Wednesday 22 May 2013

Insiders Selling to lock in their gains during this bull market.

Date Announced  22-May-13  
Changes in Share Holdings
Company Shrs Acquired/ Director/Substantial Shareholder Shrs held
(Disposed) after Changed
ALLIANCE FINANCIAL GROUP BERHAD AFG (909,000)   Employees Provident Fund Board 190,793,140  
81,000  
ALLIANCE FINANCIAL GROUP BERHAD AFG (24,400)   Mitsubishi UFJ Financial Group, Inc ("MUFG") 80,532,807  
ALLIANCE FINANCIAL GROUP BERHAD AFG (3,400)   Mitsubishi UFJ Financial Group, Inc ("MUFG") 80,529,407  
ALLIANCE FINANCIAL GROUP BERHAD AFG (300,000)   Employees Provident Fund Board 191,111,240  
618,100  
ALLIANCE FINANCIAL GROUP BERHAD AFG 2,900   Mitsubishi UFJ Financial Group, Inc ("MUFG") 80,532,307  
AIRASIA BERHAD   AIRASIA 4,000,000   Employees Provident Fund Board 231,549,000  
MALAYSIA AIRPORTS HOLDINGS BERHAD AIRPORT (7,700)   Employees Provident Fund Board 135,171,520  
AL-`AQAR HEALTHCARE REIT ALAQAR 1,311,400   Lembaga Tabung Haji 57,761,356  
AMMB HOLDINGS BERHAD AMBANK (81,100)   Employees Provident Fund Board 331,972,457  
2,928,900  
BENALEC HOLDINGS BERHAD   BENALEC (2,782,000)   Kumpulan Wang Persaraan (Diperbadankan) 53,064,600  
BIMB HOLDINGS BERHAD BIMB 659,000   Employees Provident Fund Board 97,370,700  
BINTULU PORT HOLDINGS BERHAD BIPORT (293,900)   KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 38,792,300  
BOILERMECH HOLDINGS BERHAD (ACE Market)  BOILERM (668,800)   Leong Yew Cheong 38,877,412  
BURSA MALAYSIA BERHAD BURSA (5,800)   Mitsubishi UFJ Financial Group, Inc. ("MUFG") 27,869,258  
42,400  
CIMB GROUP HOLDINGS BERHAD CIMB (1,354,400)   Employees Provident Fund Board 877,827,032  
1,186,000  
CIMB GROUP HOLDINGS BERHAD CIMB (433,900)   Mitsubishi UFJ Financial Group Inc (MUFG) 794,785,177  
CAPITAMALLS MALAYSIA TRUST CMMT (750,000)   Employees Provident Fund Board 165,943,600  
DIALOG GROUP BERHAD DIALOG 2,500,000   Employees Provident Fund Board 372,190,035  
DIGI.COM BERHAD DIGI (1,014,600)   Employees Provident Fund Board 1,201,738,740  
DOLOMITE CORPORATION BERHAD   DOLMITE 278,970   HUANG JEN SOONG 9,074,073  
DRB-HICOM BERHAD DRBHCOM 500,000   EMPLOYEES PROVIDENT FUND BOARD 146,287,600  
EASTERN & ORIENTAL BERHAD E&O 311,600   CIMB COMMERCE TRUSTEE BERHAD 59,504,000  
EASTERN & ORIENTAL BERHAD E&O 8,351,900   CIMB COMMERCE TRUSTEE BERHAD 67,855,900  
FELDA GLOBAL VENTURES HOLDINGS BERHAD   FGV 342,000   EMPLOYEES PROVIDENT FUND BOARD 299,986,370  
FELDA GLOBAL VENTURES HOLDINGS BERHAD   FGV (105,000)   KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 253,079,800  
GENTING PLANTATIONS BERHAD GENP (5,000)   KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 46,545,700  
GENTING PLANTATIONS BERHAD GENP (200,000)   EMPLOYEES PROVIDENT FUND BOARD 116,458,200  
HAP SENG CONSOLIDATED BERHAD   HAPSENG (8,935,100)   Gek Poh (Holdings) Sdn Bhd 1,272,992,880  
HAP SENG CONSOLIDATED BERHAD   HAPSENG (8,935,100)   Hap Seng Insurance Services Sdn Bhd ["HSIS"] 108,481,780  
HONG LEONG BANK BERHAD HLBANK 80,000   Employees Provident Fund Board 260,375,772  
HOCK SENG LEE BERHAD HSL 263,400   Employees Provident Fund Board 56,128,560  
