The compromise between the President and Mitch McConnell on taxes represents a new beginning for the President and, perhaps, for the country. The compromise will definitely help the economy. The economy needs it.
There are still problems, especially on the unemployment front. Employees are still too expensive, laden down by government-imposed mandates and implied litigation liabilities for businesses. But capital expansion should pick up dramatically in 2011.
It's not perfect, but this deal is definitely an improvement over the policies of the past two years.
The looming debt problems are still there -- both for the US and for Europe. Hopefully, the idea of "workouts" and "defaults" will soon take the place of "bailouts." The debt problems have no easy fix.
Wednesday, 8 December 2010
New Fund: AmConstant Multi Maturity
AmConstant Multi Maturity is a close-ended bond fund that seeks to provide regular income from 3 investment portfolios comprising of local and/or foreign bonds. These investment portfolios will mature respectively on the 3rd, 4th, and 5th anniversary of the commencement date and scheduled Capital Repayment(s) will be made to the unitholders following the respective anniversary.
The fund intends to invest a minimum of 95% in a multitude of local and/or foreign bonds carrying a minimum "A" rating by RAM or MARC equivalent to "BBB" by S&P or Moody.
As this is a close ended bond fund, the fund adopts a buy and hold strategy whereby bonds purchased will be held until its respective maturity. At the maturity of these bonds, issuers of bonds held by the fund will be obligated to pay the face value provided there is no occurrence of credit default by issuer.
A downgrade in credit rating may result in additional credit risk assumed by the fund. The manager may choose to liquidate the bond prior to its maturity, if it is of an opinion for the benefit of the fund. By doing so, the manager may be subjecting the fund to a risk of capital loss, hence affecting the value of scheduled capital repayments.
AmConstant Multi Maturity is suitable for investors seeking:
The fund intends to invest a minimum of 95% in a multitude of local and/or foreign bonds carrying a minimum "A" rating by RAM or MARC equivalent to "BBB" by S&P or Moody.
As this is a close ended bond fund, the fund adopts a buy and hold strategy whereby bonds purchased will be held until its respective maturity. At the maturity of these bonds, issuers of bonds held by the fund will be obligated to pay the face value provided there is no occurrence of credit default by issuer.
A downgrade in credit rating may result in additional credit risk assumed by the fund. The manager may choose to liquidate the bond prior to its maturity, if it is of an opinion for the benefit of the fund. By doing so, the manager may be subjecting the fund to a risk of capital loss, hence affecting the value of scheduled capital repayments.
AmConstant Multi Maturity is suitable for investors seeking:
- An investment that provides capital repayment on the 3rd, 4th and 5th anniversary
- An investment that targets to distribute regular income
- Potentially higher returns than fixed deposits
- To participate in a scheme that provides lower risk than equities
Tuesday, 7 December 2010
Proton loves Perodua to avoid extinction?
There has been a longstanding issue which has to be solved in Malaysia automobile industry – demise of Proton. The national car manufacturer had before storming the local car industry with its popular models such as Wira and Waja. While Proton was unbeatable during that time, Perodua (national 2nd car manufacturer) had approached Proton for a merger, but was turned down.
Now, the whole table turned the opposite direction, with Proton begging for a merger with Perodua. Why Proton so desperate right now?
In fact, Proton had identified two main areas where they have to improve on – technology and scale. To address it, Proton chose the technology path because it was the national icon, and only technology expertise could transform the company for the long-run independently.
First, Proton approaches Volkswagen, then General Motors, then Volkswagen again. But, all was failed because of the integrity of Malaysia as Proton was the icon, as the foreign partners reportedly keen to be the ultimate decision-maker.
So, scale was the last path for Proton. With the poor sales volume and unpopular new models in this highly competitive market, Proton had a difficult way to go the extra miles without an angel. Meanwhile, Perodua with popular models like Myvi and Elza, facing the needs to expand its plant to cope with the demands. As such, Proton which has the excess capacity in its Tanjung Malim plant could perfectly address Perodua's good problem.
Moreover, Proton can clinch back their #1 the fastest way by merging with Perodua, thus eliminate their main competitor. Perodua also has the more advance technology expertise since they collaborate with Daihatsu, a Toyota-controlled manufacturer, which explains why the quality and performance is better than Proton's.
The above gave Proton reasons to launch a "forced marriage" with Perodua. Malaysians would have to continue subsidizing the profit of Proton and paying more for non-national cars for the survival of Proton. We had had enough all these years. Let's give Malaysians lower car prices and forget the prized Proton.
We are happy for having Perodua, not Proton. The forced marriage would not make babies (bear fruits), and Malaysians will continue suffers with expensive, yet poor quality cars. Think about our babies (next generation), instead of Proton's.
