The minds of the traders

Do You Make These Mistakes When Trading in the Stock Market ?

Buying stocks that are pumped on message boards, spam emails and bogus hot stock tips ?

Trading and picking stocks like if you where gambling on a casino ?

Holding on to losing positions or letting small loses turn into larger losses ?

Turning a short term trading position into an long term investing decision ?

Buying stocks just because their “price is to low” or having a tendency to “catch falling knives“?

Averaging down ?

Trading with money you can’t afford to lose ?

Trading without a strategy that clarifies you when to buy and when to sell a stock, or in other words not having CLEAR buy and sell SIGNALS ?

Trading without understanding the best time to buy a certain stock?

“Falling in love” with a stock, a company, a technology or a “story“ ?

Using to many technical indicators that can led you to information overload and cloud your trading decisions

Overtrading and Watching the stock market all day ?

Failure to control emotions ?

Lack of a trading plan and failure to follow the plan with discipline ?

And the list goes on and on and on…

http://www.momentumstockpick.com/

Successful Stock Investing: Keep it Simple

March 30, 2010

Successful Stock Investing

Successful stock investing can be very complicated and it can be very simple depending upon your approach. Successful stock investing starts with deciding on a strategy for stock picking, buying stock, and holding for long term investing. It includes knowing how and when to sell stock. Investing in the stock market involves homework, attention to detail, diversifying a stock portfolio and other strategies for managing investment risk management. The most successful stock investing comes from adhering to a few simple rules and not letting the psychology of investing or stock market tips distract you. Use of technical analysis tools such as Candlestick chart formations will help find stocks that are at the bottom of their cycle allowing for cheaper purchase of a promising stock. There is no perfect system for  picking stocks. That having been said there is such a thing as smart stock investing which will reduce your stock market risk and increase your chances for good stock market results. Smart investing is choosing a simple strategy that fits your available time and your current knowledge of the equity market. Stock investing basics are to make more than you lose month by month and year by year.Value stock investing is a means of choosing stocks that are currently underpriced, have good product potential, sound financials, and commanding positions in their market sectors. The market under prices stocks for various reasons. Why is not especially important. What is important is to pick up promising growth stocks, ones that pay good dividends year after year after year, or stocks that have a low price to earnings ratio when they are at a low price. A good rule of thumb for beginning investing in the stock market is to limit the number of stocks owned to five, in different market sectors. A good rule of thumb for successful stock investing is to never, never buy stock at current  stock market prices. Place limit orders. A buy limit order will be executed at or below the limit price you specify. A sell limit order will be executed at the price you specify or higher. If you buy or sell at market price you cannot control what you pay or what you receive. There are times in successful stock investing where you have purchased a stock and it has had a good run. The stock begins to cycle up and down and fundamental analysis or Candlestick analysis tells you that the stock is reaching the top of its potential. However, you do not want to sell on the low side of the current trading range. You choose a stock price at which you are willing to sell, near the top of the range, and place a limit order. You exit the stock position with a nice profit. Successful stock investing is deciding if you are going to  invest short term, take profits, and look for another stock each time or if you are going to buy and hold, profiting from stock splits and reinvest your quarterly stock dividends. However you choose to invest in stocks start by keeping it simple, manage your time wisely, and protect your investment capital by diversifying your stock portfolio with stocks from different market sectors. http://www.candlestickforum.com/blogs/2010/03/successful-stock-investing.html

A quick look at Maybulk

A quick look at Maybulk 2009
http://spreadsheets.google.com/ccc?key=t1cbkYBrl-qTfTAwdDlo6ZA
A quick look at Maybulk 2009 (Earnings normalised)
http://spreadsheets.google.com/ccc?key=teSUeL8rtSOTpKZ7hfAV0aw

Shipping industry starts to turn

The US economy is on the mend. So says Emil Wolter, head of regional strategy, Asian markets at RBS, who prefers to play developed market growth over emerging market growth. He is forecasting that US unemployment is going to fall to 8% from 10%. That would support a continued recovery in US consumption. As a consequence, global trade is poised to rebound by 6-8% in the next 12 month, Wolter says. While the shipping sector has supply issues, Wolter says “You can buy a lot of these companies at their NAVs and although some companies have problems with their balance sheets, there are also a lot of companies with strong balance sheets.” Moreover, pricing power is returning, and the shipping companies are operating more efficiently too.

