Fundamental and Technical

Why the world richest investor, Warren Buffet invest without looking at chart? Investment is buying a share of a company. If the company doing well and the chart don’t look pretty, it is still worth to buy. This is same to the company which not doing well and the price chart looks attractive to buy. No matter how, fundamental of the company must be first thing to consider before invest your hard earn money to that company.

In stock and share analysis, there are two common types which are fundamental and technical. Fundamental is looking at the company base performance and knowing what the company doing. Technical is basically study the psychology of the people who trade on the share.

Some people only depend on technical to trade in the market. The risk is what if the trend of the share is manipulated by the syndicate behind the stock? Of course the fundamental report can be false some timewhen the company report a misleading report. Anyway to reduce the risk of the investment portfolio, it is safer to understand the fundamental background of the company and then buy with the assist by the technical tools.

Gold Related

When gold price fluctuate, those company who deal with gold will be affected. These are the companies selling gold related products. Besides, some of the electronics companies also need gold for their electronic circuit production.

No. - Short Code - Short Name - Company Name

1. 7119 - DEGEM - DEGEM BHD
2. 5080 - POHKONG - POH KONG HOLDINGS BHD
3. 7230 - TOMEI - TOMEI CONSOLIDATED BHD

Derivative: TA Warrant

TA Warrant is the derivative from the mother company TA Entreprise Bhd. This warrant is now traded at the price RM0.335 in the market. 4898X - TA-WB

Exercise price: RM1.00
Ratio: 1:1
Expiry: 2009.06.24

The value of this derivative is now exercise price + traded price. RM1.00 + RM0.335 = RM1.335. Since TA mother share is now traded at the price of RM1.17, if you buy TA-WB at RM0.335, that means you are paying premium RM0.165.

Technical: TA Enterprise Bhd

This is daily chart for TA Enterprise Bhd from 2007.01.05 to 2008.04.25. It ia obvious there is down trend channel from the high RM2.29 on 2007.02.21.

The trend start to retest the 200 days moving average (pink line) and the MACD start to cross over and prepare to go into positive territory. It needs more volume to continue support the up trend. If it can build a base above the 200 days moving average, it means some accumulation behind.

The RSI in between 50 to 70 indicate the stock is ready to continue uptrend. Anyway it needs more volume to continue the up trend of the stock price.

At this price, the stock was traded at PE 7.22. This company is in the list of the composite. Compare this company with the index, this company is under perform.

Company: TA Enterprise Bhd

Company Name: TA ENTERPRISE BHD
Short Name: TA
Stock Code: 4898
Listed Market: KLSE
Board: Main
Sector: Finance
Industry: Stock Broking, Properties,
Par Value: 1
Listed Share: 1,426,971,000
Website: http://www.ta.com.my/

Brief Description:

1. Based: Malaysia
2. Company Type: Investment Holdings
3. Corporate Structure:

• Stock broking and financial services: include stock broking, fund management, unit trust and derivatives trading.
• Investment holding: includes provision of funding and investment related services.
• Credit and lending: engaged in the provision of finance and related services.
• Property investment: includes investment in residential and commercial properties.
• Property development: engaged in the development of residential and commercial properties.
• Hotel operations: is engaged in the operation of hotel and related services.

Businesses:

1. Stock broking and financial services: Malaysia stock market, Hong Kong stock market, Derivative Future market
2. Investment holdings: Unit trust and asset management
3. Credit and lending: Share financing business, ESOS
4. Property investment: Residential and commercial properties reatal, Menara TA One, shop office at USJ Taipan, Subang Business Centre, Canada Teresen Centre, South Africa Jan Smuts Avenue, in Johannesburg.
5. Property development: Damansara Idaman, Idaman Villa, Idaman Residence, Seri Suria, Idaman Bintang, setup construction arm call TA Binaprestij Sdn Bhd.
6. Hotel operations: Australia SydneyRadisson Plaza Hotel

Highlight:
Strengthening of Hong Kong Market, Malaysia properties tax exempted, CPO future price and demand, plan to list TA properties into REITs

Clients: Retail shares investor and properties buyer, CPO seller and buyer

Properties: Manara TA One, USJ Taipan offices, Subang Business Centre,

Dividend Record:
2007.07.02 Final Dividend of 7% less 26% taxation
2006.07.24 Final Dividend of 3.00% less 28% taxation
2005.08.01 Final Dividend of 5.00 % less 28% taxation
2004.11.01 Interim Dividend of 1% less 28% taxation
2004.07.19 Final Dividend of 2.5% less 28% taxation
2003.10.14 Interim Dividend of 5% less 28% taxation
2003.08.11 Final Dividend 1% less 28% taxation
2002.08.15 Final Dividend 1% less 28% taxation
2001.08.10 Final Dividend 1% less 28% taxation
2000.08.08 Final Dividend 1% less 28% taxation
1999.08.06 Final Dividend 1% less 28% taxation

Speculation: Hong Kong market performance, Malaysia market preformance, CPO market performance, REITs, Sales of the South Africa properties, 2010 Winter Olympic in Canada.

