Saturday, December 21, 2013

Special Gift for Chrismas

WITH Christmas just around the corner, the spirit of giving is here. Whether it is a gift for a friend or for a family member, choosing the right gift is important.
So what do we buy? Retailers are only too eager with their suggestions.
Tech gizmos? Surely we couldn’t go wrong with the iPad mini Air, Apple Inc’s latest coolest offering. However, how about giving something more meaningful, something which appreciates over time.
Something like stocks.
Below are some “gift” stock ideas.
Let’s put aside tech toys for a while. How about buying Maxis shares instead?
Based on a consensus of 35 analysts, the non-believers are aplenty. There are 16 analysts with “hold” calls, while only six have “buy” calls. There are 13 “sell” calls. Over a one year period, Maxis has delivered 16.32% in returns at its current share price of RM7.20.
Maxis, once the unbeatable No. 1 cellular communications player in Malaysia, has lost a bit of lustre. That is set to change, though.
2014 will be all about Maxis’ transformation. New chief Morten Lundal is upbeat about the future. He concedes that 2014 will be the transition year for improving internal processes and reinforcing its base before reaping the benefits going forward.
Crowds at Nestle promotional booths during the launching of the one month-long 'My Nestle Christmas at Gama' celebration at Gama.The booths are selling variety of Nestle products like Kit Kat chocolate, chilled beverages, yogurt range, breakfast cereals and some products from Milo, Nescafe, Maggi and Omega milk powder.
Nestle is investing RM150mil in the first phase of a new plant that will boost its ready-to-drink segment in Malaysia.
Lundal expects its 2014 dividend per share to remain at 40 sen. Its 2014 capital expenditure will rise to RM1.1bil from RM850mil this year, while revenue growth will likely remain at the low single digits.
A research note from RHB says Maxis management will work on improving its distribution network and branding as part of its efforts to stem the erosion in prepaid market share.
“On its postpaid services, pricing data properly will be a priority. Meanwhile, the home segment still faces difficulties. We believe that protecting and then growing its prepaid business will be a key focus while the home segment will likely take a backseat,” RHB says.
So instead of buying a luxury handbag for the wife, how about Bonia shares instead?
At its current share price of RM3.51, Bonia has delivered year-to-date returns of 56% or a hefty RM1.26. It has a market capitalisation of RM707.5mil and is trading at about 14 times price earnings (PE) for its year ended June 30, 2014.
For the first quarter to Sept 30, Bonia’s net profit was down 8.32% to RM14.22mil while revenue improved 7.46% to RM168.4mil.
In August, Bonia saw the entrance of British Virgin Islands-based investor Milingtonia Ltd as a substantial shareholder. Milingtonia emerged with a 6.82% stake or 13.75 million shares.
Bonia has said that it wants to be a billion-dollar company. It aims to achieve revenues of RM1bil by the year 2015.
To be captioned
Bonia is targeting the Middle East and South-East Asia to build its branding.
In its goal to achieving this, Bonia wants to conduct two more public listings around the region and be well-established in five other countries. Bonia is particularly targeting the Middle East and South-East Asia to build its branding.
Bonia’s website describes it as a manufacturer, marketeer, retailer of leatherwear, footwear, men’s apparel and accessories. It has 883 sales outlets and 103 boutiques around the world.
In its latest results note, Bonia says it will continue to invest by adding new brands to its portfolio and increasing its footprint primarily in the luxury segment which has proven to be relatively resilient. In the preceding financial year, Bonia has secured the rights to develop, distribute and market Enrico Coveri, a renowned Italian brand founded by Enrico Coveri.

