Robust Mind

Gunung Capital Berhad (GUNUNG - 7676)

Dear readers, it has been a while since my last post. I have been away because of various reasons due to work and personal issues. Anyway, I am now back to blogging, but with a different new concept. This blog will still be on finance and investment issues, but with a zest of my personal interest outside the finance world.

Anyway, today I will be sharing with you guys on what have I been up to these past few months. These are my findings after closely analyzing the development of this company over the last nine months. This is a company which will not be on the radar of most analysts but has a juicy turnaround story.

Prior to September 2010, Gunung Capital Berhad (Gunung) was simply an unexciting latex commodity trading arm for Latexx Partners Berhad (Latexx) as both companies has the same substantial shareholder, Low Bok Tek (a.k.a. “Robotech”), apparently the wealthiest man in Taiping.
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10 Ways Of Doing Without FDI

A STIR of sorts has been caused by the story that foreign direct investment (FDI) into the country for 2009 fell 81% to US$1.4bil (about RM4.5bil) from US$7.3bil (RM24bil).

But really it should not. If we want higher value-added, then labour-intensive industries are not our target. This is the area which many foreign investors like because they can get tremendous cost savings by using cheap labour in places like China, Vietnam etc.

If greater value-added is what we are after, then increasingly more investments have to be made in the services area – think tourism or education for instance. That does not necessarily need foreign investment – we can use local money.

How to Find Recession Proof Stocks

Credits to Nilus Mattive

Global shipping is grinding to a halt; consumers are hunkering down again; manufacturing measures are indicating a new slump in activity; and even China’s red-hot economy is now a bit less robust according to Beijing!

In short, now is the perfect time to revisit the areas of the stock market that traditionally hold up best when recessions strike. These are the very same areas that I’ve been emphasizing all along, even during the manic rally, and the very same groups of stocks that you should look at right now as storm clouds roll back over the economic landscape.

Market Outlook (July 5th - 9th)

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Current Trend : Uptrend

Support 1 : 1303

Support 2 : 1295

Interest Rate Increase Next Week?

Although Malaysia’s year-on-year (yoy) export growth of 21.9% to RM52.3bil in May fell below market expectations, economists are still positive on an interest rate increase next week.

Reuters poll of 13 economists had forecast May exports to rise by 25.7% from a year earlier. Exports in April had expanded 26.6% yoy.

Stock Watch (ALAM)

Company: Alam Maritim Resources Berhad

Industry: Oil & Gas

3yr Average ROE: 19.47%

5yr Average EPS Growth Rate: 33.26%

Market Outlook (June 28th - July 2nd)

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How to Fully Utilize Maybank ASB Loan

A few days ago, I came across a discussion about ASB loan offered by Maybank. Actually, I have heard about the loan before and it seems like a very good investment for those of you who don't have much capital (like me!) as you don't have to pay lump sum to get maximum dividend. However, I never thought that we can utilize this investment so that we only need to pay the installment for the first year only, and at the end of the tenure, you will get the full amount of the loan.

Market Outlook (June 21st - 25th)

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Stock Watch (TCHONG)

Company: Tan Chong Motor Holdings Bhd

Industry: Motor Vehicle

5yr Average ROE: 10.86%

10yr Average EPS Growth Rate: 20.45%

Market Outlook (June 14th - 18th)

10th Malaysia Plan; What Say You?

Last Friday, our beloved Prime Minister announced the RM230 billion package under the 10th Malaysia Plan (10MP) for the year 2011-2015. All the media masses seem to be supportive and believe that Malaysia, among others, can achieve 6% GDP growth per year until 2015 to match the targeted RM38,850 (USD 12,140) gross national income. Another point that I would like to highlight is that the government also aims to increase the private sector investment by 12.8% which is equivalent to RM115 billion per year.

Book Recommendation – I Love Stocks by Pauline Yong

This week, I would like to introduce a very good book to those of you who would like to start investing in the stock market.

Stock Watch (MAMEE)

Company: Mamee Double-Decker (M) Bhd

Industry: Food & Beverage

5yr Average ROE: 14.76%

10yr Average EPS Growth Rate: 25.4%

Market Outlook (June 7th - 11th)

Investing in a Bear Market

As we all realize, a couple of weeks ago our FBMKLCI plunged under the 200-day moving average which means that we are officially in a bear market. Even though the market went up a little last week, majority investors and analysts believe that the bear is not done yet.

How to Read a Financial Statement (Part 2)

Debt Equity Ratio or Gearing Ratio

Gearing ratio of a company will indicates how deep is the company with debt. Naturally, the lower the ratio, the better the company. If the company has a gearing ratio of 1, it means that the company has RM 1 debt for every RM 1 of it’s assets.

Market Outlook (May 31st - June 4th)

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How to Read a Financial Statement (Part 1)

Having discussed the basics of both fundamental and technical analysis strategies, I believe that the next step for the investors is to learn how to read financial statements of a company. By reading, I mean the investors should be able to understand not only the profit and loss of the company, but also other important info which are ‘hidden’ in the statement. By analyzing the statement, investors will be able to select and filter companies that have the most growth potential.

Fundamental Analysis versus Technical Analysis (Part 3)

Finally, I’ve got some time to finish what I had started on this issue of Fundamental and Technical Analysis.

As I have discussed in previous entries, both FA and TA methods have their own pros and cons in the world of investing. Personally, I believe that every investor should invest some of their time and money to gain substantial knowledge about these two different strategies. A wise investor who wants success should be able to use both strategies, complimenting each other and increase the likelihood of profitable trades. Read More!

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