WHICH STOCK IS TRENDING UPWARDS DURING THIS DOWNTREND?

Out of 1,400 stocks in Bursa Malaysia, less than 10 stocks are trending upwards. Out of the 10 stocks, only 2 stocks that has the capability to sustain their uptrend. They are BONIA & NPC.

BONIA is a park under Consumer Products. It designs and markets garment and shoe products. All quarters have been profitable for the last 2 years. It has nothing to do with US’s crisis at all.

NPC is a plantation company. Same as Bonia, all quarters are profitable for the last 2 years. This stock is a commodity play which we could see its share price trailing the oil price.

Happy Investing.

WHO IS ACCUMULATING GOLDEN PLUS??

Guess what? I saw this name, ‘China Investment Capital Ltd.’ In the list of new acquirer of Golden Plus’s shares. 8,000,000 shares. That was the number that the company acquired on 12 November 2008.

I’ve checked on Wiki the name of various Sovereign Wealth Funds (SWF). However, it stated that PR China’s SWF is ‘China Investment Company Ltd.’. The word Capital and Company is different.

So, who is ‘China Investment Capital Ltd.’. Are they the same party? Or is it a proxy company that acquired 8mil shares on 12 November.
If the PR China is the one who is acquiring GPLUS share, definitely they know something that we don’t.

GPLUS just back to black in the last quarter, with a bang. The revenue improved, GPLUS returned to black.

What say you?

ALTERNATE CURRENCY IN CRUDE OIL TRADING

When I heard OPEC members Iran and Venezuela voiced out their demand to stop trade oil in US Dollar, I was thinking, what is the best currency to trade crude oil? When you complaint about something, you’ve got to provide solution to it. Well, I got an idea and I am willing to share with you.

So, during the meeting, when those two countries complaint, Saudi Arabia, the Big Brother and the closest allies to the US, totally rejected the idea. (I couldn’t understand why Saudi Arabia straight away rejected it, other than this country is the US political closest ally). Well, if my country is one of the biggest producers, I would also propose to change the oil trade currency. Why not? The dollar currency is depreciating in value!

This is, actually, just a simple supply-demand relationship. It takes two to tango right? Therefore, when one party proposes, the other party got to agree. When Iran and Venezuela proposed, other countries got to agree. What happened was Saudi Arabia immediately and totally disagrees. Acting as proxy to the US and protecting the US. What for?

So, apart from the US, other ‘consumer’ countries those demanding significantly huge volumes of crude oil are Japan, China, India and the EU. Therefore, definitely other currencies those suitable for oil trading are Yen, Yuan, Rupees and Euro. All four currencies can be use to trade oil. Rules can be changed. If Japan, China, India and the EU agreed to trade in their respective currency, deal done. For other countries, apart from those four big nations, they can choose to trade in either the producer’s currency or the importer’s currency. Or, there is another solution. Any countries that closest (geographically) to one of the four nations, trade in currency nearer to them. How about that? Would you, the leaders consider this idea? Why not?

To Trade Palm Oil in US Dollar ?? Which school did to go ?

I really don’t understand why so-called ‘smart’ people and leader of a corporation suddenly make a sense-less decision.
Recently Bursa announced a plan to trade Palm Oil Futures in US Dollar currency. Don’t they understand the implication?

While during the OPEC meeting 2 member countries has express their strong opinion not to trade their crude oil in US Dollar, we, Malaysia plans to trade palm oil in Dollar. I assume readers of this blog know the latest development of dollars. If we start to trade in dollar, immediately our palm oil will be de-valued. Let’s take for example we are trading at RM 3000/tonne now. That is equivalent to about USD1000/tonne (let say exchange rate is USD1 : RM3). Let say in the future, the dollar continue to sink and the RM exchange rate improve to USD1 : RM2.8, then, when we sell 1 tonne of palm oil we can only sell with RM 2800 only. To get RM 3000, we have to produce more of palm oil. This is not a smart move for a person who leads our Bursa, don’t you think? What are they thinking? Or rather, how can they think like that?
Our plantation companies have to squeeze for palm oil to meet the demand. Even right now we are struggling to produce more.

Proposal
The solution is very simple. We just have to keep selling in RM. It works well so far. We have an improve volume trading in our Bursa Futures.

Now, our Bank Negara only allows Ringgit to be traded in Malaysia. In the near future (within a year time), I am sure Bank Negara will allow Ringgit to be traded off-shore.
Ringgit has to be traded off-shore. But right now, when our overall economy still struggling to grow above 6%, struggling to attract Foreign Money (FDI), we have to contain the Ringgit trade exposure.

Conclusion
Continue trade palm oil as it is. Remember, palm oil is our GOLDEN CROP. It is equivalent to Arab’s crude oil, African’s GOLD and diamonds and Oceania’s agricultural products. This crop is our ticket to prosperity!

FEW REASONS TO PONDER WHY AMERICA GOES INTO RECESSION...

After so many prosperous years of United States of America in today's modern world has come to an end. Although not many 'Americans' (not include Native American, the Red Indians) which migrated from other countries during World War I, II and after the Great Depression, will admit it, but the world is watching it sinking. It was like Titanic.

