So what can you expect? I believe wholesale will prevail. Even then the prices for each volume of wholesales will have very significant difference. Example if you buy 1000kg of flour vs 2000kg of flour per delivery the price may get wide or exponential decrease to encourage higher order to ensure cut down in the number of trips however in doing this, there is always a saturation point which can be considered sunken cost and anything more may require storage cost and etc.
So to the govt, it's only 20cents but 20cents per kilo here, and 20cents per litre there, will soon have a great effect on our already inflated market

With the increase of petrol price by 20cents, will solidify the price inclination of property further and inflation in general. This is because raw materials require transportation to production line and subsequently transported to the final product. Each of the complete product will be at least 2 levels to 3. This means prices will factor in the least levels.
For those who did not realise, the 20cents increase in Ron95 against the old price of rm2.10 is approx 10%. Remember when sugar price went up 20cents a kilo, and the Mamak and Nasi Kandar restaurants were reported to have increase each cup of drinks by 10 to 20cents? And similarly when flour price went up, roti canal price went up 10cents.....
now coming back to sugar price going up 20cents a kilo, each cup of Teh tarik for example uses 30gram at least of sugar /cup (min) and approx 100grams every 3cups. Hence 1kg of sugar can serve at least 30cups of Teh tarik. So an increase of 20cents a kilo can essential earn RM6 for the coffee shop (60cents every 3 cups times 10 = 30cups = rm6) This happens because the govt ministry could not control the retailers or did not think of the repercussion with the increase then.

So putting this into 2 basic, base on petrol increase
1. Assuming 2 tier increase ie raw material to sub product to final product (eg sand supplier to brick supplier to developer) if they each increase 10% due to higher transportation, we maybe hit by 20% at final product minimum (I say minimum because developer add ons are not factored in ie petrol used for marketing, sales.....etc) thought in reality some are sunken cost just like the example of sugar
2. Assuming petrol increase are compounded because the final produce example a hse is not just base on bricks but also cement, sand, steel, tiles, roofing......etc and some may have import cost not factor in which include exchange rate

As you can see with inflation, it's general across and not just in one sector and the repercussion maybe compounded or buffer created to hedge or ease some possible exchange losses.

The last line should read PE 9 and 9.5

The share price before the ex-div was 66 cents, so technically the price after correction is 64cents. However there is dilution from the LA conversion with mother base 598M and LA of 598M added to 1196M. So technically if PE was at 4.X before, double the share base will create a dilution of half the earning. So if share Price is as is, and earning is half, the PE will be 8.x. (Ie double)
I have not checked the latest EPS however it should not matter much as the diff is minimal. The EPS was 0.156, so half should be 0.078
Assuming price is 0.62 as per closing, PE is 7.94.
Most like to push to PE to 10 as optimum and the price should be 78cents. Note PE is a constituition of repayment period for most investors and is optimum at 10. If you read my earlier writing I have said 75cents and son will be independent. That assumption is base on this exact calculation however with a notch lower on PE at 9

We do I understand that Hong Kong is feverish with strikes and possibly riot soon. Wonder why problem follow some ppl. Hahaha

Funnily talking about thick skin like rhino, I don't get flag most of the time and still come back. Hmmmmm that must be thicker than rhino skin. Dammmm KGB and FBI must look into this material for shield.

Thank you for giving me the air time. I like Oct 8

The fact that I m writing when the stock is on down trend is already evident. Secondly the messages are not for you. It's food for thought and designated for specific.

While some of you may or may not agree with me, but fact is we should buy a stock with strong support rather than short term catalyst if you are an investor. A strong support is one where the financial results have been delivered and the management ability is proven together with reliability. Their actions are also dependable.
I have been in counters like Zelan for IPP, KNM for sizable project and investment due to these short term catalyst which did not sustain. I have been in CPO, GOld, Silver, OnG, forex etc however I made less money or none in some cases because these are really trading stocks.
Most of my money I made in my earlier years came from IT and Telco stocks. So for those in that era would know where I am coming from. We have move away from that now and IT era is very short term. Look at what happen to Kodak, legacy printing, human dependent mechanical production line especially those in mattresses business ....and now look what happen to Garmin, Tom Tom in the GPS business with Waze coming fr behind and overtaking them. What I am saying is, those business have also become a trading game and no longer suitable for investors.

So what should we do? If you are in the investment game, look at the FA and Management then the sector. I would anytime buy a Jamuluddin ( Axiata) counter wherever he goes and similarly Idris Jala or Liew KS or ....each in their own sector. In short, in these times of difficulty, where loans are hard to come by, tech companies can easily be taken over, and every other businesses are partnering and sleeping with each other, a tangible business in consumer is far safer, one where is less reliant on changes in technology or physically sustainable and able to appreciate

Why PP and bonus issue rather than loan stocks? All are loan instruments however loan stock is long in period ie 5 years in general while PP creates synergistical partnership to add value while bonus adds participation and growth with investors.

