Leverage?Good or Bad

Let’s start by knowing the real meaning of leverage.Leverage in general is the degree to which an investor/ business in general is utilizing borrowed money.Companies that are highly leveraged may be at risk of bankruptcy if they are unable to pay their debts on time and consistently.

It is important to notice that leverage is not always bad as when it is used properly it can increased the shareholders’ return on their investment.But lately the stockmarkets are in havoc and a lot of people are panicking as many companies are on the verge of going south due to improper ‘leveraging’ concept been applied.For example,in the case of two famous companies in US that have attracted people attention lately ,all for wrong reasons.I am sure you guys will be identify which and what companies that i am talking about.Let’s just call them A and B.

A and B are in big trouble ……

Wrong usage of the leverage concept is the problem with these government-backed institutions. They have been said to have bought $1.7 trillion in assets using only $70 billion of investors’ money!!!! So these assets only have to decline by $70 billion – 4.1% – to wipe out shareholders.No matter how big and stable you are ,as we can see from here,this kind of arrangement should not have done in the first place.Overly leveraged. Actually, if you include their mortgage guarantees, A and B are liable for $4.8 trillion worth of mortgages. So to wipe investors out, mortgage values only have to decline by 1.4%,and it seems thats is what happening right now.So are we suprise that the Dow Jones are having tough time lately???

So what shall we do?just cash out and wait for the bottom??? the obvious answer is NO.Stay invested,do not panic .Go for defensive stocks,preferably those that provide high dividend that might be acting as an anchor to our overall portfolios until the situation gets better.

And if you think you dont have the expertise in doing the stock picking ,call us to start investing in Public Mutual .Good idea eh???:-)

Call us at 0122780077(Ben) or 0122150151 (Michele)

Public Mutual New Fund Launching

Launch of Public Far-East Telecommunication & Infrastructure Fund (PFETIF)
We are pleased to inform you that Public Mutual will launch the Public Far-East Telecommunication
& Infrastructure Fund (PFETIF) on 8 July 2008 (Tuesday).

The following are some of the pertinent details of the fund:PFETIF

Main Features .The Public Far-East Telecommunication & Infrastructure Fund (PFETIF) is an equity fund that seeks to achieve capital growth over the medium- to long-term period by investing in securities, mainly equities, in the telecommunications, infrastructure and utilities sectors in Far-East markets. PFETIF is attractive to
investors who would like to participate in the long-term growth potential of a portfolio of regional
stocks in sectors which include telecommunications, construction, building materials, expressways,
transportation, water works, infrastructure and utilities

Asset Allocation % of NAV
Equities: 75% to 90%
(up to 98% of PFETIF’s NAV(Net Asset Value) can be invested in selected
foreign markets which includes South Korea, China,
Japan, Taiwan, Hong Kong, Philippines, Indonesia,
Singapore, Thailand, and other approved markets).

Target Market Investor with aggressive risk-reward temperament and
can withstand extend periods of market highs and lows in
pursuit of capital growth.

Offer Period 8 July 2008 to 28 July 2008
Issue Price RM0.2500 per unit

Launching Of Public Far-East Telecommunication & Infrastructure Fund (PFETIF),
Service Charge During offer period: Up to 5.00%
After offer period : Up to 5.50%

Interested parties please call:-

Michele Ang
H/P : 012-2150151
Public Mutual Unit Trusts Consultant

Thank You

Words of Wisdom-Negative attitute

A man is but a product of his thoughts what he thinks that he becomes.

Always look at what you have left.Not look at what you have lost.Our greatest glory is not in failing but in rising every time we fall. I guess we have to learn to turn a difficult past into a dynamic future.

Is success something you have to be certain age to achieve? NOT necessarily. Does success of this type come with a price tag?YES. By clarifying what you want, don’t waste time and even more important not to continue end up in doing the wrong thing over and over again!

You might even find with careful evaluation and deep thought that what YOU have right now (failure, success, debts, happiness,sorrow & etc) is what you really want and that is why it exists for you.

If all my friends were to jump off a bridge, I wouldn’t follow. I’d be at the bottom to catch them when they fall, however we often mistaken as naggy and troublesome.

That’s all for now till later cheers.

WHAT IS NEVER MENTIONED IN Mainstream Media like NST/TheStar/Utusan/BH are these facts….

Further The Star made a comparison of prices in Thailand , Singapore and Indonesia ..

For Thailand it is quoted at RM3.90/liter, however are they aware that in Thailand new cars are cheaper than Malaysia by RM10,000? They pay only one life time for their driving license? No renewal fee after that? Also that goes for road tax as well? And do TheStar also aware that you can drive all the way from Hadtyai to Bangkok on a six lane highway without paying any Tolls ??!!

Whereas here in Malaysia you have to pay yearly renewal for road tax , driving license and TOLLS, TOLLS, TOLLS!!!

For Singapore how can you quote RM 5.20 ? Please quote in Singapore Dollars because they are earning in Sing Dollars. You might as well say Europeans are paying RM10/liter. RM5.20/liter = Sing $ 2.20/liter, still cheaper than Malaysia in view of fact that Singapore is not a crude oil exporter. Are you saying that you fill up petrol in Singapore by paying Ringgit?

In economy, dollar to dollar must be compared as apple to apple. Not comparing like durian in M’sia is much cheaper than durian in Japan!! Of course-lah, Japan is not durian producer!!! Comparing Malaysian durian with Thailand durian make more sense!!

For Indonesia we might say is cheaper there at RM2.07/liter but compare that to their level of income!

