A Brief Look at KAF

KAF-Seagroatt & Campbell Berhad

Business Description:
KAF-Seagroatt & Campbell Berhad is a Malaysia-based investment holding company. The Company, through its subsidiaries, is engaged in the stock broking, futures broking, fund management, money broking and discount house activities in Malaysia. Its subsidiaries are KAF-Refco Futures Sdn. Bhd., KAF-Seagrott & Campbell Securities Sdn. Bhd., KAF Nominees (Tempatan) Sdn. Bhd. and KAF Nominees (Asing) Sdn. Bhd.

Current Price (14/1/2011): 1.53
2010 Sales 32,691,000
Employees: 106
Market Cap: 183,600,000
Shares Outstanding: 120,000,000
Closely Held Shares: 106,000,000

Recent Financial Results

Announcement Date		Financial Yr. End		Qtr	Period End		Revenue RM '000		Profit/Lost RM'000		EPS		Amended
19-Jan-11		31-May-11		2	30-Nov-10		9,303		7,157		5.96		-
28-Oct-10		31-May-11		1	31-Aug-10		10,406		7,475		6.23		-
20-Jul-10		31-May-10		4	31-May-10		8,619		4,793		3.99		-
20-Apr-10		31-May-10		3	28-Feb-10		6,632		2,383		1.99		-

Estimated EPS (i) = ttm-EPS = 18.17

At 1.53, it is trading at a forward PE of 8.4 x
Estimated EPS (ii) = 2*(5.96 + 6.23) = 2*(12.19) = 24.38 sen
At 1.53, it is trading at a forward PE of 6.3 x
It proposes a dividend of 7.5 sen.
At 1.53, its DY is 4.9%.
At 1.53, its P/B = 1.53 / 1.9467 = 0.79 = 79%

Historical
5 Yr
PE range 8.6 - 13.5
DY range 9.2% - 5.2%

10 Yr
PE range 15.5 - 24.5
DY range 7.2% - 4.4%

Year      DPS    EPS
2003      5.4        7.9
2004      6.3      12.6
2005      5.4      13.7
2006      5.4      13.7
2007    30.1      15.8
2008      5.6      12.5
2009      5.6       -2.5
2000      7.50    17.28     NTA 1.8248
1H11     7.5       12.2      NTA  1.9467

Capital Changes

2005  1/1 Bonus

Date
May 3, 2010	0.075 Dividend
Nov 19, 2009	0.075 Dividend
Jun 5, 2008	0.0375 Dividend
Nov 15, 2007	0.0375 Dividend
Aug 20, 2007	0.0375 Dividend
Feb 26, 2007	0.25 Dividend
Aug 28, 2006	0.0375 Dividend
Nov 18, 2005	0.0375 Dividend
Sep 13, 2005	0.075 Dividend
Sep 1, 2004	0.075 Dividend
Aug 30, 2004	0.075 Dividend
Dec 12, 2003	0.10 Dividend
Aug 28, 2003	0.075 Dividend
* Close price adjusted for dividends and splits.

The Best Way to Minimize Risk of Your Portfolio: Asset Allocation

The best way to minimize the risk of your portfolio is to carefully balance your assets among various investment vehicles.  Many people think that seeking out the top-performing stocks and mutual funds is the key to successful investing.  They are wrong.

Study after study has shown that individual investment choices account for only 5 or 10 percent of a portfolio's success, while 90 to 95 percent can be attributed to the way the portfolio is allocated among stocks, bonds and money market instruments.

Five Factors of Asset Allocation

When you plan to allocate your assets, you must consider five key factors:

1. your investment goal, 
2. your time horizon,
3. your risk tolerance,
4. your financial resources, and 
5. your investment mix.

The three most important personal factors to consider: Your Time Horizon, Risk Tolerance and Investment Objectives.  Read more here:  How well do you know yourself.

Your financial resources relate to HOW MUCH money you have to invest.  The amount of money you have to invest will be a big factor in the risks you want to take.  A small investor just doesn't have the funds to properly diversify a portfolio.  In that case, a well-diversified mutual fund is your best bet for getting started.  Once your portfolio has grown large enough, you may want to take some risk by selecting a more aggressive mutual fund or picking individual stocks.

Your investment mix relates to how you will ALLOCATE what you have to invest.  Historically, the rate of return for large-company stocks has averaged 11.3% between 1925 and 2000.  During the same period, bonds averaged 5.1% return and cash savings averaged 3%.  Rates of return are even higher for small company stocks, but they are also much more volatile.

What chance does your current asset allocation have of meeting your goals?