HAP SENG PLANTATIONS HOLDINGS BERHAD HSPLANT (2,916,000)   Gek Poh (Holdings) Sdn Bhd 424,240,000  
HAP SENG PLANTATIONS HOLDINGS BERHAD HSPLANT (2,916,000)   Hap Seng Consolidated Berhad 424,240,000  
ICAPITAL.BIZ BERHAD ICAP 129,200   City of London Investment Management Company Ltd 12,781,900  
IGB CORPORATION BERHAD IGB (175,100)   Employees Provident Fund Board (EPF) 92,544,122  
193,400  
IHH HEALTHCARE BERHAD IHH 1,043,900   Employees Provident Fund Board 530,355,000  
IJM CORPORATION BERHAD IJM (123,300)   Kumpulan Wang Persaraan (Diperbadankan) 102,766,280  
200,000  
IJM CORPORATION BERHAD IJM (500,000)   Employees Provident Fund Board 154,793,489  
100,000  
IJM LAND BERHAD   IJMLAND (174,200)   Employees Provident Fund Board 75,870,300  
KUALA LUMPUR KEPONG BERHAD   KLK 31,500   Employees Provident Fund Board 162,743,138  
MAH SING GROUP BERHAD   MAHSING 175,000   Employees Provident Fund Board ("EPF") 103,001,960  
MAH SING GROUP BERHAD   MAHSING (3,000,000)   Kumpulan Wang Persaraan (Diperbadankan) 57,173,866  
MAH SING GROUP BERHAD   MAHSING (3,100,000)   Kumpulan Wang Persaraan (Diperbadankan) -
MAXIS BERHAD MAXIS 2,019,000   Employees Provident Fund Board ("EPF Board") 478,710,400  
MALAYAN BANKING BERHAD   MAYBANK (5,698,000)   EMPLOYEES PROVIDENT FUND BOARD 874,025,124  
MBM RESOURCES BHD MBMR (500,000)   EMPLOYEES PROVIDENT FUND BOARD 58,401,891  
170,000  
MICROLINK SOLUTIONS BERHAD (ACE Market) MICROLN 3,000   Insas Berhad 7,852,400  
MICROLINK SOLUTIONS BERHAD (ACE Market) MICROLN 3,000   Insas Plaza Sdn Bhd 7,852,400  
MISC BERHAD MISC (34,300)   Employees Provident Fund Board 426,309,958  
MISC BERHAD MISC (811,700)   Employees Provident Fund Board 426,442,158  
MISC BERHAD MISC (97,900)   Employees Provident Fund Board 426,344,258  
MK LAND HOLDINGS BERHAD   MKLAND (8,700,000)   KASI A/L K L PALANIAPPAN 268,134,415  
MNRB HOLDINGS BERHAD MNRB (255,200)   AMANAHRAYA TRUSTEES BERHAD - SKIM AMANAH SAHAM BUMIPUTERA 101,423,000  
METRONIC GLOBAL BERHAD   MTRONIC (8,000,000)   Ling Yew Kong 37,355,000  
NESTLE (MALAYSIA) BERHAD NESTLE (32,200)   Employees Provident Fund Board 23,404,200  
NESTLE (MALAYSIA) BERHAD NESTLE (1,200)   Employees Provident Fund Board 23,403,000  
NESTLE (MALAYSIA) BERHAD NESTLE (5,000)   Employees Provident Fund Board 23,398,000  
NYLEX (MALAYSIA) BERHAD NYLEX 227,800   Pacific & Orient Berhad 85,356,388  
NYLEX (MALAYSIA) BERHAD NYLEX 227,800   Chan Thye Seng 85,356,388  
NYLEX (MALAYSIA) BERHAD NYLEX 227,800   Mah Wing Holdings Sdn Bhd 85,356,388  
NYLEX (MALAYSIA) BERHAD NYLEX 227,800   Mah Wing Investments Limited 85,356,388  
ORIENTAL HOLDINGS BERHAD ORIENT 2,100   Aberdeen International Fund Managers Limited 46,725,100  
ORIENTAL HOLDINGS BERHAD ORIENT 36,100   Aberdeen International Fund Managers Limited 46,761,200  
ORIENTAL HOLDINGS BERHAD ORIENT 2,100   Aberdeen Asset Management Asia Limited 54,222,700  
ORIENTAL HOLDINGS BERHAD ORIENT 36,100   Aberdeen Asset Management Asia Limited 54,258,800  
ORIENTAL HOLDINGS BERHAD ORIENT 2,100   Aberdeen Asset Management PLC and its subsidiaries 66,145,200  
