Is Our Retail Investor Coming Back To Stock Market ?

Lately I have met with two different officer in two Investment Bank, one work in OSK, another one work in PBB. They all have claim that the retail investor has coming back to Local Stock market, actively trading shares..

I believe so !

The retail investor will come back after local stock market make good gain for past 2 years. The active market will make the stock market more attractive to them, a good alternative other than FD.

Now the property's price has break record high level & it's difficult to go higher, the fund will definitely divert to stock market.

When the real economy not performing well, usually the businessman will mobilized the extra/idle fund to invest into stock.

SO OUR LOCAL STOCK MARKET, BURSA MALAYSIA SOON WILL BREAK THE 1,500 POINT & MOVE HIGHER. NEVER LOOK BACK.

BUT IF YOU WANT TO GET GOOD RETURNS, THEN 2ND & 3RD LINER WILL BE THE IDEAL COUNTER.

STEEL , Rise with a HOPE (DREAM)

We can see the rotation play in the market,

The Steel Counter has started to move up after Property, Plantation & Contruction Counter has risen.

The reason or excuse for the Steel Counter to move is simple, i.e Steel counter will benefit from all the implementation of the Mega Projects under the 2011 budget.

BUT, JUST BE REALISTIC, NEVER HOPE FOR THE SURGE LIKE YEAR 2008 WHERE THE STEEL PRICE HAS RISEN LIKE ROCKET. THE STEEL PRICE GO UP ALMOST 100% WITHIN 1 YEAR PERIOD.

No more ! The year 2008 event is historic & it happen once in a century, the price surge in 2008 is mainly due to structural problem in supply & demand.

And now the situation is totally different:- 1)the China effects has reduce due to policy shift from export to local consumption and no longer focus on low cost production, 2) The world is over supply in Steel.

I do not see there are big increase in Steel Price, most likely it will be go up or down within a tight range.

BIG PROJECTS, SMALL CAP

Investor always make a mistake, they look at share price, but never try to compute the market cap.

A stock price at 0.20 is not necessary is a small cap company if their share base is big.
A stock price at 0.50 may be a small cap company if their share base is small , let say 300 mil shares. ie the market cap is only 150 mil (0.50 x 300 mil shares.)

Now I am convince that The Najib Govt is spending BIG in Infra Projects.
All 'NEM', 'ETP' is just a slogan, the actual intention is to give out more & more SUPER MEGA PROJECTS.

A small retail investor like me, no need to follow the Fund Manager to go into BIG CAP company.

We can make better returns by go into small cap counter take will benefited from the BIG Projects.

The returns can be easily 50%- 100%.

This is indeed the ADVANTAGE of being small.

My bet: ZELAN, IJM-WC, MALTON, KBUNAI, AZRB

Super Bull, Bull or Mini Bull, It's BULL

I am a BIG BULL, no Bullshit, whether it's currency war or liquidity push market, Asean Market will be the one that flushed with HOT CHEAP Money, from Developed Countries.

This hot, cheap money push up the property assets in this region, & now the property price has almost peaked in this region.

The MONEY has started to divert to STOCK MARKET.

THIS BULL TREND HAS JUST BEGAN.

IF you have no exposure in STOCK due to certain reason, you are going to see your CURRENCY NOTE depreciating in term of purchasing power.

Enjoy the bull & take benefits from it, this is a way to grow your wealth.

HERE IN MALAYSIA,, THE TREND IS OBVIOUS :-

PROPERTY, INFRASTRUCTURE & PROJECTS.

OF COURSE I AM REFERRING TO STOCK COUNTER.

SUPER BIG DEAL IN SUPER BIG PROJECT

Malaysia BN"S Govt will award SUPER BIG PROJECTS which will benefits some infrastructure companies.

The GEM OF THE MANY PROJECTS IS THE PRIME LAND IN KL. ( Sg Buloh & Sg besi land bank)

GUESS WHO WILL GET IT ! their stock will fly when the awards announce.

YEAR 2010/2011 WILL BE THE year of SUPER BIG DEAL. never in Malaysia History.