A portfolio balanced for growth would likely have 60% stock, 20% bonds, and 20% cash.  Using these returns as the average, the portfolio would likely earn 8.4% before taxes and inflation. This is what is called a weighted average.

This is how it works:

60% stock at 11.3%
11.3 x 0.60 = 6.78%
20% bonds at 5.1%
5.1 x 0.20 = 1.02%
20% cash at 3% 
3.0 x 0.20 = 0.60%
Total = 8.40%

You can group your portfolio into these types of baskets and get a weighted average of the return you might expect from the portfolio.  If you have mutual funds, they should calculate what percentage of stock, bonds, and cash are held within the fund.  You can use those percentages when you want to compare this in your portfolio.

Use this information to decide how balanced your portfolio really is and whether that balance matches your savings goals and your risk tolerance.  What chance does your current asset allocation have of meeting your goals?

If your gap is huge and you know you can't meet your goals with the current estimated level of return, you must decide whether 

1. you can tolerate more risk and try to improve your portfolio's growth potential or 
2. revise your goals to a level that more realistically matches what your portfolio can achieve.

Related:
Your Time Horizon, Risk Tolerance and Investment Objectives.  How well do you know yourself?
http://myinvestingnotes.blogspot.com/2010/01/three-most-important-personal-factors.html

Understand what money means to you:  Answer 10 simple questions
http://spreadsheets.google.com/pub?key=tr9oMvjAsDJvkcPgXdd763A&output=html

Are You an Intelligent Investor?

Graham believed someone could be an intelligent investor in two ways:

ACTIVE OR ENTERPRISING INVESTORS -  These types of investors have a lot of time to spend on building and managing their portfolios and also have a high risk tolerance.  They must continually research, select, and monitor a dynamic mix of stocks, bonds, or mutual funds.

PASSIVE OR DEFENSIVE INVESTORS - These types of investors don't have a lot of time to spend on a portfolio or can't tolerate much risk.  They must create a permanent portfolio that runs on autopilot and requires no further effort.  This type of passive portfolio won't be very exciting, but it will get you steady returns over your lifetime.

A Brief Look at DXN

DXN Holdings Bhd

Business Description:
DXN Holdings Berhad is a Malaysia-based investment holding and provision of management services company. It operates in three business segments:

1. multi-level marketing, which is engaged in the manufacture and sale of health supplements and other products on a multi-level marketing basis; 
2. property development, which is engaged in housing developing and contracting, and 
3. others segment, which includes travel agency and tour operations, information technology consultancy and advisory, and wholesaling and retailing of stationeries, household items, gifts and accessories. 

The Company's subsidiaries include DXN Marketing Sdn. Bhd., DXN Industries (M) Sdn. Bhd., DXN, Pharmaceutical Sdn. Bhd. and DXN Plantation Sdn. Bhd.

Current Price (7/1/2011): 1.47
2010 Sales 259,917,403
Employees: 1,119
Market Cap: 353,923,080
Shares Outstanding: 240,764,000
Closely Held Shares: N/A

Recent Financial Results

Announcement Date		Financial Yr. End		Qtr	Period End		Revenue RM '000		Profit/Lost RM'000		EPS		Amended
18-Jan-11		28-Feb-11		3	30-Nov-10		64,580		12,194		5.30		-
18-Oct-10		28-Feb-11		2	31-Aug-10		82,458		12,443		5.41		-
28-Jul-10		28-Feb-11		1	31-May-10		67,800		10,103		4.43		-
29-Apr-10		28-Feb-10		4	28-Feb-10		60,137		5,125		2.26		-

Estimated EPS for 2011 = 15.14*4/3 = 20.2 sen
At price of 1.47, it is trading at a forward PE = 1.47/0.202 = 7.3 x

Historical
5 Yr
PE range 4.6 - 7.6
DY range 2.0% - 1.3%

10 Yr
PE range 6.6 - 10.4
DY range 1.6% - 1.0%

Year     DPS     EPS
2003     0.0       7.1
2004     0.9       6.8
2005     1.4       9.2
2006     1.8       8.8
2007     1.8     10.0
2008     0.0       8.1
2009     3.50   12.38
9M10   7.75   15.14      NTA 0.9553

Capital Changes

2003    1 to 4 Share Split, 81.33/1 Bonus, 6.35/10 Rights @ RM 0.25

Pakatan Rakyat convention - 10 resolutions

Our PM touched on this in the TV news. Finally, someone has pushed a copy of this into my email. Well, what do you think of these resolutions?

Pakatan Rakyat convention - 10 resolutions

Racial policies rejected, preliminary 10-point manifesto unveiled.

