Kenmark suffers RM137m pre-tax loss

Business Times
Kenmark suffers RM137m pre-tax loss


2010/06/07

Kenmark Industrial Co (M) Bhd posted a pre-tax loss of RM137.022 million for its full year ended March 31, 2010 from a pre-tax profit of RM4.066 million before.

Its revenue also dropped slightly to RM213.224 million from RM250.926 million previously. -- Bernama

How are you allocating your money in this volatile period?

How has the recent turmoil on global markets affected how you allocate money in your fund?

1. Shifted some or all to less risky assets (such as cash)
2. No change yet, but I'm planning to choose less risky investments
3. Holding firm or planning to buy more shares - these fears are overblown

Flash: Govt yet to issue sport betting licence

Flash: Govt yet to issue sport betting licence

Written by Chua Sue-Ann
Monday, 07 June 2010 18:04


KUALA LUMPUR: The government has yet to issue a sports betting licence and it has also yet to finalise the terms of the licence to Ascot Sports Sdn Bhd, says Prime Minister Datuk Seri Najib Razak.

He said this in a written reply in Parliament on Monday, June 7.


http://www.theedgemalaysia.com/political-news/167463-flash-govt-yet-to-issue-sport-betting-licence.html

Historical Investment Data of Integrax (7.6.2010)

Historical Investment Data of  Integrax (7.6.2010)
http://spreadsheets.google.com/pub?key=tZj_Lmc9qKtzpFRFfTu8iEw&output=html

Historical Investment Data of Genting Malaysia GENM (7.6.2010)

Historical Investment Data of  Genting Malaysia GENM (7.6.2010)
http://spreadsheets.google.com/pub?key=tnwEh7I1JjIN3EviG6ZylQg&output=html

Historical Investment Data for Parkson (7.6.2010)

Historical Investment Data for Parkson (7.6.2010)
http://spreadsheets.google.com/pub?key=to3QELB1TK3GBvszqFfJBdw&output=html

Historical Investment Data for Coastal (7.6.2010)

Historical Investment Data for Coastal (7.6.2010)
http://spreadsheets.google.com/pub?key=t2V7YCN7GFYfboe6OYDJYpA&output=html

Historical Investment Data for UMW (7.6.2010)

Historical Investment Data for UMW (7.6.2010)
http://spreadsheets.google.com/pub?key=tOedmb48POVTSD45xSQHWpQ&output=html

Historical Investment Data for Latexx (7.6.2010)

Historical Investment Data for Latexx (7.6.2010)
http://spreadsheets.google.com/pub?key=t73kBT7EVW5Ca8Jxrct4ADw&output=html

Historical Investment Data of LPI (6.6.2010)

Historical Investment Data of  LPI (6.6.2010)
http://spreadsheets.google.com/pub?key=t2Nr2da6bA6VYYpXZT28xeA&output=html

Historical Investment Data of iCap (6.6.2010)

Historical Investment Data of  iCap (6.6.2010)
http://spreadsheets.google.com/pub?key=tabklggxjRBwWBjk9zbdimg&output=html

Historical Investment Data of Petronas Dagangan (6.6.2010)

Historical Investment Data of  Petronas Dagangan (6.6.2010)
http://spreadsheets.google.com/pub?key=tTnachNyggdEpwkw8WoYpHg&output=html

Historical Investment Data of Public Bank (6.6.2010)

Historical Investment Data of  Public Bank (6.6.2010)
http://spreadsheets.google.com/pub?key=tomlkx-CzLQC5pU4zTjbeGA&output=html

Historical Investment Data of Guinness (6.6.2010)

Historical Investment Data of  Guinness (6.6.2010)
http://spreadsheets.google.com/pub?key=tem-b3yiUnbRUIT1ZeZagbg&output=html

Historical Investment Data of Hing Yiap (6.6.2010)

Historical Investment Data of  Hing Yiap (6.6.2010)
http://spreadsheets.google.com/pub?key=tN3-xhvss_dmr7p3P3wsjHA&output=html

Historical Investment Data of Dutch Lady (6.6.2010)

Historical Investment Data of  Dutch Lady (6.6.2010)
http://spreadsheets.google.com/pub?key=tfBgUux9Lgr74vMAGgUygEw&output=html

