Bumi Armada, Badass Or Goodfella

Valuation and prospects wise, the new owners of Bumi Armada have done well to instill both in the company. Those with better memories know that minorities got the raw end of the deal when it was privatised. We can sit and complain or reassess the Bumi Armada that is in front of us. FinanceAsia: Bumi Armada, a Malaysian oil and gas services company, has started bookbuilding for what looks set to become the country’s biggest initial public offering since Petronas Chemicals raised $4.15 billion in November last year. It will also be the second-biggest listing in Southeast Asia this year after the Singapore IPO of Hutchison Port Holdings Trust,...

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Updates On HK Property Market

Despite concerns over a property bubble in Hong Kong and government efforts to cool the red-hot sector, two Hong Kong tycoons: Cheung Kong Holding’s Li Ka-Shing and Henderson Land’s Lee Shau kee have been snapping up shares in their own firms.Robert Halili, Managing Director at Asia Insider told CNBC on Wednesday, this insider buying is encouraging news for shareholders and investors looking to bet on the real estate sector.“The one thing I want to point out to investors is that whenever these 2 titans buy at the same time, it is almost like a solar eclipse. It only happens once in a blue moon.” Out of the $2.6 billion dollars invested...

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For Husbands & Wives

The speaker is a renowned marriage counsellor in HK, and he gives funny insights into how marriage breaks up and how to make it better. Its in Cantonese. Though some will say the advice is a bit archaic and chauvinistic, but I think there is a lot of truth in what he says.I know many husbands will try to get their wives to watch the video immediate...

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The Lowdown On Football Jersey Sponsors

It cost millions to sponsor a top club's jersey a year. There is much politics and interesting twists to which company gets which club and how much they paid. Bottom line a jersey sponsorship may only pay for 3 or 4 top players' annual salaries only, but every bit helps I guess.Following the article is a series of tabulation of the top sponsored jerseys. But first, we can look forward to the jersey for Cardiff City, owned by Vincent Tan. In fact, the club has had to reject many potential advertisers. (So, what's next higher title after Tan Sri for Vincent Tan?). This may look like a joke, but its not. Hold on tight for next season's Cardiff City's...

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For Those Who Do Not Trade

soonyeah said...Dali, I know your investment horizon is short term. As some of your reader don't have a lot of team to monitor the market, can you help write write up a post on "What you like for long term" ? What stocks can we contribute as a fund to buy every months to fight inflation ? Kindly advise.If you are not a trader, your view would be to hold stocks that will outperform amidst the volatility. Below are some stocks that I would like to hold (if I can) till year end or end March 2012 at least:1) QL 2) Sunway Holdings-W (to convert)3) Sunway City-W (to convert)4) Press Metal (to go through the exercise)5) Coastal6) MRCBFor inflation...

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Market Commentary On Selected Stocks

Its a tough market this month, many combustions, IPOs and then Muhibbah, followed by MAA and out of the blue TimedotCom. Sigh, if listen to the mantra to stay away from May onwards, many of us would have lost a lot less if we went to play golf everyday.TimedotCom Shares slumped after its major shareholder fixed the offer for sale of the shares at a sharp discount. Time fixed the renounceable offer for sale of up 626.18 million shares of Time dotCom at 53 sen. The offer price of 53 sen was 33.75% below the five-day volume weighted average market price up to June 17. The offer for sale is on the basis of eight offer shares for every 10 shares...

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The Perils Of Trading MAA

Sigh ... you can be wrong or wronger. No, there was no assumption of the liabilities which might have added RM200m to the deal.MAA Holdings will sell its entire stake in Malaysian Assurance Alliance Bhd (MAAB), Multioto Services Sdn Bhd for RM344m cash, valuing its assets at 1.36x book value, considerably lower than the recent transactions in the industry. The bomb exploded when you read how the funds will be used, don't even think of getting a RM1.00 dividend:The Company intends to utilise the cash proceeds from the Proposed Disposal in the following manner:Purpose Notes Estimated timeframe for utilisation- Repayment of medium term notes programme (“MTNs”). Immediately upon the date ofreceipt of the proceeds from the Proposed Disposal (RM144m)- Repayment of borrowings and payment of restructuring...