Now, the whole table turned the opposite direction, with Proton begging for a merger with Perodua. Why Proton so desperate right now?
- Proton was over-taken as the #1 in Malaysia
- Proton is running with an half-empty plant
- Proton must address its problem as soon as possible
In fact, Proton had identified two main areas where they have to improve on – technology and scale. To address it, Proton chose the technology path because it was the national icon, and only technology expertise could transform the company for the long-run independently.
First, Proton approaches Volkswagen, then General Motors, then Volkswagen again. But, all was failed because of the integrity of Malaysia as Proton was the icon, as the foreign partners reportedly keen to be the ultimate decision-maker.
So, scale was the last path for Proton. With the poor sales volume and unpopular new models in this highly competitive market, Proton had a difficult way to go the extra miles without an angel. Meanwhile, Perodua with popular models like Myvi and Elza, facing the needs to expand its plant to cope with the demands. As such, Proton which has the excess capacity in its Tanjung Malim plant could perfectly address Perodua's good problem.
Moreover, Proton can clinch back their #1 the fastest way by merging with Perodua, thus eliminate their main competitor. Perodua also has the more advance technology expertise since they collaborate with Daihatsu, a Toyota-controlled manufacturer, which explains why the quality and performance is better than Proton's.
The above gave Proton reasons to launch a "forced marriage" with Perodua. Malaysians would have to continue subsidizing the profit of Proton and paying more for non-national cars for the survival of Proton. We had had enough all these years. Let's give Malaysians lower car prices and forget the prized Proton.
We are happy for having Perodua, not Proton. The forced marriage would not make babies (bear fruits), and Malaysians will continue suffers with expensive, yet poor quality cars. Think about our babies (next generation), instead of Proton's.
Finance Malaysia was being told that Myvi is faster than other cars…
Sunday, 5 December 2010
Credit Card Insurance, worth it?
I believe almost every credit card users had been offered a new type of insurance - credit card insurance.
What is credit card insurance?
And, in my case, it offers me a better plan which only charge me if there is any outstanding credit card loan. If you're a prompt paymaster, this is definitely the better option for you. If you agreed on the deal, all you need is to answer 'YES' through the phone. Then, they will issue a contract notes and mail to your home address.
Ya... Pretty easy and convenient though.
But, is it worth to have such insurance?
Finance Malaysia opine that it is not worth, and its a waste of money because of the following points:-
What is credit card insurance?
- it insured you of the outstanding amount owed in your credit card
- it covers death and disablement of credit card holders
- it charges card holders an insurance premium annually normally
 |
Ya... Pretty easy and convenient though.
But, is it worth to have such insurance?
Finance Malaysia opine that it is not worth, and its a waste of money because of the following points:-
- Credit card supposed is for our ease of making purchases, especially for those 0% installment deals.
- Those who opts credit card loans would have been due to financial constrain.
- By charging extra premium on top of the loan amount will UP the outstanding loan amount, thus, the monthly repayment.
Friday, 3 December 2010
Broad-Ban in Malaysia?
Forget about the old fixed line internet connections anymore. We have the on-the-go broadband services, which provide almost unlimited boundaries for internet lover to surf anytime anywhere. However, you may not know a very unpleasant scenario is happening in Malaysia (at least I found out now).
Although I comment about TM's monopoly status in fixed line internet connection previously, I still prefer Streamyx for its unlimited surfing, lower monthly charges, and stable connectivity. Most importantly, more than one people can online at the same time, without extra fees. Whereas, broadband cannot.
Don't know #1
Recently, I moved to a new area, and hopes to subscribe for Streamyx (fixed line internet service provided by TM). However, I was shock to found out that I cannot subscribe for Streamyx, because my area was under Maxis territory. Wow… Sounds like I am living in the battle-field, where Maxis won the game!!!
The reason given was that my area's telephone line is bought over by Maxis, and Streamyx needs the telephone line to connect. Since this was the only fixed line internet service you can find in Malaysia, and again thanks to TM's monopoly status, I have no choice, but to look for broadband service.
Don't know #2
Then, I subscribe for a broadband service, but, the connection is slow (running at below 100kbps during peak hours). Can you imagine how slow 100kbps is? It's like opening a single website until you felt asleep. So, I went to another service provider to en-quire theirs. Thanks for his honesty, he told me that if you are staying near the mountain, and in an apartment unit above 5 storey, you can't expect to get a good connection.
Conclusions… Broad-Ban
Are we living in a business friendly society, in the expense of public's freedom of choice?
First, Maxis is wrong by conquering certain areas, which undermine the choice of citizen there.