The resolutions outline in detail the changes Pakatan will introduce within the first 100 days of its taking over Putrajaya if it wins the next general election expected to be held early next year.

The resolutions are:

1. A restructure of institutions including the Elections Commission (EC), the Malaysian Anti-Corruption Commission (MACC), the Attorney-General’s Chambers and the Royal Malaysian Police. 


2. A repeal of the Internal Security Act (ISA)

3. Instruct Khazanah Berhad, Employees’ Provident Fund (EPF) and other government bodies to take over highway assets from the concessionaires in order to abolish the toll system.

4. A restructure of the country’s subsidies, to lessen subsidies given to the private sector (such as the RM19 billion in gas subsidies given to independent power producers) and transferring these to subsidies for the man on the street.

5. Acknowledging the role and sacrifices of civil servants by studying the current pay schemes and increasing the incentives for teachers by RM500 a month

6. Transferring private water concessions to the government

7. Offering free wireless Internet access to those in urban and semi-urban areas

8. Cancelling Felda Plantations and opening up its farms to second- and third generation Felda settlers.

9. Increasing oil royalty payments to Sabah, Sarawak, Terengganu and Kelantan to 20 per cent from 5 per cent currently.

10. Formation of a Royal Commission to solve the problem of illegal immigrants and citizenship issues in Sabah and Sarawak.

Ben Graham: The chief losses to investors come from the purchase of low-quality securities at times of favorable business conditions.

The high CAGR in the early years of the investing period, due to buying at a discount, tended to decline and approach that of the intrinsic EPS GR of the companies over a longer investment time-frame.

Chapter 20 - “Margin of Safety” as the Central Concept of Investment

A single quote by Graham on page 516 struck me:

Observation over many years has taught us that the chief losses to investors come from the purchase of low-quality securities at times of favorable business conditions.

Basically, Graham is saying that most stock investors lose money because they invest in companies that seem good at a particular point in time, but are lacking the fundamentals of a long-lasting stable company.

This seems obvious on the surface, but it’s actually a great argument for thinking more carefully about your individual stock investments. If most of your losses come from buying companies that seem healthy but really aren’t, isn’t that a profound argument for carefully studying any company you might invest in?

Market Behaviour: Crowd Behaviour IMPACTS Stock Prices

As a value investor, it is important to think for yourself and not follow the crowd.  But it is still important to understand market crowd behaviour and, by understanding that behaviour, know when the stock market is ripe for the picking.  (BFS, STS).

Be careful not to get caught up in the financial press hype if you do choose to listen to it.

Related topics:

Market Behaviour: The Least You Need to Know
Market Behaviour: Crowd Impacts on Stock Prices

Market Behaviour: Can You Beat the Market?
Market Behaviour: Bull Runs
Market Behaviour: Bear Stalls
Market Behaviour: Pendulum Swings (Volatility)
Market Behaviour: Irrational Exuberance
Market Behaviour: Unjustifiable Pessimism
Market Behaviour: Control Yourself (Patience)

OSK Research: Carlsberg to fare well in 2011

OSK Research: Carlsberg to fare well in 2011
Written by theedgemalaysia.com
Friday, 14 January 2011 08:45

KUALA LUMPUR: OSK Research said Carlsberg Malaysia Bhd will fare well in 2011 although intense competition will persist vis-à-vis its rival, Guinness Anchor.

It said on Friday, Jan 14 the upbeat macro factors create favourable conditions for market growth this year.

“Upgrading our earnings estimates for 2011 and going forward, we derive a higher target price for Carlsberg of RM7.20 from RM6.50 previously.

“The stock is maintained a BUY. We see Carlsberg paying a higher gross dividend of 35 sen per share versus 27.5 sen previously, translating into a gross yield of 5.4% for FY11,” it said.

Tenaga chief says nuclear energy option as coal price spikes up

Tenaga chief says nuclear energy option as coal price spikes up
Written by Bernama
Saturday, 15 January 2011 20:31

KUALA LUMPUR: The recent flooding catastrophe in Australia that pushed up the coal price, further justifies the need for Malaysia to seriously consider nuclear power to generate electricity, TENAGA NASIONAL BHD [] (TNB)president and chief executive officer, Datuk Seri Che Khalib Mohamad Noh said.

"Due to the shortage of gas in the country, we have diversified our electricity generation to include coal. Now that there is bad whether in Australia and Kalimantan, as well as severe cold in the Northern hemisphere, the demand for coal, has suddenly shot up but supply is limited.

