TransOcean aborts RM140m purchase of haulage firm

TransOcean Holdings Bhd has aborted its RM140 million acquisition of container haulage firm Taipanco Sdn Bhd, citing "non-fulfillment of conditions precedent" in its agreement with the vendor.

However, its Bursa Malaysia filing announcing the issue did not specify which conditions precedent were not fulfilled, only that the share sale agreement (SSA) inked on March 14 for the purchase has been terminated.

"The PGA (profit guarantee agreement), which is conditional upon the completion of the SSA, has also been terminated on even date," it said.

When the acquisition was proposed, Transocean said the purchase should enable it to revitalise its business and improve its lacklustre financial performance, which has deteriorated over the past four years.

The acquisition, which was to be satisfied via the issuance of new TransOcean shares and redeemable convertible preference shares (RCPS), would have resulted in TransOcean executive chairman Tan Sri Dr Mohd Nadzmi Mohd Salleh relinquishing the majority stake in the company, as it would lower his equity from 65.16% to 18.68%.

TransOcean shares did not trade today. It was last traded at 67 sen on Sept 27, which gave it a market capitalisation of RM27.47 million.

Source : http://www.theedgemarkets.com

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The FBM KLCI looked poised to extend its loss

The FBM KLCI index lost 1.35 points or 0.08% on Wednesday. The Finance Index fell 0.03% to 16639.42 points, the Properties Index up 0.30% to 1237.1 points and the Plantation Index down 0.15% to 7862.98 points. The market traded within a range of 6.10 points between an intra-day high of 1768.19 and a low of 1762.09 during the session.

Actively traded stocks include HUBLINE, TIGER, HIBISCS, FRONTKN, HUAAN, SENERGY, HUBLINE-WB, PERMAJU, UMWOG and ICON. Trading volume decreased to 2209.94 mil shares worth RM2155.69 mil as compared to Tuesday’s 3697.07 mil shares worth RM2735.28 mil.

Leading Movers were DIGI (+6 sen to RM4.91), PPB (+16 sen to RM16.96), TM (+6 sen to RM6.41), AXIATA (+4 sen to RM5.18) and ASTRO (+2 sen to RM2.84). Lagging Movers were GENTING (-17 sen to RM9.51), WPRTS (-4 sen to RM3.85), CIMB (-4 sen to RM6.30), IJM (-2 sen to RM3.30) and HLFG (-8 sen to RM16.82). Market breadth was positive with 401 gainers as compared to 376 losers.

The KLCI closed lower at 1764.24 points amid overnight mixed performance in US market. Market sentiment was muted amid absence of fresh market leads.

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Source : www.thestar.com

Memorable Quotes about investment

Phillip Arthur Fisher, esteemed investor and author of the book, “Common Stocks, Uncommon Profits”, was one of the founders of growth investing. In 70 years of money management, he maintained an astounding record based on his long-term approach and focus on growth stocks.

As with many of the great investors of his time, he was kind enough to write down his experiences and to share the wealth of knowledge through his books and interviews he had conducted.

Here are three of his more memorable quotes that investors of all stripes can learn a thing or two from.

“Practical investors usually learn their problem is finding enough outstanding investments, rather than choosing among too many”

Fisher believed that we need to be extremely selective with the stocks we are willing to buy. As a money manager and a conservative investor, Fisher knew the importance of being patient and careful with his investments.

With over 700 stocks listed on the Singapore exchange and more than 3,000 trading on the US markets, it is easy to be fooled (with a small “f”) into thinking that great investments are easy to find. Yet, on the contrary, outstanding stocks that investors can hold for the long-term are rare and difficult to find. If you find yourself thinking that there are “too many” stocks that meet your investment criteria, you may wish to narrow your criteria and be more selective with your investments.

“It is my observation that those who sell such stocks to wait for a more suitable time to buy back these same shares seldom attain their objective. They usually wait for a decline to be bigger than it actually turns out to be.”

Fisher had the view that investors should hold their investments for the long term.

