Red Dragon: China @60 (1949-2009)

Happy National Day to all Chinese ppl in mainland.

Summary:

About 200,000 people took part in the celebration, including President Hu Jintao, former President Jiang Zemin and members of the ruling Politburo Standing Committee who watched from the rostrum of Tiananmen -- the Gate of Heavenly Peace. It was there, on Oct. 1, 1949, that Mao Zedong declared the communists’ victory in a civil war.

Numbers:

- 151 military aircraft, including J-10fighter jets, flew past in 12 formations

- About 80,000 children in Tiananmen Square spelled out the Chinese characters for “national celebration” with red and gold placards to begin the celebration.

- Displayed 52 types of new weapons, including unmanned aerial vehicles and aircraft with advance-warning radar. 5000 soldiers marched through the square

- China now produces in a day the equivalent of a year’s output five decades ago.

- Poised to surpass Japan as the world’s second-largest economy by 2010

However...

- 800 million Chinese, 60 percent of the population, still live in the countryside, and rapid development has left millions of them behind

Malaysia Budget 2010 – Budget rally?

Over the past five years, the average return for a 1-month holding period before the Budget would generate a return of about 0.5%. However, if one were to exclude the Budget 2009, which was announced to combat the global financial meltdown, the market return is a modest 1.9%. 

From the 30 stocks listed on the FBMKLCI, CIMB research manage to locate 2 stocks that offered at least 5% return in the one-month period: Genting and IOI Corp.

In addition, it's always good to know our M'sia main investment arm: Khazanah stakes in BURSA. I'm pretty sure some of them will get direct benefit from the coming Budget.

Autos: New Perodua MPV Alza

The new Perodua MPV is coming on October 2009 (postponed to end of Nov). Its dimensions:  4,180mm long, 1,695mm wide and 1,620mm tall, with a long 2,750mm wheelbase to maximize the interior space (2,550mm long).


It seems that the new  MPV will come with a Twin Cam 16v as shown in the photos below. Hopefully its engine will be as good as its looks. Exora, here come your new challenger!!

 

For Malaysia autos market updates, below shows the market shares and sectors comparisons:

Do you have the mental fortitude to accept huge gains?

“This comment usually gets a hearty laugh, which merely goes to show how little most people have determined it actually to be a problem. But consider how many times has the following sequence of events occurred? For a full year, you trade futures contracts, making $1000 here, losing $1500 there, making $3000 here and losing $2000 there. Once again, you enter a trade because your (trading) method told you to do so. Within a week, you’re up $4000. Your friend/partner/acquaintance/broker/advisor calls you and, looking out only for your welfare, tell you to take your profit. You have guts, though, and you wait. The following week, your position is up $8000, the best gain you have ever experienced. ‘Get out!’ says your friend. You sweat, still hoping for further gains. The next Monday, your contract opens limit (down) against you. Your friend calls and says, ‘I told you so. You got greedy. But hey, you’re still way up on the trade. Get out tomorrow.’ The next day, on the opening, you exit the trade, taking a $5000 profit. It’s your biggest profit of the year, and you click your heels, smiling gratefully, proud of yourself. Then, day after day for the next six months, you watch the market continue to go in the direction of your original trade. You try to find another entry point and continue to miss. At the end of six months, your method finally, quietly, calmly says, ‘Get out.’ You check the figures and realize that your initial entry, if held, would have netted $450,000.”
“So what was your problem? Simply that you had allowed yourself, unconsciously, to define your ‘normal’ range of profit and loss. When the big trade finally came along, you lacked the self esteem to take all it promised . . . who were you to shoot for such huge gains? Why should you deserve more than your best trade of the year? Then you abandoned both (trading) method and discipline. To win the game, make sure that you understand why you’re in it. The big moves in markets only come once or twice a year. Those are the ones which will pay you for all the work, fear, sweat and aggravation of the previous years. Don’t miss them for reasons other than those required by your objectively defined method. The IRS categorizes capital gains as ‘unearned income’ that’s baloney. It’s hard to make money in the market. Every time you make, you richly deserve. Don’t ever forget that.”

