Group recorded lower revenue and pre-tax profit of RM 98.84 million and RM 15.78 million, dropped by about 26% and 32%
respectively as compared to the corresponding quarter of the preceding year. The current quarter performance is below internal target and the MLM division is currently applying more stringent rules on new members’ recruitment to be in line with the regulations set by the authorities, coupled with recent rise in interest rate had indirectly affected the growth of new members venturing into MLM business as entrepreneurs.
The retail division had recorded historical high in revenue and profit in the fourth quarter,as the Lunar Chinese New Year coincide with the year end members’ sales promotion, coupled with the success of its sales of house brand products had generated higher profit contribution to the Group.
Current financial year compared to the preceding year’s corresponding period
For the financial year under review, the Group achieved higher revenue of RM 511.06 million as compared to RM 435.22 million for the corresponding period of the preceding year, an increase of about 17%. The increase in revenue was mainly contributed from the wholesale division and its principal subsidiaries, the MLM and retail divisions in the first half of the financial year coupled with higher rental income received during the financial year.
The Group profit before taxation increased by RM 20.06 million or about 26% from RM
75.89 million to RM 95.94 million for the corresponding period of the preceding year. The substantial increase in profit was mainly due to higher revenue achieved as mentioned above,especially for the retail division, its EBIT had increased from last year of 7.3% to 9.8% mainly contributed by its higher margin house brand products. The technology division is still in the research and development stage and does not have any significant progress as at to date.
RM ‘000
1) Approved and contracted for in respect of R&D expenditure.
2) Approved but not yet contracted for in respect of capital expenditure on
pharmaceutical factory
820
10,000
10,820
Hai-O Enterprise Bhd (Co. No. 22544-D)
Financial report for the fourth quarter ended 30 April 2010
B2 Material changes for the current quarter as compared with the immediate preceding
quarter For the fourth quarter under review, the Group recorded lower revenue and profit before taxation of RM 98.84 million and RM 15.78 million, as compared with the immediate preceding quarter of RM 131.28 million and RM 25.24 million, respectively. This was mainly due to lower revenue achieved by the MLM division. Currently the MLM division is applying more stringent rules on new members’ recruitment in order to be in line with the regulations set by the authorities , coupled with the recent rise in interest rate had indirectly reduced the number of new members venturing into MLM business as entrepreneurs. The lower revenue achieved by the wholesale division in the fourth quarter was that most of the
sales orders were placed before the Chinese festive season.
Despite the above, the retail division had recorded higher revenue and profit in the current quarter as compared with the immediate preceding quarter, profit increased by more than 100%. Higher profit achieved was mainly generated from higher revenue made during the Chinese Lunar New Year coincide with the year end members’ sales promotion in the fourth quarter, coupled with the success of its sales of house brand products also brought in additional contribution to the Group.
B3 Commentary on prospect for the next financial year The next financial year will be another challenging year for the Group in view of the slowing down of sales activities in the MLM division therefore, various measures have been taken to
rectify the situation. This division is planning to launch more new health supplements and increase the range of its skincare products, and will organize more training workshop to its existing members. The wholesale and retail divisions will continue to focus on health awareness campaign and further develop its house brand products.
Therefore the Board of Directors is of the opinion that the Group will continue to be
profitable in the year to come.
B4 Statement of Internal targets previously announced or disclosed in public documents
(i) With reference to the first article appeared in The New Straits Times, Biz News page
B8 on Wednesday, 17 June 2009 in particular pertaining to the sentence which is
reproduced as “ Hai-O Enterprise Bhd, a multi-level marketing (MLM) firm, expects
revenue to grow by 10 per cent this year, helped by intensive advertising and
promotional activities.”
The quoted statement is strictly an aspiration set to be achieved by the Company after taking into consideration the Company’s recent performance, the growing in
distributors’ network and the ongoing sales promotion activities in plan.
The targeted revenue to grow by 10% this financial year was in consideration of the
consumers’ behaviour becoming more cautious in their spending due to the current
challenging economy.
The quoted statement was an internal target set by the Company to achieve and not in
any way intended to refer to any financial estimates, forecasts or projections of the
Company and have not been reviewed by the external auditors of the Company.
Hai-O Enterprise Bhd (Co. No. 22544-D)
Financial report for the fourth quarter ended 30 April 2010
(ii) With reference to the second article appeared in The New Straits Times, Biz News
page B6 on Thursday, October 29, 2009 in particular pertaining to the sentence which
is reproduced as “ Tan said the group is on track to achieve 10 per cent growth in profit
and revenue for the current financial year ending April 30, 2010, ……”
The quoted statement is strictly an aspiration set to be achieved by the Company after
taking into consideration the Company’s recent performance, the growing in the
number of distributors in the MLM division and the ongoing sales promotion activities
in plan.
The targeted revenue and profit to grow by 10% this financial year was an internal
target set by the Company to achieve and not in any way intended to refer to any
financial estimates, forecasts or projections of the Company and have not been
reviewed by the external auditors of the Company.
Based on the current year’s financial performance, the Company had achieved better than the internal target set, with the growth rate of about 17% and 36% increase in revenue and profit after taxation respectively.

June 23, 2010

I sell all my BJTOTO at RM4.40,because it is no longer a market leader.

Yesterday, I sold all my BJTOTO at RM4.40, because its dividend is tooo little, at 8sens. And it is issuing medium term notes. I see that as a warning sign.But I'm keeping the BJTOTO-CF for future upward surprises. BJTOTO is no longer considered a dividend yield stock for me. I rather put my money in other stocks if it is for dividend purposes.

Well, currently my portfolio still keeping Hing Yiap, Keck Seng and Xingquan.
Hing Yiap mainly kept for dividend purposes, Keck Seng looking forward its future development while Xing Quan as a China sportswear firm gives a good outlook on future business growth.

