Tuesday, June 12, 2012
Wall Street flat as Spain debt deal raises worry
Wall Street flat as Spain debt deal raises worry: NEW YORK (Reuters) - Stocks traded flat on Tuesday as yields on Spain's 10-year bond hit a euro-era high, pointing to continued stress in the nation's debt markets shortly after an announced European Union bailout.
€100 Billion will Help Spain?
€100 Billion will Help Spain?:
Will €100 billion will help Spain? If you base on Greece this money will not help. Euro already use large amount of aid to help Greece so now come Spain so how far and how many money can be use?
Because of Europe crisis, USD is moving higher and RM is moving down soon foreign fund will be more buying power in Malaysia and share may likely to flow in to speculate Malaysia market. Share likely to move higher this week due to the money aid news.
All this aid will come from more money printing and more speculation, living cost will go higher and house price and food will go up too. You and me will go poorer by total amount of money in EPF and Bank will go higher.
Because of Europe crisis, USD is moving higher and RM is moving down soon foreign fund will be more buying power in Malaysia and share may likely to flow in to speculate Malaysia market. Share likely to move higher this week due to the money aid news.
All this aid will come from more money printing and more speculation, living cost will go higher and house price and food will go up too. You and me will go poorer by total amount of money in EPF and Bank will go higher.
Oil and Gas Operations Sector's Biggest Movers for June 11, 2012
Oil and Gas Operations Sector's Biggest Movers for June 11, 2012: The Nasdaq has fallen 0.2%, the S&P 500 has declined 0.3% and the Dow is trading down 0.4% on a bad morning for the market. The Oil and Gas Operations sector (DIG) is down 0.9%, underperforming the ma ...
Taken for a Ride by the NYC Taxi Cartel
Taken for a Ride by the NYC Taxi Cartel:
In a recent Slate.com article titled "Taken for a Ride," the authors ask a good question: "The taxi medallion system in New York and other cities raises fares, impoverishes drivers, and hurts passengers. So why can’t we get rid of it?" Here are some excerpts:
"When New York’s Taxi and Limousine Commission held a public hearing last week to consider whether to raise taxi fares by 20 percent, cabdrivers pled poverty and passengers argued that fares are too high. Paradoxically, both groups were right.
“Compete” may be the wrong word, however, since owners of the aluminum placards don’t have much experience with losing. Over the last decade, their victories have driven the price of a medallion from around $200,000 to more than $1 million in New York (see chart above). Medallion owners from Boston to San Francisco have been similarly fortunate, with medallions in Chicago appreciating even faster than the sustained 16 percent per year gains seen in New York.
New York’s tight limits on the number of medallions in circulation has suppressed the supply of cabs. There are 13,237 medallions now outstanding, a few hundred fewer than in 1937, but a huge supply of drivers competing to lease them. In practice, a fixed number of medallions is just a fact of the system. In New York, Chicago, and Boston, the number of medallions has barely budged since they were issued in the 1930s. New York went 60 years without issuing new medallions, and it's only been a trickle since.
Restricted supply makes for high medallion prices, and that in turn leads to consolidation in the industry. Only around 18 percent of cabs are owner-operated, putting most medallions in the hands of big taxi fleets or brokers who simply rent them out. The limited number of shifts and oversupply of drivers looking to work means that the fleets only rent out cabs by the shift, the shortest term, most profitable way possible."
MP: The "lose-lose" outcome of a taxi medallion system is a good example of "crony capitalism" that has allowed a private taxi cartel to operate in NYC and restrict the supply of taxis in the same way that OPEC can restrict the supply of oil. Consumers lose, taxi drivers lose, while the medallion owners prosper.
What are the chances of any major changes to the taxi cartel? Probably none, as public choice economics would predict. The medallion owners are too well-organized, too entrenched in the status quo, and they have the financial resources available for rent-seeking to protect their cartel status. Taxi customers are dispersed and disorganized, and have limited resources to fight the cartel, so nothing will change.
As one report on the industry concluded, “A taxi medallion system is nearly impossible to end even if it proves to be providing unfairly high gains to a limited number of original medallion owners. Medallion owners fiercely resist any possible threat that may challenge their advantage.”
The NYC taximedallion system cartel is a good example of "government failure" and crony capitalism that harms consumers and impoverishes the citizens of New York City, while enriching a small group of wealthy, politically-connected rent-seekers. Where's the outrage from the OWS crowd, this seems like it would be a good issue for them?
In a recent Slate.com article titled "Taken for a Ride," the authors ask a good question: "The taxi medallion system in New York and other cities raises fares, impoverishes drivers, and hurts passengers. So why can’t we get rid of it?" Here are some excerpts:
"When New York’s Taxi and Limousine Commission held a public hearing last week to consider whether to raise taxi fares by 20 percent, cabdrivers pled poverty and passengers argued that fares are too high. Paradoxically, both groups were right.
This lose-lose scenario is only possible under the taxi medallion system, a regulatory scheme in which the right to operate a taxi is thoroughly divorced from the actual work of driving one. It’s a classic example of the perils of financialization, the process through which economic potential is turned into a liquid and leveraged asset. By converting a portion of cabbies’ future revenue into a freely tradable asset, New York, Chicago, San Francisco, and a host of other cities have created a powerful investor class, medallion owners and financiers, whose interests routinely compete with those of drivers and passengers.
“Compete” may be the wrong word, however, since owners of the aluminum placards don’t have much experience with losing. Over the last decade, their victories have driven the price of a medallion from around $200,000 to more than $1 million in New York (see chart above). Medallion owners from Boston to San Francisco have been similarly fortunate, with medallions in Chicago appreciating even faster than the sustained 16 percent per year gains seen in New York.
New York’s tight limits on the number of medallions in circulation has suppressed the supply of cabs. There are 13,237 medallions now outstanding, a few hundred fewer than in 1937, but a huge supply of drivers competing to lease them. In practice, a fixed number of medallions is just a fact of the system. In New York, Chicago, and Boston, the number of medallions has barely budged since they were issued in the 1930s. New York went 60 years without issuing new medallions, and it's only been a trickle since.
Restricted supply makes for high medallion prices, and that in turn leads to consolidation in the industry. Only around 18 percent of cabs are owner-operated, putting most medallions in the hands of big taxi fleets or brokers who simply rent them out. The limited number of shifts and oversupply of drivers looking to work means that the fleets only rent out cabs by the shift, the shortest term, most profitable way possible."
MP: The "lose-lose" outcome of a taxi medallion system is a good example of "crony capitalism" that has allowed a private taxi cartel to operate in NYC and restrict the supply of taxis in the same way that OPEC can restrict the supply of oil. Consumers lose, taxi drivers lose, while the medallion owners prosper.
What are the chances of any major changes to the taxi cartel? Probably none, as public choice economics would predict. The medallion owners are too well-organized, too entrenched in the status quo, and they have the financial resources available for rent-seeking to protect their cartel status. Taxi customers are dispersed and disorganized, and have limited resources to fight the cartel, so nothing will change.
As one report on the industry concluded, “A taxi medallion system is nearly impossible to end even if it proves to be providing unfairly high gains to a limited number of original medallion owners. Medallion owners fiercely resist any possible threat that may challenge their advantage.”
The NYC taxi
Thursday, June 7, 2012
Consumer Cyclical Sector's Biggest Movers for June 6, 2012
Consumer Cyclical Sector's Biggest Movers for June 6, 2012: The market is having a good day so far: the Nasdaq is trading up 2%; the S&P 500 has moved up 1.8%; and the Dow has risen 1.8%. The consumer cyclical sector is a category of stocks that relies heavily ...
NYSE's Biggest Movers for June 7, 2012
NYSE's Biggest Movers for June 7, 2012: On a good day for the market, the Nasdaq is trading up 0.2%, the S&P 500 has increased 0.4% and the Dow has climbed 0.7%. Also known as the "Big Board", the NYSE relied for many years on floor tra ...
Mutual Funds Post Year's Most Meager Inflow
Mutual Funds Post Year's Most Meager Inflow: Mutual funds managed to recover somewhat from the massive $4.9 billion outflow they endured mid May by posting the smallest weekly infusion so far this year.
Eurozone crisis biggest risk to world economy: UN
Eurozone crisis biggest risk to world economy: UN: The euro zone debt crisis is the leading danger for the global economy and any worsening will likely lead to even weaker world growth.
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5 June - Indian Stock markets analysis
5 June - Indian Stock markets analysis:
Greetings from LiveBombayStockExchange, your daily dose for Indian stock market updates.
Major Indian stock indices including BSE's SENSEX and NSE's NIFTY closed higher today. Following is today's analysis report of Indian stock markets.