However, some investors still think that they could somehow beat the market by moving in and out of their investments. There are two fundamental flaws to this strategy.

First, is the frictional cost involved with buying and selling stocks. Second, and the main reason why Fisher felt this strategy could not work was the inability for investors to time the bottom of the market. As most investors know, the stock market is volatile and unpredictable. Investors who sell their shares, hoping to re-enter at a better price usually fail to do so, due to greed and the inability to accurately predict short-term stock prices.

“For the great majority of transactions, being stubborn about a tiny fractional difference in the price can prove extremely costly.”

After hours scrutinizing annual reports and research articles, you have finally made up your mind that the stock is a solid buy. However, you go back to your online brokerage screen and realise that the stock you wish to purchase has risen by 1% from the day before.

You stubbornly decide to wait for the stock to decline so that you feel that you got the stock at a discount. Unfortunately, the stock continues to appreciate and never returns to your target price. Sounds familiar?

As always, Fisher was one step ahead and realised that a small difference in stock price actually made very little difference to our long-term investment results.

For instance, buying a stock that is one percent more expensive would have little impact if it appreciated 10% a year for the next ten years. Knowing this, investors need not stinge over minute differences in share price, as it may prove extremely costly in the long-term.

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Source : fool.sg

3 Important Factors That Are Affecting STI

1 year STI Price
STI was at approximately 3,500, the highest peak almost a year ago. The price started to decline and eventually collapse in mid July 2015. Over the past few months, the STI has declined to as low as 2,532 

1. China Data

As China is one of our major trading partners, the economic health of the country would also cause a major reaction in the Singapore market. This would mean that companies that have exposure to China would pose a greater risk of reporting lesser earnings.

2. Oil Prices

The oil prices would affect banks that offer loans to the oil & gas related sector and also the companies that are in the oil & gas industry. The recent increase in price of STI in Feb 2016 was mainly due to the news on the agreement between Saudi Arabia and Russia to freeze oil output and the decreasing US oil inventory reported. The freezing of supply would mean that it is likely that the future oil price may go up. Hence, the rise in price of STI.

3. US Interest Rate

Every one of us would definitely love to “Buy Low Sell High”. However, the chance of waiting for the stocks to hit the bottom and down at the lowest price is very slim unless one has been following the market very closely. Hence, it is important to conduct due diligence of the company and to identify the key factors that will affect the company’s stock prices.

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SOURCE : http://dollarsandsense.sg

Top 10 Stock Picks for 2017

While uncertainties in the market are certain, this has not stopped investors and fund managers from attempting the absurd in order to hit a “home run” in their stock picks. One of the key themes that will come into play in 2017 will be the US President-elect Donald Trump’s policies as well as a possible increase in the pace of rate hikes by the US Federal Reserve. This would lead to a stronger US dollar that could benefit some of the export players.

Thematic investing continues to include construction plays with the rollout of new major infrastructure projects in the country. There has also been a rising earnings prospect for the plantation sector as crude palm oil price remains high and output is expected to improve moving into the second half of 2017.

The oil and gas sector also sees a gradual improvement in sentiment following the gradual recovery in oil prices after the deal on production cut between the Opec and non-Opec members.

Higher tourist arrivals with 2017 being Asean@50 Year and as Malaysia plays host to the 2017 Southeast Asian Games and Asean Para Games could also benefit airlines, gaming and leisure sectors

 a list of stock picks based on these investment themes.

Inari Amertron Bhd

Inari Amertron Bhd is expected to return to double-digit growth as analysts are positive about the impact from the iPhone’s 10th anniversary that is expected to see something major planned by Apple Inc for the device.

Magni-Tech Industries Bhd

Magni-Tech Industries Bhd, the largest original equipment manufacturer for Nike in Malaysia for apparel products, could ride on the sportswear giant’s impressive growth story as Nike’s latest second quarter for fiscal year 2017 beat estimates on both sales and earnings per share.