Historical Investment Data of Nestle (6.6.2010)

Historical Investment Data of  Nestle (6.6.2010)
http://spreadsheets.google.com/pub?key=tvQ6p-ho1Y6CO1ayJFIJW6A&output=html

Historical Investment Data of KLSE 1993 to 2010 (6.6.2010)

Historical Investment Data of  KLSE 1993 to 2010
http://spreadsheets.google.com/pub?key=tVCJOWP_2GLeToC9ioAeuZw&output=html


Here are some interesting observations:

KLCI Index 
Beginning of 1994:   1275.32
Beginning of 2010:   1259.16  :-(

Market Returns
During the period, the average annual capital appreciation of the stock market was 4.26%.  Assuming a DY of 3%, the total return of the market was 7.26%.

Of the 17 years from 1994 to 2010:

• There were 5 Bear Markets when the market index went down >20% from the beginning of the year.
• There were 4 Bull Markets when the market went up > 20% from the beginning of the year.
• The rest of the period (8 years), the market fluctuated between +/- 20%; there were 6 positive years and 2 negative years.
• The market was very volatile at times.  For example, the KLCI was down 53.19% in 1997 and was up 55.91% in 1999.  In the year 2008, it was down 36.52% and in 2009, it rebounded 42.37%.

What can we learn from studying the KLCI?

What investment strategies can be employed to safeguard your investments in the local stock market?  What investment strategies can be used to maximise your investment gains?

How to be a wiser investor

Saturday June 5, 2010

How to be a wiser investor
Review by ERROL OH
errol@thestar.com.my

How to Smell a Rat: The Five Signs of Financial Fraud

Author: Ken Fisher, with Lara Hoffmans

Publisher: John Wiley & Sons

WHICH kind of investor are you – Confident Clark, Hobby Hal, Expert Ellen, Daunted Dave, Concerned Carl or Avoidance Al? If you’re one of the first three, there’s little chance that you’ll lose money in a scam, according to Ken Fisher, head of Fisher Investments, a California-based money management firm, and a longtime Forbes columnist.

But he believes that Dave, Carl and Al ought to be extra vigilant in making investment decisions, particularly when it comes to choosing advisers.

He warns: “Con artists love Dave, Carl, even Al. If you see yourself in one of them, you’re more likely to hire a pro, but you’re also more likely to be conned.”

Having spent decades managing money, and writing and speaking on investments, Fisher has learnt plenty about investors. With some clever use of alliteration, he divides them into six categories .

Clark is the sort who thinks he’s the best person to decide where to put his money; he won’t trust somebody else to do that job. Hal is dead serious about investing and is always honing his skills and knowledge in this field. Even when he has an investment adviser, he’ll be in the thick of things. Fraudsters tend to stay away from Hal because he’s too involved in his investments.

Like Clark and Hal, Ellen knows a thing or two about investments and enjoys the challenge of extracting the best returns. However, she’s usually too busy to do it all on her own and will leave it to the professionals. Still, because she’s not easily fooled by fake profits and she’s more questioning than most investors, she’s not your typical fraud victim.

But Dave is, because he’s intimidated by the complexity of investing and prefers to hand his funds over to others to manage. Carl is similar except that his dependence on professional help is driven mainly by the worry that he can’t achieve his investing goals on his own.

Then there’s Al, who will have nothing to do with investments if he can help it. He doesn’t even like thinking about hiring an adviser, but when he does appoint one, he won’t bother keeping track at all.

“Rats are looking for financial illiterates. They want victims who won’t question too hard – either because they’re busy, intimidated, or easily distracted by outsized performance claims,” wrote Fisher.

Not-so-common sense

If you see yourself as Clark, Hal or Ellen, don’t be too quick to think that you’ll never be cheated. Fisher likens such false sense of security to a guy not taking care of his health just because his doctor has declared that he has a low risk of heart failure.


Ken Fisher

He explains: “You may feel like Clark or Ellen right now. But the same investor can actually morph over time into someone else – happens all the time. The way investors see their needs can easily change.”

