Eng Tek Sees Q4 loss from Thai flood

Will Eng Tek change its plan for privatisation? Is it worth to grab its shares when the price drop to bottom?


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Eng Teknologi Holdings Bhd, a Malaysian electronic components maker, said it will post a “significant” loss in the fourth quarter after flooding in Thailand disrupted operations at its two factories in Ayutthaya.

Its plants in Thailand house half of the group’s machining capacity, the company said in a statement today. “The whole hard disk drive industry in Thailand is facing major disruptions.” -- Bloomberg


Read more: Eng Tek sees Q4 losses from Thai flood http://www.btimes.com.my/Current_News/BTIMES/articles/20111018131544/Article/index_html#ixzz1b6zwYuBv

Another opportunity come??

I have started clearing some of my shares since last week in order to keep the cash for blue chips shares. When i was started buying shares, I was making a mistake in choosing the right share. Furthermore i have told to myself that if losing money, then i will not sell that share and keep it till break even.  But i am not sure whether this is good way to practice or not.  In my portfolio got one technology stock share has made me loss more than 70%!!  That is a painful experience!!

 Even though losing money but i think it's a good experience in learning.  At least i have taken the courage to move in rather than talking only. Just like my slogan " NO RISK NO GAIN"!

Fund managers say investors should wait for selling to subside

By TEE LIN SAY
linsay@thestar.com.my

PETALING JAYA: Fund managers and analysts are mixed in their view on the market following a 513 point drop in the Dow Jones Industrial Average.
They felt caution was still the predominant theme of the market and it would be better for investors to wait for the selling to subside.
Some are worried that demand destruction from developed markets will hurt exports especially the electrical and electronics and crude palm oil (CPO). More than 20% of CPO goes to Europe. Net exports account for about 25% of gross domestic product.
Hong Leong Asset Management Bhd executive director and chief executive officer Geoffrey Ng said the sell-off in the United States and the market rout in Asia which collectively erased in excess of US$1 trillion in capital value was similar to panic selling in May 2010.
“The selling that is occurring now is orderly. Unlike the flash crash in May 2010 that severely shook confidence in the market itself, today's selling is met with sufficient liquidity as to not result in dramatic price falls, although a 5% retracement in a day is dramatic enough,” said Ng.
Two things may occur from here.
Firstly, Ng said that markets could be overly pessimistic of the recently reported economic numbers from most countries which have been below expectations. This may be a possibility due to severe supply chain disruption resulting from the massive earthquake in Japan in March.
“Manufacturing output was severely curtailed in the following months, with far reaching implications to manufacturing activities around the world. The lack of production activity and consumption thereafter may be blamed for the poor quarterly GDP numbers that is scaring the markets today,” explained Ng.

Secondly, if markets are proven right, and the global economy is decelerating faster than expected, then the risk of recession increases dramatically. This may force the governments to act again to inject liquidity into their respective monetary systems in order to keep the pace of economic activity from failing further.
“In the near term, this will help stabilise markets and hopefully mend frayed consumer confidence to motivate consumption again,” he said.
“Yes, the sell down that we are experiencing now is unnerving.”
Ng said the events unfolding could be a continuation of the rebalancing of world consumption that started with the Global Financial Crisis in 2008.
“Emerging economies that are rich with population, commodities, national savings and consumption ability are now refocusing their efforts toward building their own consumer base by normalising wages, improving infrastructure and moving up the value-added chain. This rebalancing is not in a straight line, and will have times of immense volatility such as recent times,” he said.
Meanwhile, OSK Research Head Chris Eng feels the market is in a “touch and go” situation, and he will be closely looking at how the Dow Jones closed on Friday night.
“If the Dow Jones rebounds by 2% in its Friday closing, then there is still hope. If however it does not rebound, then things will start getting a little iffy. We would then downgrade Malaysia to a neutral, and suggest switching to defensive stocks,” said Eng.
He acknowledged that Malaysia was still a very defensive market, but however this won't prevent it from falling.
“Looking into 2012, we are going into an environment of subsidies increasing and interest rate normalisating. Fundamentally, everything will be more challenging,” said Eng.
Another research head felt that there was not much to look forward too. “Look at the problems happening in Europe. You have four to five countries facing difficulties to raise money because their credit worthiness is suspect. So, we're going to see borrowing cost increase in an environment where interest rates are also high. Things can only get more difficult.”
A trader from JP Apex Securities said: “Don't buy now, as people are still in selling mode. But perhaps in one to two weeks time, things will die down. Look at the strength of the US Dollar today. It has rebounded back to RM3.01 from RM2.90 last week. This shows that people still see US as a safe haven.”
He added that Malaysia was not affected as there were hardly any foreigners in the market.
“The Malaysian economic fundamentals are still the same and have been priced in,” he said.