Stock traders booked profits near the higher end of the narrow trading range following weakness in the rupee against the dollar. Capital goods, banking and power stocks led the gainers on hopes of an interest rate cut by the Reserve Bank of India. 30 component most watched Sensex ended the day at 16,020.64, up 32.24 points. The large-cap index touched an intraday high of 16,138.29 today.
The broader index NSE's Nifty closed at 4,863.30, up 15.15 points touching a low of 4,847.70 during the day's trade.
Indian Stock markets highlights for today:
Read more »Major Indian stock indices including BSE's SENSEX and NSE's NIFTY closed higher today. Following is today's analysis report of Indian stock markets.
Stock traders booked profits near the higher end of the narrow trading range following weakness in the rupee against the dollar. Capital goods, banking and power stocks led the gainers on hopes of an interest rate cut by the Reserve Bank of India. 30 component most watched Sensex ended the day at 16,020.64, up 32.24 points. The large-cap index touched an intraday high of 16,138.29 today.
The broader index NSE's Nifty closed at 4,863.30, up 15.15 points touching a low of 4,847.70 during the day's trade.
Indian Stock markets highlights for today:
Malaysia now among 15 most competitive economies in the world Ranking improves to 14th position from previous 16th in Institute for Management Development (IMD) survey
Malaysia now among 15 most competitive economies in the world Ranking improves to 14th position from previous 16th in Institute for Management Development (IMD) survey:
Malaysia is now the 14th most competitive economy in the world, according to a survey carried out by the Institute for Management Development (IMD) of Switzerland. The IMD survey measures how well countries manage their economic and human resources to increase prosperity. Fifty-nine countries were surveyed for this year’s Report.
According to the IMD, Malaysia strengthened its overall competitiveness by two positions, moving up to 14th position from last year’s 16th position. This ranking places Malaysia ahead of countries like Australia (15th), the United Kingdom (18th), Korea (22nd), China (23rd), Japan (27th), France (29th), Thailand (30th), Indonesia (42nd) and the Philippines (43rd).
The 15 most competitive economies in the world, according to the IMD rankings, are: Hong Kong, the USA, Switzerland, Singapore, Sweden, Canada, Taiwan, Norway, Germany, Qatar, Netherlands, Luxembourg, Denmark, Malaysia and Australia.
Among countries with GDP per capita of less than USD20,000, Malaysia maintains its second position among 29 countries, ahead of China, Chile and Thailand.
Among Asia Pacific countries, Malaysia improved by one position to 4th, after Hong Kong, Singapore and Taiwan. The IMD reports that the competitiveness ranking of “all Asian economies have declined apart from Hong Kong (1), Malaysia (14) and Korea (22).”
Malaysia’s overall improved ranking in the IMD survey reflects the impact of the measures the Government has undertaken to improve the competitiveness of the Malaysian economy. These wide-ranging measures include improvements in the delivery and efficiency of public services and increased transparency and accountability. Malaysia’s enhanced competitiveness is rooted in the innovative and bold initiatives undertaken by the Government in the past year to drive development, growth and create a resilient private sector.
The IMD survey assessed countries according to 4 main competitiveness factors:
• Economic Performance
• Government Efficiency
• Business Efficiency
• Infrastructure
Malaysia registered significant improvements in the Business Efficiency category (6th position from last year’s 14th) and in the Government Efficiency category (13th from 17th). Ranking improvements were recorded in the sub-categories of business productivity and efficiency, finance, business legislation, and societal framework.
In Economic Performance category, although Malaysia maintains its top 10 ranking, its position slipped by 3 places from last year’s 7th ranking. This is attributable to slower employment growth and concerns over rising prices.
In the Infrastructure category, Malaysia marginally improved its ranking to 26th position from 27th position. Areas of concern are Health and the Environment, Education and Scientific Infrastructure.
We recognize there are areas where improvements in our competitiveness can still be made. Special attention will be given to address these concerns. Our overall objective remains the same: to achieve a top 10 ranking in the near future.
Malaysia is now the 14th most competitive economy in the world, according to a survey carried out by the Institute for Management Development (IMD) of Switzerland. The IMD survey measures how well countries manage their economic and human resources to increase prosperity. Fifty-nine countries were surveyed for this year’s Report.
According to the IMD, Malaysia strengthened its overall competitiveness by two positions, moving up to 14th position from last year’s 16th position. This ranking places Malaysia ahead of countries like Australia (15th), the United Kingdom (18th), Korea (22nd), China (23rd), Japan (27th), France (29th), Thailand (30th), Indonesia (42nd) and the Philippines (43rd).
The 15 most competitive economies in the world, according to the IMD rankings, are: Hong Kong, the USA, Switzerland, Singapore, Sweden, Canada, Taiwan, Norway, Germany, Qatar, Netherlands, Luxembourg, Denmark, Malaysia and Australia.
Among countries with GDP per capita of less than USD20,000, Malaysia maintains its second position among 29 countries, ahead of China, Chile and Thailand.
Among Asia Pacific countries, Malaysia improved by one position to 4th, after Hong Kong, Singapore and Taiwan. The IMD reports that the competitiveness ranking of “all Asian economies have declined apart from Hong Kong (1), Malaysia (14) and Korea (22).”
Malaysia’s overall improved ranking in the IMD survey reflects the impact of the measures the Government has undertaken to improve the competitiveness of the Malaysian economy. These wide-ranging measures include improvements in the delivery and efficiency of public services and increased transparency and accountability. Malaysia’s enhanced competitiveness is rooted in the innovative and bold initiatives undertaken by the Government in the past year to drive development, growth and create a resilient private sector.
The IMD survey assessed countries according to 4 main competitiveness factors:
• Economic Performance
• Government Efficiency
• Business Efficiency
• Infrastructure
Malaysia registered significant improvements in the Business Efficiency category (6th position from last year’s 14th) and in the Government Efficiency category (13th from 17th). Ranking improvements were recorded in the sub-categories of business productivity and efficiency, finance, business legislation, and societal framework.
In Economic Performance category, although Malaysia maintains its top 10 ranking, its position slipped by 3 places from last year’s 7th ranking. This is attributable to slower employment growth and concerns over rising prices.
In the Infrastructure category, Malaysia marginally improved its ranking to 26th position from 27th position. Areas of concern are Health and the Environment, Education and Scientific Infrastructure.
We recognize there are areas where improvements in our competitiveness can still be made. Special attention will be given to address these concerns. Our overall objective remains the same: to achieve a top 10 ranking in the near future.
MALAYSIA TO STRENGTHEN BILATERAL ECONOMIC TIES WITH THE REPUBLIC OF TATARSTAN
MALAYSIA TO STRENGTHEN BILATERAL ECONOMIC TIES WITH THE REPUBLIC OF TATARSTAN:
During his visit to Kazan, Tatarstan for the 18th APEC Ministers Responsible for Trade (MRT) Meeting from 4 – 5 June 2012, Y.B. Dato’ Sri Mustapa Mohamed, Minister of International Trade and Industry called on the Honourable Rustam Minnikhanov, the President of Tatarstan.
At the meeting, the President recalled his visit to Malaysia in December 2010 and the participation of Malaysian businesses in the Kazan Economic Summits since 2010. Tatarstan is one of the most dynamic Russian republics with abundant natural resources. In 2013, it will be hosting the World University Games and in 2018, Kazan will be one of the Russian cities hosting the World Football Cup.
After the visit to Malaysia in 2010, the President decided to set up the Tatarstan Investment Development Agency (TIDA) to be modeled after the Malaysian Investment Development Authority (MIDA). TIDA is now one year old and is aggressively promoting foreign direct investment into Tatarstan. To further promote and boost bilateral investment relations, MIDA and TIDA will be working on a Memorandum of Understanding to formalise collaboration between the two entities.
The President and YB Dato’ Sri Mustapa Mohamed agreed on the need to step up trade and investment promotional activities involving the business communities of Malaysia and Tatarstan. In this regard, the Minister welcomed companies in Tatarstan to visit Malaysia and explore opportunities to establish business collaboration for the Malaysian and the ASEAN markets. YB Minister also highlighted that Malaysia will also encourage its businessmen to visit Tatarstan to explore trade and investment opportunities in Tatarstan as well as its neighbouring markets.
YB Dato’ also visited the Kazan IT Park and had meetings with leading companies in Tatarstan producing helicopters, ships and vessels of various types including hovercrafts; compressors; medical equipment; and household products using Malaysian palm oil. The meeting was arranged by TIDA which briefed YB Minister on investment opportunities in Kazan and Tatarstan. TIDA is headed by Mr. Linar Yakupov who studied in Universiti Islam Antarabangsa (UIA) and speaks fluent Bahasa Malaysia.
The Malaysian Fire Brigade has already purchased a number of helicopters from one of the Kazan companies, Kazan Helicopters (Russian Helicopters).
