Mudajaya and KNM elevating silently others are in the limelight

Recently the ETP announcements helped propel stocks that are being directly awarded with contracts. Namely Gamuda, MMC Corp, Dialog, SapuraCrest.

At the same time some stocks are moving silently behind the scenes.

Mudajaya up from RM4.16 to RM5.10 today.
KNM up from RM1.80 (adjusted) to RM3.20 today.

AirAsia strengthens 16 sen to RM2.86 surging into a confident 2011

AirAsia is on the supersonic flight route to a higher ground again going upwards 16 sen. Investors that are going for the airline sector, is watching and investing in AirAsia closely. Not just because of the low-cost model that is working so well in Asia, but of new innovative ways to make it smooth and tweaking these innovations yearly.

For instance, some time ago. There was no seating allocation. Then there was Priority Boarding. And came seating allocation. Then PAID seating selections. Baggage allowance has been tweaked several times to optimise both profitability and also the customer's experience. Now the ongoing momentum is to have self-check-in a compulsory procedure virtually creating a "good habit" to travellers. Shaping the way of travelling.

Shaping behaviour is essential for corporate profits. Yet can be justified to serve a better purpose - such as allowing passengers the freedom to choose optional premiums.

Where would the big investor put their funds into the airline sector? It should be into low cost carriers since this is the major trend and the majority of the new middle-class of Asia and BRIC countries are growing. Growing hungry of the taste to be an intrepid low cost traveller. Braving all the obstacles for a no-frills flight actually is an adventure in itself. Think Bear Grylls.

And among the top choices for Low Cost Carrier - can you say RyanAir, EasyJet, AirBerlin, perhaps Air Arabia? Or even Tiger Airways and Jetstar? Finally the low-cost word itself is a misnomer to the unwitting traveller, to the investor and to the general public. Low-cost is essentially meant as a corporate term for an executive decision! So with AirAsia's no frills and low cost to its own corporate operating cost, it will far succeed (and already has) compared to other Low Cost Carriers.

Bursa Component Stocks Ready to Soar in 2011

My last writing was a preview and insight into the component stocks of the FTSE Bursa Malaysia Composite Index. A de facto benchmark of the country's performance, looking inside the ingredients is essential in powering your stock portfolio into winning gems and supernormal profits.

All the banks in the list, is out of the selection - mainly because of cost and also they have generally surged to high levels by now. The goal is to look for the final gems that can outperform for 2011. Forget 2009 and 2010 where many stocks have gained 50%. So here's my focus for this write up.

Now 22 left. MAS is out, since if one were to go into this sector (airline/travel), then go for AirAsia.

Heavily priced heavyweights such as BAT (over 40 RM), Digi and KLK(over 20 RM) I will leave out as well. So is SIME with a messy politico game. Plus it is expensive. Petronas Dagangan and Petronas Gas too both over 10 RM. So those too are cut away from my radar of stocks that are ready to soar in 2011.


Which currently leaves the remaining 10:

Axiata Group Bhd

1 Week 3.4% 13 Weeks 3.6%  
4 Weeks 7.4% 52 Weeks 55.4%

Maxis Bhd
1% since listing 2010

PETRONAS Chemicals Group Bhd
10% since listing 2010

MMC
1 Week 11.5% 13 Weeks 11.9%  
4 Weeks 0.3% 52 Weeks 26.5%

Genting Malaysia BHD
1 Week 4.4% 13 Weeks 8.3%  
4 Weeks -0.3% 52 Weeks 22.9%  

Telekom Malaysia

1 Week 6.3% 13 Weeks 10.4%  

4 Weeks 6.9% 52 Weeks 19.9%  

Tenaga Nasional

1 Week -2.3% 13 Weeks -4.9%  

4 Weeks -7.7% 52 Weeks -0.3%  

YTL Power International

1 Week -0.8% 13 Weeks 1.3%  
4 Weeks 4.8% 52 Weeks 10.0%  

Gamuda
1 Week 11.5% 13 Weeks 13.0%  
4 Weeks 11.3% 52 Weeks 49.6%

Plus Expressways

1 Week 2.0% 13 Weeks 5.3%  
4 Weeks 10.8% 52 Weeks 41.0%

The recent stock performance can give some indication where most stocks have rised 40-50% from a year ago. Gamuda up 50%. Plus 40%. Axiata 55%.

Tenaga has been trickily at a precarious position - not up nor down too much the past year. And now facing some issues with coal supply. It is perhaps still a good buy seeing it is still the utility company to go to in Malaysia.

Therefore, my selections would zoom down to MMC, YTL Power, Genting Malaysia.  