They have done the first which is loan stock followed by growth with investor using dividend. Hence now they will use the other two instruments which are deemed faster in churning the expansion wheel compared to the earlier 2

Now if bank interest soars in 2015, partnership to develop landbanks maybe key. Hence PP will b key. If that fail, bonus issue will be next. Reason is bonus issue is within their control. However if the Landbank is substantial, both will be required and may even have multiple PP.
Now getting that out of the way, what do you think their final objective will be...ie Mayland.

Mayland is not in this business while those in this business with the wrong Landbank ie All premium Landbank, will suffer and be looking at cheaper Landbank with high value to sustain their existence.

We are very sure 2015 property will be more expensive with GST. This is simply because exempt rated tax stops at developers but how do we know? We should not measure property price for 2015 by looking at the price after GST in April 2015 onwards however we should look at the inclination of price that is already happening.
If all taxes fall on the developer and they cannot claim back base on exxept rated position, the price will definitely be past on to buyers. Imagine if these are the main factors of property prices
1. Landbank cost
2. Material cost
3. Taxes

The key hedging can only be achieve with Landbank as material cost are general across inflation and gst and will definitely be past on to buyers. Hence if the prices of property will not go down, it will also be at the mercy of bank interest rate and market economy.
So still think you have a choice?

The bonus is very likely to happen as for the multi year generator is also definite. The 100b is likely to be the whole township. For the GDv of 25b for EnO we are talking about 15 to 20 years a multi year generator. For L&G a multi year is definitely above 5 years revenue build up. Either way a township is the most cost effective development because they can focus their assets at a location and in this case also the cost of development will be relative lower

Now having work on no 2 is very key. Mayland is a management company. This means managing is their value. Imagine this, if they sell L&G now versus after securing the approval and PP and bonus issue going for LB, how much difference the value of the company would be. Remembering that the 100B GDV is a township and likely to complement those property developer heavy at Iskandar. After all L&G has been building their worth and loyalty from the Dividen and then the market capital.

Why would Mayland want a MGO? They are expanding and need market funds. The money is use to expand and buy more land. If they really wanted a GO they will payout and delay their expansion. They can do do it either 2 ways
1. trigger a technical GO Called MGO thru 33%. In do so, they will offer low and ensure NO Buyin and wait for the price to explode therafter.
Or
2. Keep low and wait for balance LA conversion to dilute the mother to 28% Mayland holding while they build their Landbank . As I mention earlier, I believe they will go for a private placement for Lembah Beringgin coming up next as well as bonus issue to complement the PP as the GDV of 100B is certainly sizable.

They will work more on 2 because 1 is for low level amateur play. Have a thought

Again it really depends on how much time you have and how critical thing will be right? If u r a trader I think it makes perfect sense not to touch L&G. If you r an investor, it will be very key to look at least 3 steps ahead. Why 3 and not 2 ? If you r looking 2 steps ahead, you may not factor the periodic changes. Example two steps ahead, you would factor GST however you may not look towards a gloomy year ahead and how the market may react. A lot of u would beg to differ because you think we cannot foretell the future.
I said many times that I m also not a clairvoyant however I factor in some buffer to play my cards. Example when I told you to play L&G, I bought at 53cents and LA at 40cents knowing that the price will be at least above 65cents and my target was 75cents. Now that it is at 63.5cand with the dividend, my cost is at 51cents with a buffer of > 12cents however I have a large volume in my arsenal. Though it did not touch 70cents, my buffer is sufficient

The next play as an investor is really the multi year generator knowing that GST will kick in and knowing that property prices are still inclining. The only way out is property outside central KV and restart again with an infrastructure and transportation. I wouldn't want to bet on a good year for 2015 however the financial Instituitions are very weak at this point. If foreign investment by our FI to Europe or any part of the region outside of Malaysia would also mean outflow before the money comes back in. Either way we haven been very successful apart from property outside Malaysia. We lost plenty on forex and now we have to gear for a 2015 full of surprises.

So bet right and bet on fundamental for 2015

For those who have been long in this trading business, do me a favor. Track you transactions vs if you invest. For those who trade a lot, pick one of the stocks you have that have a good management, a good FA, and a good pipeline. Avg the number over 3 years and 5 years asuming you trade many times vs if you have kept it. See which one you would have made more.

No no guys I am still here with you. If I have thrown, there will be tsunami here. Anyway, I am confident of this counter as long as they DONT SABOTAGE THEMSELVES. I will understand David Chiu wanted to convert the LA for a reason and the dividend was a good one however I am dissapointed with him doing it last minute.
To answer some of your questions, my answer indirectly is this....the market has been on correction mode for 3 weeks now and the chances of further declination is much much lower given the fact that market is also gearing to move forward. There will be budget for October and there will be window dressing in December. All that is left is November.
For those following this gear up, this is a chance to buy if it drops.u
As for the L&G management, my message is simple - value of a company is the sustainence of the share price fluctuating minimum. This is because they trust your ability and your announcement and believing that the share price will maintain and incline due to your commitment.
I m of the opinion after the AGM that Low Gay Teck is not the man to take L&G further. Reason is he is too much on the technicality of things while Mayland trumps the cards.