Risk:
Operating Industry:
Operating Country Policy:
Operating Cost:
Operating Debtors:
Investing:

Competitors:
Stock broking companies and property developers

Directors and Interest:
1. Datuk Tiah Thee Kian: 459,478,200 (34.2144%)
2. Datin Tan Kuay Fong: 3,061,000 (0.22793%)
3. Dato’ Mohamed Bin Abid: 274,900 (0.02047%)
4. Christopher Koh Swee Kiat: 16,000 (0.00119%)

Major Shareholders:
1. Fleet Investments Management Limited: 65,091,000 (4.8469%)
2. TA Securities (HK) Ltd for Delroy Investment Holdings Limited: 55,275,000 (4.1160%)
3. State Street Australia Fund UAJB for Unifund (HISG as Trustee): 48,000,000 (3.5742%)
4. TA Securities (HK) Ltd for Globalbase Enterprise Ltd: 44,714,600 (3.3296%)
5. TA Securities (HK) Ltd for Goldcape International Limited: 40,068,800 (2.9837%)
6. Permodalan Nasional Berhad: 33,000,000 (2.4573%)
7. UBS AG for Prism Offshore Fund Ltd: 31,669,292 (2.3582%)
8. Exempt AN for JPMorgan Chase Bank, National Association (U.A.E.): 16,831,092 (1.2533%)
9. BNY Brussels for Melchior Greater China Opportunities Fund: 16,696,000 (1.2432%)
10.Fortis Private Banking Singapore Limited For Savern Finance Limited: 15,421,200 (1.1483%)
11.BNY Brussels for Queensland Investment Corporation: 14,483,100 (1.0785%)
12.Exempt AN for Morgan Stanley & Co. Incorporated: 11,245,200 (0.8374%)
13.UBS AG for Prism Partners QP LP: 10,510,242 (0.7826%)
14.Exempt AN for JPMorgan Chase Bank, National Association (Netherlands): 10,180,500 (0.7581%)
15.CBNY for DFA Emerging Markets Fund: 10,119,100 (0.7535%)
16.Investors Bank and Trust Company for Ishares, Inc.: 8,942,500 (0.6659%)
17.TA Securities (HK) Ltd for Jeffrey Smith: 8,294,100 (0.6176%)
18.TNTC for Government of Singapore Investment Corporation Pte Ltd: 7,454,900 (0.5551%)
19.UBS AG for Prism Partners LP: 6,876,883 (0.5121%)
20.Great Eastern Life Assurance (Malaysia) Berhad (Par 1): 6,500,000 (0.4840%)
21.HSBC-FS for Legg Mason Southeast Asia Special Situations Trust (201061): 5,813,500 (0.4329%)
22.State Street London Fund JY74 for The Pacific Basin Equity Fund (RIC PLC): 5,048,900 (0.3760%)
23.PB Trustee Services Berhad for HLG Growth Fund: 4,820,000 (0.3589%)
24.CBNY for DFA Emerging Markets Small Cap Series: 3,938,200 (0.2932%)
25.CB LDN for Banco Popolare Di Bergamo Prumerica SGR: 3,800,000 (0.2830%)
26.UBS AG for EB Asia Absolute Return Master Fund Limited: 3,500,000 (0.2606%)
27.BBH And Co. Boston for Vanguard Emerging Markets Stock Indexfund: 3,481,000 (0.2592%)
28.Public Index Fund: 3,418,400 (0.2545%)

Annual Report Performance:
Balance Sheet:
Asset: 2,932,810,000
Liabilities: 1,061,694,000

Income Statement:
Profit After Tax: 133,735,000

Cash Flows Statement:
Operating: -14,371,000
Investing: -210,702,000
Financing: -41,251,000

Bank Related

Bank related companies involve in some of these activites, commeercial banking, retail wealth management, investment banking, money lending, card business, stock broking, islamic banking, etc.