"There is also a lot of expansion of coal plants elsewhere and all this has combined to cause coal price to spike up by more than 50% over the last six months," he said on Satursday, Jan 15.

Coal accounts for 40% of Tenaga's power generation source.

AmResearch in its recent report said, based on the current price that is hovering above US$100 per tonne and the US/RM exchange rate, Tenaga's net profit for financial years 2011 to 2013, could drop by between 28% to 29%.

Tenaga purchased 17% of its annual coal requirement of 18 million tonnes in financial year 2010 from Australia, 71% from Indonesia and 11% from South Africa, said the research house.

Coal accounted for 48% of Tenaga's 2010 financial year fuel cost.

"We estimate that a US$10 increase per tonne in coal costs above our average coal cost projection, could shave Tenaga's 2011 financial net profit by 18%," it explained.

Hence, Che Khalib said, it is timely for the government to seriously look into generating electricty from nuclear power.

"The safety measures, record and TECHNOLOGY [] for nuclear power plants today are far better than that 30 years ago," he added.

He also said that, as the country’s largest power producer, TNB supports the government’s initiative to establish the Nuclear Power Corporation, as the country can now seriously look into an alternative avenue.

"It is not that we are forcing the country to accept the alternative but we seriously need to look at it and if suitable, be implemented as soon as possible," said Che Khalib.

He also said TNB as an utility company has an interest in supporting the government as the plan is to have the first nuclear plant by year 2021.

"TNB wants secure power generation within the next 10 years and it has to have nuclear power as part of the mix," he added. - Bernama

Pos Malaysia, Maybank partner to offer shared banking services

Pos Malaysia, Maybank partner to offer shared banking services
Written by Surin Murugiah of theedgemalaysia.com
Friday, 14 January 2011 19:16

KUALA LUMPUR: POS MALAYSIA BHD [] and MALAYAN BANKING BHD [] have teamed up to provide shared banking convenience for their customers at more than 400 Pos Malaysia outlets.

In the agreement signed on Friday, Jan 14, they said the alliance would enable the bank to provide banking services to more customers, especially the underserved segment, through the extensive network of Pos Malaysia’s outlets. The partnership would enable Maybank to especially reach the rural areas of Sabah and Sarawak.

Pos Malaysia group managing director and chief executive officer Datuk Syed Faisal Albar said Pos Malaysia was always looking for opportunities to expand the range of products and services offered at its post office counters such as the shared banking services with Maybank.

Maybank president & CEO Datuk Seri Abdul Wahid Omar said the collaboration reaffirmed Maybank’s market leadership and capabilities to offer services to all communities. This would also reinforce its corporate social responsibility and focus on supporting communities especially in the rural areas.

“It is about providing access to financial services and to improve quality of life of the community as well as contribute to the development of the people where we have our presence.

“The initiative is also in line with Maybank’s spirit in humanising financial services from the heart of Asean by providing easy access to financial service for the people, as well as providing them with a fair term and pricing and for us to be the heart of the community,” he added.

The three phase implementation programme will see selected Pos Malaysia outlets offer Maybank customers to undertake over the counter bank transactions such as cash deposit and withdrawal for savings account holders and loan repayments in the initial stage.

An automated teller machine would be provided at selected Pos Malaysia outlets to offer banking convenience beyond banking hours as well as additional services such as fund transfer, top-up of mobile credits or 'Touch 'n Go’ card.

"By end June 2011, Pos Malaysia services will expand to cover remittance service and opening of savings account," Abdul Wahid said.

LTAT income up 34pct to RM747.5m in FY2010

LTAT income up 34pct to RM747.5m in FY2010
Written by Joseph Chin of theedgemalaysia.com
Monday, 17 January 2011 18:52

KUALA LUMPUR: The Lembaga Tabung Angkatan Tentera (LTAT) registered an unaudited total income of RM747.5 million in the financial year ended Dec 31, 2010, up 34.7% from RM554.7 million.

The Malaysian Armed Forces Fund said on Monday, Jan 17 this was the highest recorded profit since it was set up 38 years ago.

"Eligible members will receive total dividends and bonuses at a rate of 14% for FY ended Dec 31, 2010," it said.

The payout, comprising of 7% dividend, 1% bonus and 6% special bonus in the form of unit trusts, would amount to RM616.3 million. This is an increase of 7.2% from FY2009 payout of RM575.2 million.

LTAT's total assets as at Dec 31, 2010, increased by 1.3% to RM7.6 billion from RM7.5 billion in FY2009. The members' contributions totalled RM6.7 billion in 2010 compared with RM6.3 billion in 2009.