...Robert Prechter – the Elliott Wave Theorist (1992)
source: raymondjames

Once in your life time... Citi

Who never heard of Citi? Currently, Citi is in deep shit for a period of time, but with the solid bizz ops and huge customer database(plus contracts award by gov), i'm sure its share price will rise in future. A very good buy+hold share.

From local research report:

Citigroup (C US; US$4.61) – BUY
FY10P/E: 53.6x, P/BV: 0.3x
• Citigroup has been consolidating above its strong resistance turned support
level at US$4.50. It appears to have formed a consolidation triangle. Again, a
triangle is likely to happen prior to the final thrust, in this case, a final thrust
upwards.
• A breakout above its triangle resistance at US$4.70 could see a retest of
US$5.00 and even US$5.43, the recent highs. The moving averages at S$4.30
and US$3.71 are the support.
• Only aggressive traders may want to buy now with a stop place below the
triangle support at US$4.53 or below its 30-day SMA at US$4.30. Longer term
investors should sell on strength as this thrust would likely be its final in the
medium term.

Investment element: Emotion

"Those who blindly follow others end up being like others"

The best 200 big companies in Asia

Sunday, September 13, 2009

EIGHT Malaysian companies are among the 200 small and medium-sized (SME) companies in the Asia Pacific that got into Forbes Asia's fifth annual "Best Under A Billion" list for 2009.

The companies are Coastal Contracts Bhd (marine transportation), Efficient E-Solutions Bhd (information technology outsourcing), ETI Tech (batteries), Hai-O Enterprise Bhd (cosmetics), Kumpulan Fima Bhd (food processing), NTPM (paper products), Success Transformer (electrical manufacturing) and YNH Property Bhd (palm oil).

According to Forbes Asia yesterday, the winners were culled from over 25,000 publicly listed companies with under US$1 billion (RM3.49 billion) in sales.

Four Malaysian companies - Coastal Contracts, Kumpulan Fima, NTPM and YNH Property - each recorded US$101 million (RM352.49 million) in sales.

Of the others, Hai-O Enterprise registered US$122 million (RM425.78 million) in sales, Success Transformer US$53 million (RM184.97 million), ETI Tech US$24 million (83.76 million), and Efficient E-Solutions US$17 million (RM59.33 million).

Forbes Asia said a third of last year's companies returned to this year's list, with all having either increased sales and profits over the past 12 months or were forecast to do so in the coming quarters.

It said that 78 companies from Hong Kong and China, or nearly 40 per cent, dominated the list, followed by Japan with 24 companies, South Korea (23), India (20) and Australia (18).

Apparel, media, technology and healthcare companies led the way on the list, it added.

Commenting on the list for the September 21 issue of Forbes Asia, writer Jack Gage said there were many survival stories in these 200 top companies whose lessons other entrepreneurs could learn from.

Gage said unprecedented dislocations in the global economy disrupted supply chains over the past 12 months, froze lines of credit, depleted consumer coffers and sent business spending into hibernation.

"The 64 companies returning from last year are a testament to fearless management and 136 new entrants have seized opportunities arising from the economic uncertainty," he said.

The 200 winning companies will be honoured at the Forbes Asia's "Best Under A Billion" award ceremony in Singapore on November 11. - Bernama
KFIMA and SUCCESS will be a good buy for long term.

Source : http://www.btimes.com.my/Current_News/BTIMES/articles/forb/Article/index_html

DRBHICOM: Update

DRB-Hicom is seeking partners to develop its integrated automotive cluster project in the Jazan Economic City in the Jizan Province of Saudi Arabia. Its group MD Datuk Mohd Khamil Jamil said towards this end, the company would cooperate with potential partners in both manufacturing and assembly activities.

BURSA: The Time Has Come

Current trend:
ONG theme play -> Alam, Sealink
Low PE company -> DRBHCOM, Pantech, Kfirma
Solid Finance company -> RCECAP