Wednesday, November 18, 2015

Handphone Bill oh Handphone Bill

What is a typical handphone bill nowadays?

For me, averagely each month is RM 10. My network is under CELCOM without data plan.

I use WIFI for accessing to What apps, Telegram etc.

Today will be a history for me, I am switching to UMOBILE, U28 for 3GB data plan.

My wife say I am very kiam siap. To me, I see it as a FRUGAL.

Each month now, I have to pay EXTRA RM 18 for my handphone bill. If any company have any promotion at RM 18 for 1 GB, I will not hesitate to swap.

Monthly Fee RM28
High Speed Internet 3GB
Free Voice Call
ALL networks 50 minutes/month***
Free SMS
To U Mobile: 100SMS
To other networks: 200SMS
Free Internet Roaming 50MB EVERY DAY
Pay-as-you-use Call
To U Mobile: 9 Sen/30 sec
To Others: 10 sen/30 sec
Pay-as-you-use SMS
To U Mobile: 5 Sen/SMS
To Others: 12 sen/SMS


I like their comparison table very much. BRAVO.

Best for Internet — Largest Internet data at the LOWEST price with U28
PLANU28Smart 50Surf 50First One
VOICE CALLTO OWN NETWORK-100 min/ month-60 min/ month
TO ALL NETWORKS50 min/ month100 min/ month-60 min/ month
(To Own Network) 

200 SMS 
(To Other Networks)
100 SMS 
(To All Networks)
-60 SMS 
(To All Networks)
50% more Internet with P50
PLANP50Smart 78Surf 50Basic
200 min/ month-100 min/ month
TO ALL NETWORKS50 min/ month200 min/ month-100 min/ month
SMS-200 SMS 
(To All Networks)
-100 SMS 
(To All Networks)
A calls and data plan to the rescue
PLANP70Smart 98Smart 148One 98One 128One 158One 188First 85
VOICE CALL (TO ALL NETWORKS)UnlimitedUnlimitedUnlimitedUnlimitedUnlimitedUnlimitedUnlimited700 minutes
SMS-UnlimitedUnlimitedUnlimitedUnlimitedUnlimitedUnlimited700 SMS
ADDITIONAL BENEFITS WITH U MOBILEEnjoy the same unlimited calls to all networks at a much lower price! Plus, you’ll get up to 7x more high-speed Internet to message your friends online. 
Who needs to SMS when you can do that?
*Get RM20 monthly rebate when you sign-up by 30th Sept. 
**Get FREE 1GB Internet for 6 months.

Monday, November 16, 2015

Instaco vs OCK oh Instaco vs OCK

Will instacom like GESHEN???

Instacom eyes turnaround in FY16 with construction
By Chester Tay / The Edge Financial Daily   | November 16, 2015 : 9:04 AM MYT   

Yeoh (left) and Instacom Group director Choo Seng Cho. Collectively, Yeoh said all three divisions — construction, telco and manufacturing — have a total tender book value of RM1.8 billion.Photo by Patrick Goh
KUALA LUMPUR: Instacom Group Bhd ( Valuation: 0.00, Fundamental: 1.25), which is mainly involved in erecting telecommunication towers, is curbing its losses for the financial year ending Dec 31, 2015 (FY15), and expects to turn around by FY16 with its construction venture.

In an interview with The Edge Financial Daily, the group’s joint chief executive officer Datuk Seri Dr Yeoh Seong Mok said Instacom is shifting away from its reliance on the telco industry to focus more on the construction sector, which offers more sustainable earnings and stronger revenue growth visibility.

“As you can see in our recent [construction] job wins, telco towers are not able to give us that kind of revenue, and with the contracts we won, we are confident that Instacom would turn around in FY16” he said. “Say we get [a] 15% gross margin from the contracts, that works out to be about RM11 million annually across three years, which is substantial to Instacom’s financial numbers today,” Yeoh explained.

Last Thursday, Instacom announced that it had won RM230.29 million worth of construction works from China Railway Construction Corp Ltd, via the latter’s Malaysian unit, CRCC Malaysia Bhd. The projects are expected to be completed within three years.

“This means that we will have strong earnings visibility until the end of 2017. But there will most definitely be more contracts secured over 2016, 2017 and beyond,” Yeoh said.

Under the letter of awards (LoAs) from CRCC, Instacom’s subsidiary Vivocom Enterprise Sdn Bhd is obliged to provide construction works for the second package of the proposed mixed-commercial development 1Gateway in Klang worth RM195.53 million, and the second package of a condominium project known as Pavilion Hilltop in Mont Kiara, Kuala Lumpur worth RM34.76 million.