No. - Stock Code - Short Name - Company Name

1. 5185 - AFFIN - AFFIN HOLDINGS BHD
2. 2488 - AFG - ALLIANCE FINANCE GROUP BHD
3. 1015 - AMMB - AMMB HOLDINGS BHD
4. 5258 - BIMB - BIMB HOLDINGS BHD
5. 1023 - COMMERZ - BUMIPUTRA-COMMERCE HOLDINGS BHD
6. 5266 - EONCAP - EON CAPITAL BHD
7. 5819 - HLBANK - HONG LEONG BANK BHD
8. 5819 - HLCAP - HLG CAPITAL BHD
9. 1082 - HLFG - HONG LEONG FINANCIAL GROUP BHD
10. 1066 - RHBCAP - RHB CAPITAL BHD
11. 1155 - MAYBANK - MALAYAN BANKING BHD
12. 1295 - PBBANK - PUBLIC BANK BHD

Stock Broking Related

When market volume increase, that means more business for broker firm. These few days market volume is low, see what can these companies do in the quiet market.

No. - Stock Code - Short Name - Company Name

1. 5088 - APEX - APEX EQUITY HOLDINGS BHD
2. 2143 - ECM - ECM LIBRA FINANCE GRP BHD
3. 6688 - HDBS - HWANG-DBS (M) BHD
4. 3379 - INSAS - INSAS BHD
5. 5096 - KAF - KAF-SEAGROATT & CAMPBELL BHD
6. 6483 - KENANGA - K & N KENANGA HOLDINGS BHD
7. 5053 - OSK - OSK HOLDINGS BHD
8. 1287 - PMHLDG - PAN MALAYSIA HOLDINGS BHD
9. 4898 - TA - TA ENTERPRISE BHD

Bank related companies also involve in stock broking.

Step by Step: Online Apply IPO

There are only few banks have the online Initial Public Offering (IPO) application services. This is the example for the Maybank.

First log in your Maybank2u account. There is a pane at the left hand side as show below. Select "eShareApplication", follow step 1.

Step 2: Choose "IPO Application"

Step 3: Choose which IPO you want to apply. Example shown Dayang Enterprise Holdings Bhd.

Step 4: Click "Apply" to proceed.

Step 5: Click the check box.

Step 6: Click "I Agree" to proceed.

Step 7: Choose your race (there are quota for bumiputra and non-bumiputra)

Step 8: Key in your CDS account number. (15 numbers)

Step 9: Key in how many LOTS you want to apply.

Step 10: Click "Apply" to proceed.

Step 11: The final step, click "Comfirm" to complete the application.

After that you can print your application slip for your record. The money will automatic deduct from your account. This money will come back to the same account IF your application not choosen in the balloting.

The day after balloting date, if the amount go back to the account means the application not been choosen. If the money didn't come back, high possibility been choose. Partial amount come back, means partially given for the IPO share.

Strategy to Apply IPO

The result of the Initial Public Offering (IPO) of Dayang Enterprise Holdings Bhd has release on its balloting day.

These is the summary of the result. There are 2 goups of the share appliacation, the first table below is the result for the bumiputra and the second table is for non-bumiputra.

Study the tables and you will realize there are different of categories for the balloting. Please look at the third table, I highligh with red box and arrow.

The categories sort by the shares apply. Let say you apply 10, 000 shares, you are in the category of number 7 row (6,000 - 10,900). The chances to get the share is 11.35%. If let say you increase your share application to 11,000 shares, you are in the category 8th. The chances increase to 12.57%. That's why before apply the IPO, check the category and plan for the application to increase the chances to strike a good share.

Can we trust the Newspaper?

This is the example I get to show the "information" we read. Let look at these news below. They are reporting the crowd of the gathering for the same event at the same place.

Bloomberg - 20,000 people

The Edge - 20,000 people

New Strait Time - 10,000 people

Malay Mail - 7,000 people

South China Morning Post - 40,000 people

CNN - 40,000 people

I ask my friend, "What can we fully trust on the thing post in the newspaper?"

He think for a while and answer me, "The gambling result! Result of TOTO, Magnum, 3+1D, Jackpot"

What do you think?

Calm before Storm, Get Ready!

Do you have the experience that everyday is a good day? If your answer is no, that means it will be the same that no everyday is a bad day. There is no forever sunny and no forever rainy.

