Nine M’sian firms make it to Forbes’ Best under a Billion

WILL YOU BUY THIS SHARE????

Friday September 3, 2010

SINGAPORE: Nine Malaysian companies made it to the Forbes Asia’s Best under a Billion list this year compared with eight companies last year, according to Forbes Asia.

Glove maker Hartalega Holdings Bhd, which made it to the list for the first time, was also profiled in the September issue of Forbes Asia.

Other Malaysian companies that made it to the list are CBS Technology Bhd, Coastal Contracts Bhd, Hai-O Enterprise Bhd, KKB Engineering Bhd, Latexx Partners Bhd, Mudajaya Group Bhd, My E.G Services Bhd and Willowglen MSC Bhd.

CBS Technology specialises in RFID (radio frequency identification), e-security and e-procurement services; Coastal Contracts is involved in marine services and vessels while Hai-O is a multi-level marketer of herbal care products.

Besides steel fabrication, KKB manufactures steel pipes and LPG cylinders as well as hot-dip galvanising. Latexx manufactures rubber gloves, Mudajaya is involved in civil engineering and construction services, My E.G is an e-government service provider and Willowglen is a computer-based control system provider.

According to Forbes Asia, more companies are making their maiden appearance on Forbes Asia’s Best under a Billion list this year.

“In all, 151 firms are new on the list, compared with 136 last year, while 49 are returnees. Firms in information technology, healthcare and electronics sectors accounted for close to half of the 200 companies on the list,” Forbes said in a statement yesterday.

The annual Best under a Billion list picks the top-performing 200 firms from close to 13,000 publicly listed Asia-Pacific companies with actively traded shares and sales between US$5mil and US$1bil.

Forbes Asia said the selection of the final 200 was based on earnings growth, sales growth and shareholders’ return on equity in the past 12 months and over three years.

This year, China and Hong Kong have once again outdone the rest of Asia-Pacific with the most number of small and midsize firms represented on the list.

“This is the third consecutive year that both economies have dominated the list with 71 firms making the cut, down from 78 last year,” it said.

India is in the second place with 39 entries, 19 more than last year, thus making it the biggest gainer while South Korea is in the third position with 20 companies, followed by Taiwan with 19 and Australia with 13. Malaysia tied with Thailand for the sixth most number of entries.

The 200 winning companies will be honoured at an award ceremony and dinner in Hong Kong on Nov 23

You can get rich by INVESTING in BURSA MALAYSIA.

Why Invest In Stocks?

Investing is making your money work for you by getting your money to generate more money.  Investing in stocks has consistently proven to be one of the most profitable forms of investment available.

The benefits include:

Immediate Buy/Sell so you can sell part of your investment any time.

Very low transaction cost.

The freedom to work at your own place, at your pace in your own time.

Easy monitoring — log in to the market from anywhere in the world.

Being able to maximise returns whilst spreading your risk.

A predictable form of investment if you know what you’re doing.

Putting you in control and freeing you of fund management fees.

Considerable tax advantages.

Things to watch out for:

The market can be a volatile place.

You must acquire knowledge of what you are doing.

You must monitor your investments.

You must learn the discipline to enter and exit the market on entry and exit signals.

Can Ordinary People Profit from the Stock Market?
Many people say things like “I’d love to get into the stock market” or “If I had more money, I’d invest in stocks”. Many people also believe that to make a profit from the stock market you either need to be rich already, be a full-time investment trader or be a financial whiz.
Not necessarily so.
Let’s take a look at three different scenarios of ordinary people in the stock market to see how they fared. This will let us view how the process works, the different approaches, and how returns are generated.
Scenario 1:
John works in a manufacturing plant earning RM33,000 a year. After rent, living and personal expenses, John has managed to save RM1,500 over the past 6 months that he wants to invest in the stock market. John buys 1,600 shares in ABC Mining at RM0.90 per share (RM1,440). He also pays RM32.95 brokerage fees for buying the shares. In total, John has invested RM1,472.95.
Six months later John decides to sell his shares. He has kept an eye on the performance of ABC Mining and they have risen to RM1.19 a share.  John sells his shares for RM1,904. He also pays RM32.95 brokerage fees for selling his shares, leaving him with RM1,871.05. That is a profit of RM398.10.

RM398.10 may not sound a lot, but remember John only invested RM1,472.95 for 6 months, so he won’t make a huge return. Nevertheless, John made a 27% profit which is far better than he would have made by putting the money into his savings account.