ORIENTAL HOLDINGS BERHAD ORIENT 36,100   Aberdeen Asset Management PLC and its subsidiaries 66,181,300  
PANASONIC MANUFACTURING MALAYSIA BERHAD PANAMY 2,000   Mitsubishi UFJ Financial Group,Inc ("MUFG") 6,073,000  
PANASONIC MANUFACTURING MALAYSIA BERHAD PANAMY 700   Aberdeen Asset Management PLC and its subsidiaries 8,731,800  
PANASONIC MANUFACTURING MALAYSIA BERHAD PANAMY 2,000   Aberdeen Asset Management PLC and its subsidiaries 8,733,800  
PANTECH GROUP HOLDINGS BERHAD   PANTECH (1,200,000)   GL MANAGEMENT AGENCY SDN BHD 79,895,960  
PANTECH GROUP HOLDINGS BERHAD   PANTECH (1,200,000)   DATO’’ GOH TEOH KEAN 79,895,960  
PANTECH GROUP HOLDINGS BERHAD   PANTECH (1,200,000)   DATIN LEE SOCK KEE 79,895,960  
PARKSON HOLDINGS BERHAD   PARKSON (559,300)   Kumpulan Wang Persaraan (Diperbadankan) ("KWAP") 55,968,954  
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   Guoco Group Limited -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   GuoLine Overseas Limited -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   GuoLine Capital Assets Limited -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   Hong Leong Company (Malaysia) Berhad -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   HL Holdings Sdn. Bhd. -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   Tan Sri Quek Leng Chan -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   GLL (Malaysia) Pte. Ltd. -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   Pembinaan Sri Jati Sdn. Berhad -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   Bedford Development Sdn. Bhd. -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   GuocoLand Limited -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   GuocoLand Assets Pte. Ltd. -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   Hong Realty (Private) Limited -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   Hong Leong Investment Holdings Pte. Ltd. -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   Kwek Holdings Pte. Ltd. -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   Kwek Leng Beng -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   Davos Investment Holdings Private Limited -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   Kwek Leng Kee -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   Quek Leng Chye -
PASDEC HOLDINGS BERHAD PASDEC (1,750,200)   GuocoLand (Malaysia) Berhad -
PUBLIC BANK BERHAD PBBANK (1,925,900)   Employees Provident Fund Board 461,040,381  
130,000  
PETRONAS CHEMICALS GROUP BERHAD   PCHEM 950,000   Employees Provident Fund Board 1,012,690,800  
PETRA ENERGY BERHAD PENERGY (1,241,000)   Lembaga Tabung Haji 22,299,412  
PERISAI PETROLEUM TEKNOLOGI BHD PERISAI (2,005,200)   EMPLOYEES PROVIDENT FUND BOARD 61,793,000  
PERISAI PETROLEUM TEKNOLOGI BHD PERISAI 1,600,000   EMPLOYEES PROVIDENT FUND BOARD 63,393,000  
PETRONAS DAGANGAN BHD PETDAG (80,000)   Employees Provident Fund Board 73,440,900  
PETRONAS DAGANGAN BHD PETDAG 41,900   Employees Provident Fund Board 73,482,800  
PETRONAS GAS BERHAD PETGAS (44,000)   EMPLOYEES PROVIDENT FUND BOARD 266,966,400  
222,000  