Djia responded with record breaking high.....KLSE?

Happy ending part 5......wonderful ...fed no hurry to raise interest rate....

http://www.nytimes.com/2014/09/18/business/economy/federal-reserve-policy-statement-yellen.html?_r=0

Embrace....

Superfly ...

2am watch Yellen, China success and now Fed policy...if positive, you have the big 2 positive.

Ok ...new Chinese Stimulus announced and Wall Street got excited yesterday. And today we wait for Fed monetary policy........

Pls check results of ur pass buy and ask urself what happen each time this happens. Btw I have written on this before
1. If someone buys in large quantity at one go - what will happen?
2. If someone accumulate/buy in small quantity and not shown or detected easily - what will happen?
3. If someone tries to manipulate in low volume trades what will happen?
4. If someone tries to manipulate I high volume trade what will happen?
5. If share trade volume goes south but within balance quadrant of price, what will happen?

Hahahaha.....

Hahahaha........

David Chiu, you hear that? ......lol

Really? So scared of sabo by David Chiu

Round 2 ding ding

Hahahaha....everyone want to do 3 cents....2cents dividen + 1 cent add profit

Round 2 2.30

More...more

Throw!!,

Come on is that all you have at 66.5???

Don't throw me chicken feet lah 3.2k only

I have allocated 1million shr to buy for today....66.5 is fair for me.

Come on sell more....

You throw I will buy...

I m waiting to buy that is...

Whoever still want to sell at 66.5, I m waiting

Today sun will shine bright!

Technically and ideally if all buyers relent to seller it can hit 68c today

Relent here mean buyer gives in to seller price.

The scenario now is the best to illustrate my catch22.
1. There are 3.2 M buyer volume vs 3.3M seller volume
2. buyer price is 65.5 vs seller price 66 with volume almost equal 300+
3. Volume is 2.6M done
This is really an ideal example as we will see if buyer relent or seller relent after holding at 65.5 (time 4.43)

If buyer relent and price goes up it's a good sign

So evidently, the best time to sing is when the crowd has gotten over the excitement simmer down or when the crowd is ready to sing with you BUT never never start singing when the crowd is cheering because no one can follow that rhythm you are singing or the song you are delivering

Now today I want to give a 101 on singing, live performance and when to sing.

Stock market counters are very much like a singer and the audience are the investors, traders, punter....you name it. Every singer that goes on stage gets different acknowledgement from the crowd. A singer dancer like Psy, get the crowd dancing and cheering, whereas a singer like Michael Jackson would probably get the majority cheering however when he perform the crowd is usually mesmerize with his moves and a Korean heartthrob would probably get the young fans to cheer non stop and so on. So what we like is cheering because it create market frenzy and the herd mentality takes over right?

When the herd mentality takes over, all hell breaks loose because most ppl just follow and may not even know the counter they are buying in except for the fact that many are doing so. This is the least desirable in my books because I almost never manage to get in and when I do, the share price would have been at the peak and on the way down.

Another one is those that market so well but have least substance. Imagine going for a Madonna concert only to be dissapointed by her lip syn and not actually singing. This will leave a bad after taste. And in stock market, you can see many of these like Madonna. Example, stocks that r recommended by certain blogger only goes up the day of the recommendation most of the time and the share price sinks back down to the low of the week or even 2 weeks. Does this mean the stock is weak but marketed well?

Then you get a scenario where it is obvious like KHSB but price did not run in until much much later. Does this mean strong market news of the privatization but weak markerting?

My personal favorite are those that rise in tandem with progress. Let the progress, forecast and official announcement do it's natural marketing. Why? Because then the shr is more predictable and less punting. It will be less punting because punters cannot make a quick one and they leave the counter all on its own to reflect the performance and acceptance.

So decide what kind of singer and audience are watching this counter.....which include yourself and play accordingly

There is 3.2million on the table of buyer and 5.6 Million on the table of seller. This means that if there is a free fall, chances of sellers selling at buyers price is almost 2 to 1. This is a 2 to 1 chance however in my opinion, this week is even more crucial than next

Buying back as oppose to selling is very different. Buying back should be played with anticipated target. Example if 2 cents down is you target, you should buy strictly when 2 cents down. If otherwise, you are playing avg down. Playing avg down, you may not get the volume.

If they had allowed it to trade up this morning, it would have hit 69c based on 3Mil volume. Not hard to see as it was moving up and buyers commited to any price at one point. Let's see if he buys back. Note volume is 6.6Million and I don't see him in the queue unless he is picking back in very small qty.