According to a coverage by an analyst, the Magnum has tookover BJTOTO as a market leader recently.
MAGNUM’S MARKET SHARE OVERTOOK BTOTO’S
IN 1Q2010
Magnum’s market share rose in 1Q2010. We estimate the
group’s market share at a high 43.0% in 1Q2010 (see Chart 4)
versus 36.9% in 1Q2009 (See Chart 5).
The increase in Magnum’s market share came at the expense
of its other two competitors.
We estimate that BToto’s market share fell from 39.7% in
1Q2009 to 35.3% in 1Q2010 (See Charts 4 and 5). Tanjong’s
market share shrank marginally from 23.4% in 1Q2009 to
21.8% in 1Q2010 (See Charts 4 and 5).
Going forward, we reckon that it would be difficult for Magnum
to sustain 1Q10’s momentum, as this would depend on the
snowballing effect of the first prize money for the 4D Jackpot.
Also, there might be some impact from BToto’s 6/58 game,
which recently had its first prize money going in excess of
RM20mil.
Still, we expect Magnum’s market share to improve in 2010F
compared to 2009. In spite of BToto’s decline in market share,
we believe that the group would still be the largest NFO player
in 2010F.
For 2010F, we believe that BToto would achieve market share
of 40.1%, 1.4 ppts lower than 2009’s 41.5%. Magnum’s
market share is expected to rise from 36.1% in 2009 to 38.2%
in 2010F. Tanjong’s NFO market share is estimated to edge
down from 22.5% in 2009 to 21.7% in 2010F (See Chart 3).

Well, I sell BJTOTO because Football betting is not going to be lucrative anymore as many PKR politicians have been against it and PKR states will definitely banned football betting. Thus, the political cost is going to be heavy. Political risk too high, sell.

ISSUANCE OF MEDIUM TERM NOTES (“MTNs”) PURSUANT TO A MEDIUM TERM NOTES PROGRAMME OF UP TO RM800.0 MILLION IN NOMINAL VALUE BY ITS WHOLLY-OWNED SUBSIDI

Contents :
The Board of Directors of Berjaya Sports Toto Berhad (“B-Toto”) is pleased to announce that STMSB proposes to undertake a MTN Programme of up to RM800.0 million in nominal value (“the MTN Programme”) and has received the approval of the Securities Commission. STMSB has appointed Maybank Investment Bank Berhad as the Principal Adviser, Lead Arranger and Joint Lead Managers together with AmInvestment Bank Berhad.

The MTN Programme is akin to a revolving credit facility where-in the tenure for the MTNs shall be above one (1) year and up to ten (10) years as STMSB may select in consultation with the Joint Lead Managers.

The anticipated initial drawdown of the MTNs is expected to be sized approximately RM500.0 million, the proceeds of which will be principally utilized towards the refinancing of the B-Toto Group’s existing bank borrowings and for working capital.

The MTN Programme is an efficient and cost effective avenue to manage the B-Toto Group’s funding requirements.

Malaysian Rating Corporation Berhad, had in its press announcement dated 14 June 2010, assigned a AA – rating with stable outlook on the MTN Programme.

Padini v.s HingYiap Group



Saw an article in another blog comparing Padini and HingYiap. I have my own comparison as well.


As you can see above, Padini’s ROE is better, sales growth is faster. But Hing Yiap had improved since year 2008. Currently it has achieve 3Q2010 EPS as 0.2797, estimated to achieve EPS=0.30 in this year, thus it is trading way too low in P/E.
Yet, its dividend payout is quite well. Look at its pass year’s payout
Year Dividend Div Yield %
2009 0.0812 7.12%
2008 0.075 6.58%
2007 0.04 3.51%
2006 0.02 1.75%
2005 0.01 0.88%
2004 0.03 2.63%

June 21, 2010

How to Write a Better Channel Description for Targetable Ad Placements [Google AdSense]

Google AdSense targetable placements allow advertisers to selectively place their ads on your site. In order to get higher chance to be selected, you have to write a better channel description. Here are some tips directly from Google AdSense official blog.

"The AdSense Code: The Definitive Guide to Making Money with AdSense" (Joel Comm)

A good channel description should tell:

1. the content of the channel.
2. the specific section of your site (e.g. a forum section, blog section, etc.), if any.
3. is the ads placed Above-The-Fold (ATF), users can see without need to scroll down the page?
4. the visitors information (gender, interests, income level, etc)

Here is an example of good channel description:

" This is a 300×250 ATF ad unit on the football section of a sports blog. My audience is 75% male, age 18-35, earning between $50,000-$80,000 per year."

Point 1-3 is easy and you should already know. For the visitors information, you probably need to conduct a site survey to collect the data because no website statistic can get you the private data.

Go to learn how to make a custom channel into an ad placement.

https://www.google.com/adsense/support/bin/answer.py?hl=en&answer=47413

June 19, 2010

Hong Leong in RM1.56b tie-up with Japan insurer Read more: Hong Leong in RM1.56b tie-up with Japan insurer


he tie-up will give Mitsui Sumitomo Insurance a slice of the Malaysian life insurance market

Hong Leong Financial Group Bhd (HLFG) (1082) is partnering Japan's Mitsui Sumitomo Insurance Company Ltd (MSI) to create the country's second biggest general insurer by gross written premium.

At the same time, the tie-up will also give MSI a slice of the local life insurance market.

The deal comes as Bank Negara is encouraging the consolidation of insurers under the implementation of risk based capital rules last year.

"The whole financial service industry is evolving. To be successful and step up, we need to go beyond operating as just a standalone," HLFG president and chief executive officer Raymond Choong told reporters yesterday in Kuala Lumpur after announcing the strategic partnership.
"We benefit through the synergies of a much bigger group that provides more sophistication in terms of products and underwriting (abilities). Through this synergy, the business will grow much faster than being a standalone."

HLFG and MSI have entered into a RM1.56 billion equity deal involving its local insurance units.

The first part of the deal will see HLFG's insurance arm, Hong Leong Assurance Bhd (HLA), transfer its general insurance business to the Japanese company's general insurer, MSIG Insurance (Malaysia) Bhd, for RM618.65 million.

The amount will be satisfied through the issuance of a 30 per cent stake in the new enlarged general insurance business under MSIG Insurance to HLA's parent company, HLA Holdings Sdn Bhd.

The enlarged entity will make MSIG Insurance the second largest general insurer by gross written premium locally with its strength in fire and marine cargo insurance.

MSIG Insurance posted an operating revenue of RM835.81 million for its fiscal year ended December 31 2009 while HLA's general business posted a turnover of RM382.58 million for its fiscal year ended June 30 2009.

MSIG Insurance chief executive officer Chua Seck Guan said the firm will ramp up its communication and investment plans to create awareness about the merger among HLA general insurance policyholders.

