Booking.com

Booking.com

Favorite Links

Thursday, July 31, 2014

建乐集团【SNTORIA】:『乐』山乐水

Source: http://klsecompany.blogspot.com/2014/03/19sntoria.html

建乐集团(SNTORIA,5213,产业组)于2012年2月23日上市,是其中一家一开市即跌破发售价的上市公司之一。

在每股发售价为85仙的6000万新普通股中,2000万股公开给公众,1000万股则保留给董事、员工和生意伙伴,其余的3000万股就以每股87仙做私下配售。

另外,集团献售的4000万股献售价为每股87仙,并会保留给土著投资者。

建乐集团初次售股活动获得认购超额5.4倍。

筹获的5160万令吉中的2770万令吉将用于营运资金、1120万令吉偿还银行贷款、800万令吉购置产业、土地和设备,余额370万令吉为上市费用。

建乐集团是彭亨关丹武吉甘邦休闲城的发展与经营商,它也是马来西亚东海岸首个和最大水上乐园休闲城。

其业务如下:
1. 建筑与产业发展部业务
目前正进行中的计划包括Global Heritage、Desa Hijauan以及Taman Bukit Rangin1和2,发展总值达3亿6860万令吉。

被称为“全球遗产”(Global Heritage)的住宅区,料将在2016年至2017年完成,发展总值料达3亿5千500万令吉。

这块面积达117英亩的住宅区将涵盖11个不同主题的房屋住处,以及一座精品酒店(boutique hotel),让附近的住户可使用其中设施。

其现有景点为水公园和另外两项住宿设施 - 阿拉伯湾度假区和加勒比海湾度假区。
自该水公园在2009年开张后至今,已有160万名游客前来参观。


Taman Bukit Rangin 2、Bukit Gambang、Global Heritage South、Mediterranean Bay Resort和East Coast Bazaar也将展开扩张计划,发展总值预计为6亿9400万令吉。

2. 休闲服务业
过去数年,建乐集团在彭亨甘孟(Gambang)积极发展武吉甘孟度假城(Bukit Gambang Resort City),建乐集团冀望这项计划的发展总值在2020年竣工时可达18亿令吉。

武吉甘孟度假城一旦建竣,将会是大马最大综合性度假城之一。
这项计划涵盖727英亩(290.8公顷),较小于云顶度假城(1万1千英亩)以及绿野仙踪度假城(1千300英亩)。


这项发展计划将具备多个景点,而各个景点将分阶段完成。
这座度假城将拥有4项主题公园,而这即是这项计划的主要卖点。
除了这些主题公园之外,建乐集团也将在度假城内建设度假式住宅区。
建乐集团投资约6000万令吉的武吉甘孟度假城第2个公园武吉甘孟野生动物园,已经全面投入操作,这个野生动物园估计可为建乐集团录得30%的毛盈利。
建乐集团的建筑与产业发展业务和休闲服务业贡献比例,目前为70%和30%。
管理层希望所有工程在2018年完成后,双方的贡献比率为50%。
未来发展计划
除了在关丹进行发展,建乐集团也开始向外坡发展。
2013年8月25日,以4700万令吉,在砂拉越古晋购买两块总共500英亩的土地,计划打造成另一个度假胜地。

根据计划,整个发展蓝图涵盖水上乐园、度假村、会议与会展中心、游河船悠闲区、名牌购物村、野生动物园,以及住宅与商业发展项目。
建乐集团希望在雪兰莪州,复制武吉甘孟度假胜地的成功,因此与Seriemas发展私人有限公司签署协议,在雪州摩立联营综合度假城。

这项计划涵盖度假村与会展中心、精品酒店、水上主题乐园和野生动物园,以及综商业与住宅单位。

虽然这两项综合发展计划,可为建乐集团带来庞大的盈利潜能,不过在现有阶段,尚属于言之过早,

如此庞大的计划,从构思到全面竣工。预计需要长达8至10年的时间。
财务状况

下图为建乐集团过去5年的一些主要数据:


不管是营业额、税后净利,股东权益,又或者是总资产,都看到稳健的增长。


在刚发布的2013财政年年报中,建乐集团也交出不错的业绩。

股东权益也取得不错的增长率。
上市以来的两个财政年度,股东权益报酬率及总资产回报率都维持在20%及10%以上。
过去两个财年,建乐集团都派发2仙股息,股息派发率分别是15.8%及16.6%。
派发率不高,相信管理层是为了保留更多的资金,以备发展之用。
以当前的股价85仙来看,周息率仅仅是2.4%,对于看着股息的投资者而言,显然吸引力不足,除非建乐集团能够在未来的日子里,为股东创造出更多的价值。
2014财年第一季度季报:
派发股息:- 仙
按年:
建乐集团的营业额增长10%,从4319万令吉,增至4757万令吉。

净利也从787万令吉,上涨4.9%,至825万令吉。
按季:
建乐集团的营业额则从上个季度的5965万令吉,减少至4757万令吉。
【季报内没有清楚交代,只是透露建筑与产业发展部部门的营收欠佳】 

净利也从上个季度的3497万令吉,暴跌76.4%,至825万令吉。
【季报内只是透露建筑与产业发展部部门销售数据低,同时也因为上个季度有一笔420万令吉的脱售土地收益所造成】 
截至2013年12月31日,握有现金和约当现金共1亿4945万6千令吉,借贷为1亿1272万2千令吉。

建乐集团曾在2013年4月,向股东派发红股(每持有10股,可获得1股红股)。

2014年1月23日,建乐集团再度建议通过红股方式派发8800万免费凭单给股东,每持有5股的股东,将获发1凭单。

建乐集团也计划将法定股本,从总值1亿令吉的5亿股增至10亿股,总值达2亿令吉。

这两项建议将于即将来临的特大上提出,以寻求股东们的同意。

SKP Resources - Near-term Catalyst Priced In

Source: http://klse.i3investor.com/blogs/kenangaresearch/56779.jsp

Strong production flow. A recent visit to SKP Resources (SKP)’s plant in Johor Bahru has reaffirmed our confidence on its outlook moving forward. The high international standard quality control coupled with robust production facility has proven its production capability, efficiency as well as competence to clients. These strong production attributes as well as its R&D capabilities helped to explain as to why Dyson, a leading worldwide designer and manufacturer of household equipment, opted to partner with SKP five years ago.

Factory expansion plan on track. SKP’s new plant (located in Senai, Johor), is on track to be completed by October 2014, which will allow the group to boost its current production capacity by another 75% by FY17. This implies an evenly distributed 25% additional new capacity coming on-stream for the next three years. Meanwhile, the group’s current production utilisation has improved to c.75% from c.60% as recorded in 2H14. To recap, SKP has acquired a 2ha land in Senai, Johor, for RM6.8m on March 2014 and had allocated a capex of RM38.0m for this expansion plan.

New production lines in the pipeline. The upcoming new plant (scheduled to be completed by October 2014) is targeted to cater for new orders from Dyson, which will introduce two new production ranges (vacuum cleaner and next-generation fans) in coming months. While management refused to elaborate more, we understand that Dyson as well as SKP are confident on the new products due to their innovative and unique features.

New products to boost earnings. The new products are expected to fetch higher margins in view of better product efficiency. Note that management has a cost pass-through mechanism with its clients, which allows the group to mitigate currency and raw materials risks. Management believes with these new production lines coming onstream coupled with solid order books from other key clients, its earnings are expected to surge moving forward. We expect SKP’s earnings to jump 41.5% and 32.6% in FY15 and FY16 respectively.

Near-term catalyst priced in. SKP’s share price has performed tremendously well and surged 22.4% since our last trading buy call at RM0.49 on 26-Jun. While we believe that the Group’s outlook is positive, its near-term catalyst has been largely priced in, in our view, judging from its recent strong share price performance since May. Meanwhile, SKP is currently trading at a forward PER of 12.9x, which is in line with FBM Small Cap forward PER of 12.7x. In view of the limited upside from here, we advocate investors to take profit for now and revisit the stock when more attractive valuations emerge.

Source: Kenanga

Taking Sumatec higher

Source: http://www.nst.com.my/node/18717

ASSET INJECTION: Firm targeting more than RM1b profit by 2018, say sources

FORMER Renong Bhd executive chairman Tan Sri Halim Saad is scaling up Sumatec Resources Bhd, which is set to make more than RM1 billion in net profit by 2018.

