local cement players tasek , ytl , lafarge all holland just like steel industry , because of china steel and cement overproduction ,it drive down the price everywhere in the world
ATTENTION ALL (CALVIN TAN RESEARCH LATEST INFORMATION)
HONG LEONG BOSS QUEK LENG CHAN IS OFFERING RM5.50 TO TAKE TASEK CEMENT
THIS WILL MOST PROBABLY BE OUTRIGHT OFFER AND DELISTING OF TASEK CEMENT SHOULD THE DEAL GOES THROUGH
MORE THAN 10 YEARS AGO WHEN TASEK CEMENT WAS ABOUT RM3.50 HONG LEONG OFFERED TO TAKE TASEK CEMENT AT RM3.80
IT WAS DONE WITH THE LISTING STATUS INTACT. TASEK LATER SURGED OVER RM16 IN ITS CYCLICAL UPTREND
WITH YTL TAKING LAFARGE PRIVATE AND NOW HONG LEONG TAKING TASEK PRIVATE THERE MIGHT BE A CARTEL FOR CEMENT IN MALAYSIA = LEADING TO HIGHER PRICES IN THE FUTURE
THE DAYS OF CEMENT PRICE WAR WILL BE OVER
HOLCIM HAS JUST RAISED ITS CEMENT PRICE FOR 50KG BAG FROM RM15 TO RM18 (UP 20%). HOLCIM BELONGS TO LAFARGE
WHO WILL BENEFIT?
ALL CEMENT COMPANIES
ALL COMPANIES WHICH OWN HARD ASSETS LIKE BUILDINGS, MALLS, OFFICES, SHOPHOUSES WHICH ARE ALREADY COMPLETED
THE BIGGER THE BETTER
EXAMPLE: ASIAPAC WHO OWNS THE HUGE IMAGO MALL IN KK
ALREADY OVER RM1 BILLIONS IN BOOK VALUE. WITH HIGHER COST OF CEMENT & BUILDING MATERIAL IMAGO MALL VALUE WILL GO UP
ALL OTHERS ALSO BENEFIT IF THEY HAVE HARD SOLID ASSETS LIKE BUILDINGS
Ytl cement always underprice holcim by Lafarge to capture market shares
Now with Ytl taking over Lafarge no need for cement price war any more.
The Malaysian consumers must be prepared for higher cement prices and in turn higher house prices
So this will be inflationary
Better go buy a house or apt if you don't have one.
Or else one day you will find it impossible to own a landed house like in Hong Kong or Singapore
Don't waste your monies on expensive cars which will depreciate over time
Buy an appreciating asset like a landed house
Over time cement prices will now continue to rise and rise in Malaysia
And these were the cement companies taken over through the years
Mui Group sold Pm Cement. Then changed name to Pm Corp
Ytl Cement took over Hajoon cement from Gopeng. Later Ytl group took Ytl cement private
Cima (cement industry of Malaysia associated) took private by UEMS
Now Lafarge taken private by YTL Group
Hong Leong proposed to take Tasek cement private.
Looks like there will be less and less listed cement companies?
Once they form a private cartel expect cement prices to cross Rm20 per 50 kg bag and house prices expected to go up by another 20% or more
What you should do to protect yourself from inflation
1. Go quickly and buy your dream house or Apt if in Kl, Selangor or Penang (Don't buy apartments in Johor. In Johor must only buy landed houses)
Buy Companies with high assets in Real estates, malls, shops, offices, warehouses or other hard assets as these expected to rise in price due to inflation
Cash on its own will go down in value as paper currency will continue to depreciate.
Or follow Calvin buy winning stocks to protect from the ravages of inflation
Faster sell, this share is too rubbish, i buy when he still have dividend, that time 14.00 price per share, then i sell all 13.30 all... lucky i stop lose, now drop like shit...
tasek Corp Bhd’s net loss for the third quarter ended Sept 30, 2019 narrowed to RM5.37 million from RM5.99 million a year ago as the cement segment was affected by the prolonged price competition and high production cost.
This was compounded by lower interest income and lower share of profit from associate company. Its revenue however, rose 6.9% to RM160.24 million compared with RM149.88 million previously.
For the nine-month period, Tasek’s net loss widened to RM22.98 million from RM15.07 million a year ago, but revenue rose 1.3% to RM425.19 milllion from RM419.79 million.
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....
Sharmila Rao
11 posts
Posted by Sharmila Rao > 2019-04-06 17:03 | Report Abuse
Hi...should I buy tasek now? Y is the price going up now?