That’s a view that Survo Sarkar, an analyst at DBS Group Research, agrees with. In a 32-page report on Neptune Orient Lines, DBS has re-initiated coverage with a price target of $2.40. According to Sarkar, the figure represents seven times FY11 EV/EBITDA, (enterprise value to earnings before interest, tax, depreciation and amortisation) and a price to book of 1.6 times. These valuations are conservative compared to peers’ average of about 10 times FY11 EV/EBITDA, the report says.

According to the report fundamentals for the shipping sector are indeed turning increasingly positive. “Year to date, container rates and volumes have both made a strong comeback — with rates on Asia-Europe routes now about 70% higher than last October levels,” Sarkar writes. NOL’s operating statistics for the first 10 weeks of FY10 reflect the improved fundamentals, the report says. Volumes have risen 52% y-o-y, and freight rates are up 7% and 10% on a sequential basis in the first two reporting periods, it adds. “According to our estimates, NOL’s container shipping business should return to profitability by 4Q10, on the back of 9% growth in trade volumes, a 10% growth in average freight rates/FEU and a 3% drop in average operating expenses/FEU for FY10,” Sarkar states in the report. NOL last traded at $2.01.

The Edge Singapore

A quick look at Nestle (Malaysia) Berhad

A quick look at Nestle
http://spreadsheets.google.com/pub?key=t-xSTODxtb92SOMyF2QSssg&output=html

Saturday April 3, 2010

Nestle sees higher exports this year

By EDY SARIF

edy@thestar.com.my

PETALING JAYA: Food manufacturer Nestle (M) Bhd sees higher exports this year as the company benefits from the recovering global economy, said managing director Peter R. Vogt.

“We may see more exports this year as the global economy is starting to show some pick-up since the second half of last year,” he told reporters yesterday after the launch of the Nestle Nourishing Malaysia Showcase.

Export sales contributed more than 20% of the company’s total turnover last year (about RM3.7bil) as the company exported to more than 50 countries.

Peter R. Vogt officiating at the launch of Nestle Nourishing Malaysia Show case.

The company’s 2009 financial year ended on December 31.

“Every year, we introduce an average of three to four new products to the market and if some of the products have the potential to grow outside Malaysia based on the consumers’ demand, we may export them. Annually, Nestle SA allocates RM6bil for research and development (R&D) to all its 27 R&D centres around the world to come out with better products under our brand,” Vogt said.

He noted that the recent sugar subsidy cut by the Government has not resulted in a hike in the prices of Nestle products as the company benefited from internal saving measures and kept prices steady.

“We also realise that the fluctuation of raw materials in the past few years do give some problems to our business but we are trying not to increase our products’ prices and if we do, we try to put as little price increase as possible,” Vogt said, adding that the Government’s move to cut the sugar subsidy was good in terms of promoting a healthy lifestyle but that such steps needed to be done in a gradual manner so that companies could absorb the increased costs more easily.

Nestle Malaysia contributed 12% to the total food production in the country in 2009.

Commenting on the Nestle Nourishing Malaysia Showcase, Vogt said the company has now re-positioned itself as a globally

trusted and responsible food, nutrition, health and wellness company by offering more healthy solutions and value-added products.

“Having the Nestle Nourishing Malaysia Showcase for example is a way of giving opportunity for consumers to learn how to make healthier and informed choices by providing them with the relevant information and for us to communicate the latest developments, technology, research and resources that we put into our products to ensure that Malaysians have better options to meet their lifestyle and budget needs,” he said.

The 4th edition of Nestle Nourishing Malaysia Showcase is held today and tomorrow at the 1 Utama Shopping Centre in Bandar Utama. It will be held in Johor Baru later in the year.

http://biz.thestar.com.my/news/story.asp?file=/2010/4/3/business/5987560&sec=business

Stock investment can be lucrative, where your earned income earns more money as you continue your normal day to day office work.