Halim controls 24.9 per cent of Sumatec and has been maintaining his shares since last November as he believes that the company can grow fast.

“He is not selling his shares anytime soon. He plans to build up the company by injecting more assets into it. He is eyeing some oil and gas (O&G) assets in Central Asia,” said a source.

Sumatec expects to produce 30,000 barrels of oil a day in Kazakhstan by 2018. Sources say the company is targeting an average net profit of US$30 (RM95.30) per barrel.

“This means it will make around US$900,000 a day from 30,000 barrels, or more than US$328.5 million a year, compared with less than US$20 million currently from existing operations,” said the source.

For the financial year ending December 31 2014, Sumatec is projecting RM69 million in profits.

The firm is producing oil at the Rakuschechnoye field with Markmore Energy (Labuan) Ltd, which is 99 per cent-owned by Halim.

Sumatec expects to produce 5,000 barrels of oil and gas a day from this field in the next three years.

It is also acquiring Borneo Energy Oil and Gas Ltd, which owns 100 per cent of Buzachi Neft LLP, for US$250 million in cash and shares.

Buzachi has two 25-year contracts to explore and produce oil and gas in the Karaturun Vostochnyi and Karaturun Morskoi fields, also known as Buzachi Fields.

At a recent media briefing, Sumatec chief executive officer Chris Dalton said he expects the acquisition to be completed by October.

He said the two assets will contribute US$1.62 million to Sumatec’s profits in the fourth quarter.

Sumatec is targeting to produce 25,000 barrels of oil and gas a day from the Buzachi Fields.

Meanwhile, Sumatec is expected to move out of its PN17 status by next month and will submit its application to the Securities Commission soon.

Rozabil raises his stake in defence, O&G firm Destini to 20.45%

Source: http://www.thestar.com.my/Business/Business-News/2014/07/31/Rozabil-raises-his-stake-in-Destini-to-2045-Major-shareholder-consolidates-position-in-defence-OG-c/

PETALING JAYA: Destini Bhd’s major shareholder Datuk Rozabil Abdul Rahman (pic) has raised his direct and indirect stake in the company by 6.7% to 20.45% as he consolidates his shareholding.
Stock market data showed that 72 million Destini shares were traded in an off-market deal last Friday at 65 sen per share valued at RM46.8mil.
This was below the 70.5 sen closing price that day.
Rozabil, when contacted by StarBiz, confirmed that he had picked up the block of shares in Destini, which serves the defence, marine, aviation and oil and gas (O&G) industries.
“The company has been on an acquisition exercise recently and now it’s time for me to consolidate my shareholding to focus on delivering,” Rozabil, who is also Destini group managing director, said.
“I have confidence in the company and believe it is on the right track to deliver better profitability at year-end,” he added.
This brings Rozabil’s interest in the company via privately held vehicle BHP Capital Sdn Bhd to 20.45%.
Stock exchange filings showed that at last count on July 16, BHP Capital had a 13.75% stake in the company, or 109.2 million shares. Destini’s other substantial shareholder is Pascal Resources Sdn Bhd.
At the same time, a Bursa Malaysia filing in early July showed that Pascal Resources had ceased to be a substantial shareholder in the company when it disposed of 38 million shares, equivalent to a 4.78% stake, through an off-market deal and the open market.
Destini, formerly Satang Holdings Bhd, was lifted out of the Practice Note (PN) 17 category in April last year after a regularisation plan. Since then, it has been undertaking strategic acquisitions of various companies to diversify its income stream.
The stock had slipped into PN17 territory in May 2008 and had been suspended from trading for nearly three years from July 2009.
Earlier this year, the company completed the acquisition of a 100% interest in Samudra Oil Services Sdn Bhd from Kejuruteraan Samudra Timur Bhd for RM80mil in an all-share deal announced last year. The exercise marked its entry into the lucrative O&G sector. Samudra Oil is involved in the provision of tubular handling services in the O&G sector and is a Petroliam Nasional Bhd licence holder.
The company has also announced that it planned to buy the balance 49% stake in Vanguard Composite Engineering Pte Ltd, a Singapore-based company involved in the manufacturing, servicing and maintenance of lifeboats, life rafts and davit systems, that it had first bought into in 2012.
With a restructuring and shift into the commercial sector, the company hopes to rely less on government contracts to fuel growth, which contributed close to 80% of revenue in financial year 2012 (FY12).
In the first quarter ended March 31, it posted a net profit of RM3.08mil compared to RM2.41mil a year ago. For FY13, the company recorded a net profit of RM10.87mil, up from the RM7.05mil registered in the previous year.
Destini shares closed 1.42% down to 69.5 sen yesterday.

