We Are Now At A Very Uncertain Juncture In Investment Outlook.
TTB of Icap Biz continues in great fear & holding tight to Cash. Some in i3 Forum have sold out their shares & kept Cash in Bank for safety (this is a dumb move as Cash is also not safe due to money printing). How then?
Marc Faber advocates diversification to protect Capital - Keep 25% Cash, 25% in Real Estate, 25% in Securities & 25% in Bonds.
Bonds? Right now in Japan & in Europe people are fleeing to the safety of bonds with negative yields. Negative yields for safety in bonds? Yes, there are many wealthy people who willing buy bonds with negative yields if they don't lose so much in a crash? Preservation of Capital IS UPPERMOST In The Minds of These People.
German 10-Year Bund Yield Heads Back to Sub-Zero Territory
Some of the recent rise in yields on safe government debt is reversing in Germany
ENLARGE
Traders work at their desks in front of the German share price index, DAX board, at the stock exchange in Frankfurt, Germany, September 13, 2016. PHOTO: REUTERS
After several days back above zero, the 10-year German bund yield returned to negative territory in early trading on Friday.
The yield touched a low of -0.012%, falling from 0.02% at the open. In recent days, the yield on the benchmark German bund has reached as high as 0.071%, according to data provider Tradeweb. That’s as safe government bonds around the world sold off. Bond yields rise as their prices fall.
The yield on the bund rose back above zero on Friday after the European Central Bank had disappointed investors hoping for signs of further stimulus the day before.
The 10-year bund fell into negative territory for the first time shortly before the U.K’s Brexit vote, falling to as low as -0.189% in early July.
Elsewhere in German markets, Deutsche Bank fell by as much as 8% on Friday, following a Wall Street Journal report of the U.S. Justice Department’s proposal that the bank pay $14 billion to settle mortgage-securities probes from the financial crisis era.
ENLARGE
How fortunate are we Malaysians who can still find a good number of Defensive Stocks with dividends!
One of them is PBA.
PBA has a monopoly in Penang. Its latest results show
Currency: Malaysian Ringgit (MYR)
SUMMARY OF KEY FINANCIAL INFORMATION 30 Jun 2016
INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR
CORRESPONDING
QUARTER
CURRENT YEAR TO DATE
PRECEDING YEAR
CORRESPONDING
PERIOD
30 Jun 2016
30 Jun 2015
30 Jun 2016
30 Jun 2015
$$'000
$$'000
$$'000
$$'000
1
Revenue
83,972
75,339
164,834
139,604
2
Profit/(loss) before tax
14,170
14,778
24,831
16,484
3
Profit/(loss) for the period
16,770
14,647
22,247
16,167
4
Profit/(loss) attributable to ordinary equity holders of the parent
16,770
14,647
22,247
16,167
5
Basic earnings/(loss) per share (Subunit)
5.07
4.43
6.72
4.88
6
Proposed/Declared dividend per share (Subunit)
0.00
0.00
0.00
0.00
AS AT END OF CURRENT QUARTER
AS AT PRECEDING FINANCIAL YEAR END
7
Net assets per share attributable to ordinary equity holders of the parent ($$)
2.3400
2.2500
Definition of Subunit:
Revenue has Increased. Profit has also increased & Best of All Its NTA is now Rm2.34
At Rm1.17 PBA is selling at a nice discount of exactly 50% Discount to NTA of Rm2.34! This has a Big Margin of Safety In Asset Protection!
PBA got its water FREE FROM THE SKY WHEN RAIN FALLS OVER PENANG. Better than Tenaga & Ytl Power which buy oil and coal to generate electricity. So PBA has a better business model. Since it is a monopoly it has pricing power. And Penang has increased water tariff to prevent wastage.
PBA has pay a dividend commensurate with Bank FD Rate.
By all yardsticks PBA is a highly defensive stock.
And no wonder not one, but 2 Great Sifu, Invest in PBA.
