KESM : semiconductor play

KUALA LUMPUR: KESM Industries Bhd’s net profit for the fourth quar- ter ended July 31, 2015 (4QFY15) rose 56.4% to RM10.45 million or 24.3 sen per share compared with RM6.68 million or 15.5 sen per share a year ago, primarily due to foreign currency translation income.

The period saw a foreign curren- cy translation income of RM3.11 million compared with a loss of RM7,000 in 4QFY14, its filing with Bursa Malaysia yesterday showed.

The semiconductor device test- ing firm’s revenue for the period was flattish at RM68.94 million compared with RM68.65 million in 4QFY14, with the marginal in- crease attributable to the appreci- ation of the US dollar against the ringgit on US dollar-denominated receivables.

KESM proposed a dividend pay- out of three sen per share, subject to shareholders’ approval in its forthcoming annual general meet- ing. For the cumulative 12 months ended July 31, 2015 (FY15), net profit jumped 56.5% to RM17.03 million or 39.6 sen per share from RM10.88 million or 25.3 sen per share in FY14.

Revenue for the period increased to RM263.12 million from RM254.37 million, primarily due to higher demand for burn-in and testing services.

In a statement, KESM execu- tive chairman and chief execu- tive officer Sam Lim said testing of semiconductor chips is the group’s growth engine, and the bulk of its expansion is testing devices for the automotive market. “More than one billion units of automotive de- vices were shipped last year from our factories in Malaysia and China to our customers, who are lead- ers in this market segment, and in support of this, KESM has invested close to RM70 million in the newest and most advanced range of burn- in and test equipment,” Lim said.

He added that KESM would continue to focus on high-growth opportunities in the semiconduc- tor industry, which is forecasting a 2.2% growth this year with reve- nues surpassing the US$300 billion (RM1.29 trillion) mark. “Demand for intelligent cars with enhanced features such as safety, connectivi- ty and mobility requires increasing volume of semiconductor chips in each vehicle. Our customers are rolling new innovative chips to the market at a faster pace to meet demand,” Lim noted. 

Good News Again for Hevea

Money Games!

Have you taken your profit ?

When Major market like China, US, Europe etc drop more around 3-5% within a trading day, it is never a good sign! just imagine Dow Jones drop for more than 1000 points in the opening market today! which subsequently narrowed to 400 points ++. Luckily, managed to took profit earlier today for most of my portfolios. Let's increase cash position now till the FALLING KNIFE cease!

Don't forget to take PROFIT on the slump market!

Fears of a China-led global economic slowdown drove Wall Street to its steepest one-day drop in nearly four years on Friday and left the Dow industrials more than 10 percent below a May record.

Wall Street's selloff this week suggested investors are growing nervous about paying high prices for stocks at a time of minimal earnings growth, tumbling energy prices and an expected rate hike by the U.S. Federal Reserve that could gradually usher the end of almost a decade of easy money.

Stocks have seen few large moves this year, staying in a narrow range throughout 2015, but volatility spiked this month once China surprisingly devalued its currency. Weak Chinese manufacturing data on Friday, and another drop in China's stock market, rattled investors' nerves and led to Friday's tumble.

While this month's selloff has been swift, many analysts feel the declines may be close to being exhausted, with a turnaround possibly starting as soon as next week.

"If you're buying a stock, you're dipping a toe in here."

The Dow Jones industrial average closed down 530.94 points, or 3.12 percent, to 16,459.75, the S&P 500 lost 64.84 points, or 3.19 percent, to 1,970.89 and the Nasdaq Composite dropped 171.45 points, or 3.52 percent, to 4,706.04.

Next week, investors will focus on housing data, which has been strong of late, and the preliminary reading of second-quarter GDP, which could lead investors back towards riskier assets if they point to an improving U.S. economy.

The Russell 2000 index of small-cap stocks also confirmed a move into correction territory, marking a 10-percent decline from its most recent closing high on June 23.

The CBOE Volatility index, Wall Street's so-called fear gauge, touched its highest since October and notched its biggest-ever weekly percentage gain.

The S&P slumped 5.8 percent for the week, its biggest weekly decline since September 2011. The index lost more than $1 trillion of its value this week, according to S&P Dow Jones Indexes. Only 10 S&P 500 components advanced on Friday.

The selloff was broad, with all 10 major sectors in the red. The energy index dropped 2.6 percent as U.S. crude oil dipped below $40 a barrel for the first time since the 2009 financial crisis.