Affin Research retains Buy on WTK, target price RM1.76

Source: http://www.thestar.com.my/Business/Investing/2014/07/31/Affin-Research-retains-Buy-on-WTK/

KUALA  LUMPUR: Affin Investment Research is maintaining its Buy recommendation for WTK Holdings Bhd at RM1.38  with a target price  of RM1.76.
It said on Thursday the plantations-timber based group would benefit from a favourable rise in timber prices as its bottom-line still is largely driven by its timber operations.
“At RM1.38 and trading at a FY15 price-to-earnings ratio PER of 8.5  times, the stock looks attractive next to historical four-year mean PER of 10 times.
“We value WTK based on an unchanged SOP-derived target price of RM1.76, based on a 10 times PER target on 2015E timber division’s earnings, book value for its forest and palm oil plantation,” it said.
Affin Research said the key downside risk to its  view  were a disruption in harvesting of logs due to extreme bad weather; sharp drop in timber product prices; and lower contribution from its manufacturing and trading division.
The research house pointed out WTK’s log production in the first half of 4014 (H1FY14) increased by 12% on-year In 1H14.
WTK’s log production came in at 232,795 cubic metres, 11.5% higher than H1FY13. Log production was lower in late 2013 until January 2014 due to the monsoon season that disrupts logging activities. However, production started to pick up from February 2014 onwards on better weather conditions.
Affin Research added WTK’s average monthly log production year-to-date was also higher at 38,799 cubic metres as compared to 34,802 cubic metres in H1FFY13 (2013 monthly average: 35,551 cubic metres). Given the high demand for round log and favourable log average selling prices, we believe WTK will try to continue to maximize their log production in H2FY14.
“For its palm oil plantation division, WTK has planted 11,300 ha as at end- December 2013 (accounting for 56.5% of its total plantable area) and the group plans to plant another 1,500 ha this year. WTK is expected to fully plant its palm oil plantation by 2018.
“We believe fresh fruit bunches (FFB) production will continue to grow strongly given: 1) the rising maturity of its palm oil plantations; and 2) young average age profile of four to five year old palm oil trees.
“In addition, with the construction of its first palm oil mill in H2,FY15, we opine the group’s palm oil segment should show some meaningful contribution to the Group’s earnings starting in 2016,”  it  said.

Overseas investors bullish on Malaysian stocks

Source: http://www.thestar.com.my/Business/Business-News/2014/07/31/Bullish-on-Malaysia-Foreign-investors-getting-more-positive-on-local-bourse/

