http://www.thestar.com.my/Business/Business-News/2014/08/23/Dont-be-fooled-by-the-high-trading-volume/

"The large trading volumes of stocks should not be a reason for retail investors to invest in stocks. Fundamentals should be the primary reason. The large volume is a game for a select group of market participants called proprietary day traders, or better known as stockists.

There are about 80 of them attached to various brokerages in Bursa Malaysia. Their job is to trade for the brokerage as principals. They don’t have any clients. The stockists can buy and sell as much as they want in a day. There is no limit imposed.

They are not imposed any brokerage fees but have to pay stamp duty and clearing fee to Bursa Malaysia based on the value of trades done. The duty is capped at RM250 or less, while the clearing fee is minimal.

A brokerage will normally place their stockists in a room where they conduct their buying and selling operations with minimum disruptions. Even phone calls are restricted.

The stockists can short-sell stocks without having the shares in hand. But they have to cover their positions by buying back from the market before the end of the day’s trading.

The profit from buying and selling are shared between the brokerage and the stockist. Normally 60% goes to the brokerage and the trader gets 40%. However, an “ace stockist” can command up to 90% of the profits. But the stockist has to absorb all the losses.

Normally, the brokerage will hold the profits of the stockist and pay out only after a year. An ace stockist can earn RM10mil or more a year by just being a principal stockist for the company.

But there are limitations to what a stockist can do to generate the volume of stocks. They generally shy away from stocks that are more than RM1 and that have a small paid-up capital.

Apart from having to incur a higher clearing fee, normally stocks that are held tightly tend not to have enough shares in the market to generate the volume without causing a substantial rise in the price.

The typical targets for a stockist are stocks that are priced at less than RM1 and that have a large share capital. For instance, Globletec Formation, which is an amalgamation of three stocks that were involved in manufacturing automotive components, has a capital of more than 5 billion shares.

Some companies like to see the activities of the stockist because it supposedly adds excitement to the market, not to mention to the stock as well.

But there is also a view that the stockists hold an unfair advantage over the normal investors because they can short a stock or take long positions several bids higher.

This allows a few stockists to “gang up” and deliberately cause a panic sell-down of a particular stock.
"

Why MSports bonus warrants issue is different from Xinquan:

(a) Xinquan warrants exercise price is RM1.00 which is higher than the mother share price. MSports warrant exercise price is RM0.18 which is lower than the current share price hence it is 'in the money' & more valuable!

(b) Xinquan price was near 2 years high when they announced bonus warrants issue whereas current MSports price is much lower than its 2 years high.

(c) There is no private placement for MSports. Private placement will further dilute the earnings.

However, in the long term, it still depend on whether the earning growth are sustainable, no negative surprise of accounting issue & whether they will resume cash dividends in the future.

Kenanga research on Annjoo, 2/7/14:
http://klse.i3investor.com/servlets/ptres/23969.jsp

We are upgrading our sector call on Building Materials to OVERWEIGHT due to: (i) potential trade action on excessive Chinese steel imports, (ii) steel sector valuations currently at trough level, (iii) near-term robust construction demand, and (iv) positive earnings outlook in the near-term.

While the potential trade remedy on excessive Chinese steel import issue may only occur in 4Q14 or 1Q15, we reckon that investors should position ahead of 3Q14 in view of very attractive valuations currently. Lastly, building materials stocks under our coverage performed within expectations in 1Q14. Our preferred pick for the sector is ANNJOO (OP; TP: RM1.31) due to its compelling upside potential and production efficiency.

Translated news in SinChew:
http://biz.sinchew.com.my/node/97950?tid=23

Actually 4 dividends a year.

I like old men counter, just buy low then can relax & waiting for dividends to be deposited every quarter :)

Better than I expected :)

kkng0819kk guess of 6-8 sen was the closest guess.

Compared to 2002 sharp drop, current drop is nothing!

KinSoon, the worst it happened before was in 2002 where I accumulated most of my BjToto shares. It took almost 1 year to recover. It was due to the huge intercompany loan to BjLand (the substantial shareholder make use of BjToto cash) & foreign funds were unhappy & dumping the shares.

