WTK Holdings Bhd

Bought WTK @ 1.20. Jumped in too early? got such feeling too but WTK is for my long term play. PE wise is not attractive but this company has a good track record and business model.

Balance sheet also good.

EX-date	:	14/07/2009
Entitlement date	:	16/07/2009
Entitlement time	:	05:00:00 PM
Entitlement subject	:	Final Dividend
Entitlement description	:	Final Dividend of 6% gross per share less 25% Malaysian Income Tax

http://www.wtk.com.my/index.html

Hexza Corporation

Hexza Corporation Berhad is a Malaysia-based investment holding company. The Company operates in three business segments: investment holding; manufacture and sales of formaldehyde-based adhesives and resins for timber related industries, ethyl alcohol, natural vinegar, cooler, liquefied carbon dioxide and kaoliang wine, and others, which includes trading, property development, dormant and pre-operating companies. The principal activities of the subsidiaries include manufacture of natural vinegar, manufacture of alcoholic and non-alcoholic beverages, property development, marketing and distribution of consumer products and industrial chemicals and manufacture and sale of ethyl alcohol, liquefied carbon dioxide and kaoliang wine. Its subsidiaries include Bio-Acetic Products Sdn. Bhd, Chemical Industries (Malaya) Sdn. Bhd., Hexza-Mather Sdn. Bhd., Hexzachem Sarawak Sdn. Bhd., Norsechem Marketing Sdn. Bhd., and Summit Development Corporation Sdn. Berhad.

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I've known this company via grahasmun post in investlah. So, heres my summary for this company.

Hexza reported a lower revenue and profit during last quarter, with a so so margin and ROE. However, the balance sheet is very healthy. the share price has gone up more than 23.9% from recent low in march. Looking at current volatility in commodities market, i should not expect much in short term run . Somemore, currently trading at PE above 10 (~12++). But the positive sides for this company are cash rich, hidh dividend yield, trading below NTA value, net cash positon and growth potential. Hmm..

Current share price RM 0.44

Div yield ~ 7.++

Total Asset ps RM 1.05 ( -3.7%)

Cash ps RM 0.335 ( -1.18% )..around RM 67.23m

Others investment ps RM 0.051 ( -16.39% )

Total Liabilities ps RM 0.105 ( -17.97% )..around RM 21.03m

NA RM 0.91

NTA RM 0.89

Off Topic

Market currently still in profit taking mood. Still holding tight to my ytlpwb, tgoffwa and pelikan. Theres nothing much to tell except work x3.

Anyway, i just watched this movie, Drag Me to Hell yesterday. A very good movie!..a must watch for this year!

Damn..so many good movies will be released this year. My watchlist definitely

1. Transformers 2: Revenge of the Fallen

2. New Moon...Edward ~

3. Harry Potter: Half Blood Prince

Cant wait ~

Oil rises above $71 amid falling inventories

Oil rises above $71 as falling US crude inventories point to improving demand

By Pablo Gorondi, Associated Press Writer

• On Thursday June 18, 2009, 7:11 am EDT
• 
  
• Oil prices rose above $71 a barrel Thursday, halting this week's decline as falling U.S. crude inventories suggested demand is improving in the world's largest economy.

Benchmark crude for July delivery was up 14 cents to $71.17 a barrel by midday in Europe in electronic trading on the New York Mercantile Exchange. On Wednesday, it rose 56 cents to settle at $71.03.

Earlier in the session, the Nymex contract peaked at $71.73, but fell back as the dollar strengthened and drew investors out of commodities, usually a safeguard against inflation and dollar weakness.

Prices dipped below $70 a barrel earlier this week from an eight-month high near $73 the previous week on investor concern that the economy may not recover as fast as some traders anticipate.

The Energy Information Administration said Wednesday that crude inventories fell last week by 3.9 million barrels, or 1.1 percent, and have dropped 10.8 million barrels over the last four weeks.

While U.S. inventories are still bloated with the most oil in nearly 16 years, analysts see the recent drawdowns as a sign that gasoline demand is recovering.

"The tightening of the U.S. market is continuing," Barclays Capital said in a report. "U.S. gasoline demand continues its clear improving trend."