Prior to the strategic partnership, HLA was a composite insurer offering life and general insurance services. However, post-partnership, HLA will focus on life insurance although the firm gets to keep its composite licence.

The next part of the deal will see MSI buy a 30 per cent stake in HLA's life insurance business for RM940 million.

In its filing to Bursa Malaysia, HLFG said the full equity value of the life business is RM3.13 billion.

The consideration of RM940 million represents a price to book of 6.5 times based on HLA's adjusted shareholders' funds of RM485 million.

MSI managing director Masaaki Nishikata said the 30 per cent equity stake in the life insurer will be funded internally.

"This partnership will enable us to focus on elevating our life business to the next level," said Choong.

For the financial year ended June 30 2009, HLA's life business posted a turnover of RM1.16 billion.

BJTOTO's result and dividend 4Q2010

Finally, BJTOTO announced its 4Q2010 and dividend. Wow, 8sen only?? Bloody hell, sell BJTOTO now!
Interim Dividend Entitlement description:
Second interim single tier exempt dividend of 8 sen per share.

Have a look on full year result: EPS=0.2889, much much lower than last year’s 0.3293, and dividend paid very high last year end, because Vincent Tan need the money.

The company had announced its plan to issue bond, not a very good sign to a company which used to be so cash rich. This is a warning sign! Sell now and invest in other better company.

Keck Seng's announcement

KECK SENG (MALAYSIA) BERHAD ("KECKSENG" OR "THE COMPANY")
- Change in Composition of Nomination Committee and Remuneration Committee

Contents
:

The Board of Directors of KECKSENG wishes to announce that after the Company's Annual General Meeting held today, Mr Michael Vitus Wong Kuan Lee had ceased to be a director as he did not offer himself for re-appointment pursuant to Section 129(6) of the Companies Act, 1965 and consequently, he also ceased to be member of the Nomination Committee and Remuneration Committee. To fill the vacancies thus created, Mr Too Hing Yeap was appointed as a member of the Nomination Committee and Remuneration Committee.

Whereas, Tunku Osman Ahmad was also appointed as a Member and the Chairman of Remuneration Committee. Resulting from said changes, the new composition of the Nomination Committee and Remuneration Committee are as follows:-

NOMINATION COMMITTEE
------------------------------------------
(i) Tunku Osman Ahmad - Chairman and Member (Non-Independent Non-Executive Director)
(ii) Tengku Yunus Kamaruddin - Member (Independent Non-Executive Director)
(iii) Maj-Gen (R) Dato' Muhammad bin Yunus - Member (Independent Non-Executive Director)
(iv) Too Hing Yeap - Member (Independent Non-Executive Director)

REMUNERATION COMMITTEE
------------------------------------------------

(i) Tunku Osman Ahmad - Chairman and Member (Non-Independent Non-Executive Director)
(ii) Tengku Yunus Kamaruddin - Member (Independent Non-Executive Director)
(iii) Too Hing Yeap - Member (Independent Non-Executive Director)
(iv) Dato' Ho Kian Hock - Member (Managing Director)

June 16, 2010

Timetable for IPO SunwayREIT

Opening of application
:
15/06/2010
Closing of application
:
22/06/2010
Balloting of applications
:
25/06/2010
Allotment of IPO shares to successful applicants
:
05/07/2010
Tentative listing date
:
08/07/2010

Remarks :
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES.

All definitions set out in this announcement shall have the same meaning as those defined in the Prospectus dated 15 June 2010.

Applications for the Retail Offering and the Institutional Offering will open and close at the dates stated above or such later date(s) as the Directors of the Manager together with the Joint Underwriters in their absolute discretion may mutually decide.

Where the closing date of application is extended from the original closing date, the notice of such extension(s) will be advertised in a widely circulated daily Bahasa Malaysia and English newspapers within Malaysia. Should there be an extension of the closing date, balloting, date of allotment of Offer Units under the Retail Offering and the Institutional Offering, and the Listing will be extended accordingly.

This announcement is dated 15 June 2010.

"This announcement is not an offer of securities for sale in the United States or elsewhere. The Units of the REIT are not being registered under the US Securities Act of 1933, as amended (the Securities Act) and may not be offered or sold in the United States unless registered under the Securities Act or pursuant to an exemption from such registration. There will be no public offering of the Units of the REIT in the United States."

June 12, 2010

Video: How To Get Thousands of Visitors From Google

This is a guest post by Erica Douglass. If you want to guest post on this blog, check out the guidelines here.

It’s easier than ever to get Google to send your blog thousands of visitors a month. Forget complicated terms like “keyword density”–let’s keep it simple. Here’s how, with about five minutes of work, you can get your blog ranked highly in Google for valuable search terms



Video Highlights:

[0:20] First step: Go to Google and type in “Google keyword tool”. The first result is the Google Keyword Tool.
[0:51] I recommend typing in a question word, like “how”, “how to”, or “what”, followed by a generic word that describes your blog, like “business”.
[1:20] Sort by Global Monthly Search Volume. This is how many people, on average, search for this keyword in a month.
[1:42] Look for keywords that have between 70 and 10,000 searches per month.
[2:00] Important: You should only target one keyphrase with each of your blog posts.
[2:20] Your blog post title and permalink should be this exact keyphrase. Resist the urge to add extra words.
[2:25] Use your selected keyphrase several times in your blog post.
[2:31] Also important: Make sure that when people link to your blog post, they use that exact keyphrase. The best way to do this is to make it the title of your blog post.
[2:48] If you have a Wordpress blog, download the free All In One SEO Pack to modify your page title, keywords, and meta description.
[2:57] Your meta description is the sentence or two that appears below your blog post in Google search results.
[3:17] Guest posting, and linking to your blog post in the “blurb” at the end of your guest post, will help your post rank higher in the search engines.
[3:48] Use this simple system to get thousands of visitors to your blog every month!

Have you had good results from using the Google Keyword Tool to rank your blog posts well in the search engines? Let us know in the comments.

About the Author: After selling her online business for $1,100,000.00 at age 26, Erica Douglass “temporarily retired.” She now shows you how to grow your own business to $1,000,000 via her Erica.biz. You can also download her free Blog Success Manifesto — which contains 30 tactical tips to grow your blog faster than you ever have before.

