Yee Lee +16% On Bonus Issue, Share Split Plan

0610 GMT [Dow Jones] Yee Lee (5584.KU) +16% at MYR2.50, highest since 2000 after consumer products maker announced plans for bonus issue, share split. Company to distribute 2 bonus shares for every 5 shares; thereafter, every share to be split into two. Exercise would result in number of shares outstanding increasing by threefold. "This means that upon completion of this exercise, each share could be ultimately priced below the MYR1 mark. The affordability of the shares may spur greater retail interest," dealer says; resistance for stock pegged at MYR2.60 (2000 high), with support at intraday low of MYR2.30. (benjamin.low@dowjones.com)

Supermax up higher price estimate

Supermax Corp, a Malaysian rubber glove maker, rose to its highest level in six days after CIMB Investment Bank Bhd increased its share estimate to reflect higher demand and capacity expansion.

The stock climbed 0.9 per cent to RM6.96 at 9:08 a.m. local time, set for its highest close since April 14.

The share price estimate was raised to RM11.90 from RM9.65, CIMB said in a report today. -- Bloomberg

Read more: Supermax up higher price estimate http://www.btimes.com.my/articles/20100420092206/Article/#ixzz0lcM1Snfx

SUPERMX 1Q net profit 51.473 million (increased 161.19%)

Supermax optimistic of bullish performance

SUNGAI BULOH: Supermax Corporation Bhd is optimistic of a bullish financial performance this year as its expects earnings per share (EPS) for the first quarter of 2010 to exceed its earnings guidance for the year.

Executive Chairman cum Group Managing Director Datuk Seri Stanley Thai said the company was revising its EPS target from a minimum of 50 sen per share to a minimum of 62 sen per share for the financial year ending Dec 31, 2010.

He said the revised profit guidance for the current year took into account latex price fluctuations, foreign exchange and the possibility of a hike in natural gas and electricity tariffs.

Supermax, the world's second largest rubber glove manufacturer, is expected to announce its first-quarter results soon.

It had projected a turnover of over RM1 billion for the current financial year based on current latex prices, the expansion of two new plants and the installation of new production lines.

Thai said the new production lines and the construction of two plants in Meru and Bukit Kapar, Klang, would require an investment of RM130 million.

"The plant in Meru is expected to be fully commissioned by June or July while the plant in the Glove City project in Bukit, Kapar, is expected to be commissioned by 2011," Thai told reporters after International Trade and Industry Minister Datuk Seri Mustapa Mohamed's visit to Supermax's factory here on Wednesday.

For the financial year ending Dec 2011 Supermax projected a revenue of RM1.5 billion.

Thai said the rubber glove industry was a resilient industry and would not be affected by price increases nor the strengthening ringgit.

Shares of rubber glove manufacturers were among the major losers yesterday, after rubber prices surged to a 20-month high in Japan while the ringgit strengthened against the US dollar.

Thai said some of the issues affecting the Malaysian rubber industry and Supermax were the non-availability of natural gas supply for new expansion projects, need for consistency in foreign labour policies, lack of advance notice of utilities rate hike, increasing cost of doing business and shortage of quality middle management staff.

Meanwhile, Mustapa told reporters he strengthening of the ringgit had no impact on Malaysian exports as other regional competing currencies have also advanced.

"The issue is how can we attract Malaysian talents to return home. This is in line with the new economic model," he said. - BERNAMA

How to Build a Stock Portfolio

A proven strategy for building a stock portfolio that gives decent returns while posing minimun risks. This is a long term strategy that has proven itself over 30 years of markets ups and downs.

There is no single strategy for being successful in the stock market. If we look at the great investors, Warren Buffet, T. Rowe Price and Peter Lynch, they all had different investment strategies. However, few people have the natural investment talents and insights that these men held. Below than is a strategy than can be used by the rest of us to earn high returns while maintaining minimum risks.

This stock portfolio strategy is based on 3 basic principles:
1. Diversify
2. Buy Quality Stock
3. Pay the Right Price

Here are these principles laid out in nine detailed steps.

1. Diversify
Buying several stocks in different industries will prevent wiping out your investments if any one industry goes down. This should be a minimum of 10 stocks in 10 industries. The more stocks, the closer your portfolio will mirror the market, but more than 50 stocks is overkill, and becomes difficult to maintain. 10 stocks in 10 industries should mirror about 85% of the market, and if you buy 20 stocks in 20 industries, you will just about have the market mirrored.

2. Restrict Total Investment
Restrict your stock portfolio to a small portion of your asset base.

3. Buy in Equal Dollar Amounts
When building your stock portfolio, buy your stocks in equal dollar amounts instead of round lots. In other words, if you have $20,000 to invest in 10 stocks, buy $2000 worth of each stock. If you buy an even block, for example 100 shares of an $80/share stock, the value in that stock will total $8000 and will make up 40% of your stock holdings instead of 10%. This will go against our goal in item 1, which is to diversify.

4. Buy Quality Stocks
Quality of the stock is sometime difficult to determine, but here are some general steps you can take to pick a high quality stock.
A. Large Company
B. A Standard & Poor rating of B+ or higher
C. A leader or one of the leaders in their industry
D. Has been around for many years
E. Has a history of paying dividends

5. Get Good Dividends
There are two reasons that you want to go with a company that pays dividends.
A. Dividends increase the total return more than capital gains alone
B. History shows that companies that pay dividend tend to fail less often

6. Convertible Preferred Stock
If the company you are interested in also has a Convertible Preferred Stock, you may want to buy this instead

7. Do Not Trade Often
High volatility will most often lead to a worse rate of return. As part of this, trading stocks often will create higher costs due to fees and higher taxes. Unless there is a compelling reason to change, you should hold onto stocks 3 to 5 years.