That you have to ask Mr Market. :)
http://en.wikipedia.org/wiki/Mr._Market

Hahaha, I made more money from BjToto shares than betting Toto game. The probability is calculated such that the gambling operators always win.

Dividend coming soon, let us start a guessing game of how much it will be. We will know by around middle of next month who made the most accurate guess.

My guess is 6 sen cash.

Earnings also improving. Annjoo shows its competitiveness since it makes profits while some other peers make losses. Although the steel industry still in bad shape, when the up cycle finally arrived, it will one of the companies that benefited most.

See 21/5/14 announcement - Press Notice, pg 4, section 2.6 'Method of Settlement' (b) & (c).

http://announcements.bursamalaysia.com/EDMS/edmsweb.nsf/all/2BB0F3A531599AD548257CDF003D584F/$File/Press%20Notice_Revised%20Offer%20(210514).pdf

Offer price is revised to RM8.20
http://www.bursamalaysia.com/market/listed-companies/company-announcements/1629289

"Holders of the Offer Shares who have accepted the Offer at the original offer price of RM7.80 per Offer Share will be entitled to receive the revised cash consideration of RM8.20 per Offer Share under the Revised Offer."

After you did the CDS transfer to the offeror then you'll get the 'Transfer Reference No.'. See my comments on 3/5/14.

To accept the offer, you need to go to the CDS department of your broker to do a CDS transfer first, after that you need to send back the transfer receipt together with the completed 'form of acceptance & transfer' to the offeror.

My advice is to wait for the offer to become unconditional before you proceed.

Although the earnings are still not good, there are signs of improvement Q on Q due to new business. However the concerns are:
Is the earning improvement sustainable?
Will there be any accounting issues?

I guess the action depends on your answers to the 2 concerns.

China firms plagued by accounting issues
(http://www.thestar.com.my/Business/Business-News/2014/05/03/China-firms-plagued-by-accounting-issues/)

CSL, China Ouhua Winery Holdings Ltd & HB Global have accounting issues! This is terrible! Hope won’t happen to MSports.

It may be pending until BN win back 2/3 majority again, LOL.

What happen to the rumour on Sport betting? Scared of PAS's Islamic Law? Hehehe.

Hate to spoil your mood, but:
In section 4.1(b) of announcement dated 31/3/14:
"... pays any dividend ..., the offeror may reduce the offer price by amount equivalent ...."

Are you referring to the “RECEIPT OF NOTICE OF CONDITIONAL TAKE-OVER OFFER”?
It is only to inform you that the company has received the take-over offer.
The offer document (forms, etc) will be posted to you within 21 days.

Not him. Is his daughter, Lee Yoke Har, (http://www.bursamalaysia.com/market/listed-companies/company-announcements/1590693), after exercising ESOS on 27/3/14 (http://www.bursamalaysia.com/market/listed-companies/company-announcements/1581949).

The best time to buy good fundamental stocks is in a Bear market. I usually accumulate shares during bear market & sell in bull market, with the exception of high dividend yield stocks where I will hold for long term. Unfortunately this bull market has lasted too long & I miss bear market already.

For take-over offer like this, there is no EGM since it is not via selective capital reduction (SCR).

The most important thing is the acceptance level. The offer is conditional upon minimum acceptance level of 90% (section 4.3 of announcement). However, they reserve the right to revise the condition to lower acceptance level or remove the acceptance condition.

It is better to wait for the offer to become unconditional before you accept by doing CDS transfer & send back the forms. Otherwise it may be aborted if the condition is not met.

KinSoon Kok, I accumulated most of my BjToto shares when it drop sharply in 2002 due to intercompany loan issue, with an average bought price of around RM3. After that I sold around 16% of it when its price rose & hold the rest until now. So far I have received so much dividends & capital repayment that my net cost (total buy – total sell – total income) is negative years ago.

