DRB-HICOM -Ending the downtrend process?

Monitor closely.

CYPARK - breaking the wall 2.00

Good news.

Balance Sheet - 5 mins understanding

How to read company balance sheet is very important. Why? This is the health status of the company.

In layman term:
Shareholder equity / fund and loan / borrowings = where is the money come from?
Equity = optional to give dividend (if make profit), sometimes determine by dividend policy.

Loan = borrowing from financial institutions  e.g. bank. Need to pay interest.

Assets = where is the money go? Equity money or borrowing money use to set up business, build plant, buy machine, buy stock etc.

Therefore, a quality company or value stock mean manage the money (from equity or / loan) effectively. For instance:
-money use to buy machine able to increase output and improve  product quality. Increased sales and profit margin.
-money use to take over profitable company. Diversification or synergy.
-money use to build a strong management team
-money use to buy quality raw material
-money use to buy latest machine to avoid obsolescence.
-money use in research and development to avoid technology obsolescence
-money use as dividend to reward shareholders and stimulate share price.

If you see a company keep loosing money, high debt, prolong negative cash flow money . So, if you buy the stock, you will likely have a sleepless night.

You don't need go so detail, don't need go any expensive seminar, you just need to understand few keys data, you will able know where is your risk of investment.

Next will write up why Profit and Loss account is important.

AIRASIA - Good news or bad news?

I think short term players will heavy "sell on fact" once it's resume.

PROPOSED ISSUANCE AND ALLOTMENT OF 559.00 MILLION NEW ORDINARY SHARES OF RM0.10 EACH IN AAB (“PROPOSED SHARES ISSUANCE”)

INTRODUCTION
On behalf of the Board of Directors of AAB (“Board”), CIMB Investment Bank Berhad (“CIMB”) and RHB Investment Bank Berhad (“RHB”), wish to announce that AAB had on 1 April 2016 entered into a conditional subscription agreement (“Subscription Agreement”) with Tune Live Sdn Bhd (“Subscriber”), an investment holding company owned by both Tan Sri Dr. Anthony Francis Fernandes (“TSTF”) and Datuk Kamarudin Bin Meranun (“DKM”) for the proposed issuance and allotment of 559.00 million new ordinary shares of RM0.10 each in AAB (“Subscription Shares”).

The Subscription Shares represent approximately 16.7% of AAB’s enlarged issued and paid-up share capital(1) , and are to be issued at an issue price of RM1.84 per Subscription Share (“Issue Price”) to be satisfied in cash.

The Issue Price was arrived at by mutual agreement between the parties to the Subscription Agreement based on the 5-market day volume weighted average price (“VWAP”) of the ordinary shares of RM0.10 each in AAB (“AAB Shares”) up to 31 March 2016, being the date immediately preceding the date of the Subscription Agreement, and on the basis that no dividends will be declared or paid on or after the date of the Subscription Agreement. On 31 March 2016, the Company declared a first and final dividend of 4 sen per AAB Share, of which the entitlement date is on 30 May 2016, subject to the approval of AAB’s shareholders at a general meeting to be convened (“Dividend Declaration”).

Accordingly, pursuant to the terms of the Subscription Agreement, the Issue Price shall be adjusted downwards by the equivalent amount to the dividends declared or to be paid per AAB Share under the Dividend Declaration. Hence, the Issue Price will be adjusted from RM1.84 per Subscription Share to RM1.80 per Subscription Share on the basis that the Subscription Shares are not entitled to the Dividend Declaration (“Adjusted Issue Price”). Based on the Adjusted Issue Price, AAB will raise a total gross cash proceeds of RM1,006.20 million.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5046813

AIRASIA - now everyone can fly 》 now everyone is waiting execution of "buy on rumours sell on fact"

If this is a take over with premium price, yes, the price will continue public shooting. Other than that, most of "them" will execution of buy on rumours sell on fact. Good luck. May the luck with u. Hope is not force with u, I mean force selling l.

MJPERAK - Question: Shoul I keep?

Yes, you should do that.
My outlook for future:
1. Special dividend ~ 3 cents (still pending announcement ). Yield around 9%. Much better than bank. This is special payout from land sale. Refer my previous post.
2. Assets player with huge land and still carry history value. Market value can be surprising.
3. Price now in wave 1 ( my definition ). Quite and consolidate. Minimum risk of margin of safety
4. Rumours of PERAK CORPORATION take over.

Stimulus 》freedom to choose 》Response

When you're facing the challenges (treat it as testing), this will be the stimulus, how you choose to response  is the key will determine the end result.
If you've bought in a value stock, that's said in the wave 1, the price still going down due to major trend impact e.g. weaken MYR, political issue. You realised that your book loss 20%. At this point of time, a stimulus hit in and requred your response.

Between stimulus and response is the freedom to choose. The bigger the gap between stimulus and response, then better of your choice. You can cut loss,  or you can continue to hold it. What you need to do is just need to go back to your origin key driver decision to buy it. If it still valid, then continue to hold it (the mistake is only timing and timing is most difficult skill in investing) and vise versa.
Remember, you cannot change others, you only can change yourself how to react to stimulus.