30 Stocks of the Singapore Straits Times Index 2011

Here are the 30 Component Stocks of the Singapore Straits Times Index 2011.
City Developments
Fraser and Neave
Keppel Corp
Neptune Orient Lines
CapitaMalls Asia
Singapore Airlines
Singapore Press Holdings
United Overseas Bank
Oversea-Chinese Banking
DBS Group Holdings
SembCorp Industries
Jardine Cycle & Carriage
Sembcorp Marine
Singapore Telecom
Jardine Matheson
Jardine Strategic
Hongkong Land Holdings
Singapore Technologies Engineering
Capitaland
Golden Agri-Resources
Sia Engineering
SMRT Corp
Wilmar International Limited
Singapore Exchange
Noble Group
ComfortDelgro Corp
Genting Singapore
CapitaMall Trust
StarHub
Olam International

Compared to the FTSE Bursa Malaysia CI, the banks consists just 3 which is all of the local banks. And seem more balance with several transport firms (SIA of course, Comfort, SMRT, Neptune) and commodities (Olam, Noble) plantations (Wilmar, Golden Agri).

Two interesting component stocks at least to me, is Jardine Matheson and Jardine Strategic.

So the question is : how do we make a stock index, or should we be making and mimicking the well-known STI index?

Every wise investor should have a strategy to buy and hold several of the stocks above, and ability to move sideways within a sector. Say for instance, now that Wilmar seems to have hit several highs and questionable situation with their new divergence into property development (from pure palm oil sector), a strategic investor that wishes for growth and strength in palm oil sector can still remain invested by selling their Wilmar shares, and buying instead Golden Agri.

Likewise with telco. One must have the capacity for making shifts within the sector. Sell Singtel, buy Starhub if the direction to expand overseas is taking a slower growth now after years of double digit growth in Australia and Indonesia.

Will write more on each component stock in separate articles.

30 Stocks of the FTSE Bursa Malaysia Composite Index 2011

Shadowing an index is essentially one method to auto-park market sentiments with your investment choice. In this case, believing, relying, and monitoring the index. For Malaysia, the revamped and nimble (yet long winded naming) FTSE Bursa Malaysia Composite Index is the one that is featured as the de facto stock market health index of Malaysia.

Here are the components - consisting 30 stocks of various sectors:
RHB Capital
Malaysia Airline System
British American Tobacco (Malaysia)
Axiata Group Bhd
Maxis Bhd
PETRONAS Chemicals Group Bhd
Genting
Kuala Lumpur Kepong
Malayan Banking
MMC
PPB Group
Sime Darby Bhd
Hong Leong Financial
IOI
Genting Malaysia BHD
Telekom Malaysia
Tenaga Nasional
AMMB Holdings
CIMB Group Holdings
Hong Leong Bank
UMW Holdings
YTL Corp
Petronas Gas
YTL Power International
Digi.com
Petronas Dagangan Bhd
Gamuda
Plus Expressways
MISC
Public Bank BHD

Banks take the bulk with 8 stocks over 26% of the index. Recently almost every stock in the index has risen considerably. So perhaps looking at a each stock carefully and then analysing to choose the ones that have not soar as much as the others.

Korea's success is having Han, and Han means unfinished business

Was watching this episode of HipKorea by Discovery and it was featuring RAIN.

One interview segment it talked about HAN. One would instantly associate it with Korean since Han Guo is Korea.

Here is what was discussed:
"The driving force that enables Korea to move forward with hope is Han."
"If I had to express it in English, Han would be 'unfinished business'.
Unfinished business - such as:
Because I was not well fed, I want my children to be well fed.
That's my Han.
Han embodies tears, laughter, agony, and also catharsis.

This is what Rain then says:
For me, my kind of Han is that I was not able to show enough love to my mother and to do enough for her as a loving son. I have the Han of being looked down upon by so many people, it made me even more determined to succeed.

Actually the moment the cameras start rolling, I could destroy something, or smash a house and then just say that it was part of the shoot. Sometimes I want to hit people I dislike, or to confess my love to someone I care about.

I could blame the world for doing this to me as an excuse to be destructive but I hold it all in. And when I am shooting, I let it all go.

RAIN let it all go in his first Hollywood movie, Speed Racer.

Well the point is that Korea is such a success story, we can learn many lessons from them. How they invest? They invest in patriotism, they invested in education, they invested in enabling the citizens with widespread affordable high-speed internet access. They invested in public transport. They invested in their top brands Samsung, LG. That were once upon a time, were such laggards or wannabes behind Japan's SONY or Panasonic. Such impressive determination by RAIN is there too in Samsung. Is it a coincidence? No! It's everywhere, every person, every street, every bulgogi bowl and kimchi cabbage.

From a destructed nation post war 1950s, an aid recipient, into an OECD Donor Country today! How is that even possible? Think about it. Read about it. Then learn from it. This success story is not written by a single statesman, or a handful of leaders. It is everybody doing it every possible way. That "unfinished business" mentally it very powerful indeed.