Leesk, no, that's Berjaya Philippine who bought redtone & H.R. Owen. Berjaya Philippine is a listed subsidiary of BjToto in Philippine.

retnam, don't worry too much lah. The effect is negligible since there is only 43/44 dilution, ie 2.27% less only. :-)

The share dividend is from the treasury shares accumulated from earlier share buy back, the value of the share dividend is based on the average cost of the share buy back which is RM4.08 as at 16 March (see section A4, page 8 of Jan14 quarter report). (4.08 / 43 = 0.095)

neohts, there are error in your date, should be:
17/3/2014 - Share buy back 14,400 shares
14/4/2014 - Interim dividend Ex-date

Shares dividend, it's more psychological since the % of shares for each shareholder remain the same, just like bonus issue.

However, if next time the same number of sen per share cash dividend given, you'll have slightly more total dividend due to slightly more shares. :-)

Singapore is not an Islamic country, there is no party like PAS who would like to ban gambling! Beside PAS, there are also other Islamic groups who would like to do the same.

Haha, gray, not many people can laugh at their own self like that, you are good. LIKE.

neohts, it’s not likely. With the Pakatan Rakyat so strong, it's impossible for the government to further legalised gambling.

overcapacity = supply outstrip demand

http://www.thestar.com.my/Business/Business-News/2014/03/15/Hartalega-presses-on-Competition-to-be-intense-as-market-innovates/

Not quite as optimistic when it comes to preserving margins, one of Hartalega’s competitors Supermax Corp Bhd recently said it expected this year to be challenging given cost and selling price pressures.

As quoted by a local daily, Supermax executive chairman and group managing director Datuk Seri Stanley Thai said the company enjoyed margins of 15% to 16%, but given the capacity that was expected to come onstream coupled with rising costs, he expected to see margins coming down to 9% to 11%.

He predicted glove makers with the highest margins and selling prices would be the ones to suffer the most as customers would have the choice to switch due to overcapacity.

CIMB Research downgrades glove sector from Overweight to Neutral
http://www.thestar.com.my/Business/Investing/2014/03/14/CIMB-Research-downgrade-glove-sector-from-Overweight-to-Neutral/

CIMB Equities Research has downgraded Malaysia’s glove sector from Overweight to Neutral based on the higher industry risks and the unattractive valuations.

It said on Friday many companies have announced expansion plans in the past few months, raising concerns over excess capacity in the industry.
“We estimate that the incoming capacity could exceed the demand substantially. Aside from the selling price pressure, operating costs are also expected to rise,” it said.

The research house said although we believe that the rubber glove demand will continue to grow, it thinks that supply could outstrip demand as more expansion plans have been announced in the past few months.

“Although Top Glove and Supermax sell their products at competitive prices, we believe they will be hit the most given their low margins and weaker track record in producing nitrile compared to Hartalega and Kossan,” it said.

Have you heard of 'Mr. Market'?
http://en.wikipedia.org/wiki/Mr._Market

Now Mr. Market is in a 'pessimistic mood' and offers low sale price. The investor has the option to buy at that low price.

It has to do with the tax credit a company accumulated before 2008. From 2008, government allows a 6 years transition period where a company may pay franked dividend using the tax credit available in their section 108 account. After they finished their balance, they will have to go to single-tier dividends.

http://www.hasil.gov.my/printext.php?kump=5&skum=1&posi=2&unit=5000&sequ=15&lgv=1

Theoretically cancellation of treasury shares is better but psychologically distributing treasury shares is more pleasing. Same psychology as Bonus Issue, nothing is really given out, each shareholder still owns the same % of shares but many shareholders are excited over it :-)

From latest shares buy back announcement, % treasury shares over total outstanding shares is 2.26%.

They can distribute shares dividend of 1:43 (1 treasury share for every 43 shares held) (calc: (100-2.26) / 2.26 = 43.2).

With current shares price of RM3.82, that's equivalent to a dividend of 8.9sen per share (=3.82/43).

Maybank actually payout more dividends in FY13 compared to FY12.

Interim FY12: 32sen 25% tax. {net=24sen}
Final FY12: 33sen (ie 18sen 25% tax + 15sen ST) {net=28.5sen}
(ST = single-tier)
Total FY12: 65sen gross, 52.5sen net.

Interim FY13: 22.5sen ST {net: 22.5sen}
Final FY13: 31sen ST {net: 31 sen}
Total FY13: 53.5sen net.

