Monday, 17 August 2020

SHOPPING ONLINE

The Internet has changed the way we go shopping. Buying clothes online is too convenient to pass on. With just a few clicks, you get to choose a piece you like and it gets deliver right at your doorstep. No waiting in lines and no crowds, practically a heaven for people who hate shopping. 

I buy all my family clothes online from several companies whose products I like. I know what sizes they wear, and we rarely have to return anything due to poor fit or quality. 

Most of the times, when you decide to visit the store in person; you might end up spending a lot of money than what you had planned. It also comes with other expenses on items such as transportation, eating out and also there will be more impulse buying. But if you want to prevent all these from happening you can try online shopping, it will save you all these expenses. 

As people have embraced social distancing as a way to slow the spread of the pandemic, there has naturally been a drop-off in brick-and-mortar shopping. This can be seen as an opportunity though. Many brick and mortar businesses have already started pivoting online and many more will follow suit in order to sustain their businesses. Just imagine the benefits your business will get if you can cut through the mix to reach millions of potential customers.

Friday, 14 August 2020

Market Participants

Yesterday,  foreign (RM106m) and local retailers (RM35) were the net buyers whilst local institutional investors (-RM141m) were the net sellers. YTD, foreigners net sold RM19.68bn shares compared with net purchases by local institutional funds (RM8.83bn) and retailers (RM10.85bn).  

The day before yesterday, foreign (RM20m) and local retailers (RM199) were the net buyers whilst  local institutional investors (-RM219m) were the net sellers. YTD, foreigners sold RM19.78bn shares compared with purchases by local institutional funds (RM9.85bn) and retailers (RM9.93bn).  

Even though markets may change, good investing advice is timeless. Here are some inspirational quotes from some wise investors;

Every once in a while, the market does something so stupid it takes your breath away. - Jim Cramer

- There are no sure bets in the world of investing; there is a risk in everything. Be prepared for the ups and downs.

In investing, what is comfortable is rarely profitable. - Robert Arnott

- In fact, the more the risk you take, the more you might earn. But then again, it is ‘risk’. The more risk you take, the more you might lose too.

There is no single market secret to discover, no single correct way to trade the markets. Those seeking the one true answer to the markets haven’t even gotten as far as asking the right question, let alone getting the right answer. - Jack Schwagger

- In reality, no one really knows how to crack the market and be successful all the time. 

Therefore, please, should you ever get involved in stocks, always remember: You are an investor and not a gambler. Don’t allow emotions to carry you away.


Tuesday, 11 August 2020

Consolidation & Rationalization

 

Competition-driven consolidation on the cards?

Author:   |    Publish date: 


Summary

  • We have undertaken an analysis of consolidation prospects for the sector given the unrelenting price pressures in the cellular sector and increasingly in the fixed broadband market with the emergence of new players. Multiple synergistic benefits for consolidation, which could re-rate the sector and attract needed investments for upcoming 5G rollouts, are:
    • Offering consumers a comprehensive suite of cellular and fibre broadband services to provide back-up support service support, especially for critical enterprise solutions;
    • Revitalising top-line growth by lowering competitors, re-establishing monopolies or offering a dual-branding strategy;
    • Intensifying cost efficiencies by reducing overheads given redundancies in head office, marketing and service stations;
    • Generating economies of scale from a bulk purchasing and streamlining of cost centres;
    • Improving investment and credit rating profiles from enlarged market capitalisation and stronger balance sheets.
  • Various M&A permutations are possible among the 6 main operators with substantive network infrastructure and subscriber market share. We have narrowed down the possibilities into 3 scenarios:
    • Scenario 1: Revisiting the Telekom Malaysia (TM) & Axiata re-merger. Assuming a 10% cost reduction would mean substantial annual savings of RM2.2bil and together with a targeted FY21F EV/EBITDA of 5x could drive up the combined market capitalisation by 52%.
    • Scenario 2: Relooking the Axiata & Telenor-Digi merger. Management from the earlier abortive merger guided for 5-year synergies up to RM15–20bil in present value from network efficiencies, cost avoidance, procurement optimisation and economies of scale. This alone translates to a DCF enhancement of 24%–32% from the combined Axiata-Digi market capitalisation.
    • Scenario 3: TM and Time dotCom merger. If the merged entity is able to reduce Time's operational costs by 20% while re-establishing TM's fibre monopoly in the metropolitan areas of the Klang Valley, Penang and Johor, we estimate that the merged entity's DCF/share could reach RM5.00, based on a WACC of 7.4% and terminal growth rate of 2% post-FY25F, implying a potential upside of 28% and catalysing a re-rating on TM. This could lead to an even larger consolidation given that Khazanah Nasional is a substantial shareholder for Axiata, TM and Time.
  • A key hurdle could be the regulator, the Malaysian Communications and Multimedia Commission’s (MCMC) refusal to grant approval for the consolidation in the fibre broadband market given its agenda to encourage more competition amongst the incumbents as part of its overall strategy to lower costs and deliver improved services. Hence, until such consolidation actually emerges, we maintain our NEUTRAL outlook on the sector given the unmitigated mobile competition amid escalating capex requirements against the backdrop of the National Fiberisation and Connectivity Plan (NFCP) agenda to improve national connectivity and affordability. For now, our only BUY is Axiata, given its low EV/EBITDA valuations and rising prospects for monetisation of its multiple businesses