Malaysia VS USA Dollar to Dollar

Dear Malaysians,

I just got back from the States and this is what I bought and would like to share with my fellow Malaysians. I decided to take a snap shot and bring it back.The above pictures are Honey Turkey Ham, Cheese Curls,Hotdog and DishLiquid. Consume until you drop death!!

I am sure you can see the price is clearly printed on the product. I almost went crazy when I saw the price. A box of compact Turkey Ham which cost only $2.99, hotdog at $1.99 , Cheese Curls at $0.79 and dish liquid $0.99!! This is madness. Let’s compare dollar to dollar.

Yes their petrol there is expensive but the consumer goods are cheap.The people there can survive with a salary of $400 a week but we cannot survive even draw a salary of RM3000 .Why can’t we do the same especially for locally produced/manufactured goods such as cooking oil, net exporter for petroleum and we are charged through our nose!They are killing us one by one, day by day…

Tolls…petrol..vegetables..poultry…cili padi…rice…flour

Do something about your savings otherwise you will never beat the inflation.

Market Wrap report for the week ended 13 June 2008

The KLCI fell in tandem with lower
regional markets to the week’s
intraday low of 1,221.6 points on
Thursday. The index closed at
1,229.3 points to register a loss of
1.5% for the week.
• Regional markets fell on continued
worries over rising inflationary
pressures and expectations that U.S.
interest rates may be raised later this
year to curb inflation.
• The market is anticipated to move in
tandem with overseas markets as
investors monitor the outlook for
economic growth and interest rate

STOCKMARKET COMMENTARY
The KLCI fell in tandem with regional
markets to the week’s intraday low of
1,221.6 points on Thursday. However,
selected buying of blue chips helped the
KLCI to close at 1,229.3 points to
register a loss of 1.5% for the week.
Average daily trading volume during the
week fell to 0.4 billion units from 0.5
billion units while average trading value
decreased to RM1.2 billion from RM1.5
billion in the preceding week.
On Wall Street, share prices closed
slightly firmer following the pull-back in
oil prices from record highs and the
rebound in the U.S. dollar against major
currencies. Sentiment was also
supported by news of the 1% month-on month
growth in U.S. retail sales for
May versus a 0.4% increase in April due
to a rebound in automobile sales. The
Dow closed 0.8% higher for the week at
12,307 points. However, the Nasdaq was
down 0.8% at 2,445 points due to losses
in selected technology stocks.

Inflation Threat to poor Malaysians

This is worrisome. We’re in the midst of a macroeconomic adjustment by the government which hasn’t been able to bring down inflation. Many developing countries were imperilled by soaring consumer price inflation. Particularly vulnerable were economies that attracted big private debt inflows, which triggered a rapid expansion of domestic credit, stoking inflationary pressures. These price increases posed a disproportionate threat to poor people in emerging markets because food and energy costs represented a larger part of a consumer’s spending. Food, Petrol, Tolls..outrages.

After all, inflation is caused by oil prices, isn’t it? And rising energy costs have pushed prices higher in recent years. And some people, opps! I mean many people take major advantage on this.

Last night I bought 2 loaf of bread for whooping RM7.00!!! Come on! what the heck! Gardenia Whole Meal RM3.00 and Gardenia Raisin Oatmeal for RM4.00 Not so much for myself but for family. Normal Gardenia RM3.00 consume 2 loaf a week =RM6.00 x 4weeks=RM24.00 per month x 12= RM288.00

I am considering getting a bread maker and I can make as many loaf as I like. Long term investment ha!

Public Mutual declares another distributions for its fund

Public Islamic Dividend Fund – Gross distribution of 2.00 sen per unit
Public Far-East Balanced Fund – Gross distribution of 1.75 sen per unit
Public Islamic Asia Dividend Fund – Gross distribution of 0.40 sen per unit

Recommended fund:

Public Islamic Optimal Growth Fund (PIOGF) is a fund that invests 50% of its equity investment in Shariah-compliant growth stocks in the domestic market while the remaining 50% of its equity investment is invested in Shariah-compliant stocks which offer attractive dividend yields. Given its investment strategy, PIOGF is a capital growth and income fund that is suitable for medium- to long-term investors with aggressive risk-reward temperaments.

Share prices of growth companies may be more volatile than the broad market as these companies are focused on achieving strong earnings growth. On the other hand, dividend stocks are considered to be more stable and less risky as their dividend yields help to cushion potential declines in their share prices during periods of market volatility.

Market Wrap report for the week ended 6 June 2008

The KLCI fell to an 11-week intraday low of 1,214.3 points on Thursday as oil prices surged to a new record of US$138.5/brl. The KLCI closed at 1,248.6 points to register a loss of 2.2% for the week.

Regional markets continued to ease on concerns of rising inflationary pressures amidst record oil prices.

The local market is expected to continue to take its cue from regional markets as investors monitor the outlook for economic growth and interest rates in the U.S.

STO

Malaysia raises petrol prices by 40%!!!

The new pump price for petrol will be 2.70 ringgit (0.84 dollars) and 2.58 ringgit for diesel. Petrol currently costs 1.92 ringgit, among the cheapest in Asia.

Halooo!! our wages also the cheapest in Asia la..Bank FD also low…since they increased petrol are they looking into increasing the bank Fixed Deposits? Outrages..

Food price also raised.. As part of the subsidy reform, industry and power producers will be charged higher prices for gas from July. Electricity tariffs will rise 18 percent for householders, and 26 percent for commercial and industrial users.

how to survive? The rich will get richer the poor will get poorer..

Inflation might go up by 4-5 percent for the year according to our PM but if we calculate properly I believe inflation rate is already 8-10%.