ETALING JAYA: Investors are hungry for stock ideas and appear to be looking for reasons to be more bullish on Malaysia, said CIMB Research head Terence Wong in his Asia Marketing report yesterday.
While Malaysian investors have turned less bullish, overseas investors have gradually turned more bullish on Malaysian stocks.
Wong said that with most foreign funds underweighted in Malaysia and even local funds relatively neutral, downside selling pressure was limited while inflows into the market could give the FTSE Bursa Malaysia KL Composite Index (FBM KLCI) a boost.
Wong has made no changes to his end-2014 FBM KLCI target of 2,030 points, which is based on a bottom-up basis.
Having spent many weeks in June and July marketing to investors in Asia, Wong observed a strong appetite for stock ideas, particularly for companies in the small to mid-cap range.
Wong and his team have been marketing their second-half outlook to investors in Kuala Lumpur, Hong Kong, Singapore, Taipei and Tokyo.
He said while investors were generally neutral to underweighted in Malaysia due to the FBM KLCI’s relatively flat performance on a year-to-date (YTD) basis, they were hungry for ideas.
Wong said he was surprised at how underweighted investors were in general, including Malaysian investors.
“This is a big change from the mood earlier in the year when investors closer to Malaysia, including Singapore and Hong Kong, appeared more optimistic.
“We attribute the lukewarm view of Malaysia to the FBM KLCI’s uninspiring YTD performance and the need for investors to chase higher beta markets,” said Wong.
Surprisingly, there is strong interest in the Malaysian property market from Taiwanese investors.
The interest is not for property stocks but in buying physical properties either in Kuala Lumpur, Penang or Iskandar Malaysia.
Apparently, there has been a strong push by Malaysian developers to attract buyers from Taiwan.
Malaysian property is relatively cheap to the Taiwanese, while Malaysia’s large Chinese population and the availability of a similar cuisine and cultural familiarity is a big attraction.
On the stocks front, Wong said that investors were still keeping an eye on opportunities in Malaysia and were keen on CIMB Research’s Salcon Bhd and Bonia Corp Bhd stock ideas.
Salcon is exciting to investors because its fibre optic business holds strong promise if executed well. Bonia is a simple story of buying a consumer stock with regional ambitions at relatively attractive valuations.
“We continue to prefer the Economic Transformation Programme (ETP) winners, for example, the oil and gas (O&G), construction and property sectors. We also like smaller-cap stocks and expect their discount valuations to narrow further,” he said.
Wong said that 2014 was a stock-picking year, and despite the FBM KLCI’s lacklustre YTD performance, many smaller-cap stocks have performed well.
Its preferred bigger-cap stocks are Gamuda Bhd, SapuraKencana Petroleum Bhd and YTL Corp Bhd, while its preferred smaller-cap stocks are Bonia Corp, TH Heavy Engineering Bhd and Tune Ins Holdings Bhd.
CIMB Research is replacing Perisai Petroleum Teknologi Bhd with TH Heavy as its top small-cap O&G pick.