June 10, 2010

Best Malaysia Bank to Deposit Adsense Cheque

Got your first Google Adsense cheque (check)? Congratulations! Now, it is time to bank in your check. I will show you a comparison of processing fee between local banks.
Which is best Malaysia bank to bank in U.S. check?

Generally, the exchange rate and check processing time are about the same among local banks. The exchange rate is between 3.77 to 3.78 (check current exchange rate). The time to process the check will take about one month.

According to the thread I started in WebmasterMalaysia.com and readers’ feedback, here is the comparison of US check processing fee(per check) between different Malaysia local banks. Not sorted in any order.

* Hong Leong Bank: RM50 + RM10 (courier) + USD75 (Citibank Delaware)
* MayBank::
o 0.1% of the cheque amount drawn in RM with minimum of RM25.00 and maximum of RM100.00
* PublicBank:
o 0.1% of cheque amount (min: RM20, max: RM100)
o Postage: RM5
o Stamp duty: RM0.15
* HSBC:
o 0.1% of cheque amount (min: RM10, max: RM100)
o Stamp duty – RM0.15 per cheque
o Other charges – below 10k = RM1.15
* EON Bank: RM10
* BCB (CIMB):
o 0.1% charge (min: RM5, max: RM100)
o Postage: RM5
o Stamp duty: RM0.15
o The 0.1% is only applicable if it is above USD 1000.

Note: You can deposit your check to the home branch only. But, you can mail your check to your BCB account’s home branch for bank-in.
* RHB:
o Postage: RM5.00
o Stamp Duty: RM0.15
o Commission: 0.1% of your cheque amount (minimum RM 10.00 and maximum RM 100.00)
* Standard Chartered: 0.01% of cheque amount OR min RM 50.
* Bank Muamalat: RM5
* Alliance: ~RM70
* Southern Bank: RM30 + RM0.15 stamp duty.

AdSense Money Withdrawal by Western Union Expanded to 10 More Countries


Good news for Google AdSense publishers! Google have expanded Western Union Quick Cash as an AdSense payment method to 10 new countries: Saudi Arabia, Croatia, Iceland, United Arab Emirates, Latvia, Lebanon, Slovenia, Tunisia, Moldova and Malta.

With the addition countries, Western Union withdraw method is currently available in 40 countries. Singapore, India ares still not in the list.

If you are new to Google AdSense withdraw via Western Union, here are few points to keep in mind:

* Payments will continue to follow normal payment schedule and will be available for pickup at your local Western Union agent the day after they’re issued.
* You will need to present a government-issued ID that matches your AdSense payee name when picking up your payment. If you need to correct the account payee name, follow this instructions.
* Only individual payee can receive payments by Western Union, not business.
* Payments must be picked up within 60 days of issue, or they’ll expire and be credited back to your AdSense account.
* Payments will be made in US dollars. Depending on your local Western Union agent, you may withdraw money in your local currency.

My enquiry to Haio: follow up

Last week, I post a title My enquiry to Haio"Enquiry on Haio new technology R&D非相变热管技术"

Here's the reply from the company:
-------------------------------------------------------------
Thank you for your reply below.

Heat transmission and energy saving technology is not a new project. The
company has ventured into this project since Dec 2007 and the development
of it is progressing as planned. The projects are still in the R&D stage
at current moment and still pending to commercialise.

The targeted customers are for example those industry which require the
technology on heat transmission energy saving.

There are news, articles, analyst report regarding the development of the
company's strategies and events are posted on our corporate website at
www.hai-o.com.my under the "Investors Relations" & "Media Centre" section
for your further details.

June 9, 2010

Sony TX5-My Water Moments


Sony has been actively advertising using Nuffnang, almost all the ads are Sony. And did they caught your attention? It's the new Sony TX5

Proudly bearing the title of the ‘World’s Slimmest Water-proof Camera’, the TX5 is – get this – not only water-proof, but shock-proof, temperature-proof and dust-proof too. And it doesn’t only look pretty; it comes with some awesome functions like iSweep Panorama, Handheld Twilight and anti-motion blur. Yes, the TX5 is not only the ultimate package of beauty and brains, it’s darn near indestructible as well.


My best water moment was this pic taken during last x'mas in Pavilion



10.2 Mega Pixel T Series 4x Optical Zoom Cyber-shot (Green)

The compact Cyber-shot TX5 is built to be water-, shock-, dust- and temperature-proof! With features like Intelligent Sweep Panorama, Handheld Twilight and Anti-motion blur, TX5 give you the photographic power to shoot in style whenever, wherever.

• Water-proof (up to 3 meters)
• Handheld Twilight
• Intelligent Sweep Panorama
• “Exmor R” CMOS Sensor
• BIONZ Image Processor
• 25mm wide angle Carl Zeiss® Vario-Tessar lens

Standard Retail Price:
RM 1,499.00 *

June 8, 2010

My enquiry to Haio: "Enquiry on Haio new technology R&D非相变热管技术"

On 04 June 2010, I was reading this article which caught my attraction,非相变热管技术, so I decided to email the investor relation department to find out more. To my surprise they reply my email very quick, but requesting my name and nric on 07June2010.
Not sure whether I can share this here, but if things are p&c, I will not disclose further.

----------------------------------------------

To: info@hai-o.com.my
>
> Sent: Friday,04 June, 2010 12:30 AM
>
> Subject: Enquiry on Haio new technology R&D非相变热管技术”
>
>
>
> Dear Haio,
>
> As a minor shareholder of Haio, I would like to know more about the new
> technology 非相变热管技术 as appear in the chinese news paper earlier. I
> would like to know how long will this R&D process be and how long will it
> take to market into the market place in order to generate revenues for the
> company. and who are our targetted customers on this technology?

------------------------------------------------------------------
The email reply

Dear ________,

Thank you on your interest in the Company's performance outlook.

Under our Investor Relations procedure, kindly please provide us with the
following details:

Full name;
NRIC/ Passport No.;and
No. of shares held (if any):

Thank you.

Regards,
Investor Relations

Berjaya Corp hits 3-month low

Berjaya Corp, a Malaysian property, gaming and insure group, fell to a three-month low after Prime Minister Datuk Seri Najib Razak said his government has yet to issue a sports betting licence to Ascot Sports Sdn Bhd, in which Berjaya plans to buy a 70 per cent stake.