Chocolates and biscuits are fattening and give only temporary pleasure. Nestle (M) Bhd’s shares, however, are a different story. With its steadily increasing dividend yield and slow but certain growth, this would also be equivalent to buying some security for loved ones.
For the nine months to Sept 30, net profit was up 13.64% to RM461.25mil while revenue was up 5.58% to RM3.65bil. The improvement in its recent results were due mainly to stable domestic demand and favourable raw material cost.
Last year, the stock delivered dividend yields of 3.1%, and this year, analysts estimate a yield closer to 3.5%.
Of the 11 analysts polled in Bloomberg, there is only one buy call, six hold calls and four sell calls.
With a share price of RM68.50, the stock appreciated by a decent 9.01% on a year-to-date basis. Its price point may be rather steep, but you don’t need to buy 1,000 shares of Nestle. You can buy 100 shares.
The stock is now trading at a 2013 PE ratio of 29 times, which is the typical PE it has been trading over the last three years. The stock also has a market capitalisation of RM16.06bil.
Based on its latest results, domestic sales are encouraging. Confectionery and food & beverage recorded robust growth.
Nestle is also investing RM150mil in the first phase of its new plant, which will double its production capacity of its ready-to-drink (RTD) segment in Malaysia.
The facility will produce the company’s RTD liquid beverages, such as Milo,NescafeNestle OmegaNestle Low Fat Milk and Nestle Full Cream. The factory, which is built adjacent to the company’s existing factory in Shah Alam, is expected to be fully operational by May 2014.
Padini is now on an outlet expansion drive and plans to open seven outlets.
She will get bored with a new dress quickly. So why not buy apparel stock Padini Holdings Bhd instead? This is afterall one of the more successful Malaysian apparel brands.
Its share price, however, has been a different story. The stock is down 1.88% to RM1.80 on a year-to-date basis. It is also trading at a 2014 PE of 12.68 times. It does, however, have a very attractive dividend yield of about 6.1% and this is anticipated to increase.
It currently has nine labels in its family of brands and retail in 330 free standing stores, franchised outlets and consignment counters in Malaysia and worldwide. These labels, which carry the Made in Malaysia stamp, are sold in Bahrain, Brunei, Cambodia, Egypt, Indonesia, Kuwait, Morocco, Myanmar, Oman, Pakistan, the Philippines, Qatar, Saudi Arabia, Syria, Thailand and United Arab Emirates.
Its brands are PadiniSeedPadini AuthenticsPDIP&CoVincciVincci AccessoriesTizioMiki Kids and Brands Outlet.
For its first quarter to Sept 30, Padini’s net profit increased 9.58% to RM27.74mil on the back of a 8.04% increase in revenue to RM217.22mil. These improvements were backed by stronger sales in conjunction with the Hari Raya and National Day festive seasons.
The earnings were also boosted by an increase in exports and improved numbers from its Brands Outlet stores.
RHB Research says the Padini label is still the largest revenue generator, contributing 31.2% of total revenue while sales from Brands Outlet made up 28.6%.
The company has proposed a 2.5 sen interim dividend and 1.5 sen special dividend.
Padini is now on an outlet expansion drive and plans to open seven outlets. It has opened a Padini Concept Store (PCS) and Brands Outlet store (BO) in Gurney Paragon Mall, Penang in the first quarter. Three BO stores and two PCS outlets will open on Langkawi Island, in Seremban and Miri in the second quarter.

Source: Star Online

Friday, November 29, 2013

5 simple ways to reduce fuel cost

WITH fuel prices on the rise (a factor that will probably not see a downtrend any time soon), it’s high time to find ways to mitigate the impact it will have on your wallet.
For the uninitiated, the price for RON95 is RM2.10 per litre and RM2.00 per litre for diesel currently. The price of unregulated RON97 is currently priced at RM2.75 per litre.
The following are five simple ways to save on fuel expenses.
Drive reasonably
While it’s a known fact, speeding, a common driving habit, leads to pointless fuel wastage.
“If your average commute includes 20 miles of highway time, and you drive it at 60 mph (or 97kmph) instead of 70mph (113kmph) you’ll save 1.3 gallons of fuel in a five-day work week, according to an article in the Reader’s Digest.
According to California-based Consumer Energy Center (CEC), all vehicles lose fuel economy at speeds above 55mph (89kmph).
“Driving 65mph (105kmph) instead of 75mph (121kmph) reduces fuel cost 13%. Driving 55mph would save 25%.
The CEC also says reducing air-conditioning or winding up windows fully can also help conserve fuel.
“Using the air conditioner increases fuel cost from 13% up to 21%. If it’s cool enough, use the flow-through ventilation instead of rolling down the windows or using the air-cond.”
Drive vehicles that are low in fuel consumption
The CEC suggests owning a hybrid or diesel-powered vehicle, or even a motorcycle.
“The next best option is to purchase the most fuel efficient vehicle within the class of vehicles you are considering,” it says.
On the local front, with the gradual reduction in subsidies and rising fuel prices, it’s not surprising to see a rise in interest and demand for fuel-efficient vehicles.
Local auto magazine Motor Trader, claims that the Mitsubishi Mirage is the most fuel-efficient vehicle in Malaysia, having a fuel consumption of 21km per litre. The vehicle retails at RM56,992.15 (on-the-road with insurance).
Among other fuel-efficient cars that the local automotive magazine cites is the Hyundai i10, which has a fuel consumption of 18.9km per litre; the Perodua MyVi 1.3 (17km per litre) and the Volkswagen Polo Sedan (15.4km per litre).
In terms of hybrid vehicles, Toyota claims that its Prius C has a fuel economy of 35km per litre.
“Prices for hybrids range from RM94,800 for the lowest cost hybrid, the Honda Jazz 1.3, to over RM1mil for super luxury models like the BMW Activehybrid7,” notesMotor Trader.
Proper maintenance
According to an article on Forbes, keeping your vehicle’s tires properly inflated with air and the air filter clean can help you save fuel consumption.
“Under-inflated tires can lower gas mileage and affect the handling, braking and tread life,” it says, citing a senior official from Express Oil Change & Service Center, a leading US-based automotive services provider.
The reason why this saves fuel is simple, the article says: “When your tires don’t have enough air in them, their rolling resistance is dramatically increased and it simply takes more gas to get anywhere.”
It adds that fuel mileage can actually be improved by up to 3.3% by keeping one’s tires inflated to the proper pressure. It also says keeping the air filters in your clean can actually help improve fuel mileage by up to 7%.
According to US-based, having the wheels on your car properly aligned can also help reduce fuel consumption. “Poor alignment not only causes tires to wear out more quickly, but also forces your engine to work harder.
Align your tires, and save up to 10%.”
Letting the engine idle – too long
Citing a top official from Breitling Oil and Gas, a Dallas-based independent oil and gas exploration and production company, Forbes says letting the engine idle too long can result in unnecessary wastage of fuel.
“If you’re going to be standing for more than a minute, running your engine wastes more gas than restarting the engine,” it says.
Do not overload the vehicle
It’s as simple as it sounds - the more weight you carry in your car, the more fuel you’re going to burn.