Scenario 2:
May and Chong both work full-time in professional jobs. Together, they earn RM120,000 per year. After mortgage repayments, living and personal expenses May and Chong have managed to put away RM5,000 that they want to now invest in the stock market.  They buy 1,500 shares in AAA Steel at RM1.48 a share (RM2,220) and 1,500 shares in XY Manufacturing at RM1.33 a share (RM1,995). They also pay RM65.90 brokerage fees for the two transactions. Their total outlay is RM4,280.90.
Over the next 12 months AAA Steel shares have risen to RM2.60 a share and XY Manufacturingshares have moved to only RM1.38 a share. May and Chong sell their shares for a total of RM5970. They pay their broker RM65.90 and are left with RM5904.10. Their initial investment was RM4,280.90. So, they make a profit of RM1,623.20.
Scenario 3:
Aminah is retired, owns her own home and earns a comfortable income from several long term investments. Aminah would like to invest RM15,000 that she has set aside for buying shares.
Aminah selects a portfolio of 5 companies and aims to invest around RM3,000 in each. Aminah buys 3,333 shares in ABC Mining at RM0.90 a share (an investment of RM2,999.70). She also buys 2,027 shares in AAA Steel at RM1.48 a share (RM2,999.96) and 2,255 shares in XY Manufacturing at RM1.33 a share (RM2,999.15). To complete her portfolio, Aminah buys a further 2,912 shares in MM Multimedia at RM1.03 a share (RM2,999.36) and 3,000 shares in BB Furnitureat RM1.00 a share (RM3,000). Aminah also pays RM164.75 brokerage fees for buying the shares. In total, Aminah has invested RM1,5162.92.
12 months later Aminah sells her shares. Four of the shares have increased in value but BB Furniture has dropped to RM0.95 a share.   ABC Mining rose to RM1.19 a share returning RM3,966.27.   AAA Steel rose to RM2.60 a share returning RM5,270.20.  XY Manufacturing rose to RM1.38 a share returning RM3,111.90.   MM Multimedia rose to RM1.09 a share returning RM3,174.08.   BB Furniture dropped to RM0.95 a share returning RM2,850. In total, Aminah’s shares returned RM18,372.45 less RM164.75 for brokerage.  This gives a total of RM18207.70, earning a profit of RM3,044.78.

Source: http://www.klse.com.my/website/bm/bursa_basics/

How to Buy Share at Bursa Malaysia and Earn from It?

Source: http://kclau.com/investment/how-to-trade-stock-at-bursa-malaysia-investing-basic/

Do you qualify to trade at Bursa Malaysia?

You have to be at least 18 years old. If not, wait until your 18th birthday.

Step by Step Guide:

1. Open a Central Depository System (CDS) account: you can do this by approaching an authorized depository agent such as stockbroking company and some banks.

• provide photocopies of IC (identity card)
• fee RM10

You will receive the account document by mail.

2. Open a trading account with stockbroker: this will be done simultaneously when you open the CDS account.

• need to provide income statement
• fill out trading account form
• the stockbroker will check your credit status at CTOS (Credit Tip-off Service) and stockbrokers’ defaulters’ list – in order to qualify you and set your trading limit

What do you need to know about CDS account?

• it allows you to buy and sell shares
• it also allows you to trade non-equity counters such as bond and warrants
• it is something like a bank account – you keep cash in bank accounts, you keep shares in CDS accounts.
• you can have more than one CDS account
• there are two type of CDS accounts: direct and pledge
• if you have a direct account, you will receive the dividend checks and prospectus mailed to your house.
• if you have a pledge account, the stockbroker will receive the dividend payout and prospectus on your behalf. Then the stockbroker will bank in to your account.
• normally banking stockbrokers will require you to open a pledge account.
• you will get CDS account statement monthly. If there is no activity, you will still get the statement on June and December.

3. Get a remisier: normally your stockbroker will appoint one to you if you don’t have any particular preference.

• remisier has to be licensed by the Securities Commission
• remisier helps you make the order: sell? or buy? at what price?
• get someone you like and trustworthy as your remisier

4. Buying and Selling Shares: You can key in your order at online system provided by your stockbrokers, or call your remisier to make the order. If your buying order match a selling order, you will get a trade confirmation. The stockbroking firm will then send out contract notes to you specifying details of transaction.

5. Payment: When you buy share of company S, your CDS account will be credited with share S at 9am on T+3 (T=transaction date). The 3 days only include working days. Your payment had to be made on 12.30pm that day. If not, your share will be forced sold at a contra loss or contra gain.

Fees involved:

• brokerage fees – maximum 0.7% of the value of total shares traded, normal practise is 0.6%
• Clearing fees - 0.04% of contract value subject to cap of RM500
• stamp duty – RM1 for every RM1,000 worth of value