Tough Times Never Last, But Tough People Do!

I sincerely apologize after performing David Copperfield's act for 5 months. As in any roller coaster ride, life is full for ups and downs as well but hopefully after some difficult 5 months, everything will be fine. Always reminding myself and hopefully to the readers as well that,

 'Tough Times Never Last, But Tough People Do!' - Robert Schuller

Back to my '5 months' interrupted journey to financial freedom, KLSE have been rallying to 1500. So if you are holding stocks that still stand like a rock (ex. Protasco), what would you do? 

For me, I will review back the stocks and if anything changed from the initial reason of buying it. Of course, always reviewing own stock picking is important as well as there are so much that we still need to learn. Learning is an endless journey.

For the time being, just enjoy as the bull charging.

Protasco - Updates

Protasco just declared a single tier final dividend of 5cents per share for the financial year ended 31 December 2009 bringing the total dividends to 9 cents for year 2009. Based on the current price, the dividend yield is around 9%. A good dividend yield will act as a good buffer and more importantly, putting less stress to your emotional well being if market retrace or come under pressure.

 New updates from the HCM Engineering (Protasco's main subsidiary) website below,

 HCM Arabia to Complete Libya's TBW Project Ahead of Schedule (source: HCM website) 

HCM Arabia (HCMA) is expected to complete its Tarhona-Ben Waled (TBW) road maintenance project ahead of schedule. It wants to hand it over to Libya’s Road and Bridges Authority (RBA) before the country’s 41st Al-Fatah Revolution Anniversary.

HCMA is wholly-owned by HCM Engineering Sdn Bhd.

In an interview, HCMA Director Dr Akram Agil said it is expected to be completed in early August 2010. The Anniversary falls on 1 September. He added that this would also put the company in a favourable position to secure a new tender to expand the 88km single carriageway to a dual carriageway.

Dr Akram’s smile has an unmistakable positive signal…

First, in respect of logistics, experience, base camp, staff, asphalt and quarry, HCMA is undoubtedly entrenched there. Second, it has the biggest fleet of machinery among the road players in Libya. Last count: 9 pavers, 1 CR 2200, 5 milling machines and 29 rollers.

The TBW project started mainly using the traditional mill and pave technique. However RBA was very pleased with a 10 km-trial using the Cold In Place Recycling (CIPR) method that they asked HCMA to subsequently do another 58 km stretch using CIPR which has now been completed.

Again it was a hit!

The client then asked HCMA to introduce CIPR at another ongoing project. Thus the upgrading of 40km of the 90km dual carriageway Tripoli Gharian (TPG) road maintenance project will be carried out using the CIPR technique. HCMA provides technical assistance for this project. Its main contractor is Libyan Malaysian Company for Road and Construction (LMCRC). The latter is 51% owned by Libya’s Real Estate Investment Company (REICO) and 49% owned by HCM Ikhtisas. TPG is scheduled to finish in March 2011.  

HCMA General Manager, En Mohd Nasir Hassan said he believes that TBW Phase 2 project augurs well for HCM Engineering and the friendly relationship between Libya and Malaysia. Concurs Dr Akram, “ Libyans love Malaysia. It is a Muslim country which they have heard a lot. They like (former premier) (Tun) Dr Mahathir Mohamad. Many of them have also been to Malaysia as tourists and for medical treatments.”   

Working in a foreign land is not without challenges.

 Even so, En Nasir said HCMA workers have generally managed to overcome the test in Libya. He said, “Sandstorms, rain, occasional machine breakdown and language barrier are no obstacles when we approach them positively. Through mutual understanding, teamwork, ingenuity, discussions and negotiations with the parties involved amid sound relationship with the Libyans, we are proud to be associated with useful road projects for the benefits of both countries.”

Dr Akram also attributed the workers’ adaptability to the family-like working environment which has been inculcated in Libya. Said he, “ We have regular gatherings with the site people. They have access to top management.” Besides, the Malaysian workers love Libyan food and they are also prepared to learn Arabic on-the-job.

Controlling the Controllable

Just a very short post.
Instead of focusing on when the market will have a correction, or will the rally last, we should focus on our own risk and expectation.
We could not control the direction of market but we can control our risk and our expectation.
It's all about Controlling the Controllable!

Mamee ! Double Decker, Double Decker

After scanning through the Putra Brand Awards 2010, I would like to announce my winner for Xabi Branded Stock Award 2010....

The winner is..... Mamee Double-Decker Bhd !

Reason 1 - Good Earnings vs Price

Reason 2 - Good Balance Sheet (almost zero borrowings) although not comfortable with the investment.

Reason 3 - Dividend policy of distributing 50% of net profit. (Calculate the DY yourself)

Reason 4 - Good Mission and Vision

Reason 5 - I really like their snacks and drinks... yummyyyy

Happy Investing!

Branding

A brand is a name, sign, symbol, slogan or anything that is used to identify and distinguish a specific product, service or business. (Wikipedia)

Branding is used in businesses and organizations of all sizes and types. Some companies allocate a large sum of money just for the branding purposes.
Why is it important? Because Branding separate one from their competitors.
When we (consumers) think of certain product, we will unconsciously associate it with certain brand and preference will  be definitely given to the brand.
Since branding is so important, I try to search for good businesses with good branding selling at fair price. From the below list of winners in Putra Brand Awards 2010, do we able to find it?

                                             Source: AAAA website

For full list, you can visit,
Putra Brand Awards 2010

When you have nothing to do, read books!

As the market going higher, it is getting tougher to find undervalue stocks. For the time being, I would try to gain more knowledge by reading more books.
For those who thinks that books are expensive, you can try to visit BookXcess (Amcorp Mall). You could get at least 50% cheaper than those found in other bookstore. The only downside is that the choice is limited. Recently, they moved to a larger store which is much more comfortable and significant increase of books selection as well.
Before visiting their store, you could check those title available through their website.

                     I purchased this hardcover book for only RM24.50.

I learned the hard and expensive lesson of going to sharemarket without any knowledge. Please do not follow my footsteps. Instead of paying the expensive 'tuition' fees, you could purchase tons of books for your own knowledge.
Even if you think that those books are worthless, at least you have tons of paper to burn rather than few pieces of worthless Contract Note. :)

Palm Oil - Basic Information

When we look into the reports/news/website of palm oil plantation companies, we come across of terms like Fresh Fruit Bunch (FFB), Crude Palm Oil (CPO) and Palm Kernel (PK). They will even produce their monthly production statement for FFB, CPO and PK from the example below taken from IOI Corp website.

                                            Source: IOI Corp website

FFB, CPO and PK

                                          Source: FAO Documents

The photos above are self-explanatory of the terms FFB, CPO and PK. Basically, Palm Oil will be extracted from the mesocarp (pulp) while Palm Kernel oil will be extracted from the kernel. The difference between both types of oil is that Palm oil normally used as cooking oil, while, Palm kernel oil mainly used for soap manufacturing. The prices for both Palm Oil and Palm Kernel Oil are different as well, though they have direct correlation.

                                           Source: MPOB website

The point to note is that some companies do directly sell part of the FFB produced to third party instead of processing it themselves.

                                            Source: TDM AR2008

Hope this is informative for the readers.