Source: AmInvest Research - 11 Aug 2020

Monday, 10 August 2020

Early Morning Walk

Exercises are very necessary for good health. Today I went for a morning walk.  A walk in my neighbourhood. The morning walk began at around 7. There can be no better way to start the day. The sky is blue, I can hear birds chirping; ravens, woodpeckers and pigeons. They are seen flying from one branch of a tree to another. No noise of traffic, and fewer people exercising outside. I like looking at trees, nice homes being kept up well, gardens, and all that. When I came back home after a twenty minutes walk, I was feeling happy. I have seen so many benefits of this exercise in just one day. I plan to make it a part of my routine.

Friday, 7 August 2020

Genting Singapore

On August 7, RHB Investment Bank analysts led by Juliana Cai cut their rating on shares of Genting Singapore from buy to sell  with new TP of SGD0.62 from SGD0.73, 13% downside, 3% yield. 2Q20 losses were in line with expectations. In their report issued on Friday,  it said due to the temporary closure during the Circuit Breaker (CB) period, 2Q20 revenue plunged 94% YoY to SGD41m. As a result, adjusted EBITDA went into the red at -SGD85m, and the group reported a loss of SGD163m. No dividend was declared for 1H20. Juliana Cai  think the outlook remains pessimistic so long as mass travel does not resume. I think so, too. Fuelled by COVID-19 virus fears while being urged to stay home – most people are avoiding any kind of travel. It is complete chaos. The recovery process will take between six to nine months, possibly even longer. That’s the only reasonable answer here.


 

Thursday, 6 August 2020

Blocked on Twitter, Facebook..., and why???

Twitter Inc. and Facebook Inc. blocked a video shared by accounts linked to U.S. President Donald Trump for violating their policies on coronavirus misinformation. Immature huh? Not really. If you are blocking someone over a minor disagreement and you don't want to talk to them for two years then yes that is immature. If you block someone to be vindictive and spiteful then you are immature. However if the person in question harasses or treats you badly then it is ok to block. 

Wednesday, 5 August 2020

Stock Strategy - Buying Low & Selling High

Buy low…Sell High. Sure you have heard of this right? I think the biggest problem is timing and knowing when to buy and when to sell. Love, fear, greed, and a plethora of other emotions prompt even the most levelheaded of us to make decisions that are often against our best interests. It take someone who is highly self-disciplined to trade profitably. Some investors might get lucky and manage to guess when to sell or buy from time to time, but realistically, nobody can consistently predict market movements, and even less over the long-term.  

SHOPPING ONLINE

The Internet has changed the way we go shopping. Buying clothes online is too convenient to pass on. With just a few clicks, you get to choo...