PETRONAS GAS BERHAD PETGAS (150,900)   KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 104,779,600  
36,900  
POS MALAYSIA BERHAD POS (300,000)   Employees Provident Fund Board 41,467,800  
PRICEWORTH INTERNATIONAL BERHAD   PWORTH (4,500,000)   Lee Kian Vui 9,648,150  
SIME DARBY BERHAD SIME (454,400)   Employees Provident Fund Board 809,389,455  
1,249,800  
SAPURAKENCANA PETROLEUM BERHAD SKPETRO (816,400)   Employees Provident Fund Board 679,584,689  
1,150,000  
SKP RESOURCES BHD SKPRES (9,000,000)   DATO’’ GAN KIM HUAT 525,424,291  
SKP RESOURCES BHD SKPRES (9,000,000)   RENOWN MILLION SDN BHD 175,246,075  
S P SETIA BERHAD SPSETIA 200,000   KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 129,158,850  
S P SETIA BERHAD SPSETIA 1,850,000   Employees Provident Fund Board 128,666,230  
S P SETIA BERHAD SPSETIA (671,200)   Mitsubishi UFJ Financial Group, Inc ("MUFG") 133,161,400  
SUNWAY REAL ESTATE INVESTMENT TRUST SUNREIT (845,000)   Employees Provident Fund Board 318,304,300  
250,000  
TASEK CORPORATION BERHAD TASEK 5,000   Mitsubishi UFJ Financial Group, Inc ("MUFG") 14,851,759  
TH PLANTATIONS BERHAD   THPLANT 1,480,200   Employees Provident Fund Board 47,855,400  
TELEKOM MALAYSIA BERHAD TM 249,900   Employees Provident Fund Board 480,700,300  
TOP GLOVE CORPORATION BHD TOPGLOV (809,200)   Kumpulan Wang Persaraan (Diperbadankan) -
TRIPLC BERHAD TRIPLC (6,488,295)   Gempur Likas Sdn Bhd -
TRIPLC BERHAD TRIPLC (6,488,295)   Ho Kim Shing -
TRIPLC BERHAD TRIPLC (6,488,295)   Md Zahary Bin Malek -
TRIPLC BERHAD TRIPLC 4,000,000   Minat Bakti Sdn Bhd 4,000,000  
TRIPLC BERHAD TRIPLC 4,000,000   Aidil Bin Abdul Aziz 4,000,000  
TRIPLC BERHAD TRIPLC 4,000,000   Ruzlan Bin Rahmat 4,000,000  
UNITED MALACCA BERHAD UMCCA 12,800   Aberdeen Asset Management PLC and its subsidiaries ("The Group&qu 29,152,050  
UNITED MALACCA BERHAD UMCCA 7,300   Aberdeen Asset Management Asia Limited 16,112,350  
UNITED MALACCA BERHAD UMCCA 7,300   Aberdeen International Fund Managers Limited 10,912,650  
UNITED MALACCA BERHAD UMCCA 5,500   Aberdeen Asset Management Sdn Bhd 12,989,700  
UNITED MALACCA BERHAD UMCCA 20,600   Mitsubishi UFJ Financial Group, Inc("MUFG") 29,139,250  
UMS-NEIKEN GROUP BERHAD UMSNGB 150,000   Yeo Guik Hiang 4,012,400  
UOA DEVELOPMENT BHD UOADEV 600,000   EMPLOYEES PROVIDENT FUND BOARD ("EPF BOARD") 79,828,200  
UNITED PLANTATIONS BERHAD UTDPLT 7,600   MITSUBISHI UFJ FINANCIAL GROUP. INC (MUFG) 24,148,000  
UNITED PLANTATIONS BERHAD UTDPLT 19,800   Aberdeen Asset Management PLC and its Subsidiaries 24,167,800  
WAH SEONG CORPORATION BERHAD WASEONG 83,200   Employees Provident Fund Board 45,142,433  
WCT BERHAD WCT (2,500,000)   Kumpulan Wang Persaraan (DiPerbadankan) 64,933,210  
WCT BERHAD WCT (300,000)   Employees Provident Fund Board 123,708,430  
WHITE HORSE BERHAD WTHORSE    Teo Kim Tay 12,559,015  
WHITE HORSE BERHAD WTHORSE    Teo Kim Lap 12,533,027  
WHITE HORSE BERHAD WTHORSE    Teo Swee Teng 13,498,593  
YTL CORPORATION BERHAD YTL (3,312,300)   EMPLOYEES PROVIDENT FUND BOARD 789,297,047  
YTL POWER INTERNATIONAL BHD YTLPOWR (3,000,000)   EMPLOYEES PROVIDENT FUND BOARD 586,482,916

