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Snippets, Snipes & Snides
23 - 27 June 2006

Transmile, DHL & Pos Malaysia
All 3 are better than average companies. Transmile Group Bhd signed a new agreement with DHL International to tap the fast growing overnight air express business in the Asia Pacific region and beyond. The new five-year strategic alliance agreement, with a provision for a further five years, would see Transmile's business with DHL booming with the use of more planes and routes throughout its network. With cargo volume handled by Transmile at Subang for its last financial year 100% higher than the previous year, and with the airfreight carrier seeing a big increase in capacity with the delivery of its wide-body MD11 planes, Transmile is expecting DHL to be a big customer for Transmile this year. The agreement, which allows Transmile to better manage its costs with DHL, would see both carriers cooperating to identify new and lucrative sectors in the high premium market. The agreement with DHL, which would account for about 30% of Transmile's business, would lead to substantially more revenue being generated for Transmile this year. DHL currently uses about five Transmile planes and the agreement will see more planes being used. On of the attraction of DHL was the landing rights the Malaysian carrier had, especially within Asia and inter-continental flights to the US. The agreement was timely as DHL was expecting the weight of cargo from the Asian region to grow by three-fold over the next decade. Transmile has the rights to fly to many countries in Asia, in particular China and India. Apart from that, another key route is the trans-Pacific flight between Hong Kong and the US. The agreement will also see DHL use more of Transmile's routes. The limiting factor now with Transmile was the size of its fleet – 20 aircraft but with only four wide-body MD11. Transmile planned to double or triple the size of its fleet. Obviously DHL was supposed to buy Pos Malaysia's stake in Transmile, that would have a been very silly for Pos Malaysia. Cargo and packages delivery would have ensured an leveraged stream of earnings for Pos Malaysia that focuses on the same delivery chain. To lock in substantial gains on Transmile now would be very short sighted indeed, especially since Robert Kuok only recently controls Transmile. You can expect more investments and an expansion of regional business.

Buffet Says Yes
Warren Buffet has often been criticised on the side for not giving his wealth to charity. Many many years ago, Warren told a reporter that he would not want to give to charity then as he could give a lot more later on compounded. Got to give it to the man. Warren Buffett, estimated to be worth US$44 billion, will give away 85 percent of his wealth starting in July, most of it to the Bill and Melinda Gates Foundation. ``I know what I want to do and it makes sense to get going,'' Buffett said. More than 83 percent of the B shares will go to the Gates Foundation, the world's largest philanthropic organization at US$30 billion. If you have been blessed materially, one can only live on so much wealth, not to plan for intelligent giving is highly irresponsible and almost immoral. The basis for charity should be to reduce the inequity in the lives of those less priviledged than yours. Next on the list, the richest family but also the most stingy ones you can find - the Walmart people. Yes, they do some charity work, but its in drips like 100,000 here or there when each family member is worth at least US$10 billion. While it is not entirely fair for me to say how they should spend their god-given wealth, ... they should realise that wealth means responsibility, and substantial wealth means substantial responsibility.

World Cup Update
Holland deserved to go out for cynical play, so too for Italy. Australia outplayed Italy for most of the match, and was robbed. That wasn't a penalty at all. Italians were lucky. Sven Ericksson does not know what football strategy is, totally wasted Rooney for an entire match chasing lost causes playing him as a lone forward. Rooney should play in the hole with Crouch (probably England's best player) upfront. England also need wingers to pull out the defenders, start with the speedy Lennon and Joe Cole on the wings. Forget about the right footed only Hargraves. No more shots for Lampard as he has obviously been frucking around too much thus affecting his shooting. Spain looked good so far cos they have been playing second rate teams, still the team is gelling. France has nothing much to lose now that they have been blasted left right and center - maybe with no expectations, they can play better.


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