U.S. retail gasoline prices have risen 50 straight days as demand during the summer holiday season exceeded refiners' expectations.

"Four-week gasoline demand was up 1.14 percent, confirming last week's foray into positive territory and showing the first genuine sign that the economy is really improving," said U.S. energy consultancy Cameron Hanover. "Even with millions not going to work, Americans are using more gas again."

Oil has doubled since March on investor optimism that the global economy is on the road to recovery from its worst slowdown in decades. Indicators this week suggest growth remains sluggish, but some analysts are anticipating a better economic environment later this year.

"We continue to expect an improvement in fundamentals to begin to take hold in the next several months," Goldman Sachs said in a report. "Recent data points have already begun to suggest some stabilization."

Goldman said it expects the prices of oil to rise to $85 a barrel in six months and reach $95 by the end of 2010.

In other Nymex trading, gasoline for July delivery was down 0.24 cent to $2.0302 a gallon and heating oil was unchanged at $1.8630. Natural gas for July delivery rose 3.8 cents to $4.291 per 1,000 cubic feet.

In London, Brent prices rose 10 cents to $70.95 a barrel on the ICE Futures exchange.

Associated Press writer Alex Kennedy in Singapore contributed to this report.

Tanjung offshore to ink USD46m Islamic lease deal

A subsidiary of Malaysian shipping firm Tanjung Offshore Bhd will sign a deal today for a RM162 million (US$45.88 million) Islamic leasing facility, the deal’s arranger said. 

Tanjung Kapal Services Sdn Bhd will take the facility, Standard Chartered Bank said in an invitation to the signing ceremony. It gave no other details about the deal. -- Reuters

Pelikan sees profit growth, warns of expansion setback

Thursday June 11, 2009

PETALING JAYA: Stationery maker Pelikan International Corp Bhd sees a growth in profit this year, but warned that the global economic slump may have set the company’s business expansion back by at least two years.

Chief executive officer Loo Hooi Keat said the group’s “internal target is to achieve a 10% growth in profit’’ in the financial year ending Dec 31 (FY09) from FY08’s RM36.7mil. Sales would probably match last year’s RM1.29bil.

“We have already locked in our raw material needs for the peak production period beginning March at a cheaper price than last year, so this will help boost our margins,’’ he told reporters after the group’s AGM yesterday.

Pelikan, which counts on Europe for 80% of its sales, took a hard hit in the first quarter as the global financial crisis cut demand from consumers in recession-hit countries.

“The second and third quarters would be crucial for us,’’ Loo said.

Already signs are pointing to a recovery in demand, as orders started picking up in April. Loo said the company had also enjoyed cheaper cost of raw materials during its peak production period that began in March.

Traditionally, the second quarter, which coincides with the “back-to-school” period in Europe, generates nearly half of the company’s annual sales and profits.

The company made a net profit of RM8mil in the three months ended March 31, against RM24mil in the previous corresponding period.

“The economic crisis has set us back by at least two years from achieving our five-year target growth,’’ Loo said when asked how severely the economic slowdown had affected the group.

Pelikan made a net profit of RM36.7mil in FY08, sharply lower than the RM96mil posted in FY07.

The resulting credit crunch from the crisis meant Pelikan had to scrap plans to buy companies in China to expand its business in the world’s most populous nation. Loo said Pelikan instead had opted to work with partners there.

The group had recently started operations in India and Kenya under its longer-term strategy to develop new markets.

Loo is the biggest shareholder in the company with a 29.45% stake, followed by Lembaga Tabung Haji at 28.16%.

“We view the company as our long-term strategic holding in a global brand,’’ said Rozaida Omar, the pilgrims fund board’s group chief financial officer and a non-executive director at Pelikan.

Rozaida was appointed to the board in November last year after the fund doubled its stake in Pelikan between June and October.

Shares in Pelikan closed at RM1.45 yesterday, up seven sen for the day. That was the stock’s highest level since Oct 22 last year.

