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.

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...http://theeconomiccollapseblog.com/archives/will-the-u-k-be-the-next-european-nation-to-experience-a-massive-debt-crisis

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.

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

ASN funds online top up service by CIMB

Permodalan Nasional Bhd and CIMB Bank today unveiled CIMB Clicks Amanah Saham Nasional Bhd (ASNB) Funds Top Up Facility at the 11th Minggu Saham Amanah Malaysia (MSAM) in Kuching.
The online facility allows all registered ASNB investors, who have a CIMB Clicks account to make additional investments in five fixed-price unit trust funds managed by ASNB.
The five funds are Amanah Saham Bumiputera (ASB), Amanah Saham Malaysia (ASM), Amanah Saham Didik (ASD), Amanah Saham Wawasan 2020 (ASW2020) and Amanah Saham 1Malaysia (AS 1Malaysia).
Read more: CIMB offers online ASN funds top up service http://www.btimes.com.my/Current_News/BTIMES/articles/20100420153853/Article/index_html#ixzz0lXGza0pH

News: Telekom. Supermax. MaSteel

The Employees Provident Fund, Malaysia’s largest pension fund, bought 5.5 million shares in Telekom Malaysia Bhd, between April 5 and 6, raising the fund’s stake in Telekom, the nation’s biggest fixed line operator, to 11 per cent, according to a stock exchange filing. -- Bloomberg

Supermax Corp Bhd is optimistic of a bullish financial performance this year as its expects earnings per share (EPS) for the first quarter of 2010 to exceed its earnings guidance for the year. Executive chairman cum group managing director Datuk Seri Stanley Thai said the company was revising its EPS target from a minimum of 50 sen per share to a minimum of 62 sen per share for the financial year ending Dec 31, 2010. He said the revised profit guidance for the current year took into account latex price fluctuations, foreign exchange and the possibility of a hike in natural gas and electricity tariffs.

Malaysia Steel Works (KL) Bhd (Masteel) expects its overseas revenue contribution to grow by 65 per cent in 2012 from the 30 per cent at present following the completion of its downstream expansion.

Telekom declares 13 sen dvd

TM declares 13 sen (less 25% tax, 9.7 sen net) dividend ex. 18th May
This year alone, it has declared a total of 10 sen tax exempted + today 9.7 sen net = 19.7 sen
If you have bought in at RM 3.00, that is a dividend yield of 19.7/ 300 = 6.56 %
with capital appreciation of RM3.50 (today's price)/ RM 3.00 = 16.7 %
making a total of approx 23 % in less than a year...
That's RM 23,000 for every RM 100,000 invested, in less than a year...

My Favorite Glovemaker

Supermax (Q eps 16.4 sen, nta RM 2.08). Simple Fv = 16.4 x 4 x 10 = RM 6.56: Today's price at RM7.10, approx PER 10.8 <*** top value ***>

Latexx (Q eps 8.8 sen, nta RM 0.87). Simple Fv = RM 3.52: Today price at RM 4.00, approx PER 11.3

Kossan (Q eps 15 sen, nta RM 2.23). Simple Fv = RM 6.00: Today's price at RM 8.00, approx PER 13.3

Top Glove (Q eps 23.5 sen, nta RM 3.02). Simple Fv = RM 9.40 : Today's price at RM13.60, approx PER 14.5

Still Buying

Market may take a dip, come Monday and Tuesday. I'll be buying.
A firm buy for me, the following counters:
TM, Axiata, MayBk, CIMB, Supermax, GenM, TDM, HunzPty, Lion Ind
That's because I'm purchasing on "averaging up" .
I have these in my existing holding at much lower prices.

CIMB was a recent acquistion at recent high: like it for its regional reach, deals, book making, Thai IPO (for dividend repayment..?), bonus issue 1:1. Hold for 3 years, double up...?

Still like MayBk, because everyone I meet hates MayBk.
Good Q eps, PER trailing that of CIMB and Public Bk.
A wise person once told me that banks are the life lines of the country's economy.

Sectors I like in 2010: banks, utility, healthcare, property & construction, building materials