China stocks dive 3 pct after bank reserve hike

China stocks dive 3 pct after bank reserve hike
Written by Reuters
Monday, 17 January 2011 14:52

SHANGHAI: Chinese shares fell more than 3 percent on Monday afternoon, Jan 17, led by banking and property stocks, after a rise in lenders' reserve requirements and talk of a property tax in Shanghai kept bank and developer stocks under pressure.

The benchmark Shanghai Composite Index fell to 2,704.5 points by 0640 GMT, dropping far below the crucial 125-day moving average at 2,779. The index lost 1.7 percent last week amid lingering fears over monetary tightening steps.

The property sub-index fell 5.7 percent.

The PBOC announced a 50-basis-point RRR hike for all banks after Chinese markets closed last Friday, which will take effect on Thursday and will drain an estimated 360 billion yuan ($55 billion) from the market.

Shanghai's mayor said on Sunday that one of the city's main tasks this year would be to prepare for the trial run of a property tax to curb speculative investments in the real estate sector.

Top lender ICBC dropped 3.9 percent, while the biggest listed property developer China Vanke tumbled 7.7 percent. - Reuters

A Brief Look at Hing Yiap Group Bhd. & the take-over offer by Everest Hectare

Hing Yiap Group Berhad

Business Description:
Hing Yiap Group Berhad (Hing Yiap) is a Malaysia-based company engaged in property and investment holding, textile knitting and the manufacture of garments. The Company operates in three segments:

1. manufacturing, which includes textile knitting and the manufacture of garments; 
2. trading, which includes wholesaling, retailing and distribution of ready-made sports and casual wear, women intimate apparel and related accessories, and 
3. food and beverage, which includes the rights to operate gourmet chocolate cafe and retail outlets known as Theobroma Chocolate Lounge. 

It has nine subsidiaries, including Antioni Sdn. Bhd., which is engaged in retailing and distribution of the Antioni brand of ready-made sports and casual wear and related accessories; Hing Yiap Trading Sdn. Bhd., which is engaged in wholesaling of ready-made garments and fabrics, and Bumcity Sdn. Bhd., which is engaged as operator of specialty stores known as Bumcity, among others.

Current Price (7/1/2011): 1.74
2010 Sales 134,827,402
Employees: 1,675
Market Cap: 72,709,380
Shares Outstanding: 41,787,000
Closely Held Shares: 39,240,280

Recent Financial Results

Announcement Date		Financial Yr. End		Qtr	Period End		Revenue RM '000		Profit/Lost RM'000		EPS		Amended
24-Nov-10		30-Jun-11		1	30-Sep-10		45,507		8,541		20.44		Amended
26-Aug-10		30-Jun-10		4	30-Jun-10		25,140		574		1.37		-
27-May-10		30-Jun-10		3	31-Mar-10		34,126		2,486		5.95		-
27-Aug-09		30-Jun-09		4	30-Jun-09		23,790		199		0.48		-

Year    DPS    EPS
2005    1.1      -4.1
2006    2.2       3.4
2007    3.7     10.8
2008    7.5     18.8
2009    8.1     22.4
1Q10   0.0     20.44   NAV 2.3500
2010    7.5E   29.3P  (SPG)

Historical 
5 Yr
PE range 4.8 - 8.4
DY range 10.3% - 5.5%

Estimated EPS for 2010 (SPG)  = 29.3 sen
At price of 1.74, its forward PE = 1.74 / 0.293 = 5.9 x

Un-audited financial results for the financial period ended 30 September 2010.  


Balance Sheet on 30.9.2010

Non-Current Assets 32.708 m
PPE 21.070m
Intangible assets 7.393m
Deferred tax assets 2.177m
Held-to-maturity investment 1.004m
Available-for-sale investment 1.064m

Current Assets 112.136m

Inventories 69.544m

Receivables 34.258m

Cash & bank balances 8.334m

Total Asset 144.844m

Shareholders' Equity  98.075m
Share capital 41.787m
Reserves 56.288m

Non-Current Liabilities 0.338m

Current Liabilities  46.631m
Payables 41.421m
Hire purchase payables 0.636m
Short term borrowings 4.374m

Total Liabilities 46.769m

Total Equity and Liabilities 144.844m

Net assets per share 2.35

Income Statement 1Q ending 30.9.2010

Revenue 45.507m
Profit from operations 11.564m
PBT 11.509m
PAT 8.541m
EPS 20.44 sen

Weighted average no. of ordinary shares 41.787m


Cash flow statement for period ended 30.9.2010


PBT 11.509m
Operating profit before WCC  12.276m
Cash from operations (4.868m)
Net CFO  (6.037m)