The shares dropped 6.2 per cent in Kuala Lumpur trading to RM1.37 at the 12:30 pm local time break, set for their lowest close since March 9. Ascot is an affiliated company owned Berjaya’s billionaire Chairman Vincent Tan.

The government is still discussing the licensing terms and conditions for the sports betting license while getting feedback from various parties, Najib told Parliament in Kuala Lumpur yesterday. It is considering issuing the licence to help reduce illegal betting activities in the country, he said in a statement to Parliament obtained by Bloomberg.

The news “may be perceived as negative for Berjaya which is proposing to acquire Ascot,” RHB Research Institute Sdn Bhd said in a report today. “We believe the government has not shut the door yet.”
Berjaya said last month it planned to spend RM525 million (US$158 million) buying the Ascot stake, which it would finance through a rights offering of as much as RM614.5 million.

Ascot wants to start its sports betting operation in the second half of this year, it said on May 12. The focus will be on sports betting on soccer games in the initial stages which may expand to other sports. -- Bloomberg

Read more: Berjaya Corp hits 3-month low http://www.btimes.com.my/Current_News/BTIMES/articles/20100608140344/Article/index_html#ixzz0qFwiY0Mh

June 4, 2010

BToto raised to buy on emerging value

Berjaya Sports Toto Bhd
(June 3, RM4.37)
Upgrade to buy at RM4.24 with target price of RM4.91: We considered trimming our FY11 estimates to reflect cannibalisation from Berjaya Sports Toto’s (BToto) punters shifting some of their bets to illegal sports betting during the 2010 World Cup.

Historically, this amounted to 4%-5% reduction in revenue per draw during the World Cup period. However, we noticed that the number forecasting operator (NFO) industry grew by 6% in 2006 despite the World Cup then because it was held in a different time zone, foreign workers were not deported and the regulatory environment then was favourable.

We deem the operating conditions surrounding the 2010 World Cup to be similar to that of 2006. Therefore, we maintain our earning estimates.

Although BToto is not expected to receive much from the touted 1% on retail sales commission payable by sister company Ascot Sports, we believe legalised sports betting will actually boost revenues.

Taking a leaf out of history, increased outlet visits driven by large jackpots led to higher revenues for both lotto and non-lotto games (4D, 5D and 6D).

In the same vein, we expect increased outlet visits driven by sports betting to again lead to overall revenue growth as punters who are not regular NFO punters bet on not only sports but mainstay NFO games.

More importantly, that little cannibalisation effect World Cups have had on BToto’s revenue will be arrested once and for all.

We assumed a 15% reduction in revenue per draw for FY10 due to competition from Magnum’s 4D Jackpot. Thereafter, we assumed 2% growth in revenue per draw (1998-2008 NFO industry compound annual growth rate: 2.6%).

Our unchanged target price of RM4.91 (terminal growth rate: 1.5%, weighted average cost of capital: 7.9%) currently offers 16% upside potential and 5.4% net dividend yields.

Thus, we revert back to our earlier buy call. We would also like to point out that BToto’s share price is resilient during recessionary periods and periods of low consumer confidence due to its stable earnings (assuming stable prize payout ratios) and attractive dividend yields.

With the upcoming subsidy rationalisation programme, BToto will provide a “safe harbour” for investors. — ECM Libra Investment Research, June 3


This article appeared in The Edge Financial Daily, June 4, 2010.

Sunway REIT to be Bursa’s largest


It may attract certain classes of investors with a defensive strategy

PETALING JAYA: Sunway Real Estate Investment Trust (REIT), which is slated for listing on July 8 on the main board of Bursa Malaysia, is set to become the largest REIT on the local stock exchange with a fund size of 2.78 billion units.

However, according to a report by OSK Research, Sunway REIT’s initial public offering (IPO) would be at a premium to other Malaysia REITs.

“Based on the Sunway REIT’s net asset value per unit (NAV/unit) of 97 sen upon listing, its price over NAV (P/NAV) was estimated to be at about 1x (based on the assumed IPO price of RM1/unit for the institutional offering).

“This is about what the other REITs are currently trading at on average,” said the report.

The REITs’ dividend yield was only expected at about 6.7% (based on forecast dividend per unit (DPU) of 6.7 sen), which was below the average 8.5% for other REITs, it added.

It said this could imply that Sunway City (SunCity) would be selling the properties to the REIT at a high valuation benchmark.

“Having said that, the low yield offered by Sunway REIT and the premium to be paid for those properties could be justifiable given that the trust will be the largest in Malaysia, with the largest free float of about RM1.6bil vis-à-vis any given REITs, and the unique prospects of those properties, which offer a relatively more defensive investment and yet potentially attractive long-term growth,” the report noted.

It added that Sunway REIT might potentially attract certain classes of investors with a defensive investment strategy, such as pension and insurance funds. “This has been proven by the fact that Sunway REIT very recently secured four large cornerstone investors (at 98 sen/unit) which collectively hold about 14% stake in the trust,” it said.

The investors are a Singapore sovereign wealth fund, the Employees Provident Fund, Permodalan Nasional Bhd and Great Eastern.

The report said a trading buy opportunity in SunCity with an adjusted price target of RM4.52 would be the biggest beneficiary of the deal if the properties were to be disposed off at such valuations.

“Based on conservative estimates, this will add a further 69.8 sen/share (or a maximum 99 sen, depending on the response to the book-building process for the institutional offering) to SunCity’s net asset, bringing it to about RM5.32/share,” it said.

It further added that pegging this against 0.85x to 0.90x (P/NTA), which is the average that its peers were currently trading at, the reseach house estimated that SunCity might likely trade in the range of RM4.52 to RM4.79 as the listing of Sunway REIT got closer to realisation.

HwangDBS Vickers Research said in a report that Sunway REIT’s yield looked “rich” at 6.9% versus the sector’s 8.5%, while rising interest rate environment could force yields higher.

However, the report said, the REIT should help SunCity unlock its investment properties’ value and lead to more efficient allocation of resources to boost return on average asset.

The report maintained a “buy” call on SunCity and target price of RM4.70, assuming no discount for property investment and 30% discount for property development.

Gaming - Genting Group unit among six entities in reopened Aqueduct (US) casino bidding process.

Six entities have complied with a June 1 deadline imposed by the New York lottery to submit a $1 million entry fee to bid on a casino planned for Aqueduct racetrack in Queens, according to the lottery.