Recently market is quiet like dead water. This doesn’t happen for a long time. Everybody is looking each other and waiting. For those have share on hand, they are waiting the opportunity to sell. Those who have cash and they want to buy, waiting opportunity to buy. Third category of investor is they don’t know either buy or sell. They want to wait and see.

If there good news coming out, market will start to go up. It will trigger buyer willing to buy at the higher price. Same for the bad news will trigger the seller sell in the lower price. What will trigger the market?

When volume start coming back, that mean people know their direction. These people are the pioneer of the market. If you are the follower, let see what the possibilities is.

Market suddenly goes up, you go to chase buy at the high price. You think market will go up. If market goes up follow true, you will earn less than the pioneer or you may not get to buy because lot of buyer and seller gone. If market goes turn and go down, you are actually buying the stock from the previous batch of people. You lose more than others.

Market suddenly goes down, you scare and you sell the share which previously wants to sell higher price. There is no buyer and lot of seller. You may not success to sell and just watching the price go down. If let say you success to sell, that mean there is value of the share on your hand actually. The price may just dip for a while and recover. That mean you sell at the lowest price. You lost more money than others.

If you collect the good share during the market quiet, the chances to loss will be lower. The margin of loss also lowers than other people. The good company share may drop, but the difference will be not much. It will go back to the value after sell off.

Always be ready before the storm comes. Lull before the storm.

Analyze the Information

Nowadays people will not hesitate to give themselves top priority.It is not easy to survive when a person do not take care of himself or herself. Therefore, when a person tells you something, think before you respond or react.

Recently the Tibet issue comes to the newspaper everyday. It looks like the whole world is supporting the independence of the Tibet. There are protests here and there to show their support to the Tibet and emphasize the human right.

In fact, I contact a friend who permanently stays in Lhasa, Tibet, she told me actually the safety there is in good condition. Government there not allow any foreign visitors because they worry this protestor may hurt or use the visitors to create news.

In some business, the introducer shows lots of their achievement. They stay in bungalow, drive luxurious car. Their superior stays in mansion, have a private jet, own an island and so on. Seldom see them in the news.

In some case, people who advice not to simply spend the money, use it wisely and don’t buy unnecessary. Always see in the news. Who is the person should listen to?

What is the purpose of the news and information given? What is the reason behind all the information shows? All the information actually tells some answer but have to analyze before any judgment and action. Let say there is a company “ABC” earning lot of money every year. Now the share of this company is $10. In fact, the real value is far more than that, what will you do? You definitely want to buy it and if possible privatize it so that the whole company and the money belongs to you one person.

What if company “ABC” worth only $5 and now the shares traded at around $10? In this case, if you own lot of the share of this company, you will start nervous what if there is no buyer willing to buy from you. Just imagine you have 1 million shares on your hand and there is no buyer willing to buy. What can you do?

“Hey friend, tell you a secret. Don’t tell other people. Company “ABC” worth $30. Better grab more in the market! I have bought million”

Company “ABC” now traded around $10. For you this price is cheap or expensive?

Don’t know what to do? Better do more home work before make judgment.

Compare

Can you tell what is the size of this thing? When analyze a company, one of the methods is compare. That’s why there is benchmark selected to be a references. For example our market there is a composite index. This index is consisting of 100 largest companies in Kuala Lumpur Stock Exchange (KLSE). When look at the index, Kuala Lumpur Composite Index (KLCI) is at around 1250 points. What does it means? What is the purpose of the index such as Dow Jones Industrial Average close at 12582 points, Hong Kong Hang Seng Index is at 24187 points, and Singapore Straits Time Index at 3064 points?

Refer to the formula for the KLCI, it compare the market 100 biggest companies capitalization and the 100 biggest companies capitalization now. If the KLCI go back to 100 points, it means Malaysia economy is same with the year on 1977.

Besides, there is average Price Earning Ratio (PE) of the index. When you buy a stock, you can compare the company PE with the index, or with the particular industry average PE, or else which relevant.

If don’t compare, it is hard to judge it. Look at the picture above, can you tell me how big is the machine excavator?

Philosophy In Stock Market!

Stock market involve lots of different kinds and categories of people. Some of them create an illusion to trap the greed. I received a forwarded email some times ago, it is a good story I want to share. I don't know who is the writer, appreciate his or her article.

Once upon a time in a village, a man appeared who announced to the villagers that he would buy monkeys for $10.00 . The villagers, seeing that there were many monkeys in the forest, went out and started catching them.