The Minister was also briefed on Tatarstan’s master plan to develop the IT sector and a smart city. Dato’ Sri Mustapa noted that “there exists business and investment opportunities for Malaysian and Tatarstan companies to explore investment opportunities in each other’s territories and the need for private sector to be engaged and more efforts to be undertaken”. Malaysia will encourage its business people to visit Tatarstan to explore joint venture opportunities.
During his visit to Kazan, Tatarstan for the 18th APEC Ministers Responsible for Trade (MRT) Meeting from 4 – 5 June 2012, Y.B. Dato’ Sri Mustapa Mohamed, Minister of International Trade and Industry called on the Honourable Rustam Minnikhanov, the President of Tatarstan.
At the meeting, the President recalled his visit to Malaysia in December 2010 and the participation of Malaysian businesses in the Kazan Economic Summits since 2010. Tatarstan is one of the most dynamic Russian republics with abundant natural resources. In 2013, it will be hosting the World University Games and in 2018, Kazan will be one of the Russian cities hosting the World Football Cup.
After the visit to Malaysia in 2010, the President decided to set up the Tatarstan Investment Development Agency (TIDA) to be modeled after the Malaysian Investment Development Authority (MIDA). TIDA is now one year old and is aggressively promoting foreign direct investment into Tatarstan. To further promote and boost bilateral investment relations, MIDA and TIDA will be working on a Memorandum of Understanding to formalise collaboration between the two entities.
The President and YB Dato’ Sri Mustapa Mohamed agreed on the need to step up trade and investment promotional activities involving the business communities of Malaysia and Tatarstan. In this regard, the Minister welcomed companies in Tatarstan to visit Malaysia and explore opportunities to establish business collaboration for the Malaysian and the ASEAN markets. YB Minister also highlighted that Malaysia will also encourage its businessmen to visit Tatarstan to explore trade and investment opportunities in Tatarstan as well as its neighbouring markets.
YB Dato’ also visited the Kazan IT Park and had meetings with leading companies in Tatarstan producing helicopters, ships and vessels of various types including hovercrafts; compressors; medical equipment; and household products using Malaysian palm oil. The meeting was arranged by TIDA which briefed YB Minister on investment opportunities in Kazan and Tatarstan. TIDA is headed by Mr. Linar Yakupov who studied in Universiti Islam Antarabangsa (UIA) and speaks fluent Bahasa Malaysia.
The Malaysian Fire Brigade has already purchased a number of helicopters from one of the Kazan companies, Kazan Helicopters (Russian Helicopters).
The Minister was also briefed on Tatarstan’s master plan to develop the IT sector and a smart city. Dato’ Sri Mustapa noted that “there exists business and investment opportunities for Malaysian and Tatarstan companies to explore investment opportunities in each other’s territories and the need for private sector to be engaged and more efforts to be undertaken”. Malaysia will encourage its business people to visit Tatarstan to explore joint venture opportunities.
Investors Trust Financial Advisors More Than Doctors, Accountants
Investors Trust Financial Advisors More Than Doctors, Accountants: The 2012 John Hancock Trust Survey found that 84% of investors surveyd strongly trust their financial advisor, while primary doctors were "strongly trusted" by 79% of those surveyed and accountants by 74%.
Top 400 Taxpayers Paid Almost As Much in Federal Income Taxes in 2009 as the Entire Bottom 50%
Top 400 Taxpayers Paid Almost As Much in Federal Income Taxes in 2009 as the Entire Bottom 50%:
We hear all the time that the "rich don't pay their fair share of taxes" (123,000 Google search results for that phrase). Here's an analysis using recent IRS data that suggests otherwise.
1. In 2009, the top 400 taxpayers based on Adjusted Gross Income earned $81 billion as a group, and paid $16.1 billion in federal income taxes (see chart above).
2. In 2009, the bottom 50% of taxpayers, a group totaling 69 million, earned collectively more than $1 trillion and paid $19.5 billion in federal income taxes (see chart above).
Bottom Line: A small group of 400 of America's most successful earners in 2009, about the number of residents living in a typical apartment building in Washington, D.C., paid almost as much in federal income taxes as the entire bottom half of America's 138 million tax filers, which is a population equivalent to the combined number of residents living in America's 29 least populated states, plus the District of Columbia. What makes this disparity possible is the fact that an estimated 47% of individual income tax returns filed in 2009 had a zero or negative tax liability.
When you have only 400 Americans paying almost as much in federal income taxes as the entire bottom 50% of American filing income tax returns, I think we can dismiss any notion of the rich not paying their fair share of taxes. In fact, the IRS should publish the names and addresses of the Top 400 (or to protect anonymity, agree to provide a forwarding service), so that we can all send them "Thank You" letters to express our gratitude for shouldering such a disproportionate share of our collective tax burden.
1. In 2009, the top 400 taxpayers based on Adjusted Gross Income earned $81 billion as a group, and paid $16.1 billion in federal income taxes (see chart above).
2. In 2009, the bottom 50% of taxpayers, a group totaling 69 million, earned collectively more than $1 trillion and paid $19.5 billion in federal income taxes (see chart above).
Bottom Line: A small group of 400 of America's most successful earners in 2009, about the number of residents living in a typical apartment building in Washington, D.C., paid almost as much in federal income taxes as the entire bottom half of America's 138 million tax filers, which is a population equivalent to the combined number of residents living in America's 29 least populated states, plus the District of Columbia. What makes this disparity possible is the fact that an estimated 47% of individual income tax returns filed in 2009 had a zero or negative tax liability.
When you have only 400 Americans paying almost as much in federal income taxes as the entire bottom 50% of American filing income tax returns, I think we can dismiss any notion of the rich not paying their fair share of taxes. In fact, the IRS should publish the names and addresses of the Top 400 (or to protect anonymity, agree to provide a forwarding service), so that we can all send them "Thank You" letters to express our gratitude for shouldering such a disproportionate share of our collective tax burden.
Climate Change Stunner: U.S. Leads the World in CO2 Reductions Since 2006, Thanks to Natural Gas
Climate Change Stunner: U.S. Leads the World in CO2 Reductions Since 2006, Thanks to Natural Gas:
The Vancouver Observer reports:
"The Americans? Really? Every year the International Energy Agency (IEA) calculates humanity's CO2 pollution from burning fossil fuels. And once again, the overall story line is one of ever-increasing emissions:
It seems the planet's biggest all-time CO2 polluter is finally reducing its emissions. Not only that, but as the chart above shows, US CO2 emissions are falling even faster than what President Obama pledged in the global Copenhagen Accord.
Here is the biggest shocker of all: the average American's CO2 emissions are down to levels not seen since 1964 -- over half a century ago."
The Vancouver Observer reports:
"The Americans? Really? Every year the International Energy Agency (IEA) calculates humanity's CO2 pollution from burning fossil fuels. And once again, the overall story line is one of ever-increasing emissions:
"Global carbon-dioxide emissions from fossil-fuel combustion reached a record high of 31.6 gigatons in 2011."The world has yet to figure out how to stop the relentless increase in climate pollution. But mixed in with all the bad news there was one shining ray of hope. One of the biggest obstacles to climate action may be shifting. As the IEA highlighted:
"US emissions have now fallen by 430 Mt (7.7%) since 2006, the largest reduction of all countries or regions. This development has arisen from lower oil use in the transport sector … and a substantial shift from coal to gas in the power sector."How big is a cut of 430 million tons of CO2? It's equal to eliminating the combined emissions of ten western states: Alaska, Washington, Oregon, Idaho, Montana, North Dakota, South Dakota, Wyoming, Utah and Nevada.
It seems the planet's biggest all-time CO2 polluter is finally reducing its emissions. Not only that, but as the chart above shows, US CO2 emissions are falling even faster than what President Obama pledged in the global Copenhagen Accord.
Here is the biggest shocker of all: the average American's CO2 emissions are down to levels not seen since 1964 -- over half a century ago."
Gas Malaysia Berhad IPO Target Listing Price
Gas Malaysia Berhad IPO Target Listing Price: For major IPO, I'll asked few friends to guess the listing price. Some are very experince in stock market, some are not. Sometimes I'll ask some guest to predict also. I start with Gas Malaysia IPO.
