CIMB Mgmt shld scale down or total pull out of international IB biz rather than hold on and bleed , if they (Mgmt) feel they are not up to mark in this area. For me pulling out of Australia is a progressive move and likewise we shld not be worried if they (mgmt.) do the same (or scale down) for the Thailand and Indonesia Biz. In Malaysia CIMB is operating like a state owned Bank with monopolistic right on most govt. related banking/controlled (GLC) biz which will keep CIMB afloat – this is the plus point to hold the share.
The big question is what is in for us (small investors like us, hoping to make some money) – we are going to put money in (invest) but at what price (Buy) – RM5.50 or lower is good enough?

Now that the Goldis RCPS is finally closed, the next move is to watch the TP of RCPS. If you hve faith in Goldis for “midterm hold”, RCPS is equally good or much better if you can get it below RM1.00 (inc. of trading fees). if you have missed the earlier rights it is good to keep RCPS in your investment radar. RCPS is tradable at 100 shares and the good level for conversion will be at 5,700 RCPS.

With the latest CIMB announcement on structural changes in the Mgmt Team /non-performers have to go and their commitment to T18 (Target 2018), this bold move is welcoming news to CIMB investors. Hve faith in the new lineup and hold on to your holdings – the next few qtrs. reporting will tell.

The general public (Most of us) will expect a bad 4q for CIMB. If it is a US MNC the Mgm will take this opportunity to take a bigger write-off provision (Prov. For redundancy payment, asset write down for product discontinuation etc) in that qtr. What can be worst for the Mgmt when the general investors already accepted it. If CIMB Board of Directors exercise this golden to opportunity I can accept it cld be “red reporting qtr” and a clean start for the next first Qtr. @Ah Ha under these circumstances I agree with U the TP cld be good at RM4.50 until the next QTR. BTW @vinvin this assumption of mine is only for like thinking individual. I don’t think u are up to it yet, it wld be just a “ talk nonsense” to you.

At RM5.50 support levl I wld think all the bad news on CIMB are factored it and the last quarter reporting in “red” shld not come as a surprise esp. there is this given opportunity for the CIMB Mgmt to provide a bigger provision in that quarter. CIMB is a state owned Bank and the stake is very damaging if it failed. Holding it at RM5.50 is a safe bet.

@20012015 , yes surrendering RCPS for Goldis @2.28 RCPLS for 1 Goldis. If you need assurance, pls refer conversion mode under page 6 of the prospectus.

@huiyang
Hi this is not a right issue or warrant to mother shares where money is involved. This is RCPS issued @ RM1 per share (per RCPS) . You exchange (or convert) RCPS to Goldis within 5 years at 2.28 RCPS to 1 Goldis. No money is involved, how did you get RM3.28. Read my previous comments on what are the benefits of holding redeemable convertible cumulative preference share (RCPS).

Conversion price means you exchange 2.28 RCPS to 1 Goldis share.

@member41,
Hi lets do some arithmetic for you to understand. Yes 1 RCPS is RM1.00. Assuming your right is 2,280 units you pay RM2,280. 2.28 unit of RCPS exchange for 1 Goldis share. So, if you want to convert all yr RCPS (ie 2,280 units) you get 1,000 Goldis shares, no further money involved.

@simonseah/member41
Hi, don’t understand why you like the mother (Goldis). RCPS is so versatile
1) You want the mother, exchange at 2.28 unit RCPS to 1 Goldis (no money involved in the exchange)
2) If mother don’t make money, no dividend will be declared but RCPC must pay @4% for first 3 years and 4.5% and 5% onward. If mother has no money for one particular year to pay RCPS dividend ,then RCPS dividend will be cumulative.
3) If mother price up, RCPS will move in random.
4) If you need money or FD interest move up to an attractive rate, you can dispose the RCPS in the market, tradable @100 unit.

Hope this will help.

@hw0706 u are right. If yr right to sub. is small it cost u more taking into account the Revenue stamp of RM10. Why not wait until the listing of the RCPS, maybe can get it below RM1.00

@yipusing Hi, I am like u guys hoping to make some money. Sharing infor is noble and I am doing it with good intention. I value all comments becos comments are infor. Don’t take it personally I am saying you are not right. We cannot predict the future but we can plan for it. If interest is going to move up we switch our fund. BTW Msia needs to boost its economy and what a better way to do it is by lowering the cost of borrowings – I cannot see BNM going to make any immediate upward trend in FD

@yipgusing Msia household debt is at its peak and any drastic movement of interest rate will put a lot us seeking shelter under the bridge. At 7-8% you can kiss the stock market goodbye. That is basic economics

Fren, you know how many years FD rate in Malaysia was held below 3.5%. Do you know US Dollar was almost zero rate for long time. Do you Japan has negative interest . Nearer home S'pore do you know the FD rate the bank is paying.

BTW RCPS can be convertible at any time during the conversion period. For example on assumption by December 2015 Godis share moved to RM2.60 , convert and take the profit. If it moved south, you hold. You hve five years to gamble your investment in RCPS

@member41 nothing to lose if you believe in Goldis and Fixed Deposit Rate for the next three years cannot be better than 4%.