The man bought thousands at $10.00. As supply started to diminish and villagers started to stop their efforts, he announced that now he would buy them at $20.00.

This renewed the efforts of the villagers and they started catching monkeys again. Soon, the supply diminished even further and people started going back to their farms.

The offer rate was increased to $25.00 and the supply of monkeys became so scarce that it was an effort to even see a monkey, let alone catch it.

The man now announced that he would buy monkeys at $50.00. However, since he had to go to the city on some business, his assistant would now buy on behalf of the man.

In the absence of the man, the assistant told the villagers, "Look at all the monkeys in the big cage that the man has collected. I will sell them to you at $35.00 and when the man comes back, you can sell them to him for $50.00 each."

The villagers queued up with all their savings to buy the monkeys.

After that, neither the assistant nor the businessman could be found anywhere but the monkeys were everywhere!

Apply to Initial Public Offering (IPO)

Initial Public Offering (IPO), is the first sale of the share of the company in primary market. This offer of the particular company share has not yet traded in the stock market before. Therefore, the data of the company can be obtain is limited. Since this stock never trade in the stock market before, the future performance of the company become a risk. The only source of the data is their prospectus come together with their IPO.

There are 3 methods to apply IPO for the company to be list in the Kuala Lumpur Stock Exchange (KLSE). First recommend is the fastest and easiest way, "Online e Share Application". Second method is "Apply via Bank ATM machine". The last is the traditional method which you have to get "IPO Application Form" from the securities firm to fill in and post.

Online e Share Application:

Available at : Maybank2u e-IPO, CIMB e-IPO, and RHB e-IPO.

ATM Machine:

Available at: Maybank, CIMB, RHB, (other no sure)

IPO Application Form:

Available at: Any securities firm.

The thing you have to prepare is your Central Depository System (CDS) account number. Total 15 numbers. You have to use this number when you apply IPO.

Government Link Company

Since our market in Malaysia is unstable recently, why not watch closely the Government Linked Company (GLC) which under Barisan National (BN). These are some of the companies listed by TA Research house and some of it are from my memory. These are the United Malays National Organisation (UMNO) linked companies, Malaysian Chinese Association (MCA), Selangor State Government, and others related.

No. - Stock Code - Short Name - Company Name

UMNO

1. 7078 - AZRB - AHMAD ZAKI RESOURCES BHD
2. 8125 - DAIMAN - DAIMAN DEVELOPMENT BHD
3. 1619 - DRBHCOM - DRB-HICOM BHD
4. 2143 - ECM - ECM LIBRA FINANCIAL GRP BHD
5. 1368 - FABER - FABER GROUP BHD
6. 6874 - KUB - KUB MALAYSIA BHD
7. 3174 - L&G - LAND & GENERAL BHD
8. 9628 - LDAUN - LEBAR DAUN BHD
9. 1651 - MRCB - MALAYSIAN RESOURCES CORPORATION BHD
10. 4502 - MEDIA - MEDIA PRIMA BHD
11. 2194 - MMCCORP - MMC CORPORATION BHD
12. 9032 - MTD - CAPITAL BHD
13. 3999 - NSTP - NEW STRAITS TIMES PRESS (M) BHD
14. 5093 - PECD - PECD BHD
15. 7081 - PHARMA - PHARMANIAGA BHD
16. 2895 - PUTERA - PUTERA CAPITAL BHD
17. 5030 - RANHILL - RANHILL BHD
18. 5050 - RUBHD - RANHILL UTILITIES BHD
19. 7158 - SCOMI - SCOMI GROUP BHD
20. 7366 - SCOMIEN - SCOMI ENGINEERING BHD
21. 7045 - SCOMIMR - SCOMI MARINE BHD
22. 4421 - TWS - TRADEWINDS (M) BHD
23. 4804 - TWSCORP - TRADEWINDS CORPORATION BHD
24. 6327 - TWSPLNT - TRADEWINDS PLANTATION BHD
25. 5054 - TRC - TRC SYNERGY BHD
26. 5042 - TSRCAP - TSR CAPITAL BHD
27. 4855 - UEMBLDR - UEM BUILDERS BHD
28. 1775 - UEMWRLD - UEM WORLD BHD
29. 5754 - UTUSAN - UTUSAN MELAYU (M) BHD
30. 8958 - WELLI - WELLI MULTI CORPORATION BHD

MCA

1. 6084 - STAR - STAR PUBLICATIONS (M) BHD

Selangor State Government

1. 6246 - KHSB - KUMPULAN HARTANAH SELANGOR BHD
2. 5843 - KPS - KUMPULAN PERANGSANG SELANGOR BHD

Others

1. 1147 - EQUINE - EQUINE CAPITAL BHD
2. 1023 - COMMERZ - BUMIPUTRA-COMMERCE HOLDINGS BHD

Suspect

1. 5070 - PRTASCO - PROTASCO BHD

Dividend Stocks

Since our market sentiment low. Everybody sitting at the side line. Looking at the 1150 support, 1100 support and 1000 support. Here are some stocks which give out devidend quite regulary.

