What is the top of KLCI index?

What is the top of KLCI index? Sincerely I do not know and nobody will know.
But what I see now is the bull run still there, and there are more hot money to flow in.

Recap back to year 1997 and year 2008, what makes the market crash? Is it Soros and US subprime mortgage crisis cause it? Theoretical yes. Actually those causes are just the starting point, the real reason is hot money flowing out. After Soros attack on Asia currency, most of the people panic and withdraw back their money back to their own country and same as US subprime mortgage crisis. They scare and their own country need money to survive, so they retreat. Once money flow out, then definitely market will come down because no more money to support the market anymore.

So what do you see on current market?
Anything mega news happening now? Do their own country need money to withdraw back?
All the answer is NO, and further more, US is printing more money now, so where the money will go? It is either property, share market or government bond.

So I am confidence KLCI can go higher from now but of course do not chase high. Buy high sell higher is not my game, this game let us give those smart person to play it.

Freight Management quarter report, 30 Sept 2010

Freight Management 30 Sept 2010 quarter report show EPS of 3.67, earning is improving and future environment also see bright. Most of the freight service company show positive result.

Finance of Freight Management remain healthy and there is some capex spending and borrow some money from bank.

If you have this stock, then you may hold it. I am still the same, do not buy on this stock unless it offers a great discount.

Current share price RM 0.95, which gives PE 6.47

Bought Alam @ 1.14

Crude oil price maintain at high level, 

Petronas will spend more from now onward, 

South & North Korea is going to war 

hence will boost up cruel oil price somemore, 

Alam remain the low PE stock in oil & gas sector.

Financial strong.

Above are the reasons I put my bet on it.

Koon Yew Yin acquire 15.4 million XingQuan shares

XingQuan recently welcome a new major shareholder, Koon Yew Yin to the company. At first, I am thinking who is this guy so rich to acquire so many shares on XingQuan.

After do some research, I just realize that he is the guy who donate RM 30 million to UTAR to construct a hostel in UTAR but was rejected by some reason.

He is founder of IJM and is also offering 50 personal scholarships to needy students for who is studying in finance and accountancy in University TAR, Kampar, Perak. There are some terms and conditions highlighted in his personal scholarships and one condition is attracted my interest. Which is...

"Students who receive his financial aid do not require to pay back the money or work for him after they graduate. But he want them to promise him that they will help other poor students when they have graduated and are financially solvent."

SOURCE: http://www.malaysia-scholarship.coo.my/biasiswa/koon-yew-yin-personal-scholarship-00140
Now back to the topic, why he suddenly invest so much in XingQuan? Does he think that XingQuan is also undervalue as what i stated in my previous article? http://blackspyfund.blogspot.com/search/label/xingquan

I have go through some comment from other people, I heard that Mr. Koon is well known as Warren Buffett in Malaysia. Last three years, he had invested in SUPERMX during year 2007 when SUPERMX was stayed as rock at that time, but now SUPERMX is flying high. Will it go to the same to XingQuan now and later?

I am not as smart as Mr. Koon, but from the way he do the donation and scholarship, I think we should trust his personality. XingQuan definitely is a gem, if you do not trust me but at least you should trust Mr. Koon.

RCE GROUP – DOUBLE DIGIT GROWTH IN 2Q11 EARNINGS FROM 2Q10

• Pre-tax profit increased by 65% to RM41.3 million

• Earnings per share increased by 58% to 3.99 sen

• Revenue increased by 25% to RM74.6 million

Sold out success

Just sold out success to reserve some bullet for market correction~

New House Loan Scheme from Government

I really cannot understand why those politician want to keep on discussing about the house loan issue and want to increase the house loan to RM 300,000 or RM 350,000 with 100% loan for the income group below RM 3,000. (current proposal is RM 220,000 house loan with 100% loan)

Are they aware of the burden and the problem of this?

By borrowing house loan RM 220,000 with interest 5% and loan tenure 30 years. Those borrowers need to pay monthly payment RM 1,181, which is 40% of their salary already.

What if they increase the houseloan to RM 300,000 or RM 350,000? The borrowers need to pay RM 1,610 (54% of the income) and RM 1,879 (63% of the income) respectively!!

Do you think in this income group people manage to pay the loan? What if BLR suddenly raise up?

They are going to end up to bankrupt! This is not a help, this only will create social issue and finance issue.

If the worst come, then it will end up like what happend in US subprime mortgage crisis!!

We need a better solution and a better representive in our parlimen~

CCK Consolidated Holdings Bhd 7035

This is another undervalue good stock in stock market with good earning record and good dividend. Current trading at RM 0.705. PE is around 7.

Company are buying back its own shares heavily recently. Should be a safe bet on it.

Below are some info of CCK, which copied from CCK website.

CEPATWAWASAN GROUP BHD 8982

Yesterday do a quick review on this plantation stock. Cepat currently is holding 10,302 hectar of plantation land in Sandakan, Sabah.

Current share price is RM 1.35, outstanding shares are 215 million. Which equal to RM 290 million market capital.

If we use RM 290 million divide with 10,302 hectar of lands, then we will get RM 28,150 per hectar.

I have made a research on internet, Sandakan oil palm land is worth more than RM 40,000 per hectar.

So thats mean if you buy with the current price RM 1.35, you are actually paying RM 1.00 to get RM 1.40 thing. Do not forget, above calculation is just based on its oil palm plantation land only, we are not yet include other assets yet. If we calculate all, then this stock is worth far more than this current price.

Based on its latest quarter report, it is holding RM 31 million cash & cash equivalents, which equal to 14.4 cents.

So if merely base on RM 40,000 per hectar and the cash in hand, it should worth about RM 2.06 or above.

Closure of mutual fund

"Dear Unit Trust Consultants,

We attach herewith a memo on Closure of Additional Investments for xxxx SmallCap Fund and xxxx Islamic Opportunities Fund by the Chief Executive Officer for your reference."

Well, this is not a good sign in the market, it shows the market is getting hot now~

I will dispose some shares if there are more closure of fund. For all mutual fund investor out there, careful on your investment, you should invest when the market is low, not when the market is bull running.

Rcecap volume is picking up

Look at today RCECAP volume, volume register until now afternoon is about 3 times more for normal whole day trading volume. It is a good sign for it to grow now since i have been waiting him more than one year~