Vivocom is a wholly-owned subsidiary of Neata Aluminium (M) Sdn Bhd, which in turn is a 78.6%-owned subsidiary of Instacom since Nov 5.

Yeoh said the construction division will continue to operate under the Vivocom brand, as the name is more reputable among international clients like CRCC.

Therefore, Instacom has proposed to change its name to Vivocom Intl Holdings Bhd.

Yeoh said the two LoAs were in addition to Vivocom and Neata’s current order book of RM247.35 million. “With this RM231 million contract awards, we have to date secured projects worth RM478 million. Of this, RM378 million are yet to be completed and billed,” he said.

For the second quarter of FY15 (2QFY15), Instacom posted a net loss of RM1.46 million, against a net profit of RM1.55 million a year ago.Meanwhile revenue plunged 42.49% to RM8.64 million from RM15.03 million in 2QFY14. The group attributed the weaker results to lesser work orders for its telco businesses. For the six months to June 30, 2015, Instacom reported a net loss of RM535,000 compared to a net profit of RM6.21 million a year ago.

For FY15, Yeoh said profits from the construction businesses will only be consolidated in November and December because Vivocom and Neata only became Instacom’s indirect and direct subsidiaries respectively, on Nov 5 this year. “We have only two months of contribution [from Vivocom and Neata] this year, so we will see the full momentum next year (FY16),” he said, adding that construction business will contribute about 75% of the group’s total revenue by then.

Before Nov 5, Instacom owned only a 35% stake in Neata.

Yeoh regarded the acquisition as a strategic one as Neata, which usually has a 35% gross margin in its aluminium manufacturing business, has recently been awarded projects worth RM40 million. “Apart from that, we are also very close to securing additional contracts worth RM90 million, which Neata has tendered for,” he revealed.

Despite the catalysts in the construction and manufacturing divisions, Yeoh said Instacom will not be exiting the telco tower business.

“We are still into telco towers, we are diversifying just to expand our revenue stream, the business has its own prospect, but the margin is getting thinner, so we have to grow in other ways,” he said.

Last week, the group’s subsidiary Instacom Engineering Sdn Bhd secured a RM29 million contract for the installation of telco towers in 30 hub sites in Perak, Negeri Sembilan and Sabah. The contract entails the supply, delivery and installation of tower structures in accordance with the universal service plan approved by the Malaysian Communications and Multimedia Commission.

Collectively, Yeoh said all three divisions — construction, telco and manufacturing — have a total tender book value of RM1.8 billion.

For comparison, OCK Group Bhd ( Valuation: 0.80, Fundamental: 1.60), which is also involved in the telco tower business, saw its net profit for 2QFY15 rise 69.8% year-on-year to RM5.13 million from RM3.02 million, while revenue rose 61.81% to RM70.27 million from RM43.43 million.

OCK attributed the improved performances to the substantial contribution from its regional businesses in Indonesia, Cambodia, Myanmar, and China, as well as significantly higher contribution from undertaking sites maintenance works and the distribution of telecommunication equipment in Malaysia. Although Instacom and OCK are operating in the same industry, both have different business models. Instacom builds telco towers and receives construction remuneration while OCK owns the telco towers and leases them to its clients.

Instacom fell one sen or 4.44% to 21.5 sen last Friday — it was the most actively traded counter that day — giving it a market capitalisation of RM526.6 million.Meanwhile, OCK fell one sen or 1.23% to 80 sen, valuing it at RM427.8 million.

Saturday, November 14, 2015

Stringent vetting of stocks before investing oh Stringent vetting of stocks before investing

We have found that four eyes looking at a company prevents a single fund manager from falling in love with a stock - Gerald Ambrose
We have found that four eyes looking at a company prevents a single fund manager from falling in love with a stock - Gerald Ambrose
Below are excerpts of BizWealth’s interview with managing director Gerald Ambrose on Aberdeen Asset Management’s investment philosophy:

How stringent is the process of evaluating a stock to be invested by Aberdeen? 

Our company’s visit note consists of an extensive template, all of which needs to be filled out by a fund manager when he visits a company. This template is designed to leave no stone unturned. It not only covers the financials of the company, but also the management and the board of directors among other things.

We want to make sure management is honest. Things like that can be a bit subjective, I know, but when
we buy into a stock, it is like going into a partnership. We want to make sure what we are buying into, is what will continue to be, for a long time to come.

Every Friday, we have our internal KL office meeting where all the fund managers discuss their stock ideas and the outcome of their respective company visits. All fund managers’ views, irrespective of seniority, have an equal weight in these discussions. It is during this meeting that we sort the wheat from the chaff.