CFI (1.426m)

CFF (0.260m)


17.1.2011
HING YIAP GROUP BERHAD ["COMPANY"]
RECEIPT OF NOTICE OF UNCONDITIONAL TAKE-OVER OFFER FROM RHB INVESTMENT BANK BERHAD ON BEHALF OF EVEREST HECTARE SDN BHD ["EVEREST" OR OFFEROR"]


The Board of Directors of the Company ["Board"] wishes to announce the following:

1. On 17 January 2011, Everest Hectare Sdn Bhd had acquired an aggregate of 20,900,000 ordinary shares of RM1.00 each in the Company representing 50.02% of the issued and paid-up share capital of the Company, for a cash consideration of RM1.50 per share via an unconditional share sale agreement entered into with Chi Kuei Yung Sdn Bhd, Chi Oi Meng, Khoo Henn Kuan and Khoo Henn Kiew.

2. The Company has today received a notice of unconditional take-over offer dated 17 January 2011 ["Notice"] from RHB Investment Bank Berhad on behalf of Everest Hectare Sdn Bhd to acquire all the remaining ordinary shares of RM1.00 each in the Company not already owned by Everest ("Offer Shares") for a cash consideration of RM1.50 for each Offer Share ("Offer").

The Board of Directors of the Company is not seeking any alternative person to make a take-over offer for the Company's shares.



Notice of Unconditional Take-Over Offer of Hing Yiap
Main points:

It is the intention of the Offeror to maintain the listing status of Hing Yiap.

The Offeror does not intend to invoke Section 222 of the CMSA to compulsorily acquire any outstanding Offer Shares for which valid acceptances hve not been received.

Information on the Offeror

Everest Hectare was incorporated in Malaysia under the Companies Act, 1965 as a private limited company on 2 July 2010.

The present directors and shareholders of Everest Hectare are Ng Chin Huat and Yap Su P'ing who each holds 50% equity interest in Everest Hectare.

Ng Chin Huat is currently the Managing Director and the major shareholder of Asia Brands Corporation Berhad, an investment holding company in which its subsidiaries are primarily involved in marketing, trading and retailing of lingerie, ladies' casual wear, children's wear, care and related products.  Some of the brands owned and currently carried by them include Anakku, Audrey, Disney and Mickey Mouse & Friends.

A Brief Look at QL Resources Bhd.

QL Resources Bhd

Business Description:
QL Resources Berhad is a Malaysia-based company engaged in investment holding and provision of management services. The Company operates in three segments:

1. marine products manufacturing segment, which is engaged in deep sea fishing, manufacture and sale of fishmeal, surimi and surimi-based products; 
2. palm oil activities segment, which is engaged in crude palm oil milling and oil palm cultivations, and 
3. integrated livestock farming segment, which is engaged in the distribution of animal feed raw materials, food related products and livestock farming. 

Its subsidiaries include QL Feedingstuffs Sdn. Bhd, QL Agrofood Sdn. Bhd., QL Agrobio Sdn. Bhd., QL Feedmills Sdn. Bhd., QL Poultry Farms Sdn. Bhd., QL Realty Sdn. Bhd., Pacific Vet Group (M) Sdn. Bhd. and Maxincome Resources Sdn. Bhd.

Current Price (7/1//2011): 5.84
2010 Sales 1,476,396,000
Employees: 3,557
Market Cap: 2,307,804,480
Shares Outstanding: 395,172,000
Closely Held Shares: 243,318,301

Recent Financial Results

Announcement Date		Financial Yr. End		Qtr	Period End		Revenue RM '000		Profit/Lost RM'000		EPS		Amended
22-Nov-10		31-Mar-11		2	30-Sep-10		438,725		36,405		8.43		-
23-Aug-10		31-Mar-11		1	30-Jun-10		384,514		28,207		6.86		-
24-May-10		31-Mar-10		4	31-Mar-10		413,024		27,695		6.45#		-
22-Feb-10		31-Mar-10		3	31-Dec-09		370,133		33,674		7.80#		-

# adjusted for 2010 1/5 Bonus

Estimated EPS for 2011 = 2*15.28 = 30.56 sen
At price of 5.84, it is trading at forward PE = 5.84 / 0.3058 = 19.1 x

Historical
5 Yr
PE range 9.8 - 14.6
DY range 2.5% - 1.7%

10 Yr
PE range 9.2 - 13.8
DY range 2.6% - 1.7%

Year    DPS    EPS
2000    0.0     1.1
2001    1.0     4.6
2002    1.4     5.0
2003    1.4     6.0
2004    1.4     7.5
2005    2.3   10.0
2006    3.6   12.2
2007    4.1   16.0
2008    3.6   20.4
2009    5.8   22.6
1H10   0.0   15.28   NTA  1.400

Capital Changes

2000    1.4/10 Rights @ RM 1.20

2001   1/2 Bonus

2004   1/4 Bonus, 1 to 2 Share Split

2005   1/3 Bonus

2008   1/2 Bonus

2010   1/5 Bonus

A Brief Look at POS MALAYSIA BHD.

