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Showing posts from April, 2019

Drama Minggu Ini - Seacera

Points To Consider:

- Net current assets of Seacera was RM838m, largely backed by its 501 acres of land in Semenyih.
- Current management and CEO proposed to do a jv on that land with Duta Skyline (OCR)
- Datuk William Tan is the single largest shareholder with a 16.4% block and has pledged to inject RM30m into the company to resolve the company's cash flow. Tan basically was against the jv.
- Seacera just defaulted on an RM25,451 payment for its Ambank Islamic loan, putting it into PN17.
- Tan also mentioned that if he manages to take over the company he will declare a 10 sen special dividend after minor asset sales.


Commentary:

- Obviously Tan has other plans to develop the 501 acres, apparently with strong China involvement (Country Garden). So who is to say which jv is better? The CEO has the right to call the shots here.
- However, the CEO and present management totally ignore their largest shareholder's pledge to inject RM30m. How to justify the "silly" missed payment …

Pogba Plays For Liverpool

What's up with the headline? My dua sen on the KT (UBS) mini-series.

Was it a difference in opinion? The answer is no. KT can't seem to understand the difference between current account deficit and fiscal deficit. OK granted, maybe KT failed first-year Econs, we don't know. Maybe he didn't even take Economics, I mean we have law graduates and even engineering graduates entering financial services and investment banking all the time.

For non-finance readers, the above views by KT is like a so-called football expert coming on TV commenting that Pogba played so bad for Liverpool. You as a football fan would CRINGE no end. That's probably how Tony Pua, Ong Kian Meng and most of the financial community felt.

I asked around my older friends in the industry, two who have worked with KT at Jardine (HK) before,  anecdotally their comments ended with "...an absolute xxx#### who never has anything good to say about Malaysia.." (or something to that effect). Not my word…

IWCity and Ekovest

Its been a long, long, long while we haven't seen such a robust market like today. Ekovest and IWCity led the way. Both closed up limit up with substantive volume. The announcements by both companies after market close was NECESSARY based on full disclosure.

Naturally, this set tongues wagging that its all for naught. Really... is this our first rodeo??? Many big projects are awarded to private companies or joint ventures because it is easier to sort out details without revealing too much to the market. Subsequently, they usually will be injected into linked listed companies just based on the nature of project and capital requirements.

You cannot expect market investors to ignore such news because both companies are tightly controlled by LKH. A stock market is a forward discounting machinery. Judging from the longevity of the project and the massive capital requirements, and the fact that he has already listed companies in the correct sector - it would take an idiot to surmise that …

Impeccable

impeccable /ɪmˈpɛkəb(ə)l/ adjective in accordance with the highest standards; faultless.
"he had impeccable manners"
synonyms:flawless,faultless,unblemished,spotless,stainless,untarnished,perfect,exemplary,ideal,model;
e.g. impeccable design; impeccably designed
RARE•THEOLOGY not liable to sin.

A Simple New Rule That Guarantees China's Economic Power Trajectory For The Next 40-50 Years

Like it or not, we all have to contend with the USA owing to its sheer size and voracity as demand for exports, plus their lead in technology and education, and their reputation as a financial center (capital disbursement).


The above image classifies each of the states in the US by comparing their state GDP that is similar to another country's GDP. Hence whenever there is a downturn or rise in business confidence, it is akin to 50 countries moving at once in the same direction. That is why we have to follow what's happening in the US, and why Trump is so dangerous.

Look at the image carefully, one day very soon, China's map will resemble the above image. Sooner than you think.

China has surged up the charts for economic power by mobilising its rural class to middle or working class. It was the greatest economic miracle to do that on a capitalistic playbook on a socialised platform. A watered down kind of communism.

China has done very well in moving the rural class to working …