My Colleague Wedding Tomorrow!

finally my 1st saturday in many many weeks that i'm available in company...yeah, for you , thiam .. i sacrifice my OT money and go malacca to celebrate your big day of your life.. a day you lost your freedom.. the same day u lost your virginity (lol..ops, hope i'm right) and the day , you and your soulmate rainbow been tight togather under contract (duh , i mean your marriage certificate la..^ ^).

hopefully tomorrow you serve us well ( i want unlimited access to whisky , wine and beer!) and we sure give u a big suprise $$$$ angpow ne... (on behalf of kawase-san)

eh, i curi some of your wedding day photos to put in my blog k?? just to show to all the readers your charm , smile and happiness on the day

DiGi to pay 138% of net profit as dividend

came across thestar.com.my today... headlines for the finance news was digi declared 138% of net profit as dividend..omg... if u own rm22 , u will get paid rm1.78...if u own rm220 , u get rm17.8.. if u own rm2200, u will get rm178...

"The full-year dividend payout, at RM1.78 per share and totalling RM1.38bil, is DiGi.Com’s largest in terms of proportion to its net profits and gives its shares a dividend yield of 8% based on yesterday’s closing price of RM21.10 per share."

it was total 8% of dividend le...yum yum.. well lets take a look at digi yearly chart... during the worldwide worst scenario (when KLSE was <800point>

The Spy Next Door

Just back from watching this movie.. yeah... i know.. For a comedy cum action movie , it is worthless to watch in the cinema.. aint blockbuster , aint superstar movie (jackie chan kinda oldman now...) , but i do enjoy this movie though..if u have a time , go watch this movie with your parents or partners... a relaxing midnite i had.

dow jones still "red" . Not sure in detail why.. but it wil give a hard time to KLSE tomorrow i guess... so , all the queue i made just now was cancelled until the next morning (if morning dow closes green , i will queue again).

SCOMI <-- RM0.445 (a very good entry price. scomi support at RM0.44 and was closed high at RM0.50 in Jan'10). worth to enter now.

SCOMI-LA <-- RM0.105 (enter at o.10 - 0.105 and exit at 0.11 - 0.12) .. a counter for trading , very good volume. can make quick cash before CNY oo.. WOo hooO~~

IRIS <-- Awarded contract worth RM259million at bangladesh to setup machine readable passport and visa. might see it can test the resistance at RM0.20 or not. cut lost at RM0.155

let me share the trailer for spy next door...enjoy!

KLCI green! but my share red.. :(

what the hell!! although KLCI was +5points (4.9%) , but loser and winner counter is 50 : 50... this is just proving that bluechip counter stabilizing and all the T+3 player cashing out and waiting for 2nd round....anyway , i was able to queue for the following share and the closing price was rather dissapointing

KEYASIC @RM0.43 (Current RM0.415) <-- 8000shares

ANNJOO-WB@RM0.75 (Current RM0.75) <--4000shares

Queueing up tomorow..

SCOMI-LA @RM0.105 <----30000shares

HUNZPTY @RM1.28 <--- 3000shares

MJPERAK @ RM0.255 <---10000shares

WIll update you guys tomorrow on the status! stay tuned...

REITS fundamental...:)

Hmm...had a long chat with my sister just now through MSN.. she almost recovering from maternity and resume back to work after CNY... anyway , most of our conversation are related to share market only.. well , this round i suggested to her about REITS.. anyway , what is REITS??

The term REIT stands for Real Estate Investment Trust. It is a trust fund that holds/ invests in RENTAL properties. Its major incomes is rental income and it is required to distribute most of its profit as dividend to its holders.

REIT can be one of the very exciting instrument for the purpose of cumulating income generating assets. We like REIT though with some very strict conditions.

Early this year, Securities Commission issued guidelines on REIT. These are improved guidelines for property trust funds. The market was and is still fairly excited about the changes. The first REIT, Axis-REIT, was listed on Bursa Malaysia (KLSE) in August 2005. We are expecting REITs from YTL Group, Sunway City and probably Landmark, IGB (for Mid Valley city) and KLCC, though these are in the pipelines. We are hoping Jaya Jusco will soon jump into the band wagon too.

What is REIT?