No. - Stock Code - Short Name - Company Name

1. 6351 - AMWAY - AMWAY (M) HOLDINGS BHD
2. 4162 - BAT - BRITISH AMERICAN TOBACCO (M) BHD
3. 1562 - BJTOTO - BERJAYA SPORTS TOTO BHD
4. 2836 - CARLSBG - CARLSBERG BREWERY MALAYSIA BHD
5. 7148 - CCMDBIO - CCM DUOPHARMA BIOTECH BHD
6. 3689 - F&N - FRASER & NEAVE HOLDINGS BHD
7. 5398 - GAMUDA - GAMUDA BHD
8. 3255 - GUINESS - GUINESS ANCHOR BHD
9. 2615 - JTINTER - JT INTERNATIONAL BHD
10. 1295 - PBBANK - PUBLIC BANK BHD
11. 7100 - UCHITEC - UCHI TECHNOLOGIES BHD
12. 6742 - YTLPOWR - YTL POWER INTERNATIONAL BHD

I am here because ...

Lots of friends wonder why I become a Remisier. Why I am in this position of the finance sector. I am here because I see the gap of investment between elder investors and new generation investors. Those who has the experience during the 1997 financial crisis, they scared of stock market. They don’t even want to talk or mention about the stock and share. They were loss a lots of money at that time. For them stock and share is gambling. Instead, they never know why they loss money. They never figure out the reasons and they never tell the next generation about stock and share.

I am here to be Remisier because I want to let the new generation know better about the stock market and what is share. They must know investment because in this capitalism society, money is one of the important tools to live. New generation have lot of curious of the stock market. Since stock market is the largest market, why not let them understand the reality of it?

There are lots of investment tools and methods in the world. Besides properties, the major investment tools are equities, which were traded in the stock market. For example lots of new generations invest in mutual fund or call unit trust in Asia, but there is another new derivative call Exchange Traded Fund (ETF). ETF have lower fees than unit trust. The problem is less people know that and invest with it. Those who invest in unit trust may not know how it works too. This phenomenon shows a serious indication.

When I browse through the book stores, I can get lots of book talking about how to earn money in stock market. There are too many until I cannot finish even the content pages. What I found out, there are lots of them teach how they earn fast money. I personally feel that if investment can always make fast money easily, this world have no person willing to work anymore. If no worker, company performance will be drop; if the company performance drop, the value of the company will also drop. End up those earn fast money will loss back to the market and go back to work.

I am here to start a blog is because majority of my client is new generation and they are totally fresh in the stock market. Since they know how to use internet, I am here to write down the information for those who are new in stock market. Besides, I can also meet with expert in the internet, to learn and improve myself. Correct me if I am wrong please.

From Seeds to Fruits

I was grown up in farm. My family is doing business in agricultural sector, planting vegetables, flowers, and fruits. I grow up together with lots of plants. Plants are my friends too.

Do you ever know that how a tree grows? If you given a seed, how are you going to grow it until you get the fruit? Investment is similar to growing a tree. The different is you grow your seed capital. There are lots of knowledge involved, lots of patients needed, and lots of cares have to take in.

First, before we plant a tree, we have to prepare this not we plant today, we can get the fruits tomorrow. Therefore, choose the seeds carefully. If want to get Orange why I start with an Apple seeds? I don’t talk about the quantity here because if you want to get more, what you have to do is start with more seed and bigger land area.

When we choose a suitable seed, we have to let it germinate. Then sprout out from the ground. For investment, we choose a right company, and then we invest our capital. For those involve in the management, they have to go through lot of challenging to grow their tree or company. We as an investor, if we don’t know how to grow a tree or company, we need a good farmer or good management team.

Bear in mind, when a tree grow, there are lots of uncertainties that may influence the growth of the tree. There are climate changes, soil, intruders, resources scarcity, infection, and so on. A good partner or management team is definitely important for any kind of business.

