Saturday, June 30, 2012

Felda Vs Oil Palm Major Company

KUALA LUMPUR, June 15 — Felda Holdings Berhad, one of the world’s largest plantation companies managing over 500,000 hectares mainly under oil palm, still has far to go to catch up to major industry players in terms of profitability.

The plantation giant’s yields slightly exceeded industry benchmarks but profits were just a fraction of those earned at oil palm majors. The government also admitted recently that the company's cash pile has dwindled from RM4.08 billion to RM1.35 billion but said the money was used for its ventures and new head office.

Despite having the most land under its management among companies surveyed by The Malaysian Insider, Felda’s RM667 million in profits were much lower than that of IOI Corporation Berhad with RM1.639 billion, Sime Darby Berhad with RM1.795 billion and Wilmar International Ltd which reported US$2.294 billion (RM7.339 billion).
This hurt its profitability per hectare ratio which works out to RM1,201 compared with RM10, 859 for IOI, RM3,380 for Sime Darby and RM31,124 for Wilmar.

When contacted, Felda said the company cannot be compared to private listed entities as it has social obligations and its original mission was to help develop poor rural communities but nevertheless managed to sustain relatively high yields.

“Our yield is at par/higher than the industry average,” said Felda in a written reply to questions from The Malaysian Insider.

Felda’s yield of 19.8 tonnes per hectare was slightly higher than the Malaysian Palm Oil Board 2009 average yield of 19.2 and slightly lower than that of Sime Darby (20.6) and Wilmar (20.2).

Analysts say that it could be hard for Felda to achieve the best yields however as much of the land under its management was owned by individual settlers and was therefore fragmented.
One analyst said however that Felda still needed to be efficient in order to generate the best returns so that the money could be reinvested and shareholders, who include the Felda settlers, get good dividends.

“Look at Petronas, they are profit oriented,” said the analyst.

The company’s profits could have been affected by its costs. Felda however did not provide its costs when requested. Felda also said that it does not put out annual reports as it is not a listed 
Former Deputy Land and Co-operative Development Minister Datuk Dr Tan Kee Kwong, who has been critical of the Najib administration’s handling of Felda, said however that as a government-linked company Felda should put out annual reports for better accountability.

“It is a government-linked company and it belongs to the people,” he said when contacted.

Felda's largest shareholder is the Felda Investment Co-operative (Koperasi Permodalan Felda or KPF) which holds 51 per cent of the company. Felda Global Ventures Holdings Sdn Bhd (Felda Global), a wholly-owned subsidiary of the government agency Federal Land Development Authority (Felda), holds the remaining 49 per cent, while the Minister of Finance Incorporated has one Golden Share.

9 Reasons You Should Be Careful Investing In Felda IPO/ Stock

1)The chances of getting the Felda Global Ventures Holdings Berhad IPO are very low. 

2)The prospect of Felda Global Ventures Holdings Berhad may not be so good, and therefore, may not deserve a high Felda stock PE ratio. About 53% of Felda oil palm trees are more than 21 years old, and oil palm trees have an average life of only 25 years. Meaning more than half of Felda Oil Palm tress are about to die. (or do they die? Or just not producing oil palm/ FFB). After the trees die, their profits will drop sharply.

3)Look at the listing of Facebook IPO.  Facebook stock price started to drop after listing and many incurred losses or paper loss. However, this Felda stock  may temporary supported by government fund.

4)World economy is not good. World stock markets are dropping and dropping. Macquarie Securities started coverage of palm oil company Felda Global Ventures Holdings with an "underperform" rating and a target price of RM3.85 based on the firm's unfavourable tree age and rising downstream competition.

5)World Commodities prices are dropping. With price around RM5.50 a share , P/E for this stock is as high as 18 times for the current financial year. For comparison KLK P/E= 16, IOI P/E =17, Sime Darby-13, Wilmar ( Owned by Robert Kuok)= 12. You can make your judgement here.

6)CPO price is dropping. From the past few months high of RM3,600 in April to currently below RM3,000. After most analysts have came out with Felda Global Ventures Holdings Berhad target price (early last week), the FCPO dropped further.

