Monday, October 29, 2007
Even Malaysia has a lot of price control items, ie price was cap/controlled by Govt so to prevent the price of daily goods to go higher. BUT now we have seen the Govt has lose control on the price, all price has gone UP & UP.
What we have seen now, the increasing price trend, is not a short term trend, it probably will continue for the next 20 years.
The end results of this long boom is the wider gap between the rich & the poor. THE RICH become very rich, THE POOR become even poorer.
If you are a salary earner, and SALARY is your only source, you will soon find it barely enough to cover your daily expenses. THE HIGH COST OF LIVING WILL BECOME HIGHER EVERY YEAR.
THE ONLY SOLUTION TO THIS IS TO SAVE ENOUGH MONEY FROM YOUNG AGE. GROW YOUR SAVING BY INVESTING. (if not, it's highly chance you can't save any money after you have family with kids)
THEN YOU WILL BEAT " THE LONG BOOM"
Thursday, October 18, 2007
The price of LionD surged to 3.10 from 1.58 ex-price on 9th Oct after it split from Parkson.
The price went down thereafter for 6 consecutive days and closed 1.65 today.
It is scary to watch the selling pressure keep pushing down the price.
However, this is the right time to look at the value of LIONDIV.
LionD now is pure Steel counter, the main Biz is DRI plant next to Megasteel. As per TTB of Icap, the fair value for DRI alone worth RM3.00 (ie 10 x EPS of 0.30 per share)
LionD owned RM500 mil redeemable convertable loan stock of Parkson from the split exercise. This alone worth 1,000 mil (if convert to 125 mil parkson shares at Mkt price of RM8.00), equivalent to RM1.35 per shares.
LionD also owned certain % shares of Megasteel, LionInd.
AND it is CASH RICH after disposing certain % of Parkson China before the split exercise.
AND it is most likely to undertake an M&A exercise to restructuring again the Lion Group of company.(ie LionD, LionCor & LionInd)
At today closing of 1.65, it is undervalue & unbelievably CHEAP!