Friend A
Opening RM2.60
Closing RM2.72
Friend B
Opening RM2.35
Closing RM2.40
Friend C
Opening RM2.50
Closing RM2.40
Points System
Open above or below IPO price? Correct 1 point, Wrong minus 5 points
Opening price? Answer is within 5% (2 points), 5%-10% (1point), >10% (minus 3 point)
Close above or below Opening price? Correct 1 point, Wrong minus 1 point
Closing price? Answer is within 5% (2 points), 5%-10% (1point), >10% (minus 3 point)
More information on Gas Malaysia IPO here, PE ratio and Target Price.
http://politemarket.blogspot.com/search/label/Gas%20Malaysia
Thanks
Friend A
Opening RM2.60
Closing RM2.72
Friend B
Opening RM2.35
Closing RM2.40
Friend C
Opening RM2.50
Closing RM2.40
Points System
Open above or below IPO price? Correct 1 point, Wrong minus 5 points
Opening price? Answer is within 5% (2 points), 5%-10% (1point), >10% (minus 3 point)
Close above or below Opening price? Correct 1 point, Wrong minus 1 point
Closing price? Answer is within 5% (2 points), 5%-10% (1point), >10% (minus 3 point)
For more information on Felda Global Ventures Holdings Berhad IPO here, PE ratio and target price
http://politemarket.blogspot.com/search/label/Felda
http://politemarket.blogspot.com/search/label/Felda
More information on Gas Malaysia IPO here, PE ratio and Target Price.
http://politemarket.blogspot.com/search/label/Gas%20Malaysia
For more information on IPO here.
http://politemarket.blogspot.com/search/label/IPO
http://politemarket.blogspot.com/search/label/IPO
FGV IPO Target Price Fair Value
FGV IPO Target Price Fair Value: FGV PE ratio is 17.6x Dec 2011. According to ECM the growth rate will be 37% (2012), minus 22% (2013) and 9% (2014). FGV PE ratio will then be 15.2x in 2014. FGV dividend yield is 3.9% for 2012.
ECM gives FGV target price fair value of RM5.65, that is FGV PE ratio of 16x pegged against FGV earnings per share EPS for 2012.
Currently after some checking, most analysts give FGV stock a fair value of RM5.50 to RM6.00 FGV share price. You can refer to my previous posts on FGV IPO.
You can also refer to my previous posts on the negative news of FGV IPO.
If got time, I will post the reasons why is not worth to apply for FGV IPO. Both qualitative and quantitative reasons. I know many said FGV IPO is good, but I will try to work out some calculation, so that you have both good and bad thing to hear.
Opening of application :31/05/2012
Closing of application : 12/06/2012
Balloting of applications : 15/06/2012
Allotment of IPO shares to successful applicants : 26/06/2012
Tentative listing date : 28/06/2012
More information on Gas Malaysia IPO here, PE ratio and Target Price.
http://politemarket.blogspot.com/search/label/Gas%20Malaysia
Thanks
ECM gives FGV target price fair value of RM5.65, that is FGV PE ratio of 16x pegged against FGV earnings per share EPS for 2012.
Currently after some checking, most analysts give FGV stock a fair value of RM5.50 to RM6.00 FGV share price. You can refer to my previous posts on FGV IPO.
You can also refer to my previous posts on the negative news of FGV IPO.
If got time, I will post the reasons why is not worth to apply for FGV IPO. Both qualitative and quantitative reasons. I know many said FGV IPO is good, but I will try to work out some calculation, so that you have both good and bad thing to hear.
Opening of application :31/05/2012
Closing of application : 12/06/2012
Balloting of applications : 15/06/2012
Allotment of IPO shares to successful applicants : 26/06/2012
Tentative listing date : 28/06/2012
For more information on Felda Global Ventures Holdings Berhad IPO here, PE ratio and target price
http://politemarket.blogspot.com/search/label/Felda
http://politemarket.blogspot.com/search/label/Felda
More information on Gas Malaysia IPO here, PE ratio and Target Price.
http://politemarket.blogspot.com/search/label/Gas%20Malaysia
For more information on IPO here.
http://politemarket.blogspot.com/search/label/IPO
http://politemarket.blogspot.com/search/label/IPO
Thanks
Why you should not apply Felda Global Ventures Holdings Berhad IPO?
Why you should not apply Felda Global Ventures Holdings Berhad IPO?: 1)The chances of getting the Felda Global Ventures Holdings Berhad IPO are very low. See my calculation at the bottom of the points.
More information on Gas Malaysia IPO here, PE ratio and Target Price.
http://politemarket.blogspot.com/search/label/Gas%20Malaysia
Thanks
2)The prospect of Felda Global Ventures Holdings Berhad may not be so good, and therefore, may not deserve a high Felda stock PE ratio. About 53% of Felda oil palm trees are more than 21 years old, and oil palm trees have an average life of only 25 years. Meaning more than half of Felda Oil Palm tress are about to die. (or do they die? Or just not producing oil palm/ FFB). After the trees die, their profits will drop sharply, am I right?
3)Look at the listing of Facebook IPO. Facebook stock price started to drop after listing and many incurred losses or paper loss.
4)World economy is not good. World stock markets are dropping and dropping.
5)World Commodities prices are dropping.
6)CPO price is dropping. From the past few months high of RM3,600 in April to currently below RM3,000. After most analysts have came out with Felda Global Ventures Holdings Berhad target price (early last week), the FCPO dropped further.
7)Felda is not an efficient Oil Palm planter. Although their yield is about the same as industry average, they are still below those big planters like IOI.
8)You don’t like the listing of Felda stocks, for whatever reasons, eg political, etc, so you plan to boycott it. Money to you is not very important.
9)Money will be locked up in IPO, better invest elsewhere for better return.
============
What are the chances in getting Felda Global Ventures Holdings Berhad IPO?
Let us take previous popular IPO as a guide.
Gas Malaysia 25,680,000 offered to Public at RM2.20. Assuming you use RM20,000 so you applied 9,000 shares. Result shows the chances are 2.44%.
Gas Malaysia 25,680,000 / RM2.20 / 9,000 shares / 2.44%
PChem 160,000,000 / RM5.05 / 4,000 shares / 18.01%
Bumi Armada 58,569,400 / RM3.15 / 6,000 shares / 4.06%
If I use the three IPO and compute it into Felda IPO shares of 72,963,000, and average it out, I will get 6.73%. That is assuming applying for 4,400 shares. But because Felda got more people apply, due to more popular and Felda research analysis reports gave a higher Felda fair value, so the percentage can easily drop to 5.00%.
Everybody is talking about 20% gain.
In “probability method” that we had studied in school, 20% gain X 5% chances is 1% gain.
If you strike Felda IPO RM20,000 X 20% gain, you will get RM4,000. But on the average you need to try 20 times then only can strike one time.
Your RM20,000 will then become gain of RM200 on the average.
If 10% gain, then your return will be 0.5% or RM100 on the average.
Anyway, who says Felda can list more than 10% of Felda IPO price?
I am not being negative here. Because I heard too much good thing about Felda, so I present something negative to balance out.
Please note that all the points above are for case study purpose. Individuals have to make own decisions and please consult your financial advisers.
For more information on Felda Global Ventures Holdings Berhad IPO here, PE ratio and target price
http://politemarket.blogspot.com/search/label/Felda
http://politemarket.blogspot.com/search/label/Felda
More information on Gas Malaysia IPO here, PE ratio and Target Price.
http://politemarket.blogspot.com/search/label/Gas%20Malaysia
For more information on IPO here.
http://politemarket.blogspot.com/search/label/IPO
http://politemarket.blogspot.com/search/label/IPO
Thanks
Tuesday, June 5, 2012
Monday, June 4, 2012
Exchange-Traded Funds Attract $4.2 Billion in May
Exchange-Traded Funds Attract $4.2 Billion in May: Investors poured an estimated $4.2 billion into U.S.-listed exchange-traded funds and notes during the month of May, bringing total year-to-date inflows into exchange-traded products to $63.1 billion.
Chart of the Day: Education Matters
Chart of the Day: Education Matters:
One interesting perspective on the sub-par "jobless recovery" is a comparison of changes in employment since January 2008 based on education level, see chart above, here's a summary:
1. College-educated workers have fared relatively well during and after the Great Recession, and employment levels for workers with a bachelor's degree or higher remained fairly stable even during the worst period of job losses (2008-2010). As of May 2012, employment for college-educated is at an all-time high of 46.355 million workers, and that is 6.3%, and almost 3 million jobs, above the January 2008 level. During the first five months of 2o12, employment of workers with a college degree has increased by more than one million jobs at an average rate of 231,000 new jobs per month. The jobless rate for this group of workers fell in May to 3.9%, the lowest rate since December of 2008.
2. Employment for workers with some college or associate degree is 2.4%, and 837,000 jobs, below January 2008. The jobless rate for this group in May was 7.9%, slightly below the 8.2% national average, but the highest in 7 months for workers with some college, and up from 7.2% in January.
3. Employment for workers with a high school diploma (but no college) is almost three million jobs and 8% below January 2008. The May jobless rate for this group was 8.1%.
4. Employment for workers with less than a high school diploma is 1.36 million jobs, and 12% below the January 2008 level. The jobless rate for this group rose in May to 13% from 12.5% in April, and has remained above 12% in every month since January 2009.