Wednesday, November 27, 2013

How to Effectively Save More than You Spend



The golden rule in saving—and you are bound to run headlong into this saving advice wherever you look whenever you ask how to effectively set aside piles of money for a rainy day—is to save more than you spend. Oh, but frugal living takes a great deal of sacrifice, you would say.

And you would be right. Even as you begin to try, you would find yourself chased by nagging doubts on whether or not it is even—at all—possible. You would not be the first person to have this problem. In fact, experts on human behavior have offered some eye-opening explanations on why it is so difficult to save and so easy to spend

We equate buying things with happiness. The more you buy, the happier you get. This is not exactly true but for many people, it is. Whenever you feel sad or depressed, have you ever gone on a shopping and dining binge, hoping to feel better? Maybe you did feel better, but do you remember how long it took before you were dissatisfied again? Discontent stems from wanting more and it is human to always desire for more. If we give in to those desires all the time that is really when the trouble starts. 

We have developed bad spending habits. You might have picked up bad spending habits from your family, and some, you probably developed on your own. Like most people, you might have gotten so used to struggling with money that it would take an active decision and a series of consistent, concrete actions to really get you started in the habit of saving—and for you to have any hope of sustaining it at all. 

We are putting up with appearances. Some people seek and find gratification in buying things that are not really necessary. They spend on things they believe would earn them the admiration, esteem, and in some cases, even envy of their peers. Then, there were credit cards, and it became easier for people to put up with appearances—only to fall deep into debt. If you think this description fits you, it would take some serious re-wiring of your mindset—and habits—before you change. It might be hard but it is possible. You just have to have the resolve to change.

Living Well, Spending Less

The following are some effective ways to help you save more than you spend. If there is one saving advice you should always remember, let it be to: spend less, save more. Make it your mantra and think on this every time you are tempted by the convenient use of your credit card or the delicious appeal of a huge store sale. 

Start small. 

If you are deep in debt, more drastic measures might be needed for you to bounce back. But if you are not too thrilled about the idea of frugal living, try to cut back wherever possible. Do you really need a big house or an expensive car? Can you perhaps prepare packed lunches or switch to more affordable brands when grocery shopping? As you begin to see how much you are actually saving from making small adjustments, the prospect of being able to save more would seem more and more appealing. 

Review your bills. 

How many utility bills do you have to pay for in a month? Can you perhaps live without one or a couple of them? See if there are optional services you can eliminate—like your monthly cable subscriptions, for one. It might be more beneficial if you revert to basic services and eliminate add-ons that you do not really need.

Create a budget and stick to it. 

Start by writing down a list of your monthly expenses. Then, create a budget—one that takes your monthly income into consideration—that allows you to take care of all basic necessities and still give you a chance to set aside a small percentage of your income. Seeing everything in writing shows you the bigger picture and makes you think twice every time you take out your wallet to pay for something you can always just live without. 

Go for energy-efficiency.  

Electric bills take up a significant percentage of your income. See if you can cut back on electricity use by installing some energy efficient fixtures or adjusting your habits, like not leaving your computer or the air conditioning machine on for all hours of the night.

Be more proactive. Maybe frugal living is not the solution you are looking for. It could be that you really do not earn enough. Try to find ways to boost your income. Apart from your skills, what you do with your time also counts. Time is an investment as much as money. Stop wasting away the day—be more productive. Assess whether your skills are being put to good use and if they are not, perhaps it is time to go for more rewarding endeavors such as looking for better opportunities or starting a small business.

About the Author:

This article is prepared by Michael Vincent of  for walau2u.blogspot. Compare Hero is Malaysia’s leading financial comparison website, where users can compare a broad range of financial products for free.