Stocks to watch: KNM, GBH, Favelle Favco, Mamee

Written by Joseph Chin

Saturday, 28 November 2009 12:12

KUALA LUMPUR: Investors will again have to brace for a volatile week ahead starting Nov 30 as investment sentiment is expected to be impacted by the worries about a possible default from a Dubai state-owned conglomerate.

On Wall Street, stocks fell as investors sold financial and commodity-linked sectors which were most sensitive to economic uncertainty.

The Dow Jones industrial average dropped 1.48% to end at 10,309.92. The Standard & Poor's 500 Index fell 1.72% to 1,091.49. The Nasdaq Composite Index lost 1.73% to 2,138.44.

At Bursa Malaysia, the last batch of the corporate results for the quarter ended Sept 30 will be released on Monday

Last Thursday, the 30-stock FBM KLCI lost 0.39 point to close at 1,270.61 as investors took profit ahead of the long weekend. Market breadth was weaker, as losers beat gainers 401 to 267 gainers.

Stocks to watch on Monday include KNM Group, Goh Ban Huat, Favelle Favco and Mamee-Double Decker.

KNM's third quarter net profit fell 69.1% to RM31.92 million from RM103.42 million a year ago, while revenue declined 38.6% to RM458.35 million from RM746.2 million.as revenue shrank amid a slower global economic landscape.

It attributed the weaker performance due to the global economic slowdown and the full effect of intangible asset amortisation after acquiring Borsig.

KNM also said the memorandum of agreement with Sofinter SpA to set out the commercial terms for its boiler business joint venture had lapsed as mutually agreed by the parties.

In Goh Ban Huat, it sank deeper into the red with net loss of RM11.26 million against RM335,000 a year ago due to one time stock write off of RM1.2 million, stocks provision of RM4.3 million and higher administration expenses.

Favelle Favco's net profit jumped to RM7.168m versus RM2.311m a year ago. The improvement in net

profit was mainly contributed by improvement in margin from sales of cranes.

As at Nov 20, its outstanding order book is RM495 million of which 58% is from oil and gas cranes for the offshore oil and gas exploration and production activities. The rest are from the shipyard, CONSTRUCTION [] and wind turbine industry.

Favelle Favco, which had cash of RM95.7 million, said it would continue to execute and deliver its existing order book secured in hand. However, it cautioned the outlook appeared challenging although it expected to maintain market share from its diversified customer base.

Mamee-Double Decker reported its net profit rose nearly 86% to RM12.1 million from a year ago, underpinned by improved consumer spending and also favourable sales mix. Revenue rose only 2.84% to RM113.86 million.

As for Guinness Anchor, its net profit fell 43.5% to RM26.75 million from RM47.32 million a year ago due to lower demand for its malt liquor beverages during the difficult economic conditions. Revenue fell 17.7% to RM300.97 million from RM365.8 million.

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Dubai oh Dubai - US stocks slide on Dubai worries

Written by Reuters

Saturday, 28 November 2009 11:33

NEW YORK: U.S. stocks fell more than 1 percent in a truncated session on Friday, Nov 27 as a possible debt default by a Dubai state-owned conglomerate led to fresh concerns about the global financial system, according to REuters.

The sell-off was broad, with selling concentrated mainly in the financial and commodity-linked sectors as investors trimmed positions in areas of the market most sensitive to economic uncertainty.

That hit stocks like aluminum producer Alcoa Inc, down 2.6 percent, and Bank of America, down 3 percent.

But after a slide of more than 2 percent at the open, the flight to less risky assets seemed to be subsiding, helping the major U.S. stock indexes ease back up off their lows. The U.S. dollar, which had jumped sharply as investors looked for a safe haven, pared gains and commodity prices stabilized.

The news out of the Middle East coincided with the desire by many investors to lock in 20 percent year-to-date gains in the S&P 500 after a terrible year in 2008.