Looking at seeds growth bigger and bigger, it starts to bloom. After flower is the fruit we get. Whether the fruit tasty or not, fruitful or not it depend on all the effort of the management.

Investment is not gambling. We don’t expect we invest today, can harvest tomorrow. If our investments suddenly shoot up so much, we can take profit because it might probably drops again due to the psychological effect. We can buy back at lower price instead of looking at our investment ups and downs.

What is Stock and Share?

Share (also referred to as equity shares) of stock represents a share of ownership in a corporation.

Here is a company call ABC, “ABC Holdings Bhd.”. For example is company listed in Kuala Lumpur Stock Exchange (KLSE), and its total properties and cash worth $100. If this company issue 100 shares, that means every share of this ABC company worth $1 per share. When you buy 1 share, you are one of the shareholders of the company ABC. In other words you own 1% (1 share out of total 100 shares) of this company.

This ownership of the company, or call “share” is trade in the stock and share market (stock exchange). When you don’t want to involve in this company, you can sell out your share to other people or you can buy the share from other people. Of course, to trade the share, you need to Remisier do it for you.

From the previous example, you own 1 share of company ABC. You bought it last year. This year they announce their company result and they total earn another $200. This means company ABC now worth $100 + $200 = $300. Divided the value to its total share issue, which is 100 shares, each of the shares REAL VALUE is $3. Bear in mind your starting investment capital is $1 and now this company earn money and worth $3. You are shareholder and you earn $2. Your investment value increase 300%. BUT, the TRADE VALUE may not same as the REAL VALUE. This share can be trades in any price in the stock market depend on the share holder (seller) and share buyer.

The CEO of the company ABC gives his speech during the company result announcement. He says company performance will be better than this year for the coming result. He forecast the company earning can increase and earn total $300 in coming year. If his forecast is correct, company ABC will total worth $300 + $300 = $600. Each share will worth $6. Some of the investor believe, some of don’t believe. Now the share traded at price $4. You want to buy? Or you want to sell? With this price.

If you are confused with your situation, let me give you a summary here. From the latest result announce, company ABC profit improve and worth $3 each share, now buyer in the market offer $4 to buy from you. You want to sell at $4 or you hold your share or you buy more from stock market? If you think next year this company will lose money, why not sell now? If you are not sure the performance yet, you can hold. If you think the performance result will increase as the CEO told, why not buy more?

In stock market, there are different types of people. These people buy or sell has their own reason. Most of the time, they play the psychological games with you, little bit similar to the TV show call “Deal or No Deal”. You have a share on hand (the brief case), buyer offer a price you buy your share (the brief case). Deal or No Deal?

IPO: Dayang Enterprise Holdings Bhd

Company Name: DAYANG ENTERPRISE HOLDINGS BERHAD

My Action: apply

Issue Price: RM1.45
Listing: Main Board
Industry: Oil & Gas

Total share issue: 352,000,000
Total public issue: 85,874,000
From public issue, Malaysia public issue: 17,600,000 new ordinary
From public issue, Private placement: 59,774,000 new ordinary
From public issue, Employee: 8,500,000 new ordinary
Par Value: 0.50

Prospectus Date: 2008.03.31
Closing Date: 2008.04.11 5pm
Application Balloting: 2008.04.15
Allotment date: 2008.04.23
Listing Date: 2008.04.28

Issuing House: Malaysia Issuing House (258345-X)
Issuing House Account: MIH Share Issue Account No.459
Underwriter: AmInvestment

Financial Year End: September (going to change to December)

Income Statement:
Profit after Taxation by year
2005: RM 22,188,000
2006: RM 22,697,000
2007: RM 28,852,000

Balance Sheet:
Total Assets: RM 347,782,000
Total Liabilities: RM 84,659,000

Cash Flow Statement
Operating Cash Flow: RM 33,255,000
Investing Cash Flow: - RM 18,744,000
Financing Cash Flow: RM 141,604,000

NTA per share: RM0.75

Based: Malaysia
Company Type: investment holding company.
Company Description:
The Company is engaged in providing maintenance services, fabrication operations, hook-up and commissioning and chartering of marine vessels. The wholly owned subsidiaries of the Company are Dayang Enterprise Sdn Bhd (DESB), DESB Marine Services Sdn Bhd (DMSSB) and Fortune Triumph Sdn Bhd (FTSB). DESB is involved in providing maintenance services for topside structures, pipes and valves, electrical and instrumentation, fabrication operations, and hook-up and commissioning services for the oil and gas industry. DMSSB is involved in the chartering of marine vessels, including floating accommodation and catering. FTSB provides rental equipment and machinery to the various players in the oil and gas industry.