POS Malaysia BHD

Business Description:
Pos Malaysia Berhad (Pos Malaysia) is a Malaysia-based company engaged in the provision of postal and its related services, which include receiving and dispatching of postal articles, postal financials, dealing in philatelic products and sale of postage stamps. The Company operates in three segments:

1. Mail, which includes the provision of basic mail services for corporate and individual customers and customized solutions; 
2. Courier and logistic, which includes logistics and courier solutions by sea, air and land to both national and international destinations, and 
3. Retail, which includes over-the-counter services for payment of bills and certain financial products and services. 

Pos Malaysia operates its courier business through its two business units, namely PosLaju and PSH Express Sdn Bhd. The Company is also engaged in the business of Internet security products, solutions and services and rental income from investment properties.

Current Price (7/1/2011): 3.43
2009 Sales 902,561,000
Employees: 15,780
Market Cap: 1,841,999,180
Shares Outstanding: 537,026,000
Closely Held Shares: 269,900,099

Recent Financial Results

Announcement Date		Financial Yr. End		Qtr	Period End		Revenue RM '000		Profit/Lost RM'000		EPS		Amended
29-Nov-10		31-Dec-10		3	30-Sep-10		227,441		31,301		5.83		-
24-Aug-10		31-Dec-10		2	30-Jun-10		229,122		28,101		5.23		-
31-May-10		31-Dec-10		1	31-Mar-10		231,079		1,625		0.30		-
25-Feb-10		31-Dec-09		4	31-Dec-09		224,581		16,499		2.78		-

Estimated EPS for 2011 =  2*(5.83 + 5.23) = 22.12 sen
At the price of 3.43, it is trading at a forward PE of = 3.43/0.2212 = 15.5 x

Historical 
5 Yr
PE range 12.8 - 18.9
DY range 4.6% - 3.0%

10 Yr
PE range 14.8 - 23.7
DY range 3.1% - 2.0%

Year      DPS     EPS
2003      1.9       7.8
2004      2.4       8.9
2005      3.6     21.3
2006      7.2     16.5
2007    10.8     20.0
2008    11.1     17.2
2009      7.5     13.3
9M10    0.0      11.36      NTA 1.5300

Capital Changes

2007   Capital Distribution of RM 1.50 per share

A Brief Look at Guan Chong

Guan Chong Berhad Company

Business Description:
Guan Chong Berhad is a Malaysia-based company engaged in investment holding and provision of management services. Through its subsidiaries, the Company is engaged in the manufacturing and trading of cocoa-derived food ingredients and cocoa related products, which is predominantly carried out in Malaysia. As of December 31, 2009, the Company's direct subsidiaries were Guan Chong Cocoa Manufacturer Sdn. Bhd., Guan Chong Trading Sdn. Bhd., Enrich Mix Sdn. Bhd., GCB Foods Sdn. Bhd., GCB Marketing Sdn. Bhd., GCB Specialty Chocolates Sdn. Bhd., GCB America, Inc. and GCB Oversea Holdings Corporations.

Current Price (7/1/2011): 2.49
2009 Sales 642,649,516
Employees: 180
Market Cap: 597,600,000
Shares Outstanding: 240,000,000
Closely Held Shares: 167,840,000

Recent Financial Results

Announcement Date		Financial Yr. End		Qtr	Period End		Revenue RM '000		Profit/Lost RM'000		EPS		Amended
18-Nov-10		31-Dec-10		3	30-Sep-10		296,563		17,788		7.44		-
16-Nov-10		31-Dec-10		3	30-Sep-10		296,563		17,788		7.44		-
09-Aug-10		31-Dec-10		2	30-Jun-10		270,781		19,502		8.13		-
27-May-10		31-Dec-10		1	31-Mar-10		268,952		19,836		8.22		-

Estimated EPS for 2011 = 4*7.44 = 29.76 sen
At price of 2.49, it is trading at forward 2011 PE = 2.49 / 0.2976 = 8.4 x
Dividend to date 4.63 sen
At price of 2.49, the DY to date = 0.0463/2.49 = 1.86%