Investing In The Nigerian Stock Exchange

Stock investment is a very lucrative investment, it is an investment alternative that brings you a good return and less risk compared to foreign exchange market (Forex), where you make so much but, stand a great chance of losing your entire funds within seconds.

Before going into stock investment, there is a need to know the basic terms and terminologies involved with stock trading. Although very lucrative also comes with its risk, but this risk can be minimized by you depending on how knowledgeable you are in stock investment. You can as well invest into stocks without a prior knowledge of what it takes to invest. This can easily be done with the aid of your stockbroker. In order for you to succeed with your stock investment your choice of broker matters a lot.


The Nigerian capital market has been rated as one of the most profitable exchange in the world, giving investors the opportunity to reap a bountiful return on their investment. It is only here in Nigeria, You see stocks giving investors up to 1000% return on investment within a very short period of time.

The Nigerian capital market is one of the fastest growing stock-exchange in the world. It is full of untapped opportunities awaiting potential investors like you. It has over 300 listed equities including the banking sub-sector, insurance, conglomerate, automobile, food and beverages sub-sectors to name but a few.

The banking sub-sector is the most capitalized sector in the Nigerian capital market, it accounts for over 60% of the total market capitalization. With its strong fundamentals, investors are rest assured with a high return on investment..

The Nigerian capital market is a place to invest your money and watch it accumulate over a short period of time. Here in Nigeria movement in stock price does not exceed a maximum of 5% for both upward and downward movement. What does that tell you? It means you can never lose your money investing in Nigeria stock exchange

Many stock-broking firms out here are well capitalized to manage your fund and ensure you make it great out here. As to what sector to invest in the Nigerian stock exchange I will personally recommend the banking, insurance petroleum sub-sector for you. This sector brought me the fame I have through stocks.

Banking stocks are very good to speculate because; activities in this sub-sector are very high. Some of the basic terms you need to know before investing in any stock are, the earnings per share (EPS), the price earnings ratio (PE), the bonus and dividend history of that stock, the future prospect of that stock. When all these are at your disposal, making a very good investment decision could be possible.

The earnings per share of a company is a very investment tool to consider, as this tells you the performance of the company you intend to invest your money, the price earnings ratio shows you the profitability of the company. You easily determine whether a particular stock is overpriced or underpriced with these two terms (EPS &PE ratio) I have detailed how to calculate whether a particular stock is overpriced or underpriced in my website, you can copy the page from my resource box to your browser for further tutorial on this.

In summary stock investment is a very lucrative investment that can change your financial status without stress, it is an avenue for you to increase your earnings by subjecting your earned income to earning you more income as you continue your normal day to day office work.

Try Nigeria today and you will not regret reading this article.

Author: Albert A. Johnson
Source: ezinearticles.com


http://sellingstock.fretail.com/investing-in-the-nigerian-stock-exchange/

Comment:  The above introductory letter to potential investors is either the start of something good or the beginning of something painful.  There are so many things to know about stock investing.  Without the knowledge, it is better to stay away from the stock market.  However, with the right financial education, this is a very good and safe place to invest for the long term; very rewarding too, even in the depth of the bear market.

You will find a lot of reasons why people purchase stock

Buy Stock – Are You Ready to Make a Killing?

All investors, when they decided to enter the world of money and risks, asked themselves whether or not they will buy stock. To buy or not to buy stock, that is the question of those business people who would want to reap more than their initial money’s worth. Most of them opt to buy stock in a company and can be one the wisest decisions they ever make since buying stocks, however meager is the investment means that you have power over the company.

To buy stock in a company means that you have a certain level of authority on the business. The more stocks you own, the more power you have when it comes to decision making and re- structuring. By buying more stocks, the longer you will stay on the company and reap its financial gains. Stocks can also determine ownership on the company, so if you buy stocks, a certain portion of the company belongs to you.

Aside from money and power as visible advantages when you buy stock, people also purchase them because they are enthusiasts of the services or products that the company provides. They believe that since they have personally experienced the service or the product and the end results are above satisfaction and quality that their investment will be safe and wise.