Bottom Line: The workers having the most difficult time finding jobs in the "jobless recovery" are those workers with only a high school degree and those workers with less than a high school degree. Those workers with at least some college have been faring much better, especially those with a bachelor's degree or higher. Perhaps one explanation is that there are so many unemployed workers seeking employment (above 12 million in every month since January 2009), that many employers have the luxury of being selective and hiring college-educated workers for jobs that traditionally didn't necessarily require a college degree.
And while lacking a high school diploma has always been a liability for workers, that liability has gone from a minor liability to a major setback as we move increasingly into a knowledge-based, 21st century economy. Comparatively, college-educated workers are doing quite well in an increasingly globalized, information-based economy, and it's the less educated workers that are struggling, and will continue to struggle, to find employment and keep a job. Whatever the explanation, it's clear that "education matters," and having at least some college has insulated many of those workers from the worst effects of the Great Recession and the subsequent "jobless recovery."
1. College-educated workers have fared relatively well during and after the Great Recession, and employment levels for workers with a bachelor's degree or higher remained fairly stable even during the worst period of job losses (2008-2010). As of May 2012, employment for college-educated is at an all-time high of 46.355 million workers, and that is 6.3%, and almost 3 million jobs, above the January 2008 level. During the first five months of 2o12, employment of workers with a college degree has increased by more than one million jobs at an average rate of 231,000 new jobs per month. The jobless rate for this group of workers fell in May to 3.9%, the lowest rate since December of 2008.
2. Employment for workers with some college or associate degree is 2.4%, and 837,000 jobs, below January 2008. The jobless rate for this group in May was 7.9%, slightly below the 8.2% national average, but the highest in 7 months for workers with some college, and up from 7.2% in January.
3. Employment for workers with a high school diploma (but no college) is almost three million jobs and 8% below January 2008. The May jobless rate for this group was 8.1%.
4. Employment for workers with less than a high school diploma is 1.36 million jobs, and 12% below the January 2008 level. The jobless rate for this group rose in May to 13% from 12.5% in April, and has remained above 12% in every month since January 2009.
Bottom Line: The workers having the most difficult time finding jobs in the "jobless recovery" are those workers with only a high school degree and those workers with less than a high school degree. Those workers with at least some college have been faring much better, especially those with a bachelor's degree or higher. Perhaps one explanation is that there are so many unemployed workers seeking employment (above 12 million in every month since January 2009), that many employers have the luxury of being selective and hiring college-educated workers for jobs that traditionally didn't necessarily require a college degree.
And while lacking a high school diploma has always been a liability for workers, that liability has gone from a minor liability to a major setback as we move increasingly into a knowledge-based, 21st century economy. Comparatively, college-educated workers are doing quite well in an increasingly globalized, information-based economy, and it's the less educated workers that are struggling, and will continue to struggle, to find employment and keep a job. Whatever the explanation, it's clear that "education matters," and having at least some college has insulated many of those workers from the worst effects of the Great Recession and the subsequent "jobless recovery."
Indian Stock indices closing prices for June 2012
Indian Stock indices closing prices for June 2012:
| Date | Indices | Closing | Change |
| 4/6/2012(MONDAY) | SENSEX NIFTY MIDCAP SMALLCAP | 15988.40 4848.15 5809.23 6180.43 | Up^23.24 pts Up^6.55 pts Down(-12.40 pts) Down(-14.01 pts) |
Sunday Energy Links and Charts
Sunday Energy Links and Charts:
1. Over the last two years, crude oil production in North Dakota has more than doubled, from 277,640 barrels per day in March 2010 to 575,490 barrels per day in March of this year. At the same time that oil production has been skyrocketing in North Dakota, oil imports from Nigeria have been declining, to the point that for the first time ever, North Dakota oil production has exceeded oil imports from Nigeria in each of the first three months of this year (see chart, data here). And for the last five months that data are available (November - March), North Dakota oil production has also exceeded imports from Colombia (see chart).
Update: By the end of the decade, it is estimated that surging oil production in North Dakota could double again to more than one million barrels per day, putting it on par with production in Texas and imports from Mexico.
2. "Chesapeake Energy Corp. said it drilled the largest oil gusher in the company’s 23-year history at a “significant” discovery in the Anadarko Basin of Texas and Oklahoma. The Thurman Horn 406H well in the Hogshooter formation produced 5,400 barrels of crude a day during its first eight days of operation. The output was more than twice that of some of the best performing wells in the Eagle Ford shale of south Texas, which Chesapeake counts as its most valuable holding." [MP: Peak what?]
3. Oil and gas cash boosts PA farming -- "The oil and gas boom in western Pennsylvania has provided a much-needed infusion of capital to farmers in that area. “It’s had mostly a good impact,” said Steve Quillin, local Farm Bureau president. “Just driving around, we saw farmers making improvements and updates to their properties.”
Money from oil and gas leases has allowed agriculture to expand. The influx of cash has prompted some older farmers to retire, but their farms have been absorbed by others or have been rented."
5. The Economist -- "America's “unconventional” gas boom continues to amaze. Between 2005 and 2010 the country’s shale-gas industry, which produces natural gas from shale rock by bombarding it with water and chemicals—a technique known as hydraulic fracturing, or “fracking”—grew by 45% a year. As a proportion of America’s overall gas production shale gas has increased from 4% in 2005 to 24% today. America produces more gas than it knows what to do with. Its storage facilities are rapidly filling, and its gas price has collapsed. Last month it dipped below $2 per million British thermal units: less than a sixth of the pre-boom price and too low for producers to break even.
Those are problems most European and Asian countries, which respectively pay roughly four and six times more for their gas, would relish. America’s gas boom confers a huge economic advantage. It has created hundreds of thousands of jobs, directly and indirectly. And it has rejuvenated several industries, including petrochemicals, where ethane produced from natural gas is a feedstock."
Update:
6. The chart below shows monthly imports of crude oil from January 2000 to March 2012, on a three-month moving average basis (to smooth out monthly volatility). U.S. imports of crude oil fell in March to an average of 10,672,670 barrels per day, the lowest level since February 2000, slightly more than 12 years ago.
Update: By the end of the decade, it is estimated that surging oil production in North Dakota could double again to more than one million barrels per day, putting it on par with production in Texas and imports from Mexico.
2. "Chesapeake Energy Corp. said it drilled the largest oil gusher in the company’s 23-year history at a “significant” discovery in the Anadarko Basin of Texas and Oklahoma. The Thurman Horn 406H well in the Hogshooter formation produced 5,400 barrels of crude a day during its first eight days of operation. The output was more than twice that of some of the best performing wells in the Eagle Ford shale of south Texas, which Chesapeake counts as its most valuable holding." [MP: Peak what?]
3. Oil and gas cash boosts PA farming -- "The oil and gas boom in western Pennsylvania has provided a much-needed infusion of capital to farmers in that area. “It’s had mostly a good impact,” said Steve Quillin, local Farm Bureau president. “Just driving around, we saw farmers making improvements and updates to their properties.”
Money from oil and gas leases has allowed agriculture to expand. The influx of cash has prompted some older farmers to retire, but their farms have been absorbed by others or have been rented."
"Throughout my tenure as governor, I witnessed Pennsylvania become an epicenter for natural-gas development. This influx of jobs and investment spurred an unprecedented economic boom for our state and, thanks to a resource found right here in Pennsylvania, this economic revitalization continues. Cheap, clean, and abundant energy is available to heat our homes, fuel our cars and trucks, and power our state’s economy. It’s not a campaign slogan, it’s reality."
Those are problems most European and Asian countries, which respectively pay roughly four and six times more for their gas, would relish. America’s gas boom confers a huge economic advantage. It has created hundreds of thousands of jobs, directly and indirectly. And it has rejuvenated several industries, including petrochemicals, where ethane produced from natural gas is a feedstock."
Update:
6. The chart below shows monthly imports of crude oil from January 2000 to March 2012, on a three-month moving average basis (to smooth out monthly volatility). U.S. imports of crude oil fell in March to an average of 10,672,670 barrels per day, the lowest level since February 2000, slightly more than 12 years ago.
A PEGGY Method of Stock Market Share Fair Value Target Price IPO Dividend: Gas Malaysia IPO Target Price
A PEGGY Method of Stock Market Share Fair Value Target Price IPO Dividend: Gas Malaysia IPO Target Price: TA Securities gives Gas Malaysia stock code short name GASMSIA fair value of RM2.40, that is about 9% upside from Gas Malaysia IPO price of ...
