New Companies Added – DRBHCOM, LPI, IJMPLNT, HSPLANT, HAPSENG
I am pleased to advise that we have just added the following companies in our Bursa Malaysia company database:
DRB-Hicom Berhad – Conglomerate with operations in automotice assembly/distribution, property and infrastructure development
LPI Capital Berhad – Leading general insurance group in Malaysia and a subsidiary of Public Bank Berhad
IJM Plantations Berhad – Niche oil palm group with plantation estates in Sabah
Hap Seng Consolidated Berhad – Diversified group with operations in plantation, property, automotive trading and credit financing
Hap Seng Plantations Holdings – Palm oil business of Hap Seng Consolidated
Once again let me know if you spot any errors in any of the data.
Sincerely
Larry Lam
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February 22nd, 2009 at 9:57 am
Hi Larry,
It has been very insightful to read your critical analysis of AMMB.
We share something in common, and that is we don’t blindly trust others.Ha! Ha!
I am presently compiling a list of top klse counters for purchase in the event of a market crash.
As I am not trained in this field, would greatly appreciate it, if you could mention your favorite counters.
Thanks
Gurdev Singh
February 24th, 2009 at 12:37 pm
Hi Gurdev
Thanks for your feedback. I do read reports from Resesarch Analysts, but to blindly trust them would be foolish! so I usually try to learn as much as I can about a company and its operating landscape, and I do believe looking at its track record and cash flow would reduce risk significantly. Most analysts ignore this part.
Personally I am OK with AMMB and PETDAG, taking a 5 year view. I am still defensive coz the unemployment is on the rise worldwide. Generally I believe our market is still not cheap and palm oil counters have much downside risk. I’m starting to look into REITs in more detail and will publish articles on this soon. Do keep an eye out and feel free to comment on the blog and I will try my best to reply.
February 27th, 2009 at 4:42 pm
Hi Larry,
Thanks for your reply. Reason I am seeking your advice is that as I sift through the fundamentals of many counters on the KLSE using info posted on The STAR website, I am alarmed at the number of counters that are in net debt (liabilities + long term debt that are way more than all assets put together).
Also the countless counters that are “dead” volume wise is astonishing. Therefore the great need for caution.
My favorite all along has been YTLPOWR and warrant B, but with the depreciating pound it is a little shaky these days.
Yes, AMMB looks like a very promising counter, waiting for it to come down some 10 to 20% before moving in.
Once I compile my list, I will post it to you.
February 27th, 2009 at 4:46 pm
Hi Gurdev, you’ve made some really good observations there. The smaller caps in particular have high net debt position and are feeling stress in the current environment. Many of them are not traded at all…. I believe this will filter through and it will be a long and tedious recovery, well beyond 2009 and into 2010 at least. I’m a little averse to YTL Power myself although it is a favorite among some analysts, reason being their high net debt position and industry uncertainties over how much IPPs can charge Tenaga… all too political for me. I agree with you on AMMB, I have some holdings but I wouldn’t mind if it goes below RM2 as it will be a nice opportunity. Look forward to get your list. As for me I’m feeling defensive still, companies like HLBANK, PETDAG and some of the REITs might be more reliable for dividends.
February 28th, 2009 at 3:02 am
I have selected some counters as follows:
Steel:
(A) ANNJOO
(B) MASTEEL
(C) SOUTHERN STEEL
CEMENT:
(A) LMCEMENT
(B) YTLCEMENT
AUTOS:
(A) ORIENT
(B) UMW
PROPERTIES:
(A) IOIPROP
(B) YTLLAND
(C) SUNCITY
(D) STAREIT (BUNCHED THIS WITH PROPERTIES)
FINANCE:
(A) AMMB
(B) TA ENT
FOOD AND BEVERAGE:
(A) CARLSBERG
(B) GUINESS
(C) MAMEE
(D) APOLLO
PLANTATIONS:
(A) HSPLANT
(B) HAP SENG
OIL & GAS
(A) DIALOG
(B) PETRA
INFRASTRUCTURE:
(A) YTLPOWR-WB
HOPING TO HAVE A LIST OF 30, SO AS TO HAVE A REASONABLY DIVERSIFIED PORTFOLIO.
PLEASE ADVICE.
REGARDS
GURDEV
March 1st, 2009 at 10:14 am
WOW!!
I think i have discovered a jem. Timber stocks!!
Almost missed them completely. Read on the net of heavy fall in malaysian timber industry. Analysts favourite is TAANN.
OMG!! this counter is coming down so quick, it is trading at a 10 year low, yet it is a well renowned counter.
97% of its business is with Japan. Ha! no wonder lah. Japanese stock market has been falling steeply, so it reflects on TAANN’s performance.
Larry! what do you think of this counter.
March 5th, 2009 at 1:45 pm
Sorry for the late reply… was flat out last couple of days. I don’t really follow Ta Ann these days but the timber and palm oil sector does not look great and that probably explains the share price.
Thanks for sharing your list, looks like a really diversified portfolio indeed. Personally I watch no more than 10 counters very closely because of time limitations. I quite like AMMB, Guinness and Oriental Holdings myself… Guinness is steady n generates cash, nice dividends for sure but it is not exactly cheap. Oriental is conservatively managed, sitting on a huge cash pile and have little capex requirements, their business will be affected in this downturn but they are in a great position to ride it through. It is cheap but can get cheaper, I’m watching for an opportunity here. One thing to note though is that Oriental is not a liquid stock and funds will find it hard to invest in this stock. TA is also super cheaep but I’m concerned about how they re-invest all that cash pile. There was a good article in TheEdge last week on the steel sector, I understand AnnJoo is saddled with high stock levels while Masteel did well by keeping it low. Not too sure about HapSeng but if you are after plantations exposure, it may be good to wait a bit and see if you can pick up Sime, IOIcorp or KLK for cheap.
March 6th, 2009 at 9:49 am
Appreciate very much the guidance given. As for now there is a lot of uncertainty. Even Buffet’s Berkshire has lost about 50% in value. Just don’t know where the bottom will be. Reminds me of KLSE in 97/98 period, when at 600 points, people thought it was at rock bottom. Who would have imagined it could go down to 300+
Investing is not an easy business, hope to be patient and not go in too soon.
Also got to be careful with politicians meddling with the stock market. Our index has not been responding to the DOW in a normal way. DOW’s high was 14000+, while KlCI’s high was 1400+.
DOW is at 6600 today while the local index is at 880+. Regionally the market’s mirror the DOW but not our’s, especially these last few months.