Recession Ending but Recovery Will Still Be Gradual

United States

June 10, 2009 

By Richard Berner & David Greenlaw | New York

The deepest post-war recession likely will end by mid-to-late summer, a bit sooner than we've been expecting.  The improvement in finan  cial conditions and incoming data has outpaced expectations, and the backdrop for global growth is less daunting.  Recessions are protracted declines in output, employment, incomes and sales, and all seem likely to stop declining within the next several months.  Thus, for the second month in a row, we're slightly boosting our near-term economic outlook: We are raising 2Q-4Q09 estimates for the change in GDP by half a point, netting to a decline of 1.5% over the four quarters of 2009, compared with an expected 1.9% contraction a month ago.  However, we strongly believe that the recovery will be gradual.  Despite the ongoing benefits of monetary and fiscal stimulus, the economy faces several headwinds that seem likely to limit the growth pace through the end of 2010. 

US Forecast at a Glance

(Year-over-year percent change)

	2008A	2009E	2010E
Real GDP	1.1	-2.8	2.2
Inflation (CPI)	3.8	-0.3	2.2
Core inflation (CPI)	2.3	1.5	1.2
Unit labor costs	0.9	2.0	0.5
After-tax ‘economic' profits	-6.9	-19.1	2.4
After-tax ‘book' profits	-14.3	-12.4	7.0

Source: Morgan Stanley Research

E= Morgan Stanley Research estimates

There's no mistaking the rapid improvement in financial conditions.  Major financial institutions have been able to issue equity and non-government-guaranteed debt.  Also, money and commercial paper markets are showing less need for support from the Fed's facilities.  Unsecured interbank lending spreads (LIBOR-OIS) and commercial paper quality spreads have narrowed to pre-Lehman levels.  The TALF continues to play an important backstop function, with the volume of TALF-eligible ABS securitizations picking up quite a bit over the past couple of months.  Indeed, the new issuance run rate in consumer ABS in June was US$18.6 billion, or close to pre-crisis levels (US$18-21 billion). However, all-in spreads on typical deals still exceed pre-October 2008 levels, with new issuance limited to AAA tranches.  While there has been a significant rally in the secondary markets in the last few weeks in securitized product markets - including CLOs, non-Agency MBS and CMBS - the new issuance market remains shut in these asset classes.  Although retail mortgage rates have backed up recently, their prior decline has helped to stabilize housing demand.  Both IG and HY credit market spreads have narrowed dramatically - in the case of HY, by half. 

Incoming economic data have also improved faster, if only slightly beyond expectations.  Notably, housing activity - both sales and new construction - appears to have stabilized in the past few months.  Following a severe retrenchment in 2H08, we estimate that real consumer spending has edged higher in the first five months of 2009 to the tune of about a 1% annualized rate.  The freefall in exports seems to be ending, and with imports still weak, net exports are contributing to growth.  And business surveys, including our own canvass of business conditions, are showing significant improvement - albeit from extremely low bases.  Purchasing managers' diffusion indices of orders in particular have begun to show growth as some companies are restocking.  Accordingly, the collapse in payrolls has abated, with job losses slowing dramatically in May to 345,000 from an average decline of 645,000 in the first four months of the year.  Labor inputs (hours worked) appear to have declined at a 6% annual rate in 2Q versus a 9% drop in 1Q.  Correspondingly, we estimate that real GDP contracted by just 2% annualized in the current quarter, compared with the 5.7% decline seen in 1Q.

More important, however, we think that both the logic and evidence for a gradual recovery remain intact.  Existing cyclical headwinds have lessened but have not disappeared: For consumers, labor income is still declining and home prices continue to fall.  The decline in housing wealth is slowing from 2008's US$2.2 trillion pace, but any meaningful rebound is unlikely before 2H10 - or, more likely, 2011. Also, equity prices are still some 30% lower than a year ago.  Thus, despite tax cuts, higher jobless benefits and other transfers, we estimate that real disposable income fell 1.6% in the year ended in May.  In the business sector, record low operating rates and margin pressure are prompting firms to cut capital spending and continue liquidating top-heavy inventories (see Capex Bust and Capital Exit, April 20, 2009).  And, despite federal assistance, state and local governments are responding to budget pressures by cutting spending and raising taxes. 