Year      DPS      EPS
2005      3.3        7.1
2006      4.0        7.3
2007      3.3        5.9
2008      1.0        2.9
2009      2.8        5.9
9M10    4.63    23.80     NTA   0.6060

Historical 
5 Yr
PE range 8.2 - 15.1
DY range 6.0% - 3.4%

10 Yr
PE range 8.2 - 14.2
DY range 6% - 3.6%

Capital changes

2004    1 to 4 Share Split, 7.4/10 Rights @ RM 0.25

2010   Proposed 1/3 Bonus and 1/4 free warrants

Commentary of prospects
The Board of Directors is optimistic about the performance of GCB in the current financial year since the global economy is showing signs of improvement. We believe GCB is well-positioned for growth as many initiatives to improve our competitiveness and profitability have been systematically carried out by the management team.

Barring any unforeseen circumstances, the Board of Directors of GCB expects that the Group’s financial performance for the financial year 2010 to be satisfactory.

Understanding Intrinsic Value

Intrinsic Value versus Market Price

Buffett's core investment measure is finding the intrinsic value of a company and being certain the price he pays for the company is justified by that intrinsic value.  The definition of intrinsic value is the discounted value of the cash that can be taken out of a business during its remaining life.

The key secret there is that the way to calculate intrinsic value is not precise.  It's based on a lot of assumptions, and those assumptions can be easily adjusted based on anticipated interest rate.

Buffett never gives investors the intrinsic value he has calculated for a company, but he will give details in his annual reports relating to the facts that he and Munger used to determine the intrinsic value of a company.

Buffett believes Berkshire Hathaway's book value far understates its intrinsic value because many of the businesses Berkshire Hathaway controls are worth much more than their carrying value.

Also read:

Fair Valuation of Berkshire Hathaway

Don't be afraid of risk. Learn how to manage it.

Don't be afraid of risk. You will face some kind of risk no matter what you do with your money. Fear of risk can sometimes paralyze your investing. You end up watching your money lose value solely because you missed investment opportunities and let the money sit in a safe savings account, earning less interest than the inflation rate.

The least you need to know:

1. Get to know the types of risks you face as  a value investor, but don't be afraid of them.
2. No investor can avoid risk, but you can learn how to manage it.
3. Time can heal many investment woes, as long as you have the patience to wait out an investment storm.

A Brief Look at Multi-Purpose Holdings Bhd. (MPHB)

Multi-Purpose Holdings Berhad

Business Description:
Multi-Purpose Holdings Berhad (MPHB) is a Malaysia-based company engaged in investment holding, provision of share registration and management services. The Company, though its subsidiaries, operates in four segments:

1. financial services, which include the provision of credit and related services and underwriting of all classes of general insurance business; 
2. securities broking and dealing, which include the provision of stock broking services; 
3. property investment and leisure, which include the ownership of buildings for rental income and 
4. hotel operation, and gaming, which include the operation and management of a licensed four digit numbers forecast betting game. 

Other activities include property development and property investment, provision of computer software and other related services, and investment holding and trading. It has 21 direct subsidiaries and 37 indirect subsidiaries.

Current Price (7/1/2011): 2.35

2009 Sales 3,322,126,000
Employees: 479
Market Cap: 2,532,707,800
Shares Outstanding: 1,077,748,000
Closely Held Shares: 363,037,361

Recent Financial Results

Announcement Date		Financial Yr. End		Qtr	Period End		Revenue RM '000		Profit/Lost RM'000		EPS		Amended
23-Nov-10		31-Dec-10		3	30-Sep-10		850,703		126,498		8.10		-
26-Aug-10		31-Dec-10		2	30-Jun-10		871,360		95,977		5.70		-
21-May-10		31-Dec-10		1	31-Mar-10		992,620		105,589		6.30		-
25-Feb-10		31-Dec-09		4	31-Dec-09		874,959		148,228		10.10		-

Estimated EPS for 2011 = 20.1*4/3 = 26.8 sen
At price of 2.35, it is trading at prospective 2011 PE = 2.35 / 0.268 = 8.8 x

Historical
5 Yr
PE range 5.7 - 11.8
DY range 4.5% - 2.2%

10 Yr
PE range 23.7 - 46.7
DY range 2.3% - 1.1%

PRICE    DPS     EPS
2004        0.0      1.9
2005        0.0      7.5
2006        0.0     15.7
2007        3.3     13.9
2008        7.6     12.8
2009        6.4     30.4
9M10       4.0    20.10     NTA 2.1400

Capital changes

2003   1/10 Warrant

2009   1/10 Treasury Share

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