Tuesday 14 May 2013

5 Steps to Creating a Sustainable Competitive Advantage


Whether you’re pitching investors or launching a new product, success is more likely if you can create and communicate a sustainable competitive advantage.

Being first to market isn’t enough, as someone bigger with something better will come along and leave you in the dust. And it doesn’t matter if there isn’t a product in the market that’s exactly the same as yours. If another company is solving the same pain you’re addressing, for the same customers – they are competition.
While creating a sustainable competitive advantage is not easy, the following will help ensure you get and remain ahead of the field.
1. Establish Brand Loyalty. Customers will often remain with a brand they have loyalty towards, even though the company does not offer the cheapest or most effective product. Focus on building strong relationships with your customers and delivering a great customer experience and service.
2. Patent Your Product. There has been a lot of debate recently about the true value of a patent. While patents are not a ‘cure all’, they are an important weapon in an entrepreneur’s competitive advantage arsenal.
3.  Continually Innovate. Customers like updates and upgrades. Keeping your product fresh and compatible with the market place (particularly if software), is essential.
4. Hire ‘Connected’ Team Members. If your market includes large companies and government departments, connections to key individuals within these organizations can dramatically accelerate your ability to meet and secure contracts. Try to have at least one member on your team who is ‘connected’.
5. Use Long Term Contracts and Incentives.  This step has to be executed carefully, as it can backfire. If you can establish a long term contract with your customer, then clearly they are less likely to switch to a competitor. If you only offer long terms contracts, however, and your competitors are offering short terms contracts, then you are likely to lose business.
Ideally you want to incentivize your customers to enter into a long term contract with you, possibly by providing a slight reduction in cost or a bonus. Equally, customers are more likely to be willing to enter into a long terms contract if they have just completed a successful short term contract with you.

Identifying Durable Competitive Advantages by Analyzing Financial Statements.





Warren Buffett and Durable Competitive Advantage


Warren Buffett repeatedly emphasizes that an investor must invest into a company that offers a durable competitive advantage. Any company that has a durable competitive advantage is likely to be able to maintain its profitability over a long period of time. Competitive advantage is meant to signify that the company must have a product or service line that is distinctively unique. However, a unique product or service does not make a company financially sound. Rather it is a durable competitive advantage that ensures that the company would be able to maintain its competitive advantage over a long period of time. The product and service must enjoy a competitive advantage such as through the existence of a brand name or through a patented, natural or regional monopoly. Firms also enjoy a competitive advantage if they offer high quality products and are able to develop customer loyalty.

Warren Buffett states that any business that enjoys a durable competitive advantage is likely to have a long history of profitability that is based on a narrow range of products or services. A company that has a competitive advantage is likely to remain in the industry for the foreseeable future. The fact that the organizations products are profitable would mean that their spending on research and development would be minimal whereas the company would also not be in need of continuous up gradation. Furthermore, a company that enjoys a high competitive advantage is likely to offer a product that has a rising or stable pattern of demand.

Any company that enjoys a high competitive advantage is likely to be in a monopolistic position within the market. This is because its unique products and services are likely to generate sales due to their high quality and distinct image. This allows the firm to increase prices while still maintain profitability and sales. This is of immense importance to shareholders as increasing sales and returns signal higher returns for the stock owners. Furthermore, competitive advantage allows a business to refrain from entering into price battles with other competitors and the company is able to dominate the market. The competitive advantage allows the firm to lead the market and generate high profits from the stable product line. Finally, the fact that the business has a durable competitive advantage would mean that it would be able to maintain the current earnings per share in the foreseeable future.

So how exactly is the durable competitive advantage beneficial to investors like Warren Buffet? Warren Buffet states that any company that enjoys a sustainable competitive advantage is likely to invest a minimal amount into research and development and new plant and equipment. This would free up cash for other investing purposes such as expansion that would allow the business to increase its sales and profitability. The availability of cash is also likely to prevent the company from taking on debt and incurring the cost associated with servicing of debt. A company that enjoys a durable competitive advantage is likely to have high amounts of free cash flow which could be passed on to shareholders in form of high return on equity.


Thursday 9 May 2013

Portfolio Management


When you start investing in stocks, you will soon have a portfolio of them. And managing your portfolio is just as important as picking the right stocks in the first place. Because if you mismanage your portfolio you could be minimizing your potential returns or end up losing money! 

So always take note of your stock portfolio and here are some guidelines to help you along:
  1. This one is straightforward but some beginners neglect to do this - Keep records of all your investment decisions. If you don't keep track, you won't know how much you're making or losing!
  2. A portfolio of 5-8 stocks is optimum for the typical investor . Keep within a certain number so your portfolio remains manageable. Too many stocks could result in a lack of proper management and cause losses in your portfolio
  3. Monitor a company's' quarterly reports and keep track of their fundamental performance
  4. On top of monitoring your stock through financial reports, you should attend the Annual General Meetings (AGMs) to meet a company's management team face-to-face
  5. Stay current with world and economic affairs and monitor any news on your stocks and the industry they're in
In a nutshell, managing your portfolio can be summed up in one simple sentence: sell your losers, keep your winners. Sell bad, under-performing investments and cut your losses. Stay invested in good companies and hold on to them, especially if they have good growth potential.