7)Felda is not an efficient Oil Palm planter. Although their yield is about the same as industry average, they are still below those big planters.

8) Listing is more for political reason ?

9)Money will be locked up in IPO, better invest elsewhere for better return. Even big company Louis Dreyfus still doubting whether want to be Felda cornerstone investor.

How do u think, kindly share your opinion? 

Source: Malaysian Insider,

Friday, June 29, 2012

Felda Global Venture Target Price (TP) 2012 by Macquarie

Macquarie Securities started coverage of palm oil company Felda Global Ventures Holdings with an "underperform" rating and a target price of RM3.85 based on the firm's unfavourable tree age and rising downstream competition.
Macquarie said in a note to clients that while local funds supported the stock's debut on Thursday, research showed there could be a 27 percent downside to the share price.

Felda surged 20 percent in its trading debut as investors cheered on he world's second largest IPO this year with share prices going as high as RM5.46. 

Macquarie said Felda Global's current fresh fruit bunch (FBB) yield is 15 percent lower than listed competitors with more than half of its estates at over 20 years old. 

Increased competition from Indonesia and a reversal of abnormally high margins in 2011 may also weigh on profitability.

NoInvestment or Research CompaniesTarget / Fair Price (RM)
1Affin Investment Bank5.50
2BIMB Securities5.37 to 6.45
3ECM Libra5.65
4InterPacific Research5.80
5JF Apex Securities5.40
6M&A Securities5.65
7Maybank Investment Bank6.00
8MIDF Research5.30
9Public Investment Bank5.44
10TA Securities5.50

Shares in Felda Global fell 0.4 percent to RM5.28 on Friday, underperforming the broader market that inched higher. -- Reuters

Friday, June 15, 2012

Integrated Healthcare Holdings Sdn Bhd (IHH) IPO 2012

PETALING JAYA: The listing of IHH Healthcare Bhd will see Khazanah Nasional Bhd raking in RM4.9bil in the form of unrealised profit via the 62% stake it holds in the international health service provider company, according to a Bernama report.
In its exposure prospectus released on the Securities Commission website yesterday, IHH's listing will tentatively take place on July 25, with a public issue offering of 1.8 billion new ordinary shares and offer for sale of 434.65 million existing shares.
Thus the total number of shares after listing will total 2.23 billion shares. The public offering will go to institutions, the Malaysia public, a Singapore offering and the cornerstone offering.
IHH said the application for the initial public offering (IPO) shares under the Malaysia public offering would open on July 4 until July 11.
The global institutional tranche will also begin on July 4, but close on July 12.
The institutional price, (which will be denominated in ringgit) will be determined by a bookbuilding process. This bookbuilding process will begin on July 4 until July 12.
The final retail price will be determined after the institutional price is fixed on the price determination date and shall equal the institutional price.
The global offering of up to 2.23 billion shares in IHH comprises of a public issue of 1.8 billion shares by IHH and an offer for sale of up to 434.65 million offer shares.
There will be an offer of 80.57 million shares or 1% of the enlarged share capital to the Malaysian public and another 80.57 million shares to the bumiputera Malaysian public via balloting.
The Singapore public offering will consist of 52 million shares or 0.65% of the enlarged share capital while the Singapore placement will take up 36 million shares or 0.45%.
The institutional placement will take up 498.01 million shares or 6.18% of the enlarged share capital of the company.
Out of this, the tranche to the International Trade and Industry Ministry (MITI) will take up 360 million shares while the global institutional tranche takes up 138.01 million shares.
Meanwhile, the cornerstone offering involves a total of 1.39 billion shares or a 17.22% stake that will be offered to 22 local and foreign cornerstone investors.
None of the cornerstone investors will individually acquire 5% or more of the issued and paid-up share capital of the company immediately after the global offering under the cornerstone placement agreements.
However, each of the Employees Provident Funds Board and the Kuwait Investment Authority will acquire 5% or more of the IPO shares under the global offering.
Some of the cornerstone investors include AlA Singapore Private LimitedBlackrock Investment Management, LLCCMY Capital Markets Sdn Bhd, Employees Provident Fund Board, The Government ofSingapore Investment Corporation Pte LtdKencana Capital Sdn Bhd, Lembaga Tabung Haji and Permodalan Nasional Bhd.
Some 90% of the IPO proceeds will be used for repayment of borrowings while another 5.4% will be utilised for working capital.
IHH's subsidiary, Parkway Pantai Limited (PPL), is one of Asia's largest private healthcare providers and operates in six countries across Singapore, Malaysia, China, Hong Kong, India, Vietnam and Brunei.
It has a total network of 16 hospitals with more than 3,000 beds, over 60 medical centres, clinics, and ancillaries in Singapore.
PPL is the largest private healthcare provider with a market share of approximately 43.9% as at Dec 31, 2011 in terms of the number of licensed beds, according to Frost & Sullivan.