The six entities include three bidders who participated in a previous round of bidding for the casino: Penn National Gaming Inc., SL Green Realty Corp., and a partnership of Delaware North and Saratoga Gaming and Raceway.

In addition, Clairvest Group, a Canadian private-equity firm that was a partner in an entity called Aqueduct Entertainment Group that was picked in the previous round of bidding, submitted the $1 million entry fee, according to the lottery. Aqueduct Entertainment s selection to operate the casino was scuttled earlier this year after criticism that the selection was politically motivated.

Two other groups who have not participated in the bidding previously also submitted entry fees. They are Empire City Casino at Yonkers Raceway and Genting New York, a Malaysia-based casino operator that acquired a majority share of Monticello Raceway in New York last year.

Bids for the Aqueduct casino are due on June 29, and the lottery has said that it will issue a recommendation on Aug. 3. The bid is subject to approval by Gov. David Paterson and the state s legislative leaders. Paterson said that he will approve the recommendation by the lottery.

The casino was first approved by the legislature in 2001, but the selection of an operator has been continually set back by political and financial concerns. The 4,500-slot machine casino is expected to become one of the most lucrative casino properties on the East Coast and will likely provide at least $60 million annually in subsidies to the New York racing industry.

http://community.tvg.com/t5/The-Grandstand/NYRA-vs-Nassau-OTB-shows-how-screwed-up-racing-is/m-p/183142

June 3, 2010

Stocks that I stop monitoring


It has been some time since I last monitor these stocks. I decided to stop monitoring these stocks as I think their growth are limited in future, and I think there are a lot more shares worth my times than these. The stocks are: IOICORP,Wellcall,The Brewery sectors, Kencana Petroleum,and the Malaysia Banking sectors( Though I still continue monitoring a few banking stocks.)Attached are all those analyst report and some past years annual report in zip. The picture are my own analysis on the companies and my own forecast as well.

Wellcall
http://www.2shared.com/file/h1DGj4Ac/Wellcall.html
http://www.2shared.com/fadmin/13882521/5d3ba4ef/Wellcall.rar.html

The brewery sectors
http://www.2shared.com/file/9oBqE7M3/Brewery.html
http://www.2shared.com/fadmin/13882703/8287732f/Brewery.rar.html

Kencana
http://www.2shared.com/file/Zbc8i1bs/Kencana.html
http://www.2shared.com/fadmin/13883478/e0eee55c/Kencana.rar.html

Banking industry
http://www.2shared.com/file/c6lZMNV5/Banking.html
http://www.2shared.com/fadmin/13883529/eb5c4bb8/Banking.rar.html

IOICorp
http://www.2shared.com/file/usHI6CRo/IOI.html
http://www.2shared.com/fadmin/13884125/783497f6/IOI.rar.html


These downloads might be out of download in future times. Kindly send me a message or email if you need it in future.

Stocks That Buffett Is Unloading

Stocks That Buffett Is Unloading
Posted: June 2, 2010 9:59AM by Mark Riddix

The investing decisions of Warren Buffett are mimicked by investors worldwide. Many value investors and market experts often look to Buffett for help in navigating the murky waters of investing. Buffett has built a fortune by taking advantage of opportunities when others have been fearful and a lot can be learned by paying attention to his moves. So what exactly has the Oracle of Omaha been up to? Shockingly enough, the famed buy-and-hold investor has been dumping shares of some long-term holdings over the past few quarters.

Buffett's Stock Sales
Buffett has eliminated his 2.3 million share stake in the banking firm Sun Trust Bank (NYSE: STI). He completely sold off investment positions in insurance companies Travelers Insurance (NYSE: TRV), UnitedHealth Group (NYSE: UNH) and Wellpoint Inc. (NYSE: WLP) Buffett also reduced his holdings in defensive stocks Procter & Gamble (NYSE: PG) by 9% and Johnson & Johnson (NYSE: JNJ) by 26% earlier in the year. He also trimmed his stake in ratings agency Moody's (NYSE: MCO) and banking giant M&T Bank (NYSE: MTB). Buffett sold off shares of auto retailer Carmax (NYSE: KMX), oil and gas conglomerate ConocoPhillips (NYSE: COP) and struggling newspaper firm Gannett (NYSE: GCI).

The big sale, however, was Buffett's disposal of Kraft's (NYSE: KFT) shares. He sold over 31 million shares of Kraft Food, which had a market value of approximately $1 billion dollars. He still owns a 6.3% stake in Kraft with over 106 million shares. Many of these sales came as a shock to investors. Market spectators began to wonder if Buffett was turning negative on U.S. equities. Why is the man, who was once quoted as saying his favorite long-term holding period for stocks is forever, selling stocks? (Learn more about how Buffett operates in What Is Warren Buffett's Investing Style?)

Why Buffett Is Selling
Investors shouldn't read too much into Buffett's recent sales. The answer is pretty simple: Buffett is reducing his stake in many stocks to increase the capital position at Buffett's holding company, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). Berkshire Hathaway has put a lot of its cash to work over the past two years. Buffett deployed substantial amounts of cash buying stock and warrants in Goldman Sachs (NYSE: GS) and General Electric (NYSE: GE). Recently, Berkshire spent a lot of cash financing its $27 billion dollar acquisition of railroad company Burlington Northern Santa Fe (NYSE: BNI). All of these purchases have caused Buffett to dispose of many stocks to replenish the coffers at Berkshire Hathaway.

The sale of Kraft, however, is a completely different animal. This move was anticipated as Buffett has continuously voiced his displeasure with Kraft management, including voicing disapproval of Kraft's $19.6 billion dollar acquisition of rival Cadbury. Buffett voted against the proposed merger, which eventually gained shareholder approval. After the merger, Buffett showed his disapproval by trimming his $4 billion dollar stake substantially. (Find out how Buffett got to where he is today. Read Warren Buffett: The Road to Riches.)

Buffett's Rationale
It should also not be overlooked that Buffett may be selling shares because he has found a better opportunity elsewhere. Buffett may be turning his attention to other sectors or looking to invest in international markets. He is famous for selling off one cheap investment in order to buy a cheaper investment.

The Bottom Line
Investors should know that if Warren Buffett is building up his cash stockpile that the legendary investor must see a better opportunity on the horizon.

