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Showing posts from November, 2010

Do not too emotion in Stock Market!

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Let say now you having a lump sum of fund and plan to invest in shock market. You know market is hot for quite some time, the price of many stocks already moved up, those who bought earlier have quite significant of profit. You know currently is not best time to buy a stock as correction might come any time, it just a matter of time. Hence you wait, wait and wait for correction, hopefully can invest when stock price pull down a bit. One week, two weeks and three weeks, but there’s no pull back or correction. You can not wait any longer, as the price keep on going higher. Finally you decide to buy now, hopefully can make a quick profit when the price go higher, maybe it will continue to go up for few weeks and take profit to sell it for quick money, buy back when it go down. This is very good idea, ya?, what’s a perfect plan. However, most of the time, you tend to buy at high price when the stock price is up and sell when the price go down, though sometime you earn some pocket money.

Petronas Chemicals Group Bhd - Part 2

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After compare with Dow Chemical and BASF, lets take a look the PChem financial ratio: Profit after tax: RM2,594 million Number of share ex IPO: 8,000 million EPS: 32.42 cents NTA ex IPO: RM1.97 Total Asset: RM26,824 million Gearing almost 0 ex IPO ROE is 16.45 ROA is 9.67 No growth story to tell, earning flag Dividend yield: 3% if price at RM5.05 PE is 15.6 if price at RM5.05, 16x if price at RM5.20 (compare to Saudi Basic Industries PE 14x, PTT Chemical Pcl PE 20x) What is the fair value for PChem? Normally try not predict the price, but let assume below scenario will happen: PChem with market cap of RM40 billion and become one of the top 10 on Bursa PChem carry Petronas brand, to be included into FBM KLCI Global stock market, especially Dow Chem and BASF continue the up trend Should the above happen plus the GLC effect, PChem can trade up to 20x PE. However, base on volatile index from others chemical companies, the low side can trade near 12x PE. It will be

Petronas Chemicals Group Bhd - Part 1

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Last few weeks quite busy with one stuff, Petronas Chemicals Group Bhd (PChem), I went to visit one of their factory located at Gurun. It's huge (about 1km x 1km, see picture) and nice place, the guard ask for the I.C. to exchange with a entry pass. There are 4 to 5 building (factory) inside the area, they arrange car to drop you from one building to another. Why visit PChem? Because they intend to list the company on Bursa Malaysia, some preparation job involved by the Investment Bank, hence follow the team. Who is PChem?  Do you hear about BASF Petronas Chemicals? Or Optimal Olefins (M) Sdn Bhd? Never mind, if you don't, but Petronas, everyone know in Malaysia. PChem is one of Petronas subsidiary, for purpose of listing, it combine 22 chemicals company. PChem plan to raise RM12.5 billion through IPO (biggest IPO in Malaysia history) involve issue of 2.48 billion shares. (after listing Petronas hold 69%) The price for Institutional will be fixed through book building at

Asia Top 200 best company

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According to Wall Street Journal, they choose the Asia top 200 companies base on cost efficiency, profitable and most respective business to face the global challenging. Below are some of the name appear:  Alibaba.com Ltd Infosys Technologies Ltd Samsung Electronics Co. Apple Inc Cathay Pacific Airway Ltd Singapore Airlines Ltd PT Astra International Inc. Siam Cement PCL Public Bank Bhd Jollibee Foods Corp Woolwords Ltd Taiwan Semiconductor Manufacturing Co. Again, Public Bank from Malaysia go into the list this year. So, you know which company to consider if market crash! Click here ( Invest for Long Term )  if you know to know how much Public Bank grown in past 10 years!