Boustead. TM.

Boustead's dividend payout record: 5 sen on 26th June 2009, 5 sen on 13th Sept 2009, 7.5 sen on 11th Dec 2009, final 10 sen on16th Mar 2010. Recent payout 5 sen on 15th Jun.
I think we can expect another 5 sen come early Sept.
TM's dividend payout: 10 sen on 8th Sept 2009. Recent payout 13 sen on 18th May.
Expecting a minimum 10 sen end Sept.

Sime vs. IOI

Sime (Last four Q eps 16/11/7/ -5 sen). Quarterly earnings decline with the recent at a loss. Sold my holding much earlier when I saw the earning drop from 11 sen to 7. What's the fair value to buy in again..? Assuming becomes profitable in the next two quarters at Q eps 7 sen, then fair value Fv (with annualised PER 10) = 7 x 4 x 10 = RM2.80
Current price of Sime = RM7.49 ie. at 2.67 times over its fair value of PER 10

Check IOI (Q eps 8.2/8.0/7.7/8.6 sen recent) Fair value Fv = 8.6 x 4 x 10 = RM3.44
Current price of IOI = RM4.95
Ratio 495/ 344 = 1.44, so IOI is currently priced at 14.4 PER
Applying same ratio, Sime should be priced at 1.44 x RM2.80 = RM4.04
For now, IOI seems to have better value than Sime

June's Job Losses Up, May's Factory Orders Drop

The US economy lost 125,000 jobs in June, more than financial market and economist's forecast of 110,000 as thousands of temporary census jobs ended and private hiring grew less than expected.

With unemployment stubbornly high, household spending has turned sluggish in recent months, threatening to create a vicious cycle that stock market investors and some analysts worry could tip the economy back into recession.

The Federal Reserve is also in a bind. It has held benchmark overnight interest rates close to zero since December 2008 and has pumped more than $1 trillion into the economy.
Fed officials believe a sustainable recovery has taken hold, but are watching cautiously.

Orders to U.S. factories declined broadly in May after nine straight months of gains, raising new concerns that the recovery is stalling. The Commerce Department said Friday that orders for manufactured goods decreased 1.4 percent in May. It was the biggest drop since March 2009.

G20 to cut deficits by 2013

G20 countries vow to slash their budget deficits by half by 2013 and stabilses the government debt/GDP ratio by 2016. That's the general consensus reached by leaders of the G20 forum in Canada recently.
This means less and lesser Gov't spending on infrastructure, reduced priming of the economy by quantitative easing (money supply or printing) and gradual withdrawal of subsidies, welfare, healthcare, grants.
But reduction on spending will impact growth and lower growth means lesser revenue for the Gov't. Slower growth will hamper employment , lower wages resulting in more labour union strikes and street riots. This is not positive for both the global market and Gov't.
Gov't may increase rates for tax, duties and tariff which negate regional competitiveness and thus making exports expensive.
Simply bad news...

Glovemakers Earnings Review

Top Gloves (Q/Q/latest Qeps 22/23/ latest 21 sen, nta RM 3.37) Earnings Q/Q flat over 3 quarters. Fair value Fv with annualised PER 10 = 21 x 4 x 10 = RM8.40
Supermax (Q/Q/ latest Qeps 15/16/ 19 sen, nta RM2.33) Earnings up but is it sustainable..?. Fv = 7.60 Revised Fv =7.60/1.25 = RM6.10 adjusted after 25% bonus issue.
Kossan (Q/Q/ latest Qeps 9/15/ 19sen, nta RM2.33) Earnings up. Fv =RM 7.60
Latexx (Q/Q/latest Qeps 7/9/ 10.5 sen, nta RM0.99) Earnings up. Fv = RM 4.20
Adventa (Q/Q/latest Qeps 3.7/6.4/ 4.6 sen, nta RM 1.36) Earnings decline. Fv = RM 1.90
Current prices: Top Gloves RM13.00 Supermax RM5.90 Kossan RM7.60 Latexx RM3.60 Adventa RM3.20

Strategy : Dividend stocks

Save yourself some stress, buy into dividend counters.
My strategy for next 3 months = focus on dividend stocks.
Looking to buy on dips: TM, Boustead, HapSeng Cons., HS Plant, HunzPty, TDM, Efficien
A few others caught my attention: Manulife, WTHorse, Ascotec, FPI

My current portfolio: Axiata, Boustead, Digi, Esso, Efficien, GenM, HapSeng, HSPlant, Hubline, Hunza, IGB, IJM, LionInd, QL Reso, TDM, THPlant, TM
Sold all of Supermax, looking to switch to GenM, TM and Axiata (three of cheapest priced blue chips, not necessary in value). I'm buying to hold for 10 years (trading on price volatility), seriously.
I'll be watching price action of construction, materials, property stocks.

Markets tumble on weak jobs data

US stocks felled sharply on Friday after May payrolls indicates private hiring was lower than expected, raising fears of the strength of the economic recovery.

Labor department reported 431,000 jobs was added to the US economy but of that total, 411,000 was hired for US Census (jobs which are short term and temporal): falling short of the 513,000 expected by Wall Street.
This shows that there is no much economic ability to generate ongoing job growth and that raises question of sustainability of the recovery, " said Joseph Battipaglia, market strategist at Stifel Nicolaus in Yardley Pennsylvania .

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.

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

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.