"It is at least an early indication of whether investors believe this is one-time bad news or the tip of something really bad," said Jack Ablin, chief investment officer at Harris Private Bank in Chicago. "Right now, it looks like investors are taking the optimistic stance."

The Dow Jones industrial average dropped 154.48 points, or 1.48 percent, to end at 10,309.92. The Standard & Poor's 500 Index fell 19.14 points, or 1.72 percent, to 1,091.49. The Nasdaq Composite Index lost 37.61 points, or 1.73 percent, to 2,138.44.

For the week, the Dow dipped 0.1 percent, while the S&P 500 edged up 0.01 percent and the Nasdaq slipped 0.4 percent.

Volume was light on the day after Thanksgiving. The U.S. stock market shut on Friday at 1 p.m. , which was three hours shy of its normal closing bell, but the number of declining stocks still towered over those advancing.

On Wednesday, Dubai said it would ask creditors of state-owned Dubai World and Nakheel, the builder of its palm-shaped islands, for a standstill agreement as a first step toward restructuring billions of dollars of debt.

On Thursday, U.S. financial markets were closed for the Thanksgiving holiday. But financial markets around the world shuddered, reflecting fears about the impact of a potential Dubai debt default.

It was uncertain how much exposure U.S. banks have in Dubai. But influential bank analyst Richard Bove said in a note "it does not appear that American banks have any major direct impact from this event."

Bank of America fell 3 percent, or 48 cents, to US$15.47, while Citigroup tumbled 2.6 percent, or 11 cents, to US$4.06. These two stocks were the most heavily traded on the New York Stock Exchange.

Commodity-linked stocks sold off sharply, but stabilized after the U.S. dollar pared gains and helped lift commodity prices off their session lows.

Even so, Dow component Alcoa Inc fell 2.6 percent, or 34 cents, to US$12.66, while gold miner Newmont Mining Corp lost 2.8 percent, or US$1.55, to US$53.35. - Reuters

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MCA EGM off

They are really shooting a movie.

What should the movie title call???

Chinese fight against Chinese?

Power against Power?

Greedy against greedy?

Whatever, I think they have lost support from chinese.


Friday November 27, 2009
EGM for MCA is off, special briefing instead
By NG SI HOOI


KUALA LUMPUR: Tomorrow’s extraordinary general meeting (EGM) for MCA is cancelled. Instead, a special briefing session will be held.

The decision was made after all conflicting factions reached a consensus on fresh elections for the party central committee (CC), said Wong Nai Chee, one of the three CC members who had requisitioned for the EGM.

Wong was speaking at a press conference at Wisma MCA yesterday, which was also attended by the other two requisitionists, Datuk Wee Jeck Seng and Datuk Liew Yuen Keong.

Others present included party leaders supporting the EGM request, such as vice-president Datuk Seri Liow Tiong Lai, Wanita chief Datin Paduka Chew Mei Fun and Youth chief Datuk Dr Wee Ka Siong.

Wong said the requisitionists felt that party president Datuk Seri Ong Tee Keat, deputy president Datuk Seri Dr Chua Soi Lek and Liow had reached a consensus on fresh elections for the CC.

This was the result of intensive efforts by Barisan Nasional chairman Datuk Seri Najib Tun Razak and his deputy Tan Sri Muhyiddin Yassin.

“Further, we trust that the AGM scheduled for Dec 5 will be deferred to a date to be fixed in conjunction with the proposed fresh elections.

“We hereby announce the calling off of the Nov 28 EGM which will be replaced with a special briefing session,” Wong said reading from a statement.

Wong added that the MCA Integrity Restoration Task Force thanked all MCA members who had given their support.

“Our objective of having fresh elections has been met due to the support and fighting spirit of our grassroots members,” said Wong.

As arrangements for the EGM venue, travelling and accommodation had been made, Wong said the dinner scheduled for 7.30pm today at Wisma MCA would go ahead as planned.

To a question, Liow urged party members to be “patient” as the “road map” to call for a fresh elections would be revealed as soon as possible.

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