Because let me ask you...

Would you be happy with a 22% dividend yield year after year? That means for every $100 you invested, you're getting $22 back in passive income every year. You don't even have to do anything to make that money; you just sit and wait!

Well, that's what value investing can do for you when you hold on to a winner long enough. Read this article below and it'll show you how:

http://www.millionaireinvestor.com/3-reasons-why-value-investing-is-so-powerful

MillionaireInvestor.com

Tuesday 7 May 2013

Buffett: The time to buy stocks is when nobody else wants them

In the recession of 20087 - 2009 we had the opportunity, and for those of us who did venture into that abyss, the rewards were tremendous.

Here is a quote from Warren Buffett during the 1990-1991 recession in the U.S.:

"Nevertheless, fears of a California real estate disaster similar to that experienced in New England caused the price of Wells Fargo stock to fall almost 50% within a few months during 1990.  Even though we had bought some shares at the prices prevailing before the fall, we welcomed the decline because it allowed us to pick up many more shares at the new panic prices.

Investors who expect to be ongoing buyers of investments throughout their lifetimes should adopt a similar attitude toward market fluctuations; instead many illogically become euphoric when stock prices rise and unhappy when they fall."

Sunday 5 May 2013

Lim Kit Siang - A Great Malaysian

Vote for a Better Malaysia 5.5.2013.

The campaigning is over and the stands of the various parties are disseminated by various means.
On this faithful day, let's vote for the government of our choice.
Cast your vote for a better Malaysia.

The issues that are dominant in this election, for me are:

CORRUPTION and good governance,
CRIME

Cost of living issues are very important for many Malaysians too.

VOTE FOR A BETTER MALAYSIA

Wednesday 1 May 2013

Be Proactive. You must be the agent for Change

The Danger of Low Dividends




Earnings among S&P 500 companies are at an all-time high. By quite a bit, too: Operating earnings per share last year were more than 10% above the previous peak set in 2006, when the economy topped out before the recession.
Dividend payouts are also at an all-time high, but there is much less to be excited about here. Companies have been paying out a lower share of their earnings as dividends for decades, and the trend shows little sign of slowing. The dividend payout ratio is pitiful:
Source: Yale, author's calculations.
A lot of this decline over time is explained by companies using more of their free cash flow to repurchase shares. Benjamin Graham's classic 1949 book contains deep analysis and commentary on dividends, but scarcely a mention of share buybacks. That changed dramatically after the 1980s. Legg Masson has shown that from 1985 to 2011, S&P 500 dividends increased fourfold, but share buybacks increased 21-fold.  
The impact this shift has on how investors are compensated is deep. As Shawn Tully of CNNMoney pointed out earlier this year, the dividend yield on ExxonMobil (NYSE: XOM  ) is a little more than 2%, but the total yield including buybacks is north of 7%. Pfizer's (NYSE:PFE  ) dividend yields more than 3%, but with buybacks the company returns 7.6% to shareholders. Wal-Mart's (NYSE: WMT  ) total yield is about double its dividend yield.
There are mountains of evidence showing that, on average, investors are better off with dividends than share buybacks, as CEOs have a terrible history of buying back their shares at nosebleed prices.
But I think the damage of the shift toward buybacks may even be underrated. With interest rates at zero, investors have been clamoring for yield wherever they can find it. For years, that's been stocks with high dividends, whose prices have been pushed to record levels and yields down to near record lows. Shares of Verizon (NYSE: VZ  ) now yield less than 4% and Altria Group (NYSE: MO  ) , less than 5%.
These are still healthy yields, particularly compared with fixed-income alternatives -- and both companies have high dividend payout ratios. But I can't help but wonder whether companies favoring buybacks over dividends will ultimately be a disservice to companies with high dividends. The lack of yield among most stocks drives up valuations at companies that still do provide reasonable payouts, and high current valuations will eat into future returns.
Managers typically cite the desire to "enhance shareholder value" when announcing share buybacks. But never underestimate the power of unintended consequences. 


The 3 Cs issues of this election. Which party is addressing these issues?

The 3 top issues to be addressed in this election:

1.  Cost of Living issues
2.  Crime issues.
3.  Corruption issues.


Sadly, in every election, some choose to focus on race and other divisive issues.

http://blog.limkitsiang.com/2013/04/30/dalang-sebenar-mei-13-dibongkar-oleh-dato-mohd-tamrin-ghafar/


So, who is telling the truth?  Are you enlightened or confused?