Source: Star Online

Saturday, June 9, 2012

Top 10 Stock Investing tips of Warren Buffett

When it comes to stock investing nothing beats the principle of value investing and even better is the way our genius Buffett practices value investing. Here we will try to see the most probable top 10 stock investing strategies that are likely followed by Warren Buffett for building portfolio of Berkshire Hathaway.
To give every one a sense of optimism related to stock investing after the stock market crash of 2008/2009 I would say that mastering stock investing is controlling one sense towards investment. It would not be wrong to say that Warrens Buffett’s control over his investment psychology has made him the best investor of all times.
Few of Buffett’s psychology and his investment wisdoms are discussed below as stock investing tips for new investors:

Stock Investing Tip (1): Live a very modest life, always avoid lavish spending.

In other words save as much as possible to enable you to invest majority of your earnings. Though Warren Buffett is among the richest men in the world but he still lives in a very modest house and still drives his own car. He believes that majority of his earnings shall be used for stock investing to build as much asset as possible. Warren Buffett believes on spending his money to buy assets and avoid liabilities.

Stock Investing Tip (2): Avoid being a compulsive buyer and seller of stocks.

It is not always important to keep on buying and selling stocks. Buffett’s believes that investors shall show patience and should be ready to wait indefinitely for that right time to invest their savings. The right time as per Buffett is during stock market collapse where great companies stocks becomes undervalued and are worth buying.

Stock Investing Tip (3): Do not buy stocks what everyone else is buying

It is best to buy that stock which has not drawn attention of others. When everyone starts buying a particular stock its market price is bound to go up above reasonable price levels making it overvalued. Or in other words buy those stocks which are considered as bad purchase by majority of investors. Of course it is important to check the fundamental of the company before buying one.

Stock Investing Tip (4): Buy stocks of companies which has simple products and services

eBuy stocks of company whose product or services are understandable to you. Understanding the business process is important before buying its stock.

Stock Investing Tip (5): Use your own method to evaluate value of stocks

The basic of any stock investing strategy is to learn the process of fundamental evaluation of a company. It is also important to learn the trick evaluating the value of stocks. Fundamental analysis and stocks valuation are two preconditions of value investing.

Stock Investing Tip (6): Always buy undervalued stocks

Warren Buffett calculates an intrinsic value of stock. If the market price of stock is below its intrinsic value then it can be termed as undervalued stocks. Warren Buffett first checks the fundamental strength of company and then calculates its intrinsic value to judge its status of being overvalued or undervalued. Warren Buffett calls purchase of undervalued stocks as buying stocks by maintaining “margin of safety’. The trick Warren Buffett uses to calculate the intrinsic value of stock is the heart of his stock investing wisdom. Intrinsic value is nothing but present value of all future cash flows linked with a particular stocks. In calculating the intrinsic value Buffett pays more attention to (a) return on equity, (b) operating margin, (c) and on reasonable or no debt at all. Warren Buffett does not do analysis of stocks on basis of only one year figures; instead he works on figures for at least last five years.

Stock Investing Tip (7): Buy stocks of companies doing monopoly business

Such companies are becoming less and less in today’s world, but still there are companies you can find who can manipulate their selling price at will without effecting their sales a lot. One example is Microsoft’s Windows OS, Airbus A380 and likes. It may be difficult to locate too many of Microsoft’s today but careful study will make it evident that there are companies that enjoys major competitive advantage than others. Warren Buffett will buy such companies over others.