Buffett's making news this week as well. Read more in this week's financial news highlights: Water Cooler Finance: Crying Over Spilled Oil, And Buffett Goes To Court.

'Legalised betting to boost BJToto revenue'

Analysts are bullish on Berjaya Sports Toto's performance as not only legalised betting but the present environment for the upcoming World Cup is also expected to boost its revenue.

The environment in which the upcoming World Cup football matches would be taking place will be similar to the previous event in 2006, where the number of forecast operators (NFO) in Malaysia grew by six per cent then.

During 2006, the World Cup was held in a different time zone for Malaysia, aided by a friendlier regulatory environment and there was no issue of foreign workers being deported. It is expected to be the same this year.

Amid this, ECM Libra Investment Research today maintained its earning estimates for Sports Toto and recommended a 'Buy' on the gaming stock at a target price of RM4.91.
"Although Sports Toto is not expected to receive much from the touted one per cent on retail sales commission payable by sister firm, Ascot Sports, we believe legalised sports betting will actually boost revenues," it said in its research note.

Unlike 2006, the World Cup in 2002 saw a drop of 2.5 per cent in the local NFO industry as the betting was carried out in Japan and Korea which are in the same time zone as Malaysia. This encouraged a greater shift to illegal sports betting.

Besides that, the nationwide deportation of foreign workers in July and August 2002 also led to a loss of clientele as foreign workers accounted for five to 10 per cent of visits to the betting outlets.

Adding to that, the 2002 World Cup was dealt with an array of negative regulatory changes, including an increase in gaming tax to eight per cent in October 1998 from seven per cent previously and a hike in pool betting duty to 10 per cent from seven per cent in November 1998.

The higher taxes then had caused the NFOs to reduce their prize payouts in order to maintain margins, thus providing illegal players and sports betting operators the opportunity to wrest market share with their higher prize payouts, the research house said.

But with new games coming in now, NFOs are expected to hold their own against illegal NFOs and sports betting operators during the World Cup 2010.

It said that lotto revenues would also rise in tandem with jackpot sizes.

Taking a leaf out of history, increased outlet visits driven by large jackpots led to higher revenues for both lotto and non-lotto games (4D, 5D and 6D), it said.

"We expect increased outlet visits driven by sports betting to again lead to overall revenue growth, as sports betting punters who are not regular NFO punters bet on not only sports but mainstay NFO games," it said. -- Bernama

Sunway REIT may raise RM1.65b from IPO

Sunway Real Estate Investment Trust may raise about RM1.65 billion in its initial public offering in Malaysia next month, according to a draft prospectus.

Sunway REIT will probably sell shares at an average IPO price of about RM1 per unit, with four so-called cornerstone investors agreeing to buy a 14 per cent stake, it said.

They are the Employees Provident Fund, Permodalan Nasional Bhd, Government of Singapore Investment Corp and Great Eastern Life Assurance (Malaysia) Bhd.

The company, controlled by Sunway City Bhd, will determine the final price on June 24, the sale document said. -- Bloomberg

Celcom Axiata plans RM3b capex

Celcom Axiata Bhd plans to spend RM3 billion in capital expenditure (capex) this year until 2012 as part of its transformation programme, said chief executive officer Datuk Seri Shazalli Ramly.

He said the company would invest RM1 billion each year via internally-generated funds to upgrade existing infrastructure and network to provide better service for customers as well as to strengthen market position.

"We will replace all legacy matters including platforms and machines to take us forward as part of capacity-building programme," he said at a briefing on the company's first-quarter results today.

Shazalli said Celcom Axiata was moving into transformation period following a successful turnaround, to build necessary infrastructure that would allow it to take position in certain market sectors by end-2015.
He said the company would focus on the effectiveness and efficiency of its five key thrusts this year -- customer lifecycle management, mobile broadband, cost management, segment-oriented strategy and increase the retail outlets to boost earnings.

"We remain on track to maintain the current drive, strengthening the various segments we currently dominate, like broadband, and continuing to exceed industry standard in all other areas," he said.

Celcom Axiata's earnings before interest, taxes, depreciation and amortisation for the first quarter ended March 31, 2010 rose by 16 per cent to RM773 million from RM664 million in the same quarter last year.

Revenue rose grew by 15 per cent to RM1.703 billion from RM1.476 billion previously.

Shazalli said the results marked its unprecedented 16 consecutive quarters of positive growth backed by effective cost management.

Profit after tax and minority interests for the first quarter ended March 31, 2010 rose by up 24 per cent to RM357 million.

Its subscribers rose by 24 per cent to 10.38 million.

It also recorded the strongest net additions of 635,000 mobile broadband subscribers during the quarter. -- Bernama

June 1, 2010

BERKSHIRE HATHAWAY letter to shareholders 2001

I have skip 2002 as nothing much in 2002

In 2001, pg3
Berkshire's loss in net worth during 2001 was $3.77 billion, which decreased the per-share book value of both our Class A and Class B stock by 6.2%. Over the last 37 years (that is, since present management took over) per-share book value has grown from $19 to $37,920, a rate of 22.6% compounded annually.
Per-share intrinsic grew somewhat faster than book value during these 37 years, and in 2001 it probably decreased a bit less. We explain intrinsic value in our Owner’s Manual, which begins on page 62. I urge new shareholders to read this manual to become familiar with Berkshire’s key economic principles.

I added that “relative results are what concern us,” a viewpoint I’ve had since forming my first investment partnership on May 5, 1956. Meeting with my seven founding limited partners that evening, I gave them a short paper titled “The Ground Rules” that included this sentence: “Whether we do a good job or a
poor job is to be measured against the general experience in securities.” We initially used the Dow Jones Industrials as our benchmark, but shifted to the S&P 500 when that index became widely used. Our comparative record since 1965 is chronicled on the facing page; last year Berkshire’s advantage was 5.7 percentage points.