New headwinds to recovery are surfacing: Consumers have only begun to embark on a long-run deleveraging process, and the combination of tighter risk controls and new regulations will probably keep credit availability below historical norms (see Deleveraging the American Consumer, May 27, 2009).  Consumer credit declined at a 4.2% annual rate in the past six months, the fastest on record.  Despite massive federal assistance to some firms, the auto finance companies have doubled required downpayments for cars and trucks, and most no longer offer leasing.  While credit spreads are narrowing, the back-up in bond and mortgage rates is lifting the level of interest rates borrowers pay, and thus the cost of credit.  And to the extent that the doubling of energy prices is driven by limited supply rather than growing demand, it will sap consumer discretionary spending power.  If retail gasoline prices peak at about US$2.75/gallon, as we expect, the rise from the start of the year would sap about US$50 billion (on a seasonally adjusted annualized basis) from household cash flow, offsetting almost all of the impact associated with the latest round of tax cuts. 

Sharply rising energy prices are fueling a pick-up in headline inflation, but slack in the US and global economy is exerting downward pressure on ‘core' inflation.  Which force will win out?  The verdict from markets is in: Deflation risks are old news, and inflation trades - rising breakevens, a steeper yield curve, a weaker dollar and financial sponsorship for commodities - are in.  We like some of those trades too, but believe that markets may be surprised with just how tame the underlying inflation picture is in the coming months.  Indeed, market participants seem to be ignoring the ongoing moderation in shelter costs, which account for more than 40% of the core CPI.  We believe that this factor alone could trim core inflation by half a point or so over the next 6-9 months.

In this environment, the Fed faces a number of important challenges. While we believe that the recent jump in Treasury yields mainly reflects stepped-up supply, an improving appetite for risk and brightened recovery prospects, a bigger back-up in yields over the near term could pose a risk to the recovery.  The Fed has been trying to lay the groundwork for economic recovery by holding mortgage rates - and other private borrowing rates - at artificially low levels.  Policymakers now must decide how to react to market forces that have pushed yields higher.  Originally, we believed that the Fed would respond by upping the ante and announcing at the June 23/24 FOMC meeting that it was raising the size of its purchase programs.  However, recent market developments and the improved tone of incoming economic data have likely tilted the Fed away from such action.  Looking further ahead, the time for a renormalization of monetary policy is drawing a bit closer, but the market seems to be way ahead of itself in pricing in rate hikes during 2009.   A gradual exit from quantitative easing - on a passive basis - is likely to begin to unfold before the end of this year, but we don't look for the first hike in the fed funds target until mid-2010. 

Against this backdrop, financial markets have priced out the adverse tail risk of prolonged recession and deflation.  But we and our strategy teams think that the markets may well have swung too far in the other direction.  High yield credit markets are pricing in a healthy cyclical recovery just as leverage is increasing and defaults are likely to rise significantly.  Currency and commodity markets have priced in a bias to higher inflation.  And equity markets are discounting a strong earnings rebound that seems unlikely to materialize quickly (see Corporate Profits: Stronger 2009, Slower Improvement Ahead, June 3, 2009).  Even the Treasury bond market appears to be starting to anticipate a traditional V-shaped recovery and a return to normal inflation rates.  We believe that supply/demand fundamentals will in fact lead to much higher real yields once the Fed exits from its buying programs (see Bear Market in Treasuries Begins, but Watch for Deflation Risks, May 11, 2009).  However, we view this development as yet another potential headwind that is likely to help temper the pace of economic recovery over the next few years and challenge valuations of risky assets.

My Bird sudah lari

Pelikan flying way too fast . Should've accumulated more when it was trading below 0.90.too bad no coma state...sigh.

btw, my ytlpwb and tgoffswa climbing slowly .go go! 

"Nothing much to report .. my holding still in longkang. Pelikan looks very bearish . Still waiting for a coma state before any action. Friday, March 13, 2009 "

http://ringgityenbursamalaysia.blogspot.com/2009/03/update_13.html

Tgoffs' FA+TA=A++....

Now, tgoffs TA  appears very attractive. Hope my tgoffswa will fly higher. ~

p/s= Graph credit to ZL.  http://zlbursatheme.blogspot.com/2009/06/7228-tgoff-slowly-but-surely.html