Many investors still anticipate the U.S. central bank will begin raising interest rates by the end of the year, but fewer of them expect a September hike after reading minutes from the Fed's July meeting on Wednesday.

Apple, still by far the most valuable U.S. company, fell 4.6 percent to $107.44, the biggest drag on the S&P and the Nasdaq.

For the week, the Dow dropped 5.8 percent and the Nasdaq tumbled 6.8 percent.

So, be smart when we invest! Do lock in the profit while you stock rise in a volatile market like this! There will be always chance to buy at lower price later on! 

Cheers!

GO ! Go ! Go! Export based stocks!! Hevea , Hevea - wb ~20 % gain in a week, same go to SAM ~10% gain in a week despite the FALLING market!

Export stocks will do well in this bearish KLSE market

Author: Ooi Teik Bee   |   Publish date: Thu, 20 Aug 2015, 08:46 AM 

---

Dear valued readers,

Ringgit is > 4.00 to 1 USD now, we should continue to focus on export stocks. The strengthening of USD will help to improve the EPS or EBIT of the export stock. 

I will enclose the chart of the following stocks to show you the trend.

Export stocks

Vs

Mpi

Latitud

Liihen

Heva-WB

KLSE component stocks

Maybank

Sime

Tenaga

TM

KLK

Please decide yourself which sectors will you choose. We want to buy up trending stocks only, but not down trending stocks like most of FBMKLCI component stocks.

Final decision is yours.

Thank you.

Ooi

Above are the comments from Mr Ooi Teik Bee! the veteran of the KLSE! 

He really sharp with his stocks selections! 

This actually apply to the stocks I have picked for myself, e.g :

1. HEVEA

2. HEVEA Wb

3. SAM 

Seem likes our Hevea, Hevea Wb and SAM doing excellent this week!

Hevea RM 0.84 to RM 0.955 ( almost 20 % gain)
Hevea wb RM 0.65 to RM 0.72 ( almost 20 % gain)
SAM RM 4.45 to RM 4.85(~10%gain) 
can they go higher?

Don't forget to lock in some profit in the meantime. All the best folks!

I also wish to share with you something really important! 

why does people chase for wealth? It is not really the money itself... if you chase after money, at the end of the day, even you get millions, billions of dollar, you will still feel the emptiness if the money does not fulfill your need!

so what is the need that human tend to fulfill with their wealth?

Need 1: Certainty/Comfort

The first human need is the need for Certainty. It’s our need to feel in control and to know what’s coming next so we can feel secure. It’s the need for basic comfort, the need to avoid pain and stress, and also to create pleasure. Our need for certainty is a survival mechanism. It affects how much risk we’re willing to take in life—in our jobs, in our investments, and in our relationships. The higher the need for certainty, the less risk you’ll be willing to take or emotionally bear. By the way, this is where your real “risk tolerance” comes from.

Need 2: Uncertainty/Variety

Let me ask you a question: Do you like surprises? If you answered “yes,” you’re kidding yourself! You like the surprises you want. The ones you don’t want, you call problems! But you still need them to put some muscle in your life. You can’t grow muscle—or character—unless you have something to push back against.

Need 3: Significance

We all need to feel important, special, unique, or needed. So how do some of us get significance? You can get it by earning billions of dollars, or collecting academic degrees—distinguishing yourself with a master’s or a PhD. You can build a giant Twitter following. Or you can go on The Bachelor or become the next Real Housewife of Orange County. Some do it by putting tattoos and piercings all over themselves and in places we don’twant to know about. You can get significance by having more or bigger problems than anybody else. “You think your husband’s a dirt bag, take mine for a day!” Of course, you can also get it by being more spiritual (or pretending to be).

Spending a lot of money can make you feel significant, and so can spending very little. We all know people who constantly brag about their bargains, or who feel special because they heat their homes with cow manure and sunlight. Some very wealthy people gain significance by hiding their wealth. Like the late Sam Walton, the founder of Wal-Mart and for a time the richest man in America, who drove around Bentonville, Arkansas, in his old pickup, demonstrating he didn’t need a Bentley—but of course, he did have his own private fleet of jets standing by.

Significance is also a money maker—that’s where my dear friend Steve Wynn has made his fortune. The man who made Las Vegas what it is today knows people will pay for anything they believe is “the best,” anything that makes them feel special, unique or important, anything that makes them stand out from the crowd. He provides the most exclusive, luxurious experiences imaginable in his casinos and hotels—they are truly magnificent and unmatched in the world.