Wednesday, July 30, 2014

Icon 岸外跌后价值重现

Source: http://klse.i3investor.com/blogs/treasures/56685.jsp

 2014-07-28 14:39
自从6月25日上市以来,Icon岸外(ICON,5255,主板贸服股)(新股发售价1.85令吉)的股价,已经从2.19令吉的高点,跌至7月25日的1.74令吉低点,这是在它的股价稳定机制于7月24日终止之后写下的低点。
投资者对它的信心也受到《Focus Malaysia》于6月7日至13日那一期刊登的文章影响。
对于有关报道,Icon岸外已经发出文告,指《Focus Malaysia》报道不正确,且含有误导内容。
Icon岸外表示,有关报道具炒作和影射意味,重伤该公司的名誉,严重打击上市活动,对股东和投资者来说极为不公平。该公司正采取对应形同,不排除以法律途径解决。
Icon岸外是东南亚其中一家最大岸外支援船只业者,它的所有船只都配有先进科技的设备以及机械,以提供广泛的服务,包括一般的生产活动、深水领域、扩展石油计划、安置输送管、维修等业务等。
长期租约保障盈利
它的20艘船只拥有长期的租赁合约(超过12个月),因此,提供了未来几年的明确盈利能见度。
大部份的船只是在马来西亚营运,另外两艘船只在泰国和卡塔尔运作。
目前,它拥有32艘船只主要浅海运作,不过,另外有6艘船只将加入,这包括2艘住宿式工作驳船、1艘平台供应船、1艘补给船只,以及2艘锚拖供应船。
东协同行中船龄最低
船龄年轻的船队Icon岸外的优势。
Icon岸外船队的船龄平均为5年,与东协同侪的平均11.2年比较,它的船队的船龄是最低的。
目前,Icon岸外的锚拖供应船和平台供应船平均船龄,分别为4.8年和6.2年,比东协同侪的平均7.3年和17年船龄为低。
年轻船队和现代化的岸外支援船是Icon岸外的优势,因为船队的营运和维修成本低,以及使得Icon岸外可以竞标更多长期的合约。
与同业比较船用率更高
Icon岸外受到马来西亚和东南亚快速成长的岸外支援船只市场的推动,而享有更高的营运赚幅。
Icon岸外于2013财年,能够为锚拖供应舯和平台供应船保持高平均使用率,分别达到86.2%和94.1%,这比东南亚同业的平均82%和78%为高。
这主要是因为Icon岸外的船队素质高以及完整,同时,它只专注在浅海的岸外支援船只领域。
国内对岸外支援船只需求强劲。
国油未来5年维持资本开销(当中浅海计划开销料达176亿美元),以及国油进行资产本地化政策(以本地船只取代外国船只),将推动本地岸外支援船只业者的业务。
从供应角度来看,淘汰高龄船只,将使Icon岸外的新船只可以争取更大的市场份额。
国油激素提振展望
国内油气业展望在国油因素激励下仍正面。
根据经济转型计划,在油气领域的开销预料达650亿令吉,这包括:i)460亿令吉振兴现有油田以加强生产率、ii)50亿令吉通过创新方案发展小油国田,以及iii)150亿令吉在北马盆地发展计划。
此外,为了提升国内油田的采收率,国油计划于2015年为止在这一方面投资3000亿令吉。这些都反映出国油将持续在国内开销进行发展计划。
现在合约提供稳定盈利。根据招股书,Icon岸外的合约总值为7亿200万令吉(包括选择性延长合约)。稳定合约占合约总值的71.8%,或5亿200万令吉。
它的合约当中,有89.1%是长其合约(超过12个月)。长期合约Icon岸外带来稳定的现金流,同时,也使得管理层拥有更多时间专注在争取长期合约,或是开拓新市场方面。
船只维修获好价
与船坞关系良好以及健康、安全和环境记录卓越。
Icon岸外与东南亚的船坞之间已经建立良好的关系,这使得Icon岸外在船只维修方面,可以获得更好价格,以及获得船坞的接受。与此同时,它也拥卓越的健康、安全和环境记录。
锚拖供应船市场受到马来西亚岸外钻油市场的支撑,因为锚作供应船是钻油业必须用到的船只。
另外,平台供应船暂时供应过剩的情况也将成为过去。此外,住宿式工作驳船的市场滞慢以及市场对此类船只的需求增加,预料将推升它的使用率。
技术展望
本益比看跌
随着2013财年它的船队增加至32艘之后,它于2013至2016财年的净利,将会强劲增长,复合年增长率料达到32%。
2016年本益比将下跌至11倍以下。该公司是在2014财年20倍和2015财年14倍水平交易,较同侪的平均13倍和15倍为高。
不过,在计算其盈利增长率展望之后,该公司的是在本益成长比0.5倍水平交易,这远远较同侪为低。根据它持续的租率以及没有收购船只的资料计算,预料它的本益比于2016财年将下跌至11倍以下。
免责声明
本文分析仅供参考,并非推荐购买或脱售。投资前请咨询专业金融师。

CIMB Research still positive on YTL Power

Source: http://www.thestar.com.my/Business/Investing/2014/07/30/CIMB-Research-positive-on-YTL-Power/

KUALA LUMPUR: CIMB Equities Research remains optimistic about YTL Corp’s competitive positioning for future power and infrastructure projects on an open tender basis.
It said on Wednesday this was despite that YTL Power was denied an opportunity to win back the Track 4A project. It lowered its target price from RM2.29 to RM2.42.
Tenaga signed the Heads of Agreement with SIPP Energy, signifying the principal terms of the proposed joint venture to build, own and operate the 1,000MW-1,400MW Track 4A power plant in Johor.
“This is a negative surprise as it looks like the issue of Track 4A is not just that it was awarded via direct negotiation, but that it was prejudiced against YTL Power participating in it as well,” it said.
Nevertheless, the research house believes the relationship with SIPP is still good as there is substantial goodwill between the two parties since YTL Power’s withdrawal has allowed SIPP to proceed without controversy.
“It leaves open the opportunity for both YTLP and SIPP to bid for other future power plant projects on an open tender basis,” it said.
CIMB Research cut its FY15-16 EPS forecasts by 6%-8%, and removed the construction earnings contribution from Track 4A, and revised its target price down by 5% (still based on a 20% discount to RNAV).
“Key earnings catalysts