They also put faith and buy stock because they believe that the company will gain and will continuously hold their ground on the business world. The money will continue to be generated so they buy stock on established companies operating for years. Aside from the company being able to establish its own name, some people buy stock based on the stability of the company. They consider that for the next 10-20 years that the company will continue its operation, so for the next 20 years, they have money growing in their accounts.

Day traders buy and sell stocks with the ultimate goal of making money and nothing more. Basically, people buy in the hopes that their investment will provide substantial revenue returns. However, buying stocks doesn’t really mean immediate returns unlike day trading where you have to actually wait for payoffs that can finance your impending retirement days.

You will find a lot of reasons why people purchase stock and with the market right now, it appears that a lot are trying to get involved in this game of money. You have to keep in mind that once you buy, the risk is already on. Unfortunately, there are no magic formulas for success with the stock market involved. All you can do is to prepare yourself for the possible losses and lessen the risks of failure with bonds.

Once you have decided that you would like to buy stock, be proactive and learn as much as you can about the concept and what involved it. Have a feasible financial plan and strategy with a financial adviser that would help you build a promising financial portfolio.

Author: Jake Fields
Source: ezinearticles.com

http://sellingstock.fretail.com/buy-stock-are-you-ready-to-make-a-killing/

Most investors take on a very short term outlook and ultimately make very little money, if at all..

So many people today want to know how to find good stock picks for their portfolio. They are always looking for  next hot stick tip that they can make a killing off in the next 30 days.  The problem with most investors is that they take on a very short term outlook. This is the same of most business owners. In both business and stock investing, it's only a small minority who ever make a significant amount of money. 


Why is this? Instead of committing to a strategy and sticking to it long term, the vast majority become so focused on finding that 'get rich quick' scheme they will jump from one stock to the next, and ultimately make very little money at all. 


The bottom line is, there is no 'hot stock tip' or good stock picks that are guaranteed to make you a fortune overnight. Yes, some investors have gotten lucky and made a fortune in a week. However, often times those same investors lose their entire profit in a very short period of time by continuing to employ the same strategy. When you take on a short term outlook in your investing, you switch from being an investor to a gambler. 


Warren Buffet doesn't worry one bit how his stock does short term. What he considers good stock picks much different than most investor, because he's looking for long term return on investment. If the world's top investor invests for the long term; doesn't it make sense to model that success? Yes, you can make some money short term, but like gambling, you will always lose in the long run.

The reason the market is so volatile today is the get rich quick scheme. Think about it-instead of picking an investment they can be sure will work for them for years to come, most investors jump in when they feel they can make a quick buck. They continue checking in on their investment all the time. As soon as it starts going down, because they didn't do their research and don't know the long term prospects of the company, they panic and sell out. When thousands follow this same mentality, chaos ensues. This is exact the same behavior that caused the market crash of 1929, and what will continue to be responsible for the volatile up and down turns of the market.

Do yourself and the market a favor, and invest for the long term. The only good stock picks are companies that have exhibited a good profit margin for years and possess favorable future outlook. You will be ensuring your long term wealth, and you will be contributing to a stronger and more predicable economy. 

http://sellingstock.fretail.com/good-stock-picks-to-invest/

Calling all entrepreneurs. What must we learn from the spirit of the States?

After a week in Silicon Valley meeting some of the most fascinating entrepreneurs imaginable, isn't it time we started drawing some lessons from our friends on the West coast?

 

By Kamal Ahmed
Published: 7:29AM BST 01 Apr 2010

Recently, George Osborne asked why it was that, as yet, no Facebook or Google or Apple or YouTube had been launched on this side of the Atlantic.

He argued that there was something in our business investing culture that made it difficult to back innovative winners in the digital world and that the Government had failed to create the right culture of risk taking in business.

Although I'm not sure it's the Government's job to develop innovative cultures (the whiff of ill-fated "picking winners" always springs to mind), there is certainly something in the argument that we have much to learn from what happens in that area south of San Francisco that is known as Silicon Valley.

