Mr. Koon, Asianpac revaluation, though not a realised profit, but it has reveal the potential earnings from the property concern. The property is an investment property which could generate future income/cashflow. The actual performance is yet to be proven but it is for the investors at large to evaluate the risks and rewards before they buy into Asianpac.
Murali, seems that you are the very few who manage to see through his tricks and "noble intentions". but they are always ignorant supporters who follow blindly of his articles and 'recommendations'. everytime ppl like us disclose and debunk his "good faith", then he will retaliate and calls us stupid. can't blame KYY for that, if got ppl obstruct ur path to making money, you also hate them right? haha...
ks55, he is definitely not acting in good faith and noble in intentions. those who has followed his movements in Jayatiasa and Mudajaya can predict wats his next move in VS and Lattitude. When he is accumulating, he will be silent. when he accumulated enough at low price, he will be loudspeaker and promote the stock, leaving some crumbs for forumers here to chase after. then he slowly disposes off and leave without a trace. Can't blame him, every man for his own in the stock market. no such thing as "noble intentions". like it was mentioned earlier, legally correct, ethically and morally wrong.
If you blindly chased and unfortunately got stucked under the wheel think of it as a charity for the scholarship of the other underprivileged students instead as tuition fee. You might feel better that way.
for most people property is the best place to park their money if they are not playing the stock market ( most people do not trust the stock market ). Keeping cash is useless because money becomes smaller every day, so people got no choice but to buy properties. Mr Koon seems to be outdated FD person I supposed.
Bro Skyz, I think many of us see through the old man's tricks (who cant?), just I am the only one acting like a broken records, whacking again n again...maybe I love him much more than anyone here....
true... developers all jump into the bandwagon of property hoohaa! now supply is more than demand ! the property sector wont necessary crush, but definitely will slow down. until small players are shake out, equilibrium will come
It is interesting to note that some of the comments here point to future business of Asiapac - re the Imago Mall. With the GST, consumers are more careful how they spend. Also do you think the mall can afford to charge high rental? Also, Mall operations reported a negative RM4 which is an increase from last year. Property development income is also winding down.
I suggest all to download the recent results of Asiapac and read thru it carefully. Also since all here like to use charts, the gap up the other day was a definite SELL volume. Those who want to see my full report and register as a Club Member at www.kiasutrader.com. Cheers
Of course I am starting to become cautious when I see plenty of property unsold More and more people trying to low ball the property price They go around and ask the price And they will do it over and over again for several months I think many people are well prepared to buy at bargain when the collapse happen
people has been complaining property is not easy to rent and even harder to sell Very few people can actually afford to purchase property after the price has been turn two to three fold over the 10 years How much property will go down so that most of the average people can afford to buy property of their dream? I personally think property need to go down at least 50% so that people are happy to buy them
As long as there is still holding power with support from parents saving and got job on hand, property prices wont go down but sustain at this level. Buyers who bought their properties in 2011, 2012 and 2013 are unable to accept the fact that it is no longer the same. There are no more hot market for properties as the price has increased into a level that not many ppl can afford it.
Anyway, ppl still have saving and job to hold on to the properties. Until the saving is exhausted and the economy get worst due to weakening Ringgit and also the stupid scandal of 1MDB, we may be able to see some correction by then. I don't think this will happen within 2015. Maybe 2016 the earliest.
kiasutrader, you know why Asianpac got 4mil loss on mall operation or not? Dig further before tok. Investment always carry a risk factor. How sure are you the Imago Mall operates by Asianpac is not able to perform in future? As for me, I am never sure, but am taking a risk, then manage it.
Hi all; Actually, Mr Koon's article is quite insightful. But then, i need to highlight 2 points:
"It looks like the Board of directors does not know that there is already an oversupply of properties in the market and they do not seem to realize that it will take about 7 years to complete the development of the land before they can see any profit."
(1): Oversupply of properties in the market: There is a shortage of affordable housing in the market. If your counter is like Matrix Concept whereby the price per square feet is at RM7 and they are able to sell at RM40 to RM45 per square feet, then there is nothing to fear. In fact, Matrix Concept is reporting positive operating cash flows every quarter. Actually, now is the best time to buy property counters that have huge tracts of landbank (better still; if they bought it at dirt cheap prices last time). Here, the developers can build their "bread-and-butter" affordable housing to weather through this period of property slowdown.
(2): Takes 7 years to complete the development of the land before they can see any profit: Normally, developers will develop the land by phases and then recognise progressive billings based on percentage of completion on that particular project. Hence, developers will book in the profits throughout the lifetime of the projects. Hence, developers do not need to wait until the end of 7 years to start recognising profits.
In addition, about the pre-sold properties: I concur with Mr Koon that if the condominium was recently launched and if the take up rate is poor, then the developers will be in deep trouble. This is because upon completion of the condominium, there is no buyers and there will be a build up of inventories. This will create a liquidity crunch because the monies are tied up with inventories and to make matters worst, the developers need to continually service the bank loans.
However, if the pre-sold properties has hit about 50% to 60% of the project's GDV, the developer need not fear because they have kind of like break even.
Your rule of thumb for buying house is the same as valuations. It changes overtime depending on GDP and etc. I had made it, others had made it. Yes no doubt its difficult but nothing comes without hardship. In the past valuation is 12 times, nowadays 18 times and its still going up. There is no right or wrong, just a matter of discipline to get it achieved. Yes, who wouldn't want to have lower Rule of thumb. In the past buying house i only need to pay 30x my monthly salary. Nowadays rising to 100x but do you have a choice if you had nothing to start with?
Property price never increase it just ours money keep and keep diluted....
In stock market many are pump and dump counter, in property market many are pump and dump property type such as soho (bad location just like bad counter in stock market).
When slow down property sale, best time for you hunting good property or ur sweet home since it may be under correction period.
PROPERTY is the BEST location TO PART UR MONEY and PROTECT UR MONEY. PROPERTY STOCK?? hahahaha
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
Report Abuse
Please Sign In to report this post as abuse.
Market Buzz
No result.
Featured Posts
MQ Trader
Introducing MY's First IPO Fund for Sophisticated Investors!
MQ Chat
New Update. Discover investment communities that resonate with your ideas
MQ Trader
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
0:17
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 3395 views | 3 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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....
janeliaw
29 posts
Posted by janeliaw > 2015-06-02 12:04 | Report Abuse
means we should avoid stock like OKA, SCH, Ptaras, Econpile etc??