Focus on stock earnings, fundamentals, investors told

Take note on this commets for long term investman.

 

KUALA LUMPUR: After Catcha Media Bhd, another ACE Market-listed firm was in the limelight yesterday as news that Tun Daim Zainuddin's son has become Sanichi Technology Bhd's substantial shareholder.

The counter was the most actively traded until it was halted at 4.05pm at 10.5 sen, up 1 sen with over 76 million shares exchanging hands. Trading is to resume today.

Analysts said the heavy trading of the otherwise low-profile stock was mainly due to investors getting overly excited over Datuk Md Wira Dani Daim's investment in the precision plastic injection mould maker.

"It's just a knee-jerk response and the fact that he is Daim's son made it even more dramatic," said one.

Sanichi had later in the day, filed a statement to Bursa Malaysia, updating that its memorandum of understanding (MOU) with a German party will be going through a due-diligence process between now and September.

The MOU, signed in June this year, was with Projektarbelt Technische Beratung Venretung International (Protev) for a one-stop plastic injection mould fabrication solution centre.

Under the MOU, Protev had expressed interest to explore the possibility of taking up a strategic stake in Sanichi.

Whether it is the MOU or Md Wira's entry into Sanichi that is steering up the stock, analysts opined that investors, especially retail ones, should be more cautious when buying.

Mercury Securities head of research Edmund Tham said investors should always buy on fundamentals and earnings.

"However, many punters or retail investors tend to buy on exciting news or rumours, irrespective of the earnings," he said.

TA Securities head of research Kaladher Govindan said in investing, fundamentals come first while personalities "come into play only if they can really add value on their own accord (not through connections) or have a clearly stated plan when they acquire the company".

He added that even if these young corporate persons have a specific plan, there is still no guarantee that it will materialise if the major shareholders cannot reach a consensus.

He cited several cases or situations in the past, whereby, the entrance of new shareholders did nothing to the companies they bought shares into.

Govindan said when the Naza group brothers took a controlling stake in Kumpulan Jetson Bhd, things did not work out and when they left, the share price nose- dived.

There was not much excitement either at Petra Energy Bhd when new shareholders from Sarawak's Datuk Bustari Yusoff's Shorefield Resources came in or when KFC's Datuk Ishak Ismail came into Kenmark Industrial Co Bhd, he said.

News flow like new shareholders, he added, should be taken with a pinch of salt and can only be useful for short-term traders.

"For real investors, it is worth every penny to really look into the fundamentals of a stock first before investing than being excited about the entry of a new shareholder," said Govindan.

Is bear coming ????

US stocks fell creates panic selling in global shares market . So will you hold or sell or keep buying???
May be it's good time to accumulate blue chips shares . I will be monitoring fews blue chips stock and buy them when reach my price target!
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KUALA LUMPUR: Asian markets tanked on Wednesday, Aug 3, extending their losses as US stocks fell steeply overnight after the wrangling over the debt ceiling eased off and investors turned their attention to the stalling economy.
The FBM KLCI fell below the 1,550-point level as investors cashed out from blue chip stocks, spooked by the developments across global markets.
On Tuesday, more weak US economic data fuelled concern about the economy even as Congress passed a debt-cutting measure in time to avoid a default, according to Reuters.
US consumer spending fell in June for the first time in nearly two years and incomes barely rose, signs the economy lacked momentum as the second quarter drew to a close, it said.
That followed Monday's weak manufacturing data from the United States, Europe and China and last week's disappointing second-quarter US GDP estimate, which reinforced fears that slowing economic growth could dampen oil demand, it said.
The FBM KLCI fell 13.33 points to 1,541.52 at mid-morning.
Market breadth was negative as losers thumped gainers by 457 to 51, while 155 counters traded unchanged. Volume was 203.91 million shares valued at RM234.54 million.
At the regional markets, Japans’ Nikkei 225 fell 2.21% to 9,627.11, Hong Kong’s Hang Seng Index lost 2.34% to 21,897.12, Taiwan’s Taiex down 2.51% to 8,369.23, South Korea’s Kospi tumbled 2.99% to 2,057.87, Singapore’s Straits Times Index lost 2.04% to 3,112.13 and the Shanghai Composite Index shed 0.76% to 2,658.88.
Among the losers, Nestle fell 60 sen to RM47, BAT down 44 sen to RM46.24, DiGi 22 sen to RM30, Petronas Gas and HLFG down 20 sen each to RM13.24 and RM13.02, Genting 18 sen to RM10.74, Tradewinds 17 sen to RM9.41, MISC 15 sen to RM7.40, Top Glove 13 sen to RM5.22 and Jaya Tiasa 11 sen to RM6.51.
TMS was the most actively traded counter with 18 million shares done. The stock added half a sen to 8 sen.
Other actives included Sanichi, MBSB, KNM, Jotech, Catcha Media, AirAsia and Bumi Armada.
Meanwhile, gainers at mid-morning included MNRB, Catcha Media, Tien Wah, Kretam, Sarawak Cable and SCIB