Hence FY13 has higher net dividends.

For those who don’t know the difference between franked dividend (with tax) & single-tier dividend (without tax):

For franked dividend, the company transfers their tax credit (tax paid) to the shareholders & the gross dividend amount is added to the taxable income of the shareholder & is taxed according to the tax rate of the shareholder. For shareholders with little or no taxable income, they can claim back most or all the tax.

For single-tier dividend, the company cannot transfer their tax credit to the shareholders & government pockets all the tax. From 2014, all dividends are single-tier.

Beware of risks in investing in sizzling oil and gas:
http://www.thestar.com.my/Business/Business-News/2014/02/24/OG-sizzles-but-beware-of-risks/

"One problem is that the O&G business, like many other sectors, is cyclical. You may invest during peak times but then get saddled with high fixed costs and low utilisation rates when the cycle hits a downturn."

"All forumers r free to provide his /her opinions, share trading views & to provide constructive comments but no personal attacks, insults or abuses should be allowed."

Spreading rumours & pretending to be an insider should not be allowed too.

Mokhzani, family of late Chong sell SapuraKencana shares for RM818mil

http://www.thestar.com.my/Business/Business-News/2014/02/19/Mokhzani-sells-block-in-SapKen-Govtlinked-investment-firms-said-to-be-the-buyers/

Just a thought on the power of dividends.

With the good dividends I received from HTPadu in FY06 to FY10, my net cost was reduced from RM0.95 to RM0.45.

Imagine if the company didn’t give out the dividends then my net cost will stuck at RM0.95. The dividends not paid will turn into retained profit & increase the net asset of the company.

However, when the earnings started dropping, the price may drop the same amount since net asset of a company is something that you can see but you cannot touch. Then I will suffer losses. In Bursa, there are many stocks trading at a huge discount to their net asset per share.

I always think of dividends as automatic profit taking (without the hassle of constant trading). It will reduced the net cost of owning a stock & if something bad happened you’ll not suffer much. For my Bjtoto shares, the net cost is already negative years ago, hence no matter how Bjtoto drop, I won’t suffer any losses.

Lesson: with other things equal, pick the stock with the highest dividend yield. Just like 冷眼wrote in his article: “志在股息错不了” (http://klse.i3investor.com/blogs/coldeye/17165.jsp).

HTPadu is a good apple that turns bad.

I bought HTPadu from Dec06 to Jul07 & received good dividends from FY06 to FY10. However, earnings started dropping since FY11 & dividends stop from FY11. With the dividends received, my net cost in HTPadu reduced to RM0.45 from RM0.95.

Since the Chairman didn't deny the possibility of future privatisation, speculation may still be going on.

I'm now watching closely for a good exit price. :-)

Reply to Bursa query on ARTICLE ENTITLED "HEITECH TO BE TAKEN PRIVATE?":
http://www.bursamalaysia.com/market/listed-companies/company-announcements/1540029

"Upon consultation with our Chairman Y.Bhg. Dato' Mohd Hilmey Mohd Taib, he informed that he has informally explored the possibilities of a privatization exercise about 4 months ago, which was premature and non –conclusive. The Chairman confirmed that there is no formal arrangement in relation to the aforesaid possibilities has been made at this juncture. The Chairman has also never held any discussion with Agathis Captial (Limited Partner"


Original article from Focus Malaysia:
http://www.focusmalaysia.my/Mainstream/HeiTech-to-be-taken-private-

"HeiTech Padu is believed to be set to be taken private."

http://www.thestar.com.my/Business/Investing/2014/02/14/Trading-ideas-MISC-Atlan-MyEG-Ornapaper-Heitech-Padu/

For FY13, EPS=29.43sen, DPS=28sen, at RM4, PER=13.6x, divd yield=7%.
PER of 13.6x is not high for high dividend stock.

BjToto didn't sell their treasury shares, just distributed them as shares dividends in the past.

Bjtoto is not suitable for short term trading since there is not enough volatility in price compared to other speculative stocks. It is more suitable for long term 'Buy & Hold' strategy to collect dividends.