It is no co-incidence that Google, YouTube, Facebook, Yahoo, Apple and Cisco are all headquartered in the area south of San Francisco.

Two major tap roots appear to be essential to allow an innovative tree to flourish.

The first is an entrepreneurial spirit in academia and the second is venture capital funding that is willing to take - and therefore understands - risk. In Silicon Valley, Stanford University has had such a catalytic role it is difficult to over-estimate its importance.

Since the 1890s (yes, that's the 1890s) the University has seen its job as enabling the area to be a centre for economic development and industry - firstly engineering, and then the building of silicon chips and finally the support of a whole technology sector. Many professors have their own capital stakes in young entrepreneurs who were their own students.

The other is the role of funding. One venture capitalist I spoke to said a single fund in Silicon Valley matched the whole VC funding of technology in the UK. He said this was equivalent to about £800m, a figure that I have not had time to verify.

He also argued that traditional VC funding was always "on the back" of the companies it had invested in whereas he "didn't bother the people he invested in more than once a month". "I trust them to get on with it," he said.

One 30 minute meeting was enough for him to make a decision, not 50 meetings with 50 different sets of protocols to sign before releasing a few tens of thousands of pounds.

Now, I'm sure his view is skewed and there is lots of exciting venture capital and angel investing work in the UK, particularly supporting the technology industry. But I also know that if even the Government is saying "we must do more" there is clearly a significant problem.

How, then, do we create the correct culture here in the UK to invent the next Apple or the next YouTube?
I heard from two internet firms already huge in the US that they are planning big launches here because we have so many gaps in the market we are not filling ourselves.

What about traffic in the other direction?

What are the good things going on in the technology sector in the UK which we can showcase to the US and say, well, you might be good, but we are getting better?

Or is the picture here as bleak as some in California would have us believe?

http://www.telegraph.co.uk/finance/comment/kamal-ahmed/7543198/Calling-all-entrepreneurs.-What-must-we-learn-from-the-spirit-of-the-States.html

Be fearful of excessive leverage and debt

Property tycoon Simon Halabi bankrupt

Simon Halabi, the property tycoon who was estimated to be worth £3bn in 2007 and whose portfolio includes London HQs of JP Morgan, Aviva and Old Mutual, has been declared bankrupt.

By Graham Ruddick, City Reporter (Property)
Published: 12:13AM BST 02 Apr 2010

Simon Halabi and his wife Urte in 2006 Photo: Dominic O'Neill

The bankruptcy order was made in the High Court on Tuesday over a £56.3m loan he received from failed Icelandic bank Kaupthing Singer & Friedlander.

The nine offices make up a £1.15bn securitisation vehicle called White Tower 2006-3, and the fall in value caused a breach of loan to value covenants that prompted creditors to call in the debt.
Loan servicers were appointed to manage the portfolio and Ernst & Young were then called in as administrators on seven of the properties after HM Revenue & Customers issued a winding-up order over unpaid tax.

The financial health of Mr Halabi has so far been difficult to establish because his control of the properties was through a web of off-shore vehicles and family trusts.

He conducted most of his business through Buckingham Securities, his property advisory company, but this was put into liquidation last August following the collapse of commercial property values across the UK.
Mr Halabi first emerged on to the UK property scene in 2000 as a backer of Irvine Sellar's Shard development in London Bridge, but sold his stake in the project to Qatari investors two years ago.

The offices held by Mr Halabi's White Tower are being marketed for sale by property agents CBRE and Knight Frank. The agents hope an initial wave of eight sales will raise around £800m, with at least £200m then coming from the most valuable property in the portfolio, Aviva Tower.

http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/7546381/Property-tycoon-Simon-Halabi-bankrupt.html

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When the press trumpets the markets .... be wary!