Gas Malaysia IPO Balloting Table Result
Gas Malaysia IPO Balloting Table Result: Examples:
Gas Malaysia IPO Bumiputra Portion:
Applied 1,000-1,900 Gas Malaysia shares, chances 4.23%, get 1,000 shares
Applied 11,000-19,900 Gas Malaysia shares, chances 9.77%, get 10,000 shares
Applied 100,000-199,900 Gas Malaysia shares, chances 12.28%, get 45,000 shares
Gas Malaysia IPO Public Portion:
Applied 1,000-1,900 Gas Malaysia shares, chances 1.26%, get 1,000 shares
Applied 11,000-19,900 Gas Malaysia shares, chances 2.79%, get 10,000 shares
Applied 100,000-199,900 Gas Malaysia shares, chances 4.90%, get 45,000 shares
===============
Gas Malaysia IPO shares oversubscribed by 21.6 times
KUALA LUMPUR: Gas Malaysia Bhd's initial public offering (IPO) is in hot demand with a total of 44,561 applications received for 581.39 million shares, representing an oversubscription rate of 21.64 times.
A total of 25.68 million shares were available for public subscription.
A total of 15,034 applications for 175.63 million shares were received under the bumiputra category which represents an oversubscription of 12.68 times while under the public category, 29,527 applications for 405.76 million shares were received for an oversubscription of 30.60 times.
The sole bookrunner, Maybank Investment Bank Bhd has confirmed that the institutional offering of 303.32 million shares has been completed. The institutional price was fixed at RM2.20 per share.
The other joint underwriters are Bank Muamalat Malaysia Bhd and Kenanga Investment Bank Bhd.
The IPO of Gas Malaysia involves 147.68 million shares offered to Bumiputra institutional and selected investors approved by the International Trade and Industry Ministry, 155.64 million shares to institutional and selected investors, 4.85 million shares reserved for application by eligible directors and employees and 25.68 million shares made available for application by the public.
Out of this, 12.84 million offer shares have been set aside for the bumiputra portion.
Gas Malaysia principally markets and distributes natural gas to customers in Peninsular Malaysia. The company will spend some RM140mil for pipeline network expansion this year.
This will involve an additional 70km to 90km of pipeline to complement the existing 1,800km network in Peninsular Malaysia.
For the subsequent years, capital requirements would be between RM30mil and RM40mil per annum.
Source: The Star
========================
MIH is pleased to announce that Gas Malaysia Berhad's ("GMB") Initial Public Offering of which 25,680,000 Offer Shares were made available for application by the Malaysian Public has been oversubscribed and balloting of successful applications was conducted this afternoon. The Sole Bookrunner has confirmed that the Institutional Offering of 303,315,000 Offer Shares has been completed. The Institutional Price was fixed at RM2.20 per Offer Share. Accordingly, the Final IPO
Price for the Retail Offering is fixed at RM2.20 per Offer Share.
A total of 44,561 applications for 581,390,300 Offer Shares were received from the Malaysian Public for a total of 25,680,000 Offer Shares available for public subscription, which represents an oversubscription rate of 21.64 times.
All Notices of Allotment for these shares will be mailed to successful applicants on or before June 8, 2012.
Source: MIH
============
For more information on IPO here.
http://politemarket.blogspot.com/search/label/IPO
For more information on Felda IPO here.
http://politemarket.blogspot.com/search/label/Felda
More information on Malaysia Gas IPO here.
http://politemarket.blogspot.com/search/label/Gas%20Malaysia
Thanks
Gas Malaysia IPO Bumiputra Portion:
Applied 1,000-1,900 Gas Malaysia shares, chances 4.23%, get 1,000 shares
Applied 11,000-19,900 Gas Malaysia shares, chances 9.77%, get 10,000 shares
Applied 100,000-199,900 Gas Malaysia shares, chances 12.28%, get 45,000 shares
Gas Malaysia IPO Public Portion:
Applied 1,000-1,900 Gas Malaysia shares, chances 1.26%, get 1,000 shares
Applied 11,000-19,900 Gas Malaysia shares, chances 2.79%, get 10,000 shares
Applied 100,000-199,900 Gas Malaysia shares, chances 4.90%, get 45,000 shares
===============
Gas Malaysia IPO shares oversubscribed by 21.6 times
KUALA LUMPUR: Gas Malaysia Bhd's initial public offering (IPO) is in hot demand with a total of 44,561 applications received for 581.39 million shares, representing an oversubscription rate of 21.64 times.
A total of 25.68 million shares were available for public subscription.
A total of 15,034 applications for 175.63 million shares were received under the bumiputra category which represents an oversubscription of 12.68 times while under the public category, 29,527 applications for 405.76 million shares were received for an oversubscription of 30.60 times.
The sole bookrunner, Maybank Investment Bank Bhd has confirmed that the institutional offering of 303.32 million shares has been completed. The institutional price was fixed at RM2.20 per share.
The other joint underwriters are Bank Muamalat Malaysia Bhd and Kenanga Investment Bank Bhd.
The IPO of Gas Malaysia involves 147.68 million shares offered to Bumiputra institutional and selected investors approved by the International Trade and Industry Ministry, 155.64 million shares to institutional and selected investors, 4.85 million shares reserved for application by eligible directors and employees and 25.68 million shares made available for application by the public.
Out of this, 12.84 million offer shares have been set aside for the bumiputra portion.
Gas Malaysia principally markets and distributes natural gas to customers in Peninsular Malaysia. The company will spend some RM140mil for pipeline network expansion this year.
This will involve an additional 70km to 90km of pipeline to complement the existing 1,800km network in Peninsular Malaysia.
For the subsequent years, capital requirements would be between RM30mil and RM40mil per annum.
Source: The Star
========================
MIH is pleased to announce that Gas Malaysia Berhad's ("GMB") Initial Public Offering of which 25,680,000 Offer Shares were made available for application by the Malaysian Public has been oversubscribed and balloting of successful applications was conducted this afternoon. The Sole Bookrunner has confirmed that the Institutional Offering of 303,315,000 Offer Shares has been completed. The Institutional Price was fixed at RM2.20 per Offer Share. Accordingly, the Final IPO
Price for the Retail Offering is fixed at RM2.20 per Offer Share.
A total of 44,561 applications for 581,390,300 Offer Shares were received from the Malaysian Public for a total of 25,680,000 Offer Shares available for public subscription, which represents an oversubscription rate of 21.64 times.
All Notices of Allotment for these shares will be mailed to successful applicants on or before June 8, 2012.
Source: MIH
============
For more information on IPO here.
http://politemarket.blogspot.com/search/label/IPO
For more information on Felda IPO here.
http://politemarket.blogspot.com/search/label/Felda
More information on Malaysia Gas IPO here.
http://politemarket.blogspot.com/search/label/Gas%20Malaysia
Thanks
Felda IPO Target Price Fair Value RM5.50 to RM6.00
Felda IPO Target Price Fair Value RM5.50 to RM6.00: As what I have expected, analysts put a high Felda Global Ventures Holdings Berhad IPO target price fair value of RM5.50 to RM6.00. With the high target price, many now hoing for a high Felda IPO target listing price. Later once I have gathered the info, I will post more on FGVH IPO.
KUALA LUMPUR: Several analysts place the fair value of Felda Global Ventures Holdings Bhd (FGV) about 20 to 30 per cent above its initial public offering (IPO) price of RM4.55 a share.
The analysts contacted quoted fair value of between RM5.50 and RM6.00. The targeted date of listing of the FGV shares on the Main Market of Bursa Malaysia is June 28.
Head of Retail Research Affin Investment Bank Dr Nazri Khan, when contacted yesterday, projected the fair value of FGV shares at RM5.50 a share based on the price earnings ratio of 18 times for the current financial year.
“FGV is a large plantation company operating 343,521 hectares of oil palm plantation in Malaysia with production capacity of 5.2 million tonnes of oil palm fruits.
“It is also presently on an expansion trail, acquiring new plantations and expanding its downstream activities. These measures will attract investor interest and help to support the stability of its share price,” he said.
Head of Research InterPacific Research, Pong Teng Siew, projected a fair value of RM5.80 a share for FGV in the first month of listing.
He said the valuation, among others, is based on the company’s potential geographical expansion and cost reduction when its main focus is trained on business in the international market.
“The benefits derived from its collaboration with foreign investors will also play an important role not only in respect of economies of scale but also improved competitiveness as well as opening up scope for business expansion, he added.
Meanwhile, Maybank Investment Bank chief executive officer Datuk Tengku Zafrul Tengku Abdul Aziz said the fair value of FGV shares can reach RM6 if nothing out of the ordinary happens.
“We have seen the performance of Gas Malaysia when its IPO was oversubscribed several times although the market was uncertain at that time.
“FGV is expected to show similar performance because it has the same qualities in terms of financial strength, dividend payments, and involvement in the right business sector,” he said.
President of the Bumiputera Remisier Association Md Hasrin Md Hassim placed the fair value of FGV shares at RM6 a share.