The reasons are as follows;

1. America's economy is driven by debt.
Comment: Japan, China, India, Arab Nations, South Korea, Singapore and many more countries are having reserve in Dollar. Further, 3 Asia biggest economy are holding enormous amount of US debt paper.

2. American community has the largest debt in the world and every citizen generally is borrowing more than 100% of their income.
Comment: How can you survive with debt!

3. Nation of liars and bluffers. Their leader is the greatest liar ever. Their rating agencies quitely hiding sub-prime problem by rating those numerous CDO a many 'A's until it burst. And on their leader, he is lying from WMD (weapon of mass destruction) in Iraq, to the revenge of his 'senior' who lost during the Desert Storm (replace with Shock and Awe).
Comment: Conflict of interest.

4. Sinking US Dollar.
Comment: As of now, nobody seems like trying to save US Dollar from falling. What we are hearing now is Dollar is going down further. From 2 oil nations, Iran & Venezuela, suggesting to sell oil in other than Dollar currency, Arab nations propose to De-peg their currency from US Dollar (who are having their currency peg to Dollar). It is only rational to de-peg rather than watching your purchasing power depreciating with US Dollar. And it is only rational to trade oil in other currency when you watching your product goes down in price while the quality is the same. These factors are all due to weakening US Dollar.

I hope other nations will learn from this nation. Asia has learnt from Asian Financial Crisis to have adequate savings to weather their nation from currency and economic attack.

CANADA OIL SAND INDUSTRY

I've found 2 best pictures on the NET. Above 2 pictures are best describe Canada Oil Sand industry. Think about it...

(Pictures courtesy of theoildrum.com)

CONFIRMATION OF ASIA DE-COUPLE FROM THE US

Many times already we heard people are saying that Asia is de-coupling from the US. But that activity has never been confirmed. Last week as Dow Jones Industrial, S&P 500 & Nasdaq turned below their 200 day Moving Average, this is the opportunity for Asia markets (includes Malaysian KLCI) to confirm that they’ve de-couple.

If US indexes continue their downtrend and Asia continue their uptrend, the de-coupling is confirmed. Right now, Asia markets are like waiting to break-loose, like a rubber ban, like an underground earth-quake that causes Tsunami.

While this event has yet to happen, let’s wait until mid-December 2007 whereby this event can become a reality.

Next question that we should ask, when US is falling who’ll be the leader that other small markets, like Malaysia, will follow. I guess many will say either Hong Kong or Shanghai.
But these two markets are over-stretch, how?

India Sensex? Well this market is not so reflective to India’s economy, which can also be the next big consumer market. Top 20-30 companies in Sensex already covers about 80% of its market-cap. That is the reason.

So, which market will?

ETITECH - STOCK WHICH DOWNTREND PROOF

Guys, take a look at ETITECH. While the CI is uncertain, ETITECH march higher.

I guess this stock is a future stock. This stock does research in Battery, the future power storage medium. Before, we are just using it for watches, computers, etc. Now we are towards car, In the future, i believe it will be extended to trains or anything that uses natural fuel.

What a bright future for this company.

Technically, it just breakout to a new high. It's a good company. Take a look at it.

Note: This company leads me to write the article below.

PROPOSAL TO SAVE PROTON

This one very idea came across my mind when i was thinking why Gulf Investor invest in a company engages in the research and development, design of battery management systems for rechargeable energy storage solutions.

My idea is that, Khazanah, as major shareholder in PROTON, request PROTON to strongly tie-up with ETITECH, the battery research house.As we all know, PROTON is very much bleeding now. Though their 're-born baby' (since they've had SAGA as their 'baby' about 20 years ago)PERSONA sales performance maybe on the uptrend, PROTON has to be prepared for the future, if their management is thinking long-term, more than 30 years down the line.
When these two companies tie-up and develop a rechargeable battery for cars, PROTON can compete in the international arena. Whilefor ETITECH, when PROTON "SUCCESSFULLY" launches a green-model which equipped with ETITECH battery, ETITECH brand name will then explode.Business will flow into both companies and it became a WIN-WIN ties.
Therefore, for ETITECH & PROTON management, what say you guys? I know PROTON is in the midst to be taken-over by an international company (VW), but Khazanah, being the largest shareholder, and Government as theowner of Khazanah can stop the National Car company from being taken over.

Khazanah people are brilliant people. So do PROTON people. I wonder why they've never propose such a tie-up before. Instead, GULF people who sees the opportunity and potential in our listed companies...

SYARIAH INDICES

Today, as i go through some listing of companies listed on Bursa Malaysia, i was puzzled by some companies who are headed by a muslim are not listed under Syariah Indices. Why?
I mean, they are obviously Muslims who work in the company. Does it means that it is merely not listed under Syariah Indices. Do they have to apply to Bursa to get listed under Syariah, or Bursa has the Power to inject these companies in the indices?

These companies that came across my eyes are BSDREIT, BSTEAD. Is there anybody from Bursa care to explain?

Bare in mind that we, Malaysia, is the center of Islamic Finance. We are receiving threat from Dubai as the substitude of Islamic Finance Center.