Goldis RCPS Issue price of RM1.00 (Tenure – 5 years) convertible to Goldis Shares @RM2.28

This is how I read it – 4% cumulative preferential dividend per annum calculated on the issue price per RCPS (RM1.00) payable semi -annual basis for first 3 years. 4th year @4.50% and the final year @5.0%. The big question is by maturity date will Goldis share be better than RM2.28. A good buy to hedge against Goldis share if you believe in it and meanwhile you collect dividend during that period. If you guys are worried about Dividend paid per the par value (RM0.01) of RCPS you guys can refer to the Registrar for further clarification.

CIMB has a lot of Indonesian loan exposure? In early 2014 CIMB had private placement of 500M new shares @RM7.10. Am sure those big boys with top notch advisers had factored in the Indonesian Loan issue when they accepted the private placement. Look at the sunny side - small players wanting a piece of excitement in CIMB wld never hve that chance to pick up the stock below RM5.20 (big discount) if not for the little disturbance in the market. We all shld be positive with this God sent opportunity. Khanazah Nasional and EPF are the big brothers and I do agree buying in now may not guarantee an immediate capital gain but they cannot shut down dividend payment (20 sen @RM5.20 gets a return of 3.84%) becos all Banks in Malaysia pay annual dividend.

Unless exempted , GST wld charged on trading services ie 6% on (Brokerage Fee + Clearing + Stamp duty)

@Jolin. Very interesting. Are you relating to this scenario- Assume your holding is 5K CIMB @Avg. RM6.40. Borrow 2k to sell it @RM5.35 and buy back @RM5.00 later. When done, at your book closing, you win. The trading term for this is – Borrow (first) stock to sell

See u @RM4.50. He has his reasons but without stating his findings, accept him as another loose cannon. Plenty in an open forum. Panic?

@zero for most Malaysians we can read and write at least two languages, you are better. Great to have you around. Tnx. Btw in S'pore the national languages are: Chinese, Tamil and Malay but the Official Language (for ALL) whether you Like it or Not is English.

Hi lonesome - Chinese/Bahasa/ English one go, okay. 100% Chinese?- someone of us may not benefit frm your comments. Purpose of this Forum is to share infor. so we can make better choices

Need lcth to rebound to upgrade (5 to 6). Not greedy, 30 sen pun cukup.

I like this blog page - You don’t have to take responsibility or take pride in what you say or comment – just like kids do in the kindergarten playground.

@nemesis We hope you are right. At 1 sen divd for buying in 30 sen gets 3.33% return – OK to buy in to hedge (wait) for capital return. BTW the last time divd declared/paid was 2010 for FY 2009 and add to that- LTH is not a small time player – the controlling interest is 5.35% (last reported) . If they (LTH) can "rock" the boat. Tks anyway - any infor. is better than no infor.

Lembaga Tabung Haji is selling. LTH is big ship -the next round of selling can bring in the tidal wave . Problem with Co. not declaring dividend.

Hi gnail, If you believe MNC has the best work culture so whoever the MD is non-issue –Right?
Alcom Msia Price/Sales ratio is good , then why is the P&L so shitty. Past 5 years sales were flat @RM200+k and being in the specialty biz the products shld command a premium (price) – the P&L shown otherwise – so the cause is the margin. Two ways to go – sales growth or better margin. So, appointing a new VP to look into Asia Specialty Sales (growth or margin) is the right direction for the Malaysian/Korean operations – you don’t hve to agree. BTW I am just like you guys, trying to make some money, and sharing my thought. Stock trading/investing is all complicated, today’s right may be tomorrow’s wrong. So, the higher you set the benchmark (buy today, price must go up tomorrow) you will add more frustration to your life. In life it all about choices we make – you cut loss, the other side collects (accumulate).
@mikeann – there are a lot of cut loss kaki

@yongyou, hi Yes I have put some money in it. I am a dividend player and got a good deal. Frm the dividend recd in Aug I wrote off 2 sen on my holding cost. @ gnail, hi that guy got a promotion to VP, specialty sales Asia region – take him as Corporate fixer and that his short stay as job well done and next move to develop Asia regional sales.

Alcom investors – understand one of the unwritten rule of value investing is - good to have a site view of the company you are putting the money in. If the surrounding areas are well kept it meant well- managed company. BTW the Alcom factory is in Bukit Rajah Klang Industrial Park – any Klang folks that can help to provide a review on this. Tks

Hi, look at the positive side of Alcom. Maintaining Listing status is an expensive affairs and if the promoter (major owner) of Alcom is not getting benefits and with low trading volume, considers delisting, at 1 time BV we shld get RM1.33 back. Alcom has resume paying dividend and I am sure this will continue (unlike SMEs talk 3 talk 4) – MNCs don’t act on something and make a u-turn tomorrow. As current price of 90 sen a piece the return at 5 sen dividend gets you 5.55%. So, why hve second thought – buy 5k and just wait

@prudeninvestor -I am on the wrong page. Anyway using Net free CA and Net free cash shld be part of our investment tool – just sharing.

@prudentialinvest – KS @negative cash RM90mil? 2012 audited rept KS Net free CA (current asset) per share is RM2.58 (Total CA less Total Liability) and Net Free Cash RM1.809 per share (Cash+derivative less total liability). Understand the nos. is improving year by year. Are we on the same page?