Source: Business Times
For more information on IPO here.
http://politemarket.blogspot.com/search/label/IPO
For more information on Felda IPO here.
http://politemarket.blogspot.com/search/label/Felda
More information on Malaysia Gas IPO here.
http://politemarket.blogspot.com/search/label/Gas%20Malaysia
Thanks
KUALA LUMPUR: Several analysts place the fair value of Felda Global Ventures Holdings Bhd (FGV) about 20 to 30 per cent above its initial public offering (IPO) price of RM4.55 a share.
The analysts contacted quoted fair value of between RM5.50 and RM6.00. The targeted date of listing of the FGV shares on the Main Market of Bursa Malaysia is June 28.
Head of Retail Research Affin Investment Bank Dr Nazri Khan, when contacted yesterday, projected the fair value of FGV shares at RM5.50 a share based on the price earnings ratio of 18 times for the current financial year.
“FGV is a large plantation company operating 343,521 hectares of oil palm plantation in Malaysia with production capacity of 5.2 million tonnes of oil palm fruits.
“It is also presently on an expansion trail, acquiring new plantations and expanding its downstream activities. These measures will attract investor interest and help to support the stability of its share price,” he said.
Head of Research InterPacific Research, Pong Teng Siew, projected a fair value of RM5.80 a share for FGV in the first month of listing.
He said the valuation, among others, is based on the company’s potential geographical expansion and cost reduction when its main focus is trained on business in the international market.
“The benefits derived from its collaboration with foreign investors will also play an important role not only in respect of economies of scale but also improved competitiveness as well as opening up scope for business expansion, he added.
Meanwhile, Maybank Investment Bank chief executive officer Datuk Tengku Zafrul Tengku Abdul Aziz said the fair value of FGV shares can reach RM6 if nothing out of the ordinary happens.
“We have seen the performance of Gas Malaysia when its IPO was oversubscribed several times although the market was uncertain at that time.
“FGV is expected to show similar performance because it has the same qualities in terms of financial strength, dividend payments, and involvement in the right business sector,” he said.
President of the Bumiputera Remisier Association Md Hasrin Md Hassim placed the fair value of FGV shares at RM6 a share.
Source: Business Times
For more information on IPO here.
http://politemarket.blogspot.com/search/label/IPO
For more information on Felda IPO here.
http://politemarket.blogspot.com/search/label/Felda
More information on Malaysia Gas IPO here.
http://politemarket.blogspot.com/search/label/Gas%20Malaysia
Thanks
Felda stock is not good? Felda share price will drop?
Felda stock is not good? Felda share price will drop?: Currently I only hear good comments on Felda IPO, found some negative comments. It said FGVHB had 323,587ha of oil palm estates in Malaysia, of which 53% consist of oil palm trees that are more than 21 years old. Oil palm trees have an average life of 25 years.
From what I interpret, for the next week years, Felda profit will be under pressure and Felda PE ratio may continue to stay high and therefore, not good for Felda share price. Those who hold long term may be rewarded just by the Felda Dividend Yield.
But for Felda IPO, I think still can make money.
The articles are old, but some points still applicable.
---------
Kuala Lumpur: Felda Global Ventures Holdings Bhd’s (FGVHB) upcoming IPO, FGVHB IPO touted as Asia’s biggest this year, may not get the robust response many expect, analysts said.
For one, a large part of FGVHB’s plantations is old and needs to be replanted, leading to high costs.
According to its draft prospectus, FGVHB had 323,587ha of oil palm estates in Malaysia, of which 53% consist of oil palm trees that are more than 21 years old. Oil palm trees have an average life of 25 years, plantation industry experts note.
“The replanting will keep FGVHB’s profitability under pressure as replanting costs are charged to profit and loss under Malaysia’s accounting practice. From our understanding, the cost of replanting is similar to the cost of greenfield development, which is around RM15,000 per hectare up to maturity, spread over three years,” OSK Investment Bank said in a report last Tuesday
“This means FGVHB will need to spend about RM2.6 billion on replanting over the next five years,” the report said.
Lacking a robust growth story, analysts believe that FGVHB’s IPO may not attract the strong response Bumitama Agri Ltd did in Singapore last month.
Felda Global has 323,587ha of oil palm estates in Malaysia with 53% of oil palm trees more than 21 years old.
Bumitama’s IPO was oversubscribed by more than 30 times. On its first day of trading, Bumitama shares closed at a 27.5% premium to its IPO offer price.
To compare the growth potential, 71.9% of Bumitama’s total planted area of 119,162ha is made up of immature and young plants. The rest are at the prime age of 7 to 18 years. The company also owns 72,786ha of plantation land waiting to be planted.
In contrast, 30.7% of FGVHB’s planted area is made up of immature and young trees. Trees from the age of 10 to 20 years account for 16.4% and roughly 52.9% of the planted area was of old trees.
However, observers noted that FGVHB is still one of the leading global plantations players with advantages in economies of scale.
In terms of mature oil palm planted, Frost & Sullivan said FGVHB was the world’s third largest player in 2011 with 288,442ha of mature planted area after Sime Darby Bhd (468,668ha), Golden Agri-Resources Ltd (390,759ha), PT Astra Agro Lestari Tbk (217,343ha), and Wilmar International Ltd (216,623ha).
In terms of CPO production, FGVHB produced about 3.3 million tonnes making it the world’s leading producer, followed by Sime Darby (2.4 million tonnes), Golden Agri-Resources (2.2 million tonnes) Wilmar (1.8 million tonnes) and PT Astra Agro (1.3 million tonnes).
FGVHB also owns a 51% stake in MSM Holdings Bhd, the leading refined sugar producer in Malaysia, which contributed 29.4% to its revenue in 2011.
In 2011, FGVHB posted a net profit (after minority interest) of RM942.18 million on the back of RM7.47 billion in revenue. Based on its post-listing share base of 3.65 billion, this translates into an earnings per share (EPS) of about 26 sen.
FGVHB has not announced its IPO price yet, but observers believe that it will be priced based on a historical price-earnings ratio (PER) of its peers in the region.
According to analysts who track the plantation sector, the top plantation players listed in Malaysia, Singapore, and Indonesia had an average PER of around 15 times over the last few years.
On this assumption, the analyst said FGVHB offer price will be around RM3.90. FGVHB will offer up to 2.19 billion shares under its IPO, which is scheduled in June.
Source: The Edge Daily early May 2012.
==========
This article not so bad on Felda stock.
SOON-to-be listed Felda Global Ventures Holdings Bhd (FGVH) is going all out to boost productivity after its listing as part of efforts to ensure steady future growth in earnings.
Wholly-owned by the government's Felda Land Development Authority (Felda), FGVH is slated to be listed on Bursa Malaysia by the end of June. The listing is expected to garner a market capitalisation of RM18 billion and raise proceeds of over RM12 billion.
According to sources, although half of FGVH's 355,846ha oil palm estates are past their prime at over 25 years old, another 17 per cent of the estates are at their prime production between 20 and 25 years old.
"Together, they would help the company achieve its key performance index of harvesting 23 tonnes of fresh fruit bunches per ha per year in the next five years, from about 19.3 tonnes currently.
"These estates contribute 85 per cent to FGVH's net profit last year and (the contribution) is expected to grow as the company replants its estates," the source said.
A source said Felda will continue to boost productivity by using its award-winning Yangambi oil palm seeds, which can boost oil extraction rate to 23 per cent from the current 20 per cent.
It is understood that post-listing, FGVH plans to return 50 per cent of its net profit to shareholders and achieves a return on equity of 13 per cent.
Meanwhile, in a report, OSK Research said despite the headwinds, FGVH's initial public offering (IPO), if priced correctly, may have a fair take-up rate.
"Given the high price multiple of the large listed plantation companies in Malaysia in the range of 16 to 18 times, we believe it will not be difficult to command 12 to 13 times price-earnings, which is a premium to the large listed Indonesian player," OSK said, giving the stock a neutral recommendation.
It added that FGVH is headed by Datuk Sabri Ahmad, who was formerly group chief executive of Golden Hope Plantations Bhd and a highly respected figure in the palm oil industry. Thus, it has a fair chance in wooing investors.
OSK said 52.8 per cent of FGVH's planted oil palm areas will need to be replanted in the immediate future up to the next five years. At RM15,000 per ha, FGVH needs to spend RM2.6 billion on replanting over the next five years.
Other than oil palm plantations, FGVH also has 9,472ha rubber plantations, all of which are located in Peninsular Malaysia.
Under its downstream business, FGVH owns a soyabean and canola crushing and refining facility in Canada and an oleochemical plant in the US.
The group owns five palm oil refineries in Malaysia with a production of 1.6 million tonnes of refined palm oil products, although these assets are at associate levels.
The group also owns sugar business in Malaysia under listed MSM Holdings, in which it owns a 51 per cent stake.