From Dayang Enterprise Holdings Bhd:

Dayang Enterprise Sdn Bhd (DESB)

A wholly owned subsidiary of Dayang and licensed by Petronas, DESB commenced operations in October 1980 and is principally involved in the provision of maintenance services for Topside structures, pipes and valves, electrical and instrumentation, fabrication operations, and hook-up and commissioning services for the oil and gas industry.

DESB Marine Services Sdn Bhd (DMSSB)

DMSSB, a subsidiary of Dayang, began operations in May 2005 and is involved in the chartering of marine vessels, including floating accommodation and catering.

DMSSB possesses its own marine vessels, the first being "Dayang Pertama", a 189-personnel maintenance and accommodation workboat, which was completed in the second quarter of 2005. The vessel is currently used to provide offshore accommodation for the company’s workforce.

DMSSB also has a straight supply vessel known as "Dayang Maju" that was commissioned in February 2006.

Construction is already underway for a sister vessel of Dayang Pertama named "Dayang Berlian", which is due to be completed by February 2007.

Fortune Triumph Sdn Bhd (FTSB)

FTSB, which commenced operations in 1999, provides rental equipment and machinery to the various players in the oil and gas industry.

1. Petronas Approved License & Registration Dayang’s wholly owned subsidiary, DESB is registered with Ministry of Finance and has a Petronas approved license that enables it to provide supporting products and services for the oil and gas industry.

2. Established Track Record With over 25 years of oil and gas experience, Dayang has successfully established a track record that is associated with quality, reliability, technical expertise as well as service excellence.

3. Experience in Supporting Diverse Types of Offshore Structures Dayang provides supporting products and services, especially maintenance services for a wide range of exploration and production platforms, and other offshore structures. Dayang’s experience plus its track record serve as a distinct competitive advantage when bidding for offshore contracts.

4. Economies of Scale Dayang enjoys significant economies of scale, which serves as a competitive advantage when bidding for new contracts, but at the same time able to maintain a high margin. This is achieved through providing a wide range of supporting products and services, and servicing a large number of offshore structures.

5. Comprehensive In-House Skills & Expertise Dayang has in-house expertise and skills to maintain most types of offshore structures and platforms and thus does not rely on outsourcing and / or third party expertise.

6. High Quality Standards Significant emphasis is placed on quality and this is reflected in Dayang’s accreditation of MS ISO 9001:2000 Quality Management System certified by SIRIM QAS International Sdn Bhd.

7. Own New Marine Vessel Dayang is a proud owner of a maintenance and accommodation vessel whose construction was completed in the second quarter of 2005. Plans are already underway for the construction of a similar second marine vessel with an expected completion date of February 2007. It also owns a straight supply vessel known as “Dayang Maju” that was commissioned in February 2006. By having its own vessels, Dayang is able to reduce its reliance on the supply of charter services from external parties and allow the company to be more competitive in terms of pricing and costing when bidding for contracts.

8. Full Range of In-House Equipments & Tools Dayang has a full range of in-house equipments and tools that allows it to provide a prompt and consistent product and service quality, high efficiency and the ability to undertake high volume work.

Risk:

Related to operating industry:

• Fluctuation in the market price of hydrocarbon
• Activity in Malaysia Oil and Gas industry
• Depletion of hydrocarbon resources
• Regulatory compliance / dependence on licenses / permits
• Political, economic and regulatory considerations
• Competitive industry

Related to operations and business:

• Business risk
• Operational, health and safety risk
• Dependent on major customers
• Future business performance depends on the award of new contracts
• Dependent on its key personnel and skilled workforce
• Delay in the completion of work orders
• Operating in a strict environmental regime
• Environmental concerns
• Investmental concerns
• Investment activities risk and new ventures
  
  

Related to investing in the IPO shares

• No prior public market for its share
• Price volatility
• Capital market risks
• Profit forecast may vary from actual results
• Future dividends are dependent on future performance
• Controlled by its promoters
• Failure / delay in the listing
• Delay between admission and trading of the IPO shares
• Disclosure regarding forward-looking statement
  

Competitor:

1. Petra Perdana Bhd
2. Petra Energy Bhd

PE Ratio: Lower than KLCI, higher than competitors.