50 Best Dividend Payout Companies

Yesterday i bought THE BUSY WEEKLY to read and found this list which is good to share with those look for long term investment in market share. May be some people might think it as conservative investment. I think when we can accumulate potential growth companies and also high dividend payout companies, we can move forward to financial freedom in the future.  My aim is try to accumulate as many these types of share as possible. So need to learn and study…

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Sold Eng Tek

Finally i have sold out my Eng Tek and gain small profit. I would like to keep the cash and buy for blue chips shares. It seems market share is dropping now hence will buy again when it is right time.
That is why i have decided not to wait the final decison on privasation talk.

I am looking for high dividen share to invest.....

Eng Tek the road of privatisation update

This morning, Eng Teknologi shares drops 1.78% to RM2.21 compare to yesterday.  This might due to the news listed as below.

ENG Teknologi Holdings Bhd (Eng Tek), the Penang-based hard disk drive (HDD) components manufacturer, is the latest in a string of listed companies heading towards privatisation on the argument that its shares have been undervalued by the market.
In a filing to Bursa Malaysia last Friday, Eng Tek acknowledged it had received a buyout offer from TYK Capital Sdn Bhd, the investment vehicle owned by Datuk Teh Yong Khoon and Low Yeow Siang, the founders and major shareholders of Eng Tek. They collectively own a 23.2% stake in the company. The proposed buyout of Eng Tek is for an indicative price of RM307.2mil.
The proposal by TYK is to acquire all the assets and liabilities of Eng Tek at an offer price of RM2.50 per share for 121.63 million shares and the intrinsic value 4.66 million employees share options (ESOS).
An Affin Investment Bank report said the privatisation offer price was approximately 9.6% above Friday's closing price and also above its 10-year average share price of RM1.47, though short of its recent high of RM2.75 in March 2010.
In the past year, Eng Tek shares hit a 52-week high of RM2.38 last July to a low of RM1.62 last month as HDD-related stocks took a beating from a major sell-off. The past six months have been comparatively more stable for Eng Tek. Its shares traded on a range between RM1.62 and RM1.78.
But after the announcement on Friday, Eng Tek's shares rose to its highest since July 28 this year to close at RM2.28 from RM2.14 the previous day.
At the market close yesterday, the stock was at RM2.25. In a letter to Eng Tek, TYK claimed it has adequate financial resources to undertake the acquisition. The Affin report said: “Should the proposed takeover offer be accepted, Eng Tek would become a cash-rich company with approximately RM307.2mil cash based on its current outstanding shares of 122.8 million. It is then proposed that Eng Tek undertakes a capital reduction exercise to return the cash to shareholders.”
Teh told StarBiz the privatisation was aimed at addressing the low valuation of Eng Tek's shares and unlocking value for its current shareholders. “I'm not sure why our shares have been undervalued. The market just wasn't able to give us a good valuation.
“The privatisation will enable Eng Tek to be more competitive as we grow larger.
“We would no longer be bound to the funding requirements of a listed company such as dividends and other commitments,” he said.
Teh is also the chief executive officer of Eng Tek while Low is his mother.
Since the buyout is a related party transaction, the interested directors of Eng Tek, including Teh and Low, will have to refrain from deliberations and voting at the relevant board meetings.
Only non-interested directors can decide on the transaction. Under new Bursa Malaysia listing requirements, a listed company must obtain the approval of 75% or more of shareholders when undertaking a privatisation.
Analysts are generally positive on the privatisation exercise.
Affin said: “In our opinion, we think the privatisation offer is fair and doubt that prevailing fundamentals alone (in the absence of the privatisation offer) would have been able to re-rate the share price to RM2.50 at least over the near term.
“We therefore believe that investors would be better off accepting the offer especially given the volatility in global equity markets and the weak fundamentals in the sector.”
Affin has an “add” call to the stock.
ECM Libra Investment Research maintained a “neutral” recommendation for the technology sector, saying Eng Tek's merger and acquisition news may bring some positive sentiments to the sector and stir interest in other HDD component makers' stocks in the short term.

