Remember the LORD for it is he who gives you the ability to produce wealth and so confirms his covenant... Deut. 8:18

Monday, May 31, 2010

Quick News: Gold at USD1,700/ oz

Greece Central Bank is selling one ounce equivalents as high as USD 1,700 (40% over spot price) and prices on the black markets higher as people unload their paper assets stocks and bonds on fear of the nation's government defaulting on their own debts.
Punchline:- hold on to your gold, buy a little when it dips, sell as needed in times of paper currency collapse.

Sunday, May 30, 2010

Earnings: Axiata.TM.Sunway.HapSeng.HSPlant.Bstead.MSing

Axiata ( Qeps 11 sen cf. previous Qeps 7 sen, nta 219 ) Fv = 11 x 4Q x PE10 = RM 4.40
TM ( Qeps 6.9 sen cf. previous Qeps 4.8 sen, nta 213) Fv = 6.9 x 4 x 10 = RM 2.76
Sunway (Qeps 6.9 sen cf. previous Qeps 4.2 sen, nta 132) Fv = 6.9 x 4 x 10 = RM 2.76
HapSeng Cons (Qeps 7 sen cf. previous Qeps 1.4 sen, nta 422 ) Fv = 7 x 4 x 10 = RM 2.80
HSPlant ( Q/Q eps 4.5/5.0 sen, nta 215) Fv = RM 1.80
Boustead ( Q/Q eps 9.7/16.2sen, nta 427 ) Fv = 9.7 x 4 x 10 = RM 3.88
Dv 5 sen t.e. ex. 15th June
MahSing (Q/Q eps 4.0/3.9, nta 126) Fv = 4 x 40 = 160

Friday, May 21, 2010

Euro rescue: Eyes on Germany as lawmakers vote

BERLIN (AP) -- With the future of the euro in the balance, German lawmakers were expected Friday to approve the massive rescue deal to save the common currency and contain the debt crisis -- a signal that the finance minister said was needed to reassure jittery markets.

Both houses of parliament were scheduled to vote on the euro750 billion (nearly $1 trillion) package drawn up two weeks ago and Chancellor Angela Merkel's center-right government currently holds a majority in each.

Germany, Europe's biggest economy, is to contribute between euro123 billion and euro147.6 billion in loan guarantees. It comes hard of the heels of a separate package to rescue Greece -- which was already unpopular, given that Germans dislike the idea of paying for others' financial missteps.

"We have to put into effect what we have agreed, because markets will only trust when it is actually in effect," Finance Minister Wolfgang Schaeuble told lawmakers. "The reality is that the markets look more at Germany than at Cyprus or Malta ... so it is right, in order to win markets' confidence, that we decide so quickly."

Merkel had called for lawmakers' approval on Wednesday, declaring that "if the euro fails, then Europe fails." "We are not doing this out of generosity toward others; we are doing this in our own best national interest," Schaeuble said. "And this national interest means remaining integrated into a Europe growing further together."

Nearly two-thirds of German exports go to other eurozone countries, and "if we didn't have the common currency, we would have much less economic potential, less prosperity and less social security," he added.

Tuesday, May 18, 2010

AUD falls sharply

AUD slip to 2.79 on concern about Europe's debt crisis and possible slowdown in China's demand for Australia's resources.

Friday, May 14, 2010

Forget Eurozone... this country could be the next to suffer a debt crisis

Now that the Greek debt crisis has been "fixed" by a gigantic pile of more debt, many are wondering which European nation will be next to experience a massive debt crisis.
GBP at 4.65 MYR
Increasingly, all eyes are turning to the U.K. and their public debt that is spiralling out of control. The U.K. government's deficit is projected to be approximately 13 percent of GDP in 2010, which is even worse than Greece's 12.5 percent figure. Right now the public debt of the U.K. is...

Friday, May 7, 2010

TM maintains dividend payout

Telekom Malaysia Bhd (TM) (4863)says it wants to continue dishing out around RM700 million in dividends, or over 90 per cent of its net profit, to shareholders annually.

TM and the government will each fork out RM1 billion this year to further develop the country's high speed broadband service, branded "UniFi". They had agreed to invest equally in the first few years, TM chief executive officer Datuk Zamzamzairani Mohd Isa said. TM and the government together spent RM1.9 billion last year, he told reporters after its annual general meeting in Kuala Lumpur yesterday.

"We will maintain annual dividend payout of RM700 million, or over 90 per cent of our patami (profit after tax and minority interests), whichever is higher," he said. TM has announced a total dividend of RM706.5 million, or 19.75 sen net per share, for its financial year ended December 31 2009.

Monday, May 3, 2010

In News: Latexx. SSteel. HunzPty.DiGi

LATEXX PARTNERS BHD more than doubled its net profit to RM20.72 million for the first quarter ended March 31, 2010 (1QFY10) from RM9.14 million a year earlier on the back of capacity expansion, aggressive marketing strategy and overall cost savings.Revenue surged 79.4% to RM126.17 million from RM70.32 million, while earnings per share rose to 10.52 sen from 4.7 sen. It declared a tax exempt interim dividend of 2.5 sen per share.

SOUTHERN STEEL BHD posted a net profit of RM34.48 million in its first quarter ended March 31, 2010, versus a net loss of RM65.48 million a year earlier on the back of a higher revenue in line with the economic recovery.Revenue surged 59.74% to RM628.74 million from RM393.6 million, while pre-tax profit totaled RM37.1 million versus a loss of RM78.5 million a year earlier. Basic earnings per share stood at 8.2 sen, versus a loss per share of 15.6 sen previously.

Penang-based Hunza Properties Bhd’s net profit surged 95.26% to RM11.29mil for the quarter ended March 31, 2010 compared with the previous corresponding period on higher property sales and contributions from the Gurney Paragon project.
The company said in an announcement to Bursa Malaysia yesterday that revenue for the quarter jumped 214% to RM58.52mil.

DIGI.COM BHD net profit for the first quarter ended March 31, 2010 rose to RM278.26 million from RM275.44 million a year ago, on the back of a 6% increase in revenue to RM1.3 billion. The company had on Tuesday, May 4 also declared a first interim dividend payout of 35 sen per ordinary share of 10 sen each, payable on June 18, 2010. Earnings per share rose to 35.80 sen from 35.40 sen a year earlier, while net assets per share was RM1.77.

Repayment of Amortized Loan

Here's an amortization calculator formula for deriving the amount of monthly repayment taken against a loan/ mortgage.

A = P { i + i / [(( 1 + i ) pw. n) - 1]}

Where: A = periodic payment amount, P = principal amount, i = periodic decimal interest rate ( not percentage), pw. = to the power, n = total number of periodic payments.

eg. P = RM400000, i = 3.6% per annum ( 0.036 pa or 0.003 pm), n = 20 years ( 240 mths).
A= 400,000 {0.003 + 0.003 /[ ((1 + 0.003) pw. 240) - 1]} = 400,000 {0.003 + 0.003/[2.05222- 1]} = 2340.44
So annual repayment = RM2,340.44 x 240 months for RM400,000 loan at 3.6% mortgage rate