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There Is (Really) Wind And Water In My Stocks

I decided to feature this again, because obviously fundamentals analysis and/or technicals charting do not always bring the desired results. Every year we look forward to the CLSA fengshui chart prediction just for a chuckle. But seriously, the masters they employ seem to be getting better and better. I suspect in the early days they hired a few masters to help them come up with the report. Over the years they probably got a better idea of who among those masters were better than the rest. Seriously, ask any market...

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Aces & Kings

Starbiz had a detailed coverage of ACE/Mesdaq companies on Saturday. Here are my thoughts:a) We need the ACE market. We need it to be vibrant, with their share of heroes and villians. Do not over react when investors throw brickbats, or just bricks and bats - just part of the process. b) ACE is important as it allows for exciting companies seeking capital for further expansion. They may or may not have a profitable track record but herein lies the attraction and risk. c) The most important factor for having a vibrant ACE market is in the recycling of capital. If invested capital gets "realised" or have more avenues for risks to be shared...

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Eversendai, Good Or Bad IPO

If you were in a coffee shop and you mention IPO, you'd be safe and sound if you just start swearing. One of the bigger ones to come onboard is Eversendai. Well its not as safe and secure as MSM, and looking at how UOA got hammered, good fundamentals may not be exciting enough in this market sentiment.I liked this comment in one of the forums, "only pondans buy IPOs"... lol.Institutions indicative price range of between RM1.66 and RM1.80. Individual investors RM1.70 per share or 95 per cent of the institutional price. Opening of application: 15/06/2011 Closing of application: 21/06/2011 Balloting of applications: 23/06/2011 Allotment of IPO...

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EAH Finalises Terms For Purchase Of DDSB

Since I have been highlighting EAH, its only appropriate to follow up on the developments. Latest announcement showed that they have finalised the proposed terms:EA HOLDINGS BERHAD ("EAH" OR THE "COMPANY")I. PROPOSED ACQUISITION OF 1,275,000 ORDINARY SHARES OF RM1.00 EACH IN DDSB (M) SDN BHD ("DDSB"), REPRESENTING 51% EQUITY INTEREST IN DDSB FOR A TOTAL PURCHASE CONSIDERATION OF RM19,380,000 TO BE SATISFIED BY THE ISSUANCE OF 48,450,000 NEW ORDINARY SHARES OF RM0.10 EACH IN EAH ("EAH SHARES") AT AN ISSUE PRICE OF RM0.40 PER EAH SHARE ("PROPOSED ACQUISITION");II. PROPOSED INCREASE IN THE AUTHORISED SHARE CAPITAL OF EAH FROM RM25,000,000 COMPRISING...

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Market Readings

Had written tons and was about to post something on the video clips by NasiLemak2020 group, but after thinking about it, decided not to, even though I find their videos exceptionally funny, cutting, politically enchanting and fun. So, just go to YouTube and search for them.The market seems to be trying to dig itself out of a hole. Even the blue chips are trying to get some attention, but no visible market leader as yet. For a market to have a sustained run, there must be a market leader. No, penny stocks cannot be market leaders. Sunway merger plans now look like a grand champion for those who held through for the exercise. The likely leader will be UEM Land, Tebrau from the Iskandar story. If they make it to the top, then we are in for a upswing. Seeing Axiata and Tenaga up there is not the...

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World's Strongest Banks by Bloomberg (Or Are They)

Picked up my favourite magazine, Bloomberg Markets, and splashed as one of the top articles was The World's Strongest Banks. The list is all too predictable but this is where STATISTICS LIE. I am not saying the banks weren't great, but they are not as great as the article made them out to be.I have no questions about the methodology as they looked at the usual Tier 1 capital to risk weighted assets, NPL to total assets, loan loss reserves to non performing assets, deposits to funding and efficiency (costs to revenue).Singapore banks came in numbers 1, 5 and 6. Canadian banks came in 3, 4, 12, 17 and 19. What's the common denominator - strong...

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More Queries On Actual MAA Deal

It may seems like the details are not all out. The whispers have it that Zurich will also assume RM200m of loans, which will actually add another 65 sen to the 1.13 cash deal. Maybe that explains the funny support at RM1.10? This may make more sense because the RM344m was on the low side based on recent similar transactions. Still, its unconfirmed views.Dali,How do u derive the rm1.50-1.60 figure?Pls do a detail valuations of the cash & takaful assets.Thx. 8:55 AM Jeff said...Dali,TY deserves an oscar. Selling MAAB cheap & failure to disclose the details of the pricing.Sales proceeds plus NTA works out to be approx. RM2.20Applying...

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