This is the exact words from investopedia's article, "What are REITs?":
"REIT has two unique features: its primary business is managing groups of income-producing properties and it must distribute most of its profits as dividends."

Unlike unit trust, which is sold through agents or banks, REIT is traded in stock exchanges. So it gives investors returns through capital appreciation from price changes and dividends (just like any listed company's stock).

Why do we like REITs? What are the benefits of REITs?

REIT holds rental properties. So its main incomes are rental incomes. Such rental properties can be office buildings, shopping malls, lands, etc. Usually, REIT will pay out at least 90% of its taxable profit as dividends. This is either required by regulations or due to tax incentives.

Rental is usually a fairly consistent source of income. So you see, with at least 90% payout, the income stream invested in REIT is fairly consistent for investor.

This makes REITs high-yield stocks and extremely attractive as income-generating assets or assets(i).

As investors, we just need to invest a small amount to own part of the shopping mall, offices, lands, etc. through REITs. We can sell it anytime and easily through stock markets. The transaction cost to buy and sell REITs is low compared to normal properties. We can own a diversified portfolio of properties. These are the benefits that the usual property investments cannot provide.

Yes, stock prices of REITs fluctuate. However, as long as the rental properties are well managed, the rental markets are stable and the rental incomes are consistent, you can get consistent dividend incomes. And if you bought the REIT at a good price, it gives you consistent good ROI, regardless of fluctuations of stock prices.

Do you still remember the objective of financial planning? For FPM that is to accumulate income generating assets.

More on the explanation of REIT from Investopedia.

However, M-REIT is a bit different from the usual REIT...

M-REIT refers to REIT in Malaysia that is regulated under the above mentioned SC's guidelines.

In a way, Malaysians are non-conformists. We always want to be a bit different from the rest of the world to show that "kita boleh". :-)

These are the salient features of M-REIT:

1. Investors' dividends will be taxed at investors' books.
2. Non-residents' dividends will be taxed at 28%. It is an upfront and final withholding tax.
3. There are NO explicit requirement of minimum payout ratio in the guidelines.

Item 1 makes M-REIT less attractive to local investors.
Item 2 makes it less attractive to non-resident investors.
The worst is item 3 - there is no explicit minimum dividend payout requirement. So as investors, we have to read the terms of the REITs carefully. We have to make sure the REIT that we invest in states that it will pay out 90% of its taxable profits even though it is true that the tax structure does encourage REIT to pay out dividends as high as possible.

Where to buy M-REIT?

You buy REITs through your stockbrokers/ remisiers. You can also book your trade through online stockbrokers. Check out the list of Malaysia online stockbrokers in our directory. REIT is listed at Bursa Malaysia or KLSE (old name). Or you can buy it through IPO. You may find the opening and closing dates to subscribe for IPO at the web site of Bursa Malaysia.

Unit trust agents or banks do not sell REIT, although REIT is trust fund. REIT's stock prices are determined by market supply and demand, just like company share prices. On contrary, unit trust prices are determined by NAV, net assets value, which is the value of its assets less liabilities (if any). It is calculated by unit trust companies daily.

Currently, there is one REIT, i.e. Axis-REIT, listed on Bursa Malaysia's TRUST section. The other three listed trusts are property trust, which is similar to REIT. Like REIT, property trust is subjected to the recent new guidelines from SC.

Why did the Property Trusts under the old guidelines not do well?

There were not many incentives given and little gearing was allowed. Quality of the assets, low yields (returns from investment), falling dividend per share, passive management, etc. all contributed to the lackluster performance of property trusts before the new SC's guidelines.

Why do companies with such good rental properties want to put their rental properties into REITs?

Because they can unlock their rental properties value. This means they can sell, for example, 30% of the ownership of the property to the public, foregoing future rental income, in exchange for instant upfront cash pile and still be in control of the properties.

What is the criteria of a good REIT?

It must have good quality assets and good quality management. You must buy it at a good price and the management should grow the rental properties and increase the rental income for you.

Good quality assets means well-managed rental properties at good locations, broad base tenants (without the fear of losing one or two big tenants), and therefore the rental incomes will grow or at least be maintained.

Good management will drive growth through acquisitions or the building of more rental properties to increase rental incomes.

