(I don't have a crystal ball.. I could be totally wrong. Do your own research)
1- Over the last few quarters, the dollar has been gaining against all other major currencies.
2- A lot of capital fled these so called "emerging markets" in favour of holding dollar denominated assets. It was a great ride and some - me included - made substantial FX gains.
3- That ride is about to come to a stop either through:
A- The Fed raising rates (look up charts on DXY and Fed initial rate increases), B- The Fed not raising rates (investors will get tired of waiting and call the Fed's bluff), C- Or the Fed engaging in Quantitative Easing round #4 (China just devalued it's Yuan and flipped the middle finger to the IMF)
4- Once that occurs, There will be capital flight from USD to other currencies, such as MYR.
5- Once step number 4 happens, the smart money will come looking for undervalued assets.
6- You're are looking at one of the most undervalued, non-debt laden, asset heavy, growing companies in the market.
Sept 15 is just around the corner... the smart money will try to find undervalued assets around sept 10 - 14
NOOb. You are correct, correct, correct! Market will come round to your point of view very soon! I could be wrong, but I doubt Fed will raise interests rates after China's so-called 'devaluation'! The move is to show the world that the FED is no longer in control of the world's economy as it once was. If the Fed raise interest rates i.e. tighten liquidity in the face of China's 'devaluation' the US economy will spin right back into recession or near recession! To counter China's cheap money policy, the Fed should either defer raising interest rates or even go into another round of quantitative easing!
Let’s admit that Najib Razak is a problem. While there are other global factors contributing to the decline of our economy, Najib is the cause to the loss of confidence in the integrity of Malaysia’s institutions. As the “political dead man walking”, his continuation as prime minister is causing more harms to Malaysia’s economy.
2. Name a new and competent finance minister
Even if leaders of the ruling parties couldn’t get rid of Najib as prime minister as yet, for the sake of the Malaysian economy, a new and competent finance minister with clear understanding of macroeconomic factors should be appointed immediately.
It’s time to end the practice of prime minister holding the finance portfolio concurrently. Najib has shown how disastrous such practice is.
Two names come to mind as new Finance Minister. From among the current ministers, Mustapha Mohamad is probably the best to steer the economy. From outside the system, perhaps Nazir Razak would be a decent choice.
3. Set GST at zero rate
The global market is stuck in an unsustainable situation, i.e. depended on the US economy as the sole and final consumer destination. There will only be limited growth the export, if there is any. Malaysia needs to quickly arrest the economic slide by ensuring that there is sufficient domestic consumption at the bottom.
With the ringgit sliding rapidly, imported inflation is going to result in higher prices soon. One intervention to ensure that domestic consumption would not collapse is to abolish GST or at the least set it at zero rate for a period of a year before further review.
4. Halt big ticket crony projects
All big ticket crony-like mega projects should be halted and be subjected to a ‘foreign currency impact’ assessment. Many of the big-ticket projects like Malaysia-Singapore High Speed Rail and even the MRT are unnecessarily expensive, and actually unnecessary if cheaper and more effective options were considered.
The government’s past responses to a crisis would be to inject more cash into the hands of the cronies for more construction projects. government-driven construction projects usually hire mostly unskilled foreign labourers with very little spillovers to the wider economy. There are other ways to boost the economy.
5. Halt intake of unskilled foreign labour
One important way to push for massive structural change to the Malaysian economy is to reduce the number of unskilled foreign labour and to push for mechanisation and automation so that Malaysian workers are paid better with more skill component in their jobs. Hence Home Minister Zahid Hamidi’s proposal to bring in 1.5 million Bangladeshi unskilled workers is foolish and against national interest.
Hahaha........the tok kok calvin is back here. Must have lost his pant already, now so angry.......hahaha.....kikiki.... stkoay asked his siheng and sicheh to buy in 2014.......and stkoay also informed that he has sold 90% of his holding at about 4.50 - 4.60 in November 2014. All in i3 know you like to tell fairy tales, but don't tok kok here. Hahahaha..........
hng33. There are countless ways to save the economy but only one sure way: Take action now! That was why people are nostalgic about Mahathir - right or wrong, he never set on a problem - he always took action, even if only talking positively but believably!
stkoay is now so happy......watching the market and enjoying his popcorn........ ......but the tok kok calvintaneng is so angry........hahaha.......kikiki........
Don't know who is smart and who is c2peed.........hahahahahaha.....
hope to see to maintain at above 1.4 level and gradually climb back when sentiment turns...market is completely oversold...those with deep pockets...do lend your support
take a longer term like 5 to 10 years, land scarcity in economic terms mean price will increase..property will only cost more...with 2 KSL mall recurring income at more than 100 mil per year, will it become a blue chip property stock? just keep 10000 shares today and I guess your return should be no less than 3 times..300%
Their bullet not unlimited, maybe just try to show some confidence. But if market continue to slide, we know where this is going. If other counters like Tambun, Matrix, Huayang continue to go down, does not make sense for KSL with the lowest dividend among all to stand strong.
Excluding RM88 million fair value adjustment, FY2014 profit = RM254m. FY2014 P/E is now 5.3x at current price. This is similar to its other peers, see Huayang, Matrix, Tambun, which are still showing uncertainty.
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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....
kenneth89
2,695 posts
Posted by kenneth89 > 2015-08-13 14:14 | Report Abuse
WOW... UP LATER?