Eng Teknology Privatisation Update

Here it comes the latest news regarding to Eng Teknology privatisation from The Star!!

 Eng Teknologi Holdings Bhd's major shareholders has made an offer via investment vehicle TYK Capital Sdn Bhd to take the company private at an indicative offer price of RM2.50 per share or RM307.2mil.
In an announcement to the stock exchange yesterday, TYK Capital said it was entering into an agreement to acquire the entire business and undertakings of the precision engineering manufacturer based in Penang at RM2.50 per share.
It would also acquire all the employees' share option scheme (ESOS) options at the scheme's intrinsic value, that is, the positive difference between the offer price per share and the ESOS exercise price.
The proposed acquisition would be satisfied via RM246.4mil in cash and RM60.8mil as the amount owing to Eng Teknologi by TYK Capital.
Datuk Teh Yong Khoon, Datin Low Yeow Siang and Singapore-incorporated Advance Capital Partners Pte Ltd are shareholders of TYK Capital. Advance Capital Partners' director is Tan Choon Wee.
Teh, who is also Eng Teknologi co-founder-cum-chief operating officer, together with his mother Low held 28.22 million shares or 23.21% stake in the company at the latest practicable date.
As part of the proposed acquisition, TYK Capital would subscribe to two new RM1 shares alloted to it by Eng Teknologi.
In a separate announcement, Eng Teknologi said as the offer was a related party transaction, the offer would only be deliberated by the non-interested directors of the company.
The company said the interested directors would abstain from deliberations and voting at the relevant board meetings in respect of the offer.
“An independent adviser will also be appointed to advise the non-interested directors and non-interested shareholders of Eng Teknologi,” it added.

A Challeging Journey Towards Achiving Good Wealth

I have been thinking some times to have a blog that share with others about earning money from market share. Also hope to get expertise's view and comments to enhance knowledge on this money market.
At last ,now i put the thinking into action and created this blog.

You may notice that the first two articles i have posted is related to ENG Tecknology. Actually this is the share i have bought earlier when i entering the share market.  So hoping by this privatised i can gain some profit!! So just wait and see.

Eng Teknologi Rallies On Privatisation Talks

Eng Teknologi Rallies On Privatisation Talks
Eng Teknologi Holdings’ (Eng Teknologi) stock yesterday surged the most in 16 months, jumping RM0.19 to settle at RM1.99. This was following a surprise statement by the firm on the possibility of going private due to the unusual price movement and relatively heavy trading activity in its shares. However, there has not been any definitive proposal on the privatisation plan and the company will only disclose if there are other developments. The company last bought back its own 14,900 shares in October at RM1.83 each. In FY10, Eng Teknologi posted sales of RM557.27m and pre-tax profit of RM51.25m, an increase of 17.3% and 4.2% respectively from FY09.

Significance: If privatisation does take place, the margins on Eng Teknologi’s shares will be thin as its book value per share as at end of last year was RM2.22, while its last traded price yesterday was RM1.99.

Eng Teknologi To Be Taken Private??

What do you think about this privatised?

Eng Teknologi Holdings Bhd, a Malaysian maker of hard-disk drives and consumer-electronics parts, received notification from some major shareholders that could lead to the company being privatized, according to an exchange filing.


Read more: Eng Teknologi to be taken private? http://www.btimes.com.my/Current_News/BTIMES/articles/20110718114040/Article/#ixzz1ScbQvCby