Stock Investing Tip (8): Only confused people diversify their investments.

If you will ask Warren Buffett about investment diversification he will give you a glare eyes. He believes that all investors shall be ready to wait indefinitely till stocks prices of fundamentally strong companies become undervalued. Till such time all investors shall save all of their earnings, so that when the time comes they shall not fall short of money for stock investing.

Stock Investing Tip (9): Buy stock to hold it for life.

This does not mean that one shall go on holding a stock even if the business has gone sick. Warren Buffett says that periodic evaluation of portfolio is very important. If the company us loosing its competitive edge or its fundamental superiority then it is better to quit it than holding it forever. But what Buffett means when he says that ‘hold it forever’ is that before you buy stock you should evaluate the stock such that you are going to hold it forever as your kids.

Stock Investing Tip (10): Do not do investment to make money, instead invest your money with the objective of generating more and more assets.

There are people who enter stock market for making quick bucks. Warren Buffet will call such people fools. Stock investing is not for making quick bucks, instead it is longer term money making machine. The term is so long term that investors even loose the interest of making money. Then what is the motivation for such long term investors? Their drive for investment is drives by their desire to become financially independent and go on accumulating as much “asset” as possible

Useful Financial Tips for Women

THERE is a lot of financial advice out there, if you know where to look. There are thousands of financial management books targeted at women, and plenty of tips on the Internet.
Here are our top money management tips for women; they could make the difference between financial freedom and financial dependency.
1. Depend on yourself: You must earn your own money, or find a way to create a stream of income.
Some women give up their careers when children come along, and become dependent on their spouse for income.
If you are inclined to be there for your future children, plan for it properly. While you’re still working, put in place a plan that will allow you to have income even if you’re not working. This can be done through investments, a savings product that gives you a fixed amount every year, or rental income from real estate.
If you’re already not working, think of something you can do from home: freelancing, setting up a home business, e-commerce.
2. Spend below your earning capacity: This is common sense, yet it’s hard to keep to the budget. With the proliferation of credit cards and interest-free instalments, it seems the whole world is conspiring to get you to spend. Don’t. If you want to grow your wealth, you need seed money.
To get seed money, you need to have some cash left over every month, after deducting your expenses. Instead of another bout of retail therapy, put that money away and invest it.
3. Have a say on how money is spent in your family: Whether you’re contributing to a two-income family or are a stay-at-home spouse, you must have a say in your family financials. Make sure you are involved in family financial decisions. Get educated about money. Learn how investments work. Study the economy.
4. Set financial goals: Be clear about what financial independence means to you.
Decide on what you want, and work at putting plans and investments in place that will allow you streams of income to that end.
5. Build an emergency fund: You should have a fund to cushion against emergencies. Most financial books advocate a three to six month buffer.
6. It’s never too late: No matter what age you are, it’s never to late to start planning for financial freedom.
Learn how to invest, and start now. Put in place a plan that suits your income and lifestyle.
Talk to a professional financial planner, who can point you in the right direction. Get educated now.