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DAP says UEM, MRT, YTL deals show NEM ‘nothing but rhetoric’

By Melissa Chi

Pua: In fact Gamuda has already told equity analysts that it is 80 per cent certain of being awarded the bulk of the project, and this would be because they are the only commercial party who have been in consultation with the Government as well as Pemandu to develop the entire plan for the project.

KUALA LUMPUR, Oct 6 — The DAP suggested today that the Najib administration’s commitment to open competition under the New Economic Model (NEM) was “nothing but rhetoric,” citing as examples of patronage the MRT project, the proposal by Asas Serba to take over highway concessions, Tan Sri Syed Mokhtar Al-Bukhary’s bid to buy UEM and YTL’s involvement in the high-speed rail link to Singapore.

“Should the government decide to proceed with any of the above projects or privatisation of assets without any form of open competition, it will not only reflect the fact that the NEM is nothing but rhetoric, but it has no sincerity in wanting to promote “dynamic and efficient markets” or isn’t serious about “tapping new sources of growth,” the Pakatan Rakyat (PR) party’s national publicity secretary Tony Pua said in a statement today.

The Malaysian Insider reported yesterday that state asset manager Khazanah Nasional Berhad is looking at tycoon Tan Sri Syed Mokhtar Al-Bukhary’s financial track record as it mulls his offer to buy the UEM Group Bhd, which runs the profitable Plus expressways concessionaire, for the amount of RM15.6 billion.

UEM has substantial stakes in 8 public listed companies, and is prized for its 38.5 per cent ownership of PLUS Expressways Bhd, 28.7 per cent of Time dotCom Bhd, 32.0 per cent of Faber Group Bhd and 77.1 per cent of UEM Land Bhd. It also owns the Penang Bridge Sdn Bhd as well as Cement Industries Malaysia Bhd. As at the end of 2009, the net assets of UEM Group Bhd amounted to RM12.3 billion.

The Malaysian Insider also reported on October 4 that Syed Mokhtar had asked the government to sell 1,200ha of Rubber Research Institute (RRI) land in Sungai Buloh and the police training centre in Jalan Semarak.

The government is now considering the award of Malaysia’s largest infrastructure project to date, that is the Greater KL Mass Rapid Transit (MRT) system which is expected to cost up to RM46 billion with a Gamuda Bhd and MMC Bhd joint venture being touted as the “winners” of the project.

“In fact Gamuda has already told equity analysts that it is 80 per cent certain of being awarded the bulk of the project, and this would be because they are the only commercial party who have been in consultation with the Government as well as Pemandu to develop the entire plan for the project. “Similarly, YTL Corporation Bhd is expected to “win” the project to develop the high-speed train service between Kuala Lumpur and Singapore due to its involvement with Pemandu at the “laboratory” stage of the ETP,” Pua said today.

Deputy Prime Minister Tan Sri Muhyiddin Yassin had also admitted that the Cabinet is mulling over the RM50 billion proposal by Asas Serba whom Pua claimed was linked to Tan Sri Halim Saad to take over all highway concessions in Malaysia.

Pua said the proposal should have been rejected outright for it was “completely without basis, merit and it was completely unsolicited”.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed had said that getting a tender through direct negotiation is “unfair”, to Malaysian students at the University of Melbourne on October 2.

He said that only high-security projects involving the military and defence were exempted from open tender.

But the slew of government assets and projects being directly negotiated by the administration which were cited by Pua today appeared to contradict Mustapa’s assertion.

Mustapa had said in Melbourne that “open tender means more competition, greater transparency, no corruption. And that’s what the public wants. And we are listening to the public.”

Pua also pointed out that Prime Minister Datuk Seri Najib Razak had emphasised that “we can no longer tolerate practices that support the behaviour of rent-seeking and patronage.”

“The direct and opaque award of these contracts to these connected parties flies in the face of the Prime Minister’s call for ‘inclusiveness’ and to eradicate ‘rent-seeking and patronage’,” he said.

He urged the prime minister to ensure and reiterate in the upcoming 2011 budget announcement that “all government projects, large and small as well as all government owned assets which are to be privatised will be tendered openly and competitively instead of being awarded on a directly negotiated basis”.