Business & Markets

Filter     Display # 5101520253050100All # Article Title Date Author 1 Flash: Analabs Resources at more than 5-yr high Friday, 02 April 2010 Joseph Chin 2 Pos Malaysia surges to Oct 2007 high Friday, 02 April 2010 Joseph Chin 3 Update BHIC targets more commercial orders Friday, 02 April 2010 Aishah Mustapha 4 Flash EON Cap, HL Bank shares suspended from 2.30pm Friday, 02 April 2010 Joseph Chin 5 Higher in thin trade, Tanjong, CIMB, Pos lead Friday, 02 April 2010 Joseph Chin 6 Asian shares rise on upbeat U.S. data, autos Friday, 02 April 2010 Reuters 7 MAHB, CIMB, EON Cap lift FBM KLCI Friday, 02 April 2010 Joseph Chin 8 EON Cap advances on higher offer Friday, 02 April 2010 Joseph Chin 9 MAHB gains on ‘Runway to success’ strategy Friday, 02 April 2010 Joseph Chin 10 HDBSVR: Buy Sunway Holdings at RM1.49, TP RM1.95 Friday, 02 April 2010 Hwang DBS Vickers Research

http://www.theedgemalaysia.com/business-news.html

Stock market strategy

Stock market strategy

Gaurav Doshi, equity specialist for PMS at Morgan Stanley Wealth Management, said, "We believe that the way to approach this year is to buy selective stocks on dips and hold on. Trading opportunities have not been rewarding this year."

Video:  http://beta.profit.ndtv.com/video/show/nn1215129

Malaysia Airports plans to grow revenue from commercial or non-aeronautical activities

Malaysia Airports targets RM1b profit

By Presenna Nambiar

Published: 2010/04/02

The airport operator plans to grow revenue from commercial or non-aeronautical activities to RM2.14 billion in 2014


Commercial development, including growing its retail sales and developing part of its landbank around KL International Airport (KLIA) in Sepang, will be the key driver of Malaysia Airports Holdings Bhd's (MAHB) (5014) goal of achieving RM1.1 billion in net profit by 2014.

This is set against a revenue target of RM3.2 billion.

The airport operator plans to grow revenue from commercial or non-aeronautical activities to RM2.14 billion in 2014, from RM861 million in 2008.

Development of its landbank includes the Malaysia International Aerospace Centre (MIAC) at Sultan Abdul Aziz Shah Airport in Subang, Selangor, and the proposed KLIA Aeropolis in Sepang.
"We have an extensive landbank (at KLIA) that is available for commercial development where we will establish strategic alliances with major commercial property developers before the end of the year," MAHB managing director Tan Sri Bashir Ahmad said.

"In the meantime, the major contributor (to group earnings) will be the new (low-cost carrier) terminal at KLIA, which is designed to provide the most exciting shopping and dining experience in Asia," he told reporters at the launch of MAHB's five-year business direction, called "Runway to Success", in Kuala Lumpur yesterday.

Over 480ha at the MIAC has been allocated under the National Airport Master Plan, with a 60-year tenure.

Revenue from the MIAC will come from land lease, joint-venture arrangements, equity-sharing and royalty from sales.

Meanwhile, under its KLIA Aeropolis development, MAHB plans to use 1,092ha, from the 8,862.4ha at its disposal, for commercial development.

The development includes a commercial business district, KLIA MSC Free Zone as well as leisure, recreational and agro-tourism components.

In the 71-page report revealed earlier, MAHB outlined three core areas in its business direction objectives to drive growth.

One is traffic growth. It wants to increase annual passenger numbers to more than 60 million by 2014, with a focus on strengthening KLIA as a next-generation hub.

The second involves enhancing its commercial revenue as the main driver to achieve group earnings before interest, tax, depreciation and amortisation, and return on equity in excess of RM1 billion and 10 per cent respectively.

MAHB also wants to maintain top-quality service levels, benchmarked against the best airports worldwide.

Bashir also confirmed a Business Times report yesterday that the company would be setting up either a separate subsidiary or special purpose vehicle to raise funds for overseas airport management projects. This falls within its five-year business plans.

"We are exploring the idea now. What we want to do is to keep such investments separate so that they do not impact our balance sheet. The idea is to provide funding for such projects through investments by partners," Bashir said, without elaborating.

http://www.btimes.com.my/Current_News/BTIMES/articles/pmahb4-2/Article/index_html

Petronas Gas Bhd announced its 4th Gas Processing and Transmission Act (GPTA),

Petronas Gas: Buy, target price RM10.25

Published: 2010/04/02

MIDF has maintained its "buy" call on Petronas Gas Bhd (5681), after the latter announced its 4th Gas Processing and Transmission Act (GPTA), as it could offer strong earnings upside in the future.