We like REIT with rental properties like shopping malls. Office rental incomes are generally a bit more volatile and hotel business may be cyclical. So we like only REITs in which their main rental properties are red-hot shopping malls like Mid Valley and Jaya Jusco (if their owners are willing to put them into REIT). If the shopping malls deteriorate you will know when you shop. For investors without a good understanding of property markets, REITs with assets like shopping malls are the safer investments.

What makes the prices of REITs stocks fluctuate?
Beside normal fluctuations due to simple demand and supply, when the market expects the rental to go soft prices of REITs' prices will fall. When the market expects rental to go up, REITs stock prices will go up. In a way, a good grasp of property market knowledge will be helpful in investing in REITs.

When we invest in REITs we are looking for an instrument that provides high, consistent and growing dividend income. The REITs that we invested in must be able to generate sustainable and growing rental incomes from their rental properties business. Without a good rental properties business, the REITs could not distribute sustainable dividends to its shareholders.

Other than dividends income, the fluctuation in REITs share prices enables us to make capital gain. A well-managed and growing rental properties business, for REIT, will inevitably lead to higher dividends payouts and therefore higher share prices. More on reasons to invest in REITs.

The key to invest in REITs successfully is to know the sustainability and potential of their rental income, the management integrity and their intention and competency to improve and grow their rental properties.

A good REIT has

• Sustainable and improving rental incomes
• Good management with integrity in managing the Reit
• Good management with intention and competency to improve and grow the properties in the Reit

For sustainable rental income:

• The properties in the Reits must be well-located, well-managed and well-maintained
• The Reits must have assurance of future income without relying on mere few big tenants
  

For growing rental income:

• Location, location and location of the properties in the Reit
• The management is actively seeking to increase properties held in the Reits
• The management is actively seeking to increase value of the properties in the Reits

Translate the criteria into checklist:

Questions to answer when invest in REITs:
1. Does the Reit have a broad base tenants in diversified industries?
2. Does the Reit have quality tenants with rental contracts more than one year? An average 2.5 to 3 years contract length is good.
3. How is the conditions and the locations of the properties in the REIT?
4. Does the original issuer still hold at least 70% of the REIT? This question is the main reason why management would do good to the REIT. The bigger their stakes in REIT the bigger the incentive for the management to manage the Reit well.

REITs we must avoid are those with properties that dumped by the issuer. The issuer would hold very little stake in the REIT after disposing their unwanted properties into REIT for a good profit and to earn management fees, trustee fees, etc. from the REIT.

source by : http://www.financialplanningmalaysia.com

"anyway , i will start reviewing some of the REITS counter in malaysia... hopefully my research can benefit all the readers to select a good REITS for passive investment"

Again, time to sleep again... before i sleep , i will share a video MV with you all...hmm... what to share le..maybe Guang Liang's Tip xiu yi?

KLSE rebound tomorrow? CHIAKKK!!!

U.S. Stocks Gain as Manufacturing, Income, Exxon Beat Forecasts

By Nikolaj Gammeltoft and Rita Nazareth

Feb. 1 (Bloomberg) -- U.S. stocks rose, driving a rebound in the Standard & Poor’s 500 Index from a three-month low, after measures of manufacturing and income increased more than economists estimated and Exxon Mobil Corp. beat forecasts.

Alcoa Inc. and McDonald’s Corp. climbed more than 1.6 percent after the Commerce Department said income advanced 0.4 percent in December and factory output expanded at the fastest rate since 2004. Exxon gained 2.2 percent as fell less than estimated because of higher oil prices and output.Citigroup Inc. rallied a fourth straight day after people familiar with the matter said the bank plans to sell or split off its $10 billion Citi Private Equity unit.

The S&P 500 rose 1 percent to 1,084.85 at 10:29 a.m. in New York. The Dow Jones Industrial Average rallied 84.34 points, or 0.8 percent, to 10,151.67. The advance reversed a decline in the MSCI World Index of equities in 23 developed markets, which added 0.7 percent to break an eight-day losing streak.

“People are seeing there’s strength in the economy and that corporate earnings are beating estimates,” said Peter Jankovskis, who helps manage about $1.7 billion as co-chief investment officer at Oakbrook Investments in Lisle, Illinois. “Investors are seeing the sell-off of last week as a buying opportunity.”