Source: Star Online

Wednesday, June 6, 2012

Top 10 Youngest Billionaires in the World 2012

Young and rich
Photo: GettyFour of the world's youngest billionaires are connected to Facebook; two are the sons of the late Lebanese Prime Minister Rafic Hariri; one is a woman. Here's how the 10 youngest billionaires, as ranked by the indexing website, made their fortunes.
1. Mark Zuckerberg
Photo: APZuckerberg, 28, launched Facebook from his college dorm room and grew it into one of the world's most successful businesses. While his wealth has taken a big hit following Facebook's disappointing IPO, he's still worth close to $15 billion, according to public estimates.
2. Sean Parker
Photo: GettyThe co-founder of Napster (and first president of Facebook) has more than $2 billion to his name. Parker, 32, served as a mentor to Zuckerberg and famously urged him to drop the "the" in the original version of Facebook's name. He was also an early investor in Spotify, the music sharing company.
3. Eduardo Saverin
Photo: APThis co-founder of Facebook, now worth an estimated $2 billion, had to fight for that title: He sued Facebook and later agreed to a settlement, as depicted in the movie The Social Network. Saverin, 30, who grew up in a wealthy family, has a reputation for enjoying the good life and racking up large bar tabs.
4. Dustin Moskovitz
Moskovitz, 28, also knew Zuckerberg from college and worked on Facebook in its early stages. He has since left Facebook to pursue a new start-up, along withcharitable work. Forbes estimates his net worth at around $3.5 billion.
5. Scott Duncan
Hariri brothers, from left: Ayman, Saad and Fahd (Photo: AP)Scott Duncan, now in his late twenties, made billions the old-fashioned way; he inherited it from his late father, who started an energy pipeline company. He is worth an estimated $4 billion and maintains a limited online presence.
6. Fahd Hariri
Now living in Paris, this married 31-year-old and son of the late Lebanese Prime Minister Rafic Hariri works in real estate and holds an architecture degree. He is worth just over $1 billion and pops up frequently on the international social scene.
7. Robert Pera
Pera, a former Apple engineer now in his mid-thirties, founded Ubiquiti Networks, which makes wireless gear. He reportedly still enjoys living frugally, despite the fact that he's worth over $1 billion.
8. Ayman Hariri
Like his brother (#6), Ayman Hariri, who's in his mid-thirties, has an international pedigree: He earned his undergrad degree in the United States, at Georgetown University, and now works in real estate while living in Saudi Arabia.
9. Yang Huiyan
Photo: GettyThe only woman on the list, Yang Huiyan, who's in her early thirties, gained her billions when her father transferred much of his own wealth to her in 2005. (Her father, a self-made man, started Country Garden, a successful Chinese high-end real estate company.)
10. Albert Von Thurn Und Taxis
This German prince, 28, attended school in Italy and Scotland before returning to his home country. He enjoys race-car driving as well as local energy projects.

RON 97 down 10 sen from tomorrow

The government today announced that the retail price of RON97 would cost 10 sen less at RM2.80 per litre from tomorrow.
In a statement today, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said the lower price was line with the dip in average global crude oil prices in May.

He said the retail RON97 price, in principle, was fixed based on a managed float whereby the monthly price was determined according to market forces. -- Bernama

Saturday, June 2, 2012

Genting Plan for New York City Convention Center Fails

Plans for Genting Bhd. (GENT) to build a $4 billion convention center in New York City have failed, Governor Andrew Cuomo said.
The 3.8 million-square-foot convention center, which was to be built at Aqueduct Racetrack in Queens by the Kuala Lumpur- based company, was a centerpiece to Cuomo’s job-creating plans announced in January. It would have been the biggest in the U.S. Cuomo, a 54-year-old Democrat, said today on New York’s WOR-AM that discussions with Genting fell through.
“We had those conversations going on for a few weeks,” Cuomo said in an interview with the host, former governor David Paterson. “Those conversations haven’t worked out.”
The broken deal is at least the second time this year that U.S. plans by Asia’s second-biggest casino operator by market value have failed. In February, its $3 billion hotel and casino project in Miami stalled when a Florida House of Representatives committee postponed a vote on a bill to expand casino gambling.
A Genting spokesman, Stefan Friedman, said the company may still bid on a convention center project in the city.
The failed proposal would have replaced the Jacob K. Javits Convention Center in Manhattan as Genting expanded the casino it opened with electronic games in October at Aqueduct, near John F. Kennedy International Airport.

Competition Planned

Cuomo said he’s now discussing building a convention center and casino with other companies. He said he plans a competition next year after the Legislature sends to voters a constitutional amendment that would allow Las Vegas-style casinos in the third- most-populous state.
“We now look forward to working with Governor Cuomo and participating in any competition for a convention center/casino project that the governor designs,” Friedman said by e-mail. In the failed negotiations, he said, “the uncertainties and difficulties regarding the constitutional amendment, competitive landscape, tax rate and infrastructure support made any decision difficult.”
Mark LaVorgna, a spokesman for Mayor Michael Bloomberg, declined to comment on the Genting news. The mayor is founder and majority owner of Bloomberg News parent Bloomberg LP.