For example, during bull markets, investors may be assured and aggressive in wanting growth, but when the bears are on the prowl, the same investors sing a different tune as they turn wary and instead focus on capital preservation.

It’s this kind of deep insight and understanding that makes How to Smell a Rat a worthwhile read. It essentially peddles common sense, but Fisher’s vast experience and expertise makes all the difference.

There will always be crooks on the prowl for easy marks, and there will never be a shortage of people who can be seduced by promises of generous returns on their money. As such, anything that helps us avoid investment scams is useful.

Fisher shows the goods very early in the game. On page 5, he lists the five signs (see box) referred to in the book’s subtitle.

“Note: Just because your manager displays one or a few signs, it doesn’t mean they should immediately be clapped in irons. Rather, these are signs your adviser may have the means to embezzle and a possible framework to deceive. Always better to be suspicious and safe than trusting and sorry,” he advises.

If you had committed these signs to memory, you might be tempted to ditch the book at this point, but you would have extracted only a fraction of its value.

Mere awareness of the red flags is inadequate protection; an enlightened and responsible investor should have a reasonable grasp of how con artists operate and of the weaknesses they exploit.

Critical signs

This is where the book comes in most handy. When elaborating on the five signs, Fisher illustrates with examples that highlight commonalities among infamous swindlers such as Charles Ponzi, Ivar Kreuger, Robert Vesco, Bernard Madoff and R. Allen Stanford.

Through this, you appreciate the fact that though the specifics vary, the scamsters’ game plans are pretty much alike. The investment schemes are typically structured in such a away that the advisers have way too much control over the money and the investments.

The advisers promise returns that are almost too good to be true, and they often have trouble articulating their strategies in simple terms. They prey upon the same types of people. If you’re wholly mindful of what these warning signs mean, consider yourself inoculated against the investment fraud virus.

How to Smell a Rat is in part a self-improvement title. It is enriching because Fisher discusses the foibles and circumstances that enable con games to thrive.

When writing about how the culprit behind a hedge fund scam used impressive-sounding gobbledygook to dupe people, Fisher is actually telling us that our pride can lead us down the path to financial ruin.

“Remember, his victims weren’t stupid. But folks who consider themselves smart may not always question -- they don’t want to reveal they don’t understand. Many smart people have a hard time getting their egos to openly admit they don’t understand,” he tells the readers.

Another lesson: The investor himself must do due diligence before handing over his money to the adviser. “(Due diligence is) not complicated, but enough folks won’t do the check – and con artists count on that. It’s your money – you alone must do the check. Don’t let anyone in the middle,” urges Fisher.

Of knights and the Net

Often droll and cutting, the author is an engaging guide and teacher.

A target of his barbs is Stanford, chairman of Stanford Financial Group. In February last year, the US Securities and Exchange Commission filed an action, alleging that Stanford and his companies orchestrated a US$8bil fraud and that he was conducting a Ponzi scheme.

In making his point that fraudsters are fond of crafting flashy facades, Fisher likens Stanford’s knighthood from Antigua to a Cracker Jack box prize. “Elton John’s been knighted – but at least he was knighted by the Queen of England. Still, do you want him managing your money?” he asks.

His opinions are always firm and passionately argued, but at times, they can be rather eccentric, such as his blithe dismissiveness towards the influence of New Media.

“I would never believe things I read on blogs about anyone, ever, good or bad. You have no way to know what’s behind them, and often it’s nonsense. Actually, more often than not, it is nonsense! The Internet and its natural feature of anonymity bring out the very worst in a great many people,” he grumbles.

“Don’t ever believe Internet blog postings or comments on articles on even major websites. There isn’t integrity there, so don’t buy it, either way – whether it’s helping the reputation or defaming it.”

Here he sounds out of step with what’s happening out there, but this shouldn’t detract from the wisdom that Fisher offers in How to Smell a Rat.

According to Ken Fisher, there are ways to tell if your investment adviser may be a swindler or may evolve into one. In How to Smell a Rat, he provides a checklist:

1. The biggest red flag – your adviser also has custody of your assets.

2. Returns are consistently great.

3. The investing strategy isn’t understandable.

4. Your adviser promotes benefits (such as exclusivity) that don’t impact results.

5. You didn’t do your own due diligence, but a trusted intermediary did.


http://biz.thestar.com.my/news/story.asp?file=/2010/6/5/business/6327254&sec=business

Are remisiers still necessary?

