Gold fell by 5 % as Bernake signal no further QE

Gold in US dollar took a hit as Fed Reserve chairman puts a brake on further QE.
Gold fell below USD 1700 but managed to recover to 1720 level.



Gold plunges from Aud 1660 to 1570.
Climbing to 1600 level

Hap Seng. HS Plant. Revised

HSC (nta 147, Q/Q 4.8/4.4/ 5.1 sen) Fv RM1.90
HSP (nta 228, Q/Q 7/ 7/ 9.5/ 8.3/ 6.6 sen) Fv RM3.10
HSC and HSP declare a dv of 4.7 sen and 10 sen respectively going ex. 27th Feb 2012
HSC gained 6 sen while HSP gained 8 sen today ...

Hap Seng. HS Plant. TDM. Kian Joo.QL

Here's some of the stocks I still like despite the run-up in their prices ...
HSC (nta 147, Q/Q 4.8/4.4) Fv RM1.80
HSP (nta 228, Q/Q 7/ 7/ 9.5/ 8.3) Fv RM3.10
TDM (nta 350, Q/Q 14.9/12.7/ 13.9/ 21.8) Fv RM6.00
KJC (nta 202, Q/Q 5.3/ 6.9/ 6.9/ 6.4) Fv RM2.55
THP (nta 115, Q/Q 8.7/ 4.3/ 6.4/ 6.5) Fv RM2.50
Accumulate all above on weakness (buy THP only in RM2.20-2.30 range)
QL Reso (nta 092, Q/Q 8.4/ 3.9/ 3.3/ 4.6) Fv RM 2.10
QL fully valued, see no reason to accumulate ... Sell on rally ...

Telco Axiata, TM, Digi, Maxis

Axiata (nta 228, Q/Qeps -4/ 6/ 8/ 7 sen) Fv 280. Now trading at RM4.75 @ pe 17, Dv 14 sen Dy 3%
TM (nta 177, Q/Q 11.2/ 4.6/ 3.6/ 8.4 sen) Fv 250. Now trading at RM 4.82 @ pe 19, Dv 23 sen Dy 4.8%
Digi (nta 018, Q/Q 4.3/ 3.1/ 3.8/ 5.1 sen) Fv 170. Now trading at RM 4.11 @ pe 24, Dv 17.5 sen Dy 4.26%
Maxis (nta 1.03, Q/Q 8.1/ 7.2/ 7.3/ 7.2 sen) Fv 300. Now trading at RM 5.70 @ pe 19, Dv 40 sen Dy 7%

Remarks: Axiata will cross RM 5 range once they start paying better dividends ...
TM looks pricely now with the run-up from RM4 level to current. RM5 level is what I considered fully valued (see my previous posting). I think there's no more capital repayment in the pipeline so investors will likely just get 9.8sen tax exempted every six months which will give a yield of 4 %. It's a sell if it ever matches Maxis share price ...
Digi has gone ballistic after the share split and announcement of latest Qeps of 5.1sen and dv of 6.5 sen. Based of trailing quaterly eps and dv payout, it's pe is the highest with Dy = (4.3+3.0+3.7+6.5)/ 411 = 4.26% low. Its next Qeps & dv will be interesting to look at. If it can sustain its Quarterly dv 6.5 sen, then Dy = (6.5 x 4/ 411) = 6.3%
Maxis hasn't really breakout from its RM5.20 to 5.70 range and I would recommend buying some purely for dividends. Hold a year or two and see if it could follow the footsteps of Digi (I held Digi for two years). Don't worry too much about downside if you buy at RM5.60- 5.70 cos' one year's dividend will bring your cost to RM5.20 (lower range).
Besides 7% dy is twice your FD rates. Even if you dont make any money first year on Maxis, your second year gain makes up for two years FD gain. Make sense ..?
Happy investing ya ...

A good workout to burn calories off CNY gains

It's time to get stronger and fitter ... Healthy body, sharper minds ...

Palm oil down on strong ringgit, weak demand

Malaysian crude palm oil extended losses on Friday on the back of a stronger ringgit currency squeezing refiner margins at a time when export trends point to slowing demand. The ringgit has strengthened around 4.6 percent against the dollar in 2012, making it more expensive for refiners to buy ringgit-priced feedstock to process. Many investors also chose to remain on the sidelines ahead of a long weekend holiday, limiting trade interest in the futures market that has lost almost 4 percent this year.

"The market's a bit quiet, it's stuck in a tight trading range of 50 to 70 ringgit," said a trader with a foreign commodities brokerage in Kuala Lumpur. By the midday break, benchmark April palm oil futures on the Bursa Malaysia Derivatives Exchange edged down 0.1 percent to 3,052 ringgit ($1,010) per tonne. Traded volumes stood at 10,187 lots of 25 tonnes each, thinner than the usual 12,500 lots, ahead of the long weekend holiday. On the demand side, Malaysian palm oil exports for January eased close to 12 percent and 13 percent, according to cargo surveyors Intertek Testing Services and Societe Generale de Surveillance.

The decline was in line with market's expectation as top buyers including China, India and the European Union cut back orders. But traders also attributed the fall to the shift in orders to Indonesia, which slashed export taxes for processed oils. In response to the tax structure, Malaysia will reform its crude palm oil export duty policy and introduce a 1 billion ringgit fund, a Malaysian daily reported on Friday, citing unidentified sources.

Some traders see prospects of weaker demand for Malaysian palm oil as Brazilian harvest will start soon and major consumers will start looking at these offers. "The market will be competitive and we need not only to fight the Indonesia products but also beans from South American origin," said another trader based in Malaysia. Indonesia, meanwhile, is expected to export more crude palm oil to Pakistan as a result of a cut in import duties imposed by Islamabad following a trade pact signed on Friday, the Pakistani ambassador said. (Reuters SINGAPORE, Feb 3-Chew Yee Kiat)

Gold surges beyond 1750

Gold seen trading at close to 1755 US dollar




US dollar plunges to 3.02 Malaysian Ringgit.
In other words, Ringgit has strengthen sharply against USD ...