In The Latest Annual Report of PBA, it listed
Fong Shiling or Cold Eye as the no. 8 shareholder
8 RHB CAPITAL NOMINEES (TEMPATAN) SDN BHD PLEDGED SECURITIES ACCOUNT FOR FONG SILING 2,800,000 0.85
Coldeye has 2.8 million PBA Shares at just short of 1%
And coming in at no. 12 is Dr Neoh Soon Kean's Company (owned by him)
12 NEOH CHOO EE & COMPANY, SDN. BERHAD 1,600,000 0.48
Dr. Neoh has 1.6 million PBA Shares.
And notice further at Top 25 is Dynaquest Sdn Bhd (An Investment Fund opened for Certain Institutions & Individuals)
25 DYNAQUEST SDN. BERHAD 500,000 0.15
Dr. Neoh's team of professionals have also invested 500,000 shares in PBA for shareholders.
So THIS IS IT!
Just let you know that Calvin Tan has also invested in PBA.
Actually only 5,000 shares at Rm1.13 (Total less than Rm6,000). Nothing to shout about.
Of course, I have other better investments. But PBA is highly defensive. I must buy some lah.
German 10-Year Bund Yield Heads Back to Sub-Zero Territory
Some of the recent rise in yields on safe government debt is reversing in Germany
ENLARGE
Traders work at their desks in front of the German share price index, DAX board, at the stock exchange in Frankfurt, Germany, September 13, 2016. PHOTO: REUTERS
After several days back above zero, the 10-year German bund yield returned to negative territory in early trading on Friday.
The yield touched a low of -0.012%, falling from 0.02% at the open. In recent days, the yield on the benchmark German bund has reached as high as 0.071%, according to data provider Tradeweb. That’s as safe government bonds around the world sold off. Bond yields rise as their prices fall.
The yield on the bund rose back above zero on Friday after the European Central Bank had disappointed investors hoping for signs of further stimulus the day before.
The 10-year bund fell into negative territory for the first time shortly before the U.K’s Brexit vote, falling to as low as -0.189% in early July.
Elsewhere in German markets, Deutsche Bank fell by as much as 8% on Friday, following a Wall Street Journal report of the U.S. Justice Department’s proposal that the bank pay $14 billion to settle mortgage-securities probes from the financial crisis era.
I bought PBA at 1.00 months ago, and will going to sell it at 1.20 next week. I will wait till trump screw up the market, then i will buy back at bargain price again,
Actually if Pba is a separate listed and privatised utility like Ytl power the share will perform very very well. Why?
Ytl power gives great dividends because Ytl people have an interest in it as they are the rightful owners. On the other hand, Lim Guan Eng does not own Pba shares but draw a salary as a chairman. So there is no vested interest.
The price rise of ytl power will benefit ytl bosses directly whereas whether Pba price rise or fall is of little impact to him.
How can Pba share price rise?
1) Increase water tariff to match prices like those of Selangor and Johor. Profits will increase manifold.
2) Stop giving and using free water to win votes. If Penang wants to help the poor they should be like give it out from Govt coffers.
3) Govt coffers? So Penang should revert to using national cars rather than expensive imports. This will save lots of foreign exchange.
4) And with higher income pay a higher dividend to Pba shareholders.
5) If Penang Govt handles these fairly and with transparency Pba shares will guarantee to go up for all who invest in this monopolistic utility company.
Posted by PlsGiveBonus > Sep 17, 2016 12:47 AM | Report Abuse
EPF is my friend It yield guaranteed 6% I don't need anything else
Calvin thinks if you can get anything between 4% to 4.5% from EPF for next payout you should be very lucky indeed.
Epf profits drop between 26% to 36% from quarter to quarter.
SEE:
The Star May 24, 2016 - EPF's investment income falls 36% in Q1, braces for tough year ... quarter, the drop in share prices globally and domestically has led to fewer ... EPF reports 26% drop in Q2 investment income - Business News | The ... www.thestar.com.my › Business › Business News
The Star
7 days ago - Shahril: We have seen and expect a further slowdown in global economies and increased volatility in equities.
Like us Epf also invest in a wide spectrum of shares, bonds & fixed instruments. So with the current downturn EPF too, will be affected.
It should be around 6% this year still better than Ytl dividend And the lowest payout is during the major market crash which isn't happens for many years to come. Stop making joke of yourself :(
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