Wednesday June 2, 2010

Are remisiers still necessary?
Personal Investing - By Ooi Kok Hwa


Online trading cheaper so remisiers should offer better and value-added services


MEMBERS of the general public have been complaining about the services of remisiers as they feel there is no difference between buying shares through remisiers and online trading. They feel that remisiers do not provide any value-added services.

Whenever they call to buy or sell shares, remisiers let the investors decide themselves whether to buy or sell stocks at the current prices.

They say remisiers seldom provide their views on whether to buy now or later as sometimes investors may be able to get better prices if they purchase the stocks later.

Some investors prefer online trading as some stockbroking firms provide the minimum brokerage cost of about RM10 per trade compared with the minimum brokerage cost of RM40 per trade if they use the services of remisiers.

On the other hand, a lot of remisiers have been complaining about their business. Some complain that the minimum brokerage cost of about RM10 per trade for online trading has put them at a disadvantage as their services are more expensive at the minimum brokerage cost of RM40 per trade.

In addition, despite the high stock market trading volume, they also notice that not many retail investors are actively involved in the stock market.

As a result, some remisiers are quite negative about their own profession.

The Securities Commission launched the Continuing Professional Education (CPE) programme and has made it mandatory for all licensed persons in the Malaysian capital market since 2001.



'You still need me'? asks a remiser.

Given that remisiers are licensed holders and have been attending classes over the past 10 years, we notice that their investment and financial knowledge has improved over the years.

At present, remisiers are looking for more advanced courses instead of simple courses like introduction to investment or financial knowledge or products. Hence, we feel that remisiers have the ability to provide better and value-added services to investors.

There are two main transaction costs when purchasing stocks, namely explicit and implicit costs.

• Explicit costs refer to direct costs of trading like brokerage commissions, stamp duty and clearing fees whereas 
• implicit costs refer to indirect costs of trading like market impact (or price impact), delay cost and missed-trade opportunity costs.

Market impact refers to the price movement caused by placing the trade in the market, delay cost is the inability to complete the trade immediately due to the order size and market liquidity, while missed-trade opportunity cost is related to the unrealised profits or losses attributed to the failure to complete the trades.

For example, Stock A is currently selling at RM1.98 (buying price) to RM2 (selling price). Mr B intends to buy 50 lots of Stock A and to save on brokerage commission by buying online. However, he is not aware that there is some good news on and strong buying interest in Stock A.

A good remisier should be able to advise Mr B to give market order and buy Stock A at the best available selling price of RM2, rather than give a limit order of RM1.98. If the day’s closing price for Stock A is RM2.10 and Mr B did not manage to accumulate the stocks at RM1.98, the missed-trade opportunity to Mr B is 5% ((RM2.10-RM2)/RM2).

This missed-trade opportunity cost of 5% is much greater than 0.6% that he pays on the brokerage commission.

We tend to agree with the general public view that not all remisiers are willing to commit themselves to get the best prices for their clients. One reason may be the difficulty in judging whether the buying interest will persist throughout the whole day.

As a remisier, his key role is to get the best execution prices for his clients. We feel the minimum brokerage cost of RM40 per trade is fair to the remisier as the implicit cost of buying a stock is much greater than this explicit cost.

The RM40 is also used to cover the time required to monitor and to get the best prices; time spent on reading market developments and corporate news; costs required to acquire market information and attend classes; and administrative work involved in helping their clients on rights issues or any other corporate exercises.

In Malaysia, we have about 8,000 remisiers and dealers with a population of 28 million versus 3,000 remisiers with a population of about 4 million in Singapore. We strongly believe that the remisiers’ services are still required and have the potential to grow.

Nevertheless, remisiers need to upgrade and add more value to their services, on top of providing the best execution of trades to their clients, to differentiate their services from online trading.

The writer is one of the active CPE course trainers. He is also an investment adviser and managing partner of MRR Consulting.

http://biz.thestar.com.my/news/story.asp?file=/2010/6/2/business/6381518&sec=business