Second, why TM agreed to let go some of its assets?
Finance Malaysia thinks that Rakyat should be given to freedom to choose for their preferred service. Business owners should cares about the difficulties faced by Rakyat. And, government should monitor the latest development which could affect the welfare of Rakyat. Internet services are very important our daily lives now. Oh my dear Malaysians.
*The telecommunication company is expanding its territory now. Would your area be the next battle-field?
Although I comment about TM's monopoly status in fixed line internet connection previously, I still prefer Streamyx for its unlimited surfing, lower monthly charges, and stable connectivity. Most importantly, more than one people can online at the same time, without extra fees. Whereas, broadband cannot.
Don't know #1
Recently, I moved to a new area, and hopes to subscribe for Streamyx (fixed line internet service provided by TM). However, I was shock to found out that I cannot subscribe for Streamyx, because my area was under Maxis territory. Wow… Sounds like I am living in the battle-field, where Maxis won the game!!!
The reason given was that my area's telephone line is bought over by Maxis, and Streamyx needs the telephone line to connect. Since this was the only fixed line internet service you can find in Malaysia, and again thanks to TM's monopoly status, I have no choice, but to look for broadband service.
Don't know #2
Then, I subscribe for a broadband service, but, the connection is slow (running at below 100kbps during peak hours). Can you imagine how slow 100kbps is? It's like opening a single website until you felt asleep. So, I went to another service provider to en-quire theirs. Thanks for his honesty, he told me that if you are staying near the mountain, and in an apartment unit above 5 storey, you can't expect to get a good connection.
Conclusions… Broad-Ban
Are we living in a business friendly society, in the expense of public's freedom of choice?
First, Maxis is wrong by conquering certain areas, which undermine the choice of citizen there.
Second, why TM agreed to let go some of its assets?
Finance Malaysia thinks that Rakyat should be given to freedom to choose for their preferred service. Business owners should cares about the difficulties faced by Rakyat. And, government should monitor the latest development which could affect the welfare of Rakyat. Internet services are very important our daily lives now. Oh my dear Malaysians.
*The telecommunication company is expanding its territory now. Would your area be the next battle-field?
Thursday, 2 December 2010
E&O is the next take-over target?
The recent spate of mergers have been dominating the trading sentiment of local market, with IJM-MRCB, UEM Land-Sunrise, and Sunway-SunCity. Investors are wondering whether there is any mergers activities else, and the million-dollar question is "Who is the Next".
Main factors of taking private...
- Undemanding valuation
- Strong branding
- A well-run and profitable company
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| Quayside (Seafront Resort Condominium) of E&O property development |
After screening through the list of property counters, E&O could potentially emerged as the next company of being privatized. The main reason being E&O's is trading at a huge discount to its revised net asset value (RNAV) of RM2.72* per share.
Other than that, E&O has a very good brand name in the premium market, having some prime land-bank in strategic locations (especially in Penang). Couple with its strong marketing acumen, this company fit nicely into the take-over picture currently.
Spicing it up, speculations to privatized E&O has emerged in one of the news portal few months ago, saying that the major shareholder of E&O would made an offer for the rest of the remaining shares he did not hold.
Wednesday, 1 December 2010
Bursa Malaysia to take on ASEAN
Yesterday, news portal reported that Bursa Malaysia (BM) together with Singapore Stock Exchange (SGX) and Stock Exchange of Thailand (SET) are set to join the Asean Exchange Linkage which will go live by the 2nd half of 2011.
In addition to the linkage, the exchanges would also promote leading Asean public companies under the brand of "Asean Star". The cross-border offering of collective investment scheme would kicks-in after that.
Migration of local investors?
In fact, many local investors are already trading overseas shares, especially Singapore and Hong Kong markets. For them, this made no significant difference, except that the new cross-border trading will reduce the lagging time, thus, boosting the participation and matching rate. If the overhead costs of trading is reduced accordingly, investors will be more reluctant to trade. Anyway, investors can diversify more effectively to regional markets soon.
Brokers do not "broke" anymore?
Local brokers are expecting a revival of the industry, last seen in the 90s. Reportedly, all local stock broking firms would be given the green light to link with the new platform. But, brokers would need to monitor regional markets too, with more than few thousands counters!!!
What is the impact to Bursa Malaysia?
Of course, Bursa Malaysia could benefit from the cross-border trading with increase revenue generated, up-lifting the profile of local market, making it more attractive and vibrant. However, I scared local investors would in turn, shunning the local market in favor of regional markets.
Weathering the storm together...
After all, we will stick together more closely, and shoulder the good and bad times together. This is because, investors are becoming more regional, and a fall in one market would most likely going to trigger a fall in another market.
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