U.S. stocks completed a third straight weekly loss on Jan. 29 after Qualcomm Inc., Motorola Inc. and Microsoft Corp. tempered enthusiasm about an earning-reporting season in which 80 percent of S&P 500 companies have topped the average analyst profit estimate since Jan. 11, according to Bloomberg data.

Most Since 2004

Manufacturing expanded in January at the fastest pace since August 2004. The Institute for Supply Management’s factory index rose to 58.4, higher than the median economist forecast of 55.5, figures from the group showed. Readings greater than 50 signal expansion. Orders, production and employment increased.

The U.S. factories report followed surveys showing China, the world’s third-biggest economy, sustained its manufacturing expansion in January as export orders jumped and inflation pressures grew.

U.S. Commerce Department data showed U.S. personal income rose 0.4 percent in December, more than the 0.3 percent economist forecast.

Last Updated: February 1, 2010 10:31 EST

" More good news from Dow jones" .. Obama certainly dont let dow jones break the support level at 10000point.... Looks like KLSE also will rebound the next morning..time to buy some.. i already queue for the following stock. not sure can get it or not... just pray lor

ANNJOO-WB (6556WB)

The principal activities of the Company are investment holding and property management. The principal activities of its subsidiary are trading, manufacturing, retailing and supplying hardware, steel and iron products and building and construction materials of all kinds.

COB KIAM LAM LIM CEO KIAM LAM LIM CEO/MD/PRESIDENT HONG THYE LIM

AUDITOR KPMG

Company website : http://www.annjoo.com.my/

A profitable company.having losing money in last 3 quarter due to dropped in international steel price and global economy crisis, this company made a strong comeback in 2009 with net profit of RM45,615million on the 3QFY09 standing at EPS 9.04 :) :)... Rumours on the strong demand from india and china in 2010 and predicted shortage of steel supply makes this counter one of the brightest prospect in 2010.

Recent company announcement of share buyback also triggered us of potential treasury share distribution in the 4QFY09 financial announcement..let us wait for the good news ok??

i got no money to buy its mother.. so i opted for her son trading at RM0.75 last friday closing low on correction mode. will this counter rebound this week and the final week before CNY?? we will see

KEYASIC (0143)

The principal activities of the Company is engaged in fabless high-end turnkey ASIC/SoC design services and development of IPs whilst the subsidiary is principally engaged in the business of providing manufacturing management services to fabless design companies, provide design-for-manufacturing and design-for-test consultation and the sale of wafer and SoC products.

COB KAH YEE EG CEO/MD/PRESIDENT WEI KONG CHIA

AUDITOR TAN CHIN HUAT & CO

Company Website : http://www.keyasic.com/index.htm

Well, for those who knows me , will know that i'm currently working semiconductor industry... My comment on this industry , it is like roller coaster ride. During good times , the demand will always surplus the supply and we (the poor worker) will like dog just to meet the demand.. but nevertheless, this is a very profitable industry. Recent the semiconductor giant (e.g Intel , Samsung , etc....) posted a very strong profit and seeking improving revenue in years ahead. So any counter related to semiconductor with a decent management and profitable / high demand products will manage to survive in the war kut! There are few counters that was highly tagged as good semiconductor counter.

1)UNISEM - RM2.21 (omg, this price already goreng'ed up very very high d...not a good time to enter)

2)IRIS - RM0.165 (Making smart chip for various application. but fundamentally not so good and the cash balance is kinda shaky)

3)HTPADU - RM1.09 (a very good fundamental company .but this stock hardly moved..coma stock)

there are lots more..but my favourite is KEYASIC as good management , chinese man company , great products , and more international recognised.... and at RM0.43 EPS 17.17cent , this is a good buy .. TP RM0.50 dispose..^ ^

Tiredd....Zzz

Can believe it is already 5.19am.. just finished watching slamdunk (one of my favourite collectibles). Damn funny everytime saw sakuragi making fun of his frens and teamates.. This is my highly recommended collection as it do cheer me up sometimes when i was bored.. before i go to bed , lets enjoy some songs ..hmm, what song le...maybe my favourite Greenbox or Neway selection (yu sam yau kuai)