All in all, FGVH will be the second biggest listed plantation company in Malaysia by planted hectarage after Sime Darby Bhd, and the third biggest in the world after Sime Darby and Singapore listed Golden Agri-Resources Ltd.
FGVH filed its draft prospectus with the Securities Commission late last week.
Although no price has been mentioned, there will be 2.19 billion new shares to be issued out of the total of 3.65 billion shares to be listed
Source: Business Times early May 2012.
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For more information on IPO here.
http://politemarket.blogspot.com/search/label/IPO
For more information on Felda IPO here.
http://politemarket.blogspot.com/search/label/Felda
More information on Malaysia Gas IPO here.
http://politemarket.blogspot.com/search/label/Gas%20Malaysia
Thanks
From what I interpret, for the next week years, Felda profit will be under pressure and Felda PE ratio may continue to stay high and therefore, not good for Felda share price. Those who hold long term may be rewarded just by the Felda Dividend Yield.
But for Felda IPO, I think still can make money.
The articles are old, but some points still applicable.
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Kuala Lumpur: Felda Global Ventures Holdings Bhd’s (FGVHB) upcoming IPO, FGVHB IPO touted as Asia’s biggest this year, may not get the robust response many expect, analysts said.
For one, a large part of FGVHB’s plantations is old and needs to be replanted, leading to high costs.
According to its draft prospectus, FGVHB had 323,587ha of oil palm estates in Malaysia, of which 53% consist of oil palm trees that are more than 21 years old. Oil palm trees have an average life of 25 years, plantation industry experts note.
“The replanting will keep FGVHB’s profitability under pressure as replanting costs are charged to profit and loss under Malaysia’s accounting practice. From our understanding, the cost of replanting is similar to the cost of greenfield development, which is around RM15,000 per hectare up to maturity, spread over three years,” OSK Investment Bank said in a report last Tuesday
“This means FGVHB will need to spend about RM2.6 billion on replanting over the next five years,” the report said.
Lacking a robust growth story, analysts believe that FGVHB’s IPO may not attract the strong response Bumitama Agri Ltd did in Singapore last month.
Felda Global has 323,587ha of oil palm estates in Malaysia with 53% of oil palm trees more than 21 years old.
Bumitama’s IPO was oversubscribed by more than 30 times. On its first day of trading, Bumitama shares closed at a 27.5% premium to its IPO offer price.
To compare the growth potential, 71.9% of Bumitama’s total planted area of 119,162ha is made up of immature and young plants. The rest are at the prime age of 7 to 18 years. The company also owns 72,786ha of plantation land waiting to be planted.
In contrast, 30.7% of FGVHB’s planted area is made up of immature and young trees. Trees from the age of 10 to 20 years account for 16.4% and roughly 52.9% of the planted area was of old trees.
However, observers noted that FGVHB is still one of the leading global plantations players with advantages in economies of scale.
In terms of mature oil palm planted, Frost & Sullivan said FGVHB was the world’s third largest player in 2011 with 288,442ha of mature planted area after Sime Darby Bhd (468,668ha), Golden Agri-Resources Ltd (390,759ha), PT Astra Agro Lestari Tbk (217,343ha), and Wilmar International Ltd (216,623ha).
In terms of CPO production, FGVHB produced about 3.3 million tonnes making it the world’s leading producer, followed by Sime Darby (2.4 million tonnes), Golden Agri-Resources (2.2 million tonnes) Wilmar (1.8 million tonnes) and PT Astra Agro (1.3 million tonnes).
FGVHB also owns a 51% stake in MSM Holdings Bhd, the leading refined sugar producer in Malaysia, which contributed 29.4% to its revenue in 2011.
In 2011, FGVHB posted a net profit (after minority interest) of RM942.18 million on the back of RM7.47 billion in revenue. Based on its post-listing share base of 3.65 billion, this translates into an earnings per share (EPS) of about 26 sen.
FGVHB has not announced its IPO price yet, but observers believe that it will be priced based on a historical price-earnings ratio (PER) of its peers in the region.
According to analysts who track the plantation sector, the top plantation players listed in Malaysia, Singapore, and Indonesia had an average PER of around 15 times over the last few years.
On this assumption, the analyst said FGVHB offer price will be around RM3.90. FGVHB will offer up to 2.19 billion shares under its IPO, which is scheduled in June.
Source: The Edge Daily early May 2012.
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This article not so bad on Felda stock.
SOON-to-be listed Felda Global Ventures Holdings Bhd (FGVH) is going all out to boost productivity after its listing as part of efforts to ensure steady future growth in earnings.
Wholly-owned by the government's Felda Land Development Authority (Felda), FGVH is slated to be listed on Bursa Malaysia by the end of June. The listing is expected to garner a market capitalisation of RM18 billion and raise proceeds of over RM12 billion.
According to sources, although half of FGVH's 355,846ha oil palm estates are past their prime at over 25 years old, another 17 per cent of the estates are at their prime production between 20 and 25 years old.
"Together, they would help the company achieve its key performance index of harvesting 23 tonnes of fresh fruit bunches per ha per year in the next five years, from about 19.3 tonnes currently.
A source said Felda will continue to boost productivity by using its award-winning Yangambi oil palm seeds, which can boost oil extraction rate to 23 per cent from the current 20 per cent.
It is understood that post-listing, FGVH plans to return 50 per cent of its net profit to shareholders and achieves a return on equity of 13 per cent.
Meanwhile, in a report, OSK Research said despite the headwinds, FGVH's initial public offering (IPO), if priced correctly, may have a fair take-up rate.
"Given the high price multiple of the large listed plantation companies in Malaysia in the range of 16 to 18 times, we believe it will not be difficult to command 12 to 13 times price-earnings, which is a premium to the large listed Indonesian player," OSK said, giving the stock a neutral recommendation.
It added that FGVH is headed by Datuk Sabri Ahmad, who was formerly group chief executive of Golden Hope Plantations Bhd and a highly respected figure in the palm oil industry. Thus, it has a fair chance in wooing investors.
OSK said 52.8 per cent of FGVH's planted oil palm areas will need to be replanted in the immediate future up to the next five years. At RM15,000 per ha, FGVH needs to spend RM2.6 billion on replanting over the next five years.
Other than oil palm plantations, FGVH also has 9,472ha rubber plantations, all of which are located in Peninsular Malaysia.
Under its downstream business, FGVH owns a soyabean and canola crushing and refining facility in Canada and an oleochemical plant in the US.
The group owns five palm oil refineries in Malaysia with a production of 1.6 million tonnes of refined palm oil products, although these assets are at associate levels.
The group also owns sugar business in Malaysia under listed MSM Holdings, in which it owns a 51 per cent stake.
All in all, FGVH will be the second biggest listed plantation company in Malaysia by planted hectarage after Sime Darby Bhd, and the third biggest in the world after Sime Darby and Singapore listed Golden Agri-Resources Ltd.
FGVH filed its draft prospectus with the Securities Commission late last week.
Although no price has been mentioned, there will be 2.19 billion new shares to be issued out of the total of 3.65 billion shares to be listed
Source: Business Times early May 2012.
=======
For more information on IPO here.
http://politemarket.blogspot.com/search/label/IPO
For more information on Felda IPO here.
http://politemarket.blogspot.com/search/label/Felda
More information on Malaysia Gas IPO here.
http://politemarket.blogspot.com/search/label/Gas%20Malaysia
Thanks
Very disappointing report on the U.S. labor market may likely to dip the share market
Very disappointing report on the U.S. labor market may likely to dip the share market:
Very disappointing report on the U.S. labor market may likely to dip the share market this week.
Right on time about the end of year's first half (as expected) bad unemployment news turned up to rack an already panicked stock market which had been floating on fumes, hopes, & Fed propaganda. New jobs in May grew by 69,000, lowest in year and far short of the 158,000 economists expected.
Bad unemployment data in the face of an upcoming election will send the Fed skittering to the money pumps to keep the ship from sinking.
Right on time about the end of year's first half (as expected) bad unemployment news turned up to rack an already panicked stock market which had been floating on fumes, hopes, & Fed propaganda. New jobs in May grew by 69,000, lowest in year and far short of the 158,000 economists expected.
Bad unemployment data in the face of an upcoming election will send the Fed skittering to the money pumps to keep the ship from sinking.
EID Parry: Integrated business and favorable earnings makes it a good buy
EID Parry: Integrated business and favorable earnings makes it a good buy: Even in a surplus season, EID has posted a decent profit. This makes it a good buy as the stock appears to be undervalued.
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Saturday, June 2, 2012
Declining competitiveness in the emerging world
Declining competitiveness in the emerging world: IMD has released its latest competitiveness rankings, which measure ”how well countries manage their economic and human resources to increase their prosperity”. Needless to say,...
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