Then every Monday, we have our regional investment meeting where the key stock ideas are again discussed
with the extended team. Our regional counterparts get a say on our investment ideas as well. For a stock to be selected for addition to a portfolio, there will need to have been at least 2 meetings and visit notes from 2 different fund managers with the management of the company. We have found that four eyes looking at a company prevents a single fund manager from falling in love with a stock.

While you do have that extensive template, what are some of the significant things you look out for?

Ideally, we need to be confident that the company will be profitable for at least 8 to 10 years. This is of
course subjective, but we like companies with a clear competitive advantage. 

If a company consistently produces high margins, that is typically a sign that the company has that
advantage. For example, we think that Public Bank is one of the best banks in the world.

Secondly, the company’s cashflow needs to be strong enough to fund whatever growth the company is
planning moving forward. Having said that, we are not opposed to giving the company money for growth,
let’s say via a rights issue, if we see that expansion will be good for the company.

Thirdly, does the company have excess cashflow over and above what is needed for capital expenditure? If so, would management consider be giving it back to shareholders?

Your investing strategy during difficult times like these? 

Our investing strategy is a simple bottom-up approach whatever the economic environment is like. From
our extensive analysis, we feel that we can forecast a company’s outlook with quite a high level of confidence.
From the top down, however, looking at things from a macro perspective, we don’t get the same confidence. And honestly, who can actually forecast macro variables and index targets?

We are instinctively cynical about ‘disrupters’, the Apples and the Amazons, until we are confident in their long-term sustainability. We do not know how they may do in years to come. We are not naturally into the next big thing. Fads run really fast. We try to avoid stocks that have investor momentum but which are really running on hot air. 

This investing strategy has always been the same since you started in 2005?

When the KL office started in 2005, we had a fund size of some US$100mil and our portfolio consisted of about 14 stocks. Today, our portfolio consists of about 40 stocks, which is still very focused and concentrated.

We do like looking at small companies, but because we are getting bigger, there is starting to be a market
capitalisation limit we look at, which is about US$200mil. 

Our portfolio management strategy involves (a) top slicing: for example, if a stock we bought has done very well and reached (or exceeded) our estimate of its fair value, we start to trim some, and (b) topping-up - using that money to buy some of our other stocks which have underperformed.

This is sort of a balancing system on its own. We are always invested - about 98% invested.

What are some of the things that are big no-nos for Aberdeen?

Governance is an area which is very important for us. We have learnt over time that bad corporate governance leads to bad performance. herefore we ask at the beginning: are the directors really independent? We look at their past history, whether they attend all board meetings.

The other thing we look at closely is related party transactions. Some big companies inevitably do this and we need to be sure that these transactions are in the shareholders’  best interests. For example, we look very closely for fair play if the major shareholder injects assets in his private companies into his listed entities.

We try to avoid that wander far from from their core activity without consulting shareholders.

Are you positive on Malaysia now?

 I feel that Malaysia is being forced into getting more efficient. With the removal of subsidies, Malaysians are starting to adjust to real life. Hard times help to produce greater efficiencies.

Malaysia’s economy is actually looking quite good. Oil prices have collapsed since last June so we’re now smack in the middle of it, yet our trade and current accounts are still in surplus. Our latest Industrial
Production Index figures show that the manufacturing sector is doing pretty well.

Although we are running a budget deficit, it is narrowing.
Malaysia is in fact expanding and diversifying regionally. When we compare Malaysia’s external assets
compared to its external liabilities, it is very strong compared with our neighbours. Moving forward, I see
Malaysia deriving more of its income from more diversified sources.

Then why has the ringgit been so battered?

The near-term movement of all currencies appears to be in the hands of the traders. Like other emerging market central banks, Bank Negara has avoided wasting hard-earned reserves to combat this - our international reserves are in fact now starting to tick up. I feel the Ringgit is way undervalued.
Now would be a very good time to buy into the Ringgit. However, with the uncertainties at large in the global economy, we now seem to be in ‘No Man’s Land’ where nobody is willing to move in and buy.

What is your opinion of the global economy at this point?

For seven years or more, the world economy has been subjected to a massive experiment by central banks around the developed world.Nobody knows how the experiment will turn out. I personally do not foresee the Fed raising interest rates in December because I don’t think the US economy is strong enough to handle it.

In fact when the Fed does raise interest rates, it’s possible that markets could fall heavily, in my view.
Then perhaps, this would cause the fourth bout of quantitative easing (QE4) to take place.

However, all these rounds of QE never actually put any money into the pockets of Americans. People have always looked to central banks as the saviours of the economy.


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