8. Buy When Stock is Down
Do not buy stock in a company when it is making the front cover of Business Week for it's success. By this time the stock has already gone up and you will be buying at a peak. Instead buy when the company is down, but from your other research you know it is a quality company and will recover.

9. Have Patience
As stated in item 7, you should plan on holding on to your stocks at least 3 to 5 years. You should sell the stock when the reason you bought the stock is no longer valid. Also consider selling a stock from a company that is going through a merger. Usually you will be offered a higher price at the time of the merger and most likely the company will change and not be the same company you selected.


http://www.nassbee.com/wealthy/stock_portfolio.html

Adventa’s 1QFY10 net profit jumps 189%

KUALA LUMPUR: Glove maker ADVENTA BHD []'s net profit for the first quarter ended Jan 31, 2010 (1QFY10) jumped 189% to RM9.35 million from RM3.23 million a year earlier on the back of a 12.5% rise in revenue to RM76.64 million, boosted by additional capacity.

Earnings per share (EPS) improved to 6.43 sen from 2.32 sen previously. The company did not declare any dividend.

Adventa said global demand for medical gloves remained robust and the trend was expected to continue for the remaining part of the year.

"Demand of both sterile surgical gloves and non-sterile examination gloves is strong in all markets. With Asia and South America showing a surging increase in usage of medical gloves, in part from a higher standard of healthcare delivery and better understanding of medical risks containment, and the matured market increasing the typical 5% to 10%, there will be a need for higher supply in the year," it said in notes accompanying its financial results.

Natural rubber latex prices have shot up strongly in the quarter from the cyclical lower output months of February to May. Additionally, uncertainties in the equities markets which fuelled speculation in the commodities, contributed to the high prices.

"This needs to be passed on to the consumer, which has in the past been successful and we do not see any difficulties this year in this respect as the commodity prices are well publicised," the company added.

Adventa said there may be a small change in margins in the next quarter from the time lag in price increments. However, the company does not expect a full-year margin impact.

Supermax to raise RM36m via bonus issue

SUPERMAX Corporation Bhd proposed to raise RM35.7 million via a bonus issue of up to 71.4 million new ordinary shares of 50 sen each on the basis of one bonus shares for every four existing shares.

The proposed bonus issue will increase Supermax's capital base to a level which will better reflect the current scale of operations of the company and its subsidiaries, said Supermax in a filing to Bursa Malaysia today.

"It will also enable Supermax's shareholders to have an increased equity participation with a greater number of Supermax shares whilst maintaining their equity interest," it said.

The proposal is expected to be completed within the first half of 2010, it added. -- Bernama

PROPOSED BONUS ISSUE

SUPERMAX CORPORATION BERHAD (SUPERMAX OR COMPANY)
PROPOSED BONUS ISSUE OF UP TO 71.4 MILLION NEW ORDINARY SHARES OF RM0.50 EACH
IN SUPERMAX (SUPERMAX SHARES) (BONUS SHARES) ON THE BASIS OF 1 BONUS SHARE FOR
EVERY 4 EXISTING SUPERMAX SHARES HELD (PROPOSED BONUS ISSUE)
-
You are advised to read the full contents of the announcement or attachment at
http://www.bursamalaysia.com.

AXIATA : MIDF Research also upgraded its call on the mobile operator, from "neutral" to "buy", with a target price of RM4.50.

SHARES of Axiata Group Bhd (6888) rose to their highest in more than a year, as investors and analysts became more optimistic of its prospects after the group gained market share from rivals.

Its shares rose 4.3 per cent to RM3.89 yesterday, with more than 56.3 million shares changing hands. At one point during the day, it was traded as high as RM4.01.

The company recorded a net profit of RM558.28 million in the quarter to December 31 2009, clawing back its net loss of RM515.25 million in the previous corresponding period. Its full-year net profit more than tripled to RM1.65 billion.

"The key driver of our more positive view on Axiata is Celcom, the improved product offerings and marketing strategies of which continue to deliver sector-leading revenue and Ebitda growth," said Macquarie in a research report recently.
It has an "outperform" view on the company with a target price of RM4.20.

Celcom is the only incumbent mobile operator in Malaysia that gained both revenue and subscriber market share in 2009. It also registered 15 consecutive quarters of revenue and earnings growth.

"We expect Celcom to maintain its robust growth in earnings from subscriber growth and expanding revenue contributions from wireless broadband," said ECM Libra Investment Research.

What attracted investors was not only the strength of its local operations, but also the improving overseas operations. Its Indonesian operations PT XL Axiata Tbk registered a net profit of 1,709 billion rupiah (about RM624 million) in 2009, compared with a net loss of 15 billion rupiah (RM5.5 million) a year ago. XL's full-year revenue was also up by 14 per cent to 13,880 billion rupiah (RM5 billion).

"We have revised our FY10-11 EPS (earnings per share) upwards as Axiata's major operating companies (except for Dialog) continue to deliver stellar sequential improvements .., as subs growth has been robust while Ebitda margins have improved," said ECM Libra, which upgraded its recommendation to "buy", with a target price of RM4.15.

MIDF Research also upgraded its call on the mobile operator, from "neutral" to "buy", with a target price of RM4.50.

So far this year, the company's shares have appreciated by more than 27 per cent, with a market capitalisation of over RM32.85 billion.
from : Business Times