Though our corporate performance last year was satisfactory, my performance was anything but. I manage most of Berkshire’s equity portfolio, and my results were poor, just as they have been for several years. Of even more importance, I allowed General Re to take on business without a safeguard I knew was important, and on September 11th, this error caught up with us. I’ll tell you more about my mistake later and what we are doing to correct it.

pg4
One final thought about Berkshire: In the future we won’t come close to replicating our past record. To be sure, Charlie and I will strive for above-average performance and will not be satisfied with less. But two conditions at Berkshire are far different from what they once were: Then, we could often buy businesses and securities at much lower valuations than now prevail; and more important, we were then working with far less money than we now have. Some years back, a good $10 million idea could do wonders for us (witness our investment in Washington
Post in 1973 or GEICO in 1976). Today, the combination of ten such ideas and a triple in the value of each would increase the net worth of Berkshire by only ¼ of 1%. We need “elephants” to make significant gains now – and they are hard to find.

pg6
In the frontispiece to Security Analysis, Ben Graham and Dave Dodd quoted Horace: “Many shall be restored that now are fallen and many shall fall that are now in honor.” Fifty-two years after I first read those lines,my appreciation for what they say about business and investments continues to grow.

Our main business — though we have others of great importance — is insurance. To understand Berkshire, therefore, it is necessary that you understand how to evaluate an insurance company. The key determinants are: (1) the amount of float that the business generates; (2) its cost; and (3) most critical of all, the long-term outlook for both of these factors.

pg7
Last year I told you that, barring a mega-catastrophe, our cost of float would probably drop from its 2000 level of 6%. I had in mind natural catastrophes when I said that, but instead we were hit by a man-made catastrophe on September 11th – an event that delivered the insurance industry its largest loss in history. Our float cost therefore came in at a staggering 12.8%. It was our worst year in float cost since 1984, and a result that to a significant degree, as I will explain in the next section, we brought upon ourselves.

Some years back, float costing, say, 4% was tolerable because government bonds yielded twice as much, and stocks prospectively offered still loftier returns. Today, fat returns are nowhere to be found (at least we can’t find them) and short-term funds earn less than 2%.

Principles of Insurance Underwriting
When property/casualty companies are judged by their cost of float, very few stack up as satisfactory businesses. And interestingly – unlike the situation prevailing in many other industries – neither size nor brand name determines an insurer’s profitability. Indeed, many of the biggest and best-known companies regularly
deliver mediocre results. What counts in this business is underwriting discipline. The winners are those that unfailingly stick to three key principles:
1. They accept only those risks that they are able to properly evaluate (staying within their circle of competence) and that, after they have evaluated all relevant factors including remote loss scenarios, carry the expectancy of profit. These insurers ignore market-share considerations and are sanguine about losing business to competitors that are offering foolish prices or policy conditions.
2. They limit the business they accept in a manner that guarantees they will suffer no aggregation of losses from a single event or from related events that will threaten their solvency. They ceaselessly search for possible correlation among seemingly-unrelated risks.
3. They avoid business involving moral risk: No matter what the rate, trying to write good contracts with bad people doesn’t work. While most policyholders and clients are honorable and ethical,doing business with the few exceptions is usually expensive, sometimes extraordinarily so.

pg9
Why, you might ask, didn’t I recognize the above facts before September 11th? The answer, sadly, is that I did – but I didn’t convert thought into action. I violated the Noah rule: Predicting rain doesn’t count; building arks does. I consequently let Berkshire operate with a dangerous level of risk – at General Re in particular. I’m sorry to say that much risk for which we haven’t been compensated remains on our books, but it is running off by the day.

In the past I have assured you that General Re was underwriting with discipline – and I have been proven wrong. Though its managers’ intentions were good, the company broke each of the three underwriting rules I set forth in the last section and has paid a huge price for doing so. One obvious cause for its failure is that it did not reserve correctly – more about this in the next section – and therefore severely miscalculated the cost of the product it was selling. Not knowing your costs will cause problems in any business. In long-tail reinsurance, where years
of unawareness will promote and prolong severe underpricing, ignorance of true costs is dynamite.

pg10
Bad terminology is the enemy of good thinking. When companies or investment professionals use terms such as “EBITDA” and “pro forma,” they want you to unthinkingly accept concepts that are dangerously flawed.(In golf, my score is frequently below par on a pro forma basis: I have firm plans to “restructure” my putting stroke and therefore only count the swings I take before reaching the green.)

pg11
In insurance reporting, “loss development” is a widely used term – and one that is seriously misleading. First, a definition: Loss reserves at an insurer are not funds tucked away for a rainy day, but rather a liability account. If properly calculated, the liability states the amount that an insurer will have to pay for all losses
(including associated costs) that have occurred prior to the reporting date but have not yet been paid. When calculating the reserve, the insurer will have been notified of many of the losses it is destined to pay, but others will not yet have been reported to it. These losses are called IBNR, for incurred but not reported. Indeed, in some cases (involving, say, product liability or embezzlement) the insured itself will not yet be aware that a loss has occurred.

pg16
One more point about our investments: The media often report that “Buffett is buying” this or that security, having picked up the “fact” from reports that Berkshire files. These accounts are sometimes correct, but at other times the transactions Berkshire reports are actually being made by Lou Simpson, who runs a $2 billion portfolio for GEICO that is quite independent of me

An update on EPIC Q1 2010

It has been some time I last updated on EPIC, let's have a look into the Q1 2010 notes:
13 Review of performance
The Group achieved revenue of RM47.36 million in the first quarter under review, an increase of RM5.12million or 12% compared to RM42.23 million reported in the same quarter in the preceding year.The Group recorded profit before tax of RM14.94 million, increase by 27% compared to RM11.77 million achieved in the same quarter in the preceding year.
The increase in revenue and profit before tax was mainly due to increase in port operations and oil and gas activities.
The oil and gas operation remains as the main contributor to the Group performance.

19 Investment in quoted securities
(a)Current Year to quarter date
RM'000 RM'000
Bursa Malaysia
Purchases 301 301
Sales 102 102
Profit on disposal (11) (11)

The company is losing money in its investment.Have another look on those shares not sold yet:
Investments in quoted shares as at end of the current financial year to date are as follows:
RM'000
i) At cost 1,000
ii) At carrying value 952
iii) At market value 952

Current quarter EPS=RM0.058, ESTIMATED full year EPS=0.232,target price should at least be RM2.00, the BVPS is currently around RM1.95.
But as you see in the notes,company losing money in investment, I don't think me as an investor like to see this. But the company healthy balance sheet is a plus.

Cash and equivalent=RM 85,406,000.00
Total liabilities=RM 89,142,000.00

The company has been actively doing share buyback
Cumulative net outstanding treasury shares as at to-date (units):2,755,900.

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