CLASSIC Scenic Bhd

CLASSIC Scenic Bhd, the wooden picture frame manufacturer, is the classic dividend play for 2017 with its above market average dividend yield of about 7%, and might be the right defensive strategy amid the uncertain external environment.

Gamuda Bhd

Gamuda Bhd has significant upside due to its strong outstanding order book of RM9 billion, supported by the MMC-Gamuda joint venture which secured the RM15.5 billion mass rapid transit (MRT) Line 2 underground works package in March 2016, according to TA Securities.

Sime Darby Bhd

Sime Darby Bhd, which recently saw Tan Sri Abdul Wahid Omar take up the helm of its controlling shareholder, Permodalan Nasional Bhd (PNB), is set to benefit from a  proposed corporate restructuring exercises.

Genting Malaysia Bhd

Genting Malaysia Bhd has been touted as a darling of the gaming industry for 2017 on expectations that the Genting Integrated Tourism Plan (GITP) will boost its earnings and improve market sentiment due to the legalisation of casino operations in Japan.

Ta Ann Holdings Bhd

After a year of lacklustre performance, Sarawak-based Ta Ann Holdings Bhd is set to benefit from the improved demand for timber as well as the turnaround in the plantation sector. The company has been chosen by Kenanga Research, AffinHwang Capital and Public Investment Bank Research as their stock picks for 2017 in their latest strategy reports.

SapuraKencana Petroleum Bhd

Integrated oil and gas (O&G) services provider SapuraKencana Petroleum Bhd is one of the biggest beneficiaries of the oil production cut pledge between Opec and non-Opec members.

Bumi Armada Bhd

Bumi Armada Bhd, which saw its share price fall more than 40%, may provide another opportunity for investors in anticipation of improving sentiment and operating outlook of the oil and gas sector.

Protasco Bhd

Protasco Bhd is one of the construction players that are expected to benefit from an early general election in 2017. The well-established player in the construction industry is focused on road maintenance works, where most of them are based on concessions awarded by state and federal governments, providing the company with a steady income stream.

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Source: http://www.theedgemarkets.com

Markets wrap Korea Irma threats

Start your day with what's moving markets in Asia.

U.S. stocks slipped while Treasuries rallied the most in 10 months as tensions with North Korea mounted and another Atlantic hurricane threatened to make landfall.

The Dow Jones Industrial Average fell 234 points at the start of a week packed with central-bank decisions, Federal Reserve speakers and economic data that will help illuminate the path of the global economy. The S&P 500 Index dropped the most since Aug. 17, ending a six-day rally. Ten-year Treasuries climbed amid lingering unease over North Korean plans for a ballistic missile launch, while Hurricane Irma threatened a region already dealing with the devastation from Harvey. 

Big economic news still awaits. Mario Draghi may give more clarity on paring the European Central Bank’s bond-buying program when he speaks after a rates decision on Thursday. U.S. durable-goods figures, the trade balance, unemployment claims, and the release of the Fed’s Beige Book will add to the global data mix after a purchasing managers’ index Tuesday indicated the euro area is poised for the fastest economic expansion in a decade.

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Source bloomberg.com

Which Is a Better Buy Now?

There are around 700 companies listed on the stock exchange in Singapore. Out of those, there are a number of companies that have similar business operations. It is sometimes hard to determine which company in a particular industry is better than its peers.

In this article, we will do some quick-and-dirty comparisons between two retailers of luxury watches, Hour Glass Ltd (SGX: AGS) and Cortina Holdings Limited (SGX: C41), to determine which might be a better buy.

Hour Glass opened its first boutique in 1979 in Singapore. On top of having presence in our country, it has grown to establish itself in countries such as Malaysia, Australia, Thailand, Japan and Hong Kong.

On the other hand, Cortina was started in 1972 and has presence in Singapore, Malaysia, Thailand, Indonesia, Hong Kong, and Taiwan.

	Hour Glass Ltd	Cortina Holdings Limited
Gross Margin	22.7%	22.9%
Net Margin	7.0%	3.0%
ROE	10.2%	7.4%

Source fool.sg

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