China: Shanghai Index (mainland)
- is down 19.49% in the past 1 year (1YR) and down 15.22% Year To Date (YTD)
U.S.: DJIA
- is up 1.22% 1YR and up 1.71% YTD
Malaysia: KLSE
- is down 2.71% 1YR and up 1.5% YTD
- Currency (MYR/USD) is down 5.58% 1YR and up 9.64% YTD
[Data: bloomberg.com 31/03/2016]
China is dealing with their issues and so are every other country. Be rest assured they are all trying to ensure business and trade keeps on running smoothly. Volatility continues as usual.
Meanwhile in Malaysia, Bursa recently announced some changes and updates that the writer considers to be very positive for the KLSE; primarily in management accountability & in improving accountability to shareholders. Some are, the introduction to “Management Discussion and Analysis” and the posting of main General Meeting key matters on listed Company websites. Changes and updates starts on 30 April 2016 on a staggered basis. A lengthier report can be found in theStar’s article at;
Good-to-Know BIG QUOTES (in the investment world):
THE INVISIBLE HAND - by Adam Smith
Every now and then this phrase pops up. In case you have wondered what it meant, this phrase is commonly interpreted as such:
“Individual pursuit of self interest leads to unintentional production of good for society collectively”.
[ Note: For instance, when someones starts a food stall for profit, the stall should it be successful will not only bring profits to the stall owner but brings about good food/service to the community around it. Walmart and alike companies were created for profit by the shareholders but have changed the way we all live drastically hence being an unintentional production of good for society. Of course Walmart and others may have very much from day one focused on improving the lives of society. ]
SAY’S LAW by - Jean-Baptiste Say
Supply creates its own demand.
[ Note: Apple created iPods, iPads and iPhones which were all 1st of their kinds without successful precedents hence creating its own demand post supplying/promoting their products. ]
PRIVATISATION TALKS of your stock/share/saham
Occasionally you will hear rumours of privatisation of the stock you own i.e. Parkson wherein recently its Singapore division: Parkson Retail Asia Ltd and its parent company Parkson Holdings Bhd both surged >15%.
Always remember (in Malaysia in particular), as long as minority/major shareholders retain about a 10% majority of a company, the company CANNOT be taken private UNLESS ACCEPTED by the 10% of shareholders. An update is expected to further clarify this issue as many Malaysian & retail shareholders globally tend to sell their shares in fears the company stock price may tumble.Truth be told, fund managers in other countries i.e. U.S. tend to buy LARGE amount of shares of companies with privatisation/merger/corporate exercise talks to DEMAND for a better offer.
In short, when you hear talks of privatisation etc, buy more shares, get all the minority shareholders together (i.e. via forums) and demand for PROPER VALUE or else REJECT the Privatisation OFFER.
For a wonderful full explanation on Privatisation & Take-Overs in Malaysia,
view this link by Crowe Horwath (pdf);
[ Note: Only buy more shares if you are fully aware of your financial standing and are constantly regulating your investment portfolio. Regarding Parkson, they have responded individually for both divisions that they are unaware of any news and have conformed to regulations regarding dissemination of public information. ]
Stocks in View
IBM
Continues with their transformation programmes and new technology developments. The stock has done quite well since recommended in August 2015. Currency volatility is suggested as a non-issue for longer term investment as currency affects earnings which in turn affect share price. Short term investment concerning MYR/USD in purchasing IBM shares would be of concern due to large fluctuations since 2015.
Gaming Stocks in Macau
An interesting opportunity IF China relaxes regulations and big players return.
Parkson
Expect better upcoming earnings as suggested by the company from Chinese New Year celebration (from Parkson Bhd's Quarterly Report ending 31 Dec 2015 entitled "13.Prospects") & possible good sales from Parkson New Core Mall in China.
Until next time, happy value investing.
[DISCLOSURE: The writer currently owns minority stake in Parkson Holdings Bhd among the mentioned stocks as of 31/03/2016 under his personal account. JR Capital LLP has minority interest in mentioned stock IBM as of mentioned date.]
[DISCLAIMER: Everything stated in this blog is purely the opinion of the writer and any decision taken should be based on sound judgement with risks fully born by the decision maker. The writer shall bear no responsibility for any losses due to adherence of advices blogged by the writer or any commenters. Informational discrepancies are possible and will be corrected if any.]