Need 4: Love & Connection

The fourth basic need is Love and Connection. Love is the oxygen of life; it’s what we all want and need most. When we love completely we feel alive, but when we lose love, the pain is so great that most people settle on connection, the crumbs of love. You can get that sense of connection or love through intimacy, or friendship, or prayer, or walking in nature. If nothing else works, you can get a dog.

These first four needs are what I call the needs of the personality. We all find ways to meet these—whether by working harder, coming up with a big problem, or creating stories to rationalize them. The last two are the needs of the spirit. These are more rare—not everyone meets these. When these needs are met, we truly feel fulfilled.

Need 5: Growth

If you’re not growing, you’re dying. If a relationship is not growing, if a business is not growing, if you’re not growing, it doesn’t matter how much money you have in the bank, how many friends you have, how many people love you—you’re not going to experience real fulfillment. And the reason we grow, I believe, is so we have something of value to give.

Need 6: Contribution

Corny as it may sound, the secret to living is giving. Life’s not about me; it’sabout we. Think about it, what’s the first thing you do when you get good or exciting news? You call somebody you love and share it. Sharing enhances everything you experience.

Life is really about creating meaning. And meaning does not come from what you get, it comes from what you give. Ultimately it’s not what you get that will make you happy long term, but rather who you become and what you contribute will.

Now think about how money can fulfill the six human needs. Can money give us certainty? You bet. Variety? Check. Obviously it can make us feel important or significant. But what about connection and love? In the immortal words of the Beatles, money can’t buy you love. But it can buy you that dog! And it can, unfortunately, give you a false sense of connection because it attracts relationships, although not always the most fulfilling kind. How about growth? Money can fuel growth in business and in learning. And the more money you have, the more you can contribute financially.

Market Trend.... Awaiting FED minutes on 19th August 2015!

What will the Fed Minutes on 19th August 2015 be? 

A long waited interest hike?

U.S. stocks fell for a second day as a selloff in emerging markets fueled concern global growth is slowing at the same time the Federal Reserve considers the path for higher interest rates.
Caterpillar Inc., DuPont Co. and Freeport-McMoRan Inc. paced declines as raw-material and industrial shares slumped more than 1.2 percent as a group. Chevron Corp. slid 2.3 percent and Marathon Oil Corp. lost 4.1 percent after a government report showed U.S. crude stockpiles increased.

The Standard & Poor’s 500 Index fell 1 percent to 2,075.34 at 10:54 a.m. in New York, falling below its average price for the past 200 days for the third time this month. The Dow Jones Industrial Average lost 197.39 points, or 1.1 percent, to 17,313.95, with all 30 components retreating. Trading in S&P 500 companies was 9 percent below the 30-day average for this time of the day.
“There’s a lot of uncertainty around the outlook for the market here,” said Walter Todd, who oversees about $1.1 billion as chief investment officer for Greenwood Capital Associates. “You’ve got the Fed meeting coming up. There’s still a lot of uncertainty around China. Earnings have been OK, but not great. You’ve seen the market bouncing around in the range lately. There’s a lack of clarity here.”
Emerging-market equities sank to a four-year low on concern investors will withdraw money faster as the Chinese economy slows. European stocks also followed suit.
Concerns about global growth are increasing as the Fed considers the timing of its first interest rate increase since 2006. Minutes from the central bank’s July meeting are due at 2 p.m. in Washington. Traders are pricing in a 48 percent probability of a rate move at the September meeting.

When its last meeting ended July 29, the Federal Reserve hinted that its first interest rate hike in nearly a decade was nearing. All it wanted to see was “some further improvement in the labor market” and more confidence that inflation will move back up to its 2% objective.
That got Wall Street thinking that the Fed would move at its September 15-16 meeting. Today’s release of the minutes of the Fed’s July meeting could offer more clues related to its rate hike “liftoff” timetable.


“At the time of the July meeting, there was a higher expectation that they would move in September,” says Kate Warne, investment strategist at Edward Jones.

Warne added that it would not surprise her if the minutes “reaffirmed the view” of a September hike “unless we see weak employment growth” in the August jobs report set for release Sept. 4.
But there’s a catch, she says: “Since the July meeting there’s been a lot more international turbulence.” Warne, of course, is referring to the market angst sparked last week by China’s decision to devalue its currency and the continued selloff in oil prices.
“The question will be: Does weakness in China and international disruptions make it more likely the Fed stays on hold, as in the past the Fed has commented on international conditions as weighing” on its deliberations, Warne says.


However, she still believes the Fed is more focused on domestic issues, such as the strengthening labor market and better growth numbers in the U.S.