Based on the research house's preliminary forecasts, the new structure could offer stronger earnings upside with earnings per share for 2011/2012 to be higher by more than 30 per cent.

"As a whole, we favour the new GPTA. We believes it unlocks the group's potential and highlights its gas supply reliability (over 99 per cent) and world-class capacity (99.5 per cent); surpassing world-class capacity of 98 per cent," it said in its research report this week.

The company is maintaining its fiscal 2011/2012 earnings revision for now, as the research house is expected to gather further clarification on the final details with Petronas Gas management next week.

Target price is maintained at RM10.25.

Oversea targets RM13m from ACE listing for growth

By June Ramli

Published: 2010/02/23

Oversea Enterprise Bhd, operator of the Oversea restaurant chain, plans to raise RM13.1 million from an initial public offering (IPO) to expand its business and partly settle existing debt.

The group is aiming to list its shares on the ACE Market of Bursa Malaysia by the end of next month.

The group started operations with its first "Restoran Oversea" in Jalan Imbi, Kuala Lumpur, in 1977. To date, it has seven outlets in the country: five in the Klang Valley and two in Ipoh, Perak.

The IPO involves a public issue of 56.9 million new shares priced at 23 sen apiece. There will also be an offer for sale of 9.5 million existing shares at the same price.

Funds raised from the offer for sale will go towards the seller, typically the controlling shareholder, and not the company. In this case, the seller would make about RM2.2 million.

"We believe that these strategies would go a long way in not only strengthening our brand equity but also building up a new generation of diners who are familiar with, and wholeheartedly believe in, the high quality of our Oversea brand," group managing director Yu Soo Chye said at the underwriting agreement signing ceremony in Kuala Lumpur yesterday.

About 70 per cent of the IPO funds will be used for expansion and working capital. The rest will be used to pay borrowings and listing expenses.

The group plans to open two casual and contemporary dining concept outlets targeting younger customers.

"We plan to open the two casual and contemporary Chinese restaurants in the near future - one in Ipoh this year and the other in Jakarta, Indonesia, by next year - as well as one cafe in the Klang Valley this year," Yu said.

Besides the restaurant business, Oversea also makes mooncakes and baked products like egg rolls, oriental muffins and wedding biscuits.

The group almost doubled its net profit to RM6 million in 2008 on revenue of RM62.8 million. In 2007, its revenue was RM60.3 million.

Oversea has hired OSK Investment Bank Bhd to manage its IPO.


http://www.btimes.com.my/Current_News/BTIMES/articles/jrover-2/Article/

Comment:  Restaurant business has little or no durable competitive advantage over their rivals.

Brokers still bullish on gloves

Glove manufacturers: Buy

Nomura Securities Malaysia says the recently passed healthcare reform bill in the US will boost sentiment on the shares of glove makers like Kossan Rubber (7153) , Supermax and Top Glove. It has a "buy" call on all three stocks.

The historic development in the US last Sunday will have a widespread impact and the immediate-term effects will all lead to an increased demand for healthcare from now on, the stockbroker said.

Nomura sees glove makers as only standing to benefit at the moment from these healthcare developments, given that gloves are relatively price-inelastic necessities.

"Besides the positive sentiment generated by the passing of the reform bill, we see all the companies as key long-term beneficiaries given their US sales exposure, with Kossan and Supermax being more well-placed to capitalise on demand upticks," the stockbroker said in a report on March 22.

Kossan Rubber makes half of its sales from the US, while Supermax has 42 per cent sales coming from there. Top Glove's US sales from the US is only 26 per cent.

"Given that Supermax pursues OBM model, its distribution arm, Supermax Inc, has existing ties with hospitals, nursing homes and dental clinics. This allows it to more directly tap in to any increased demand coming from those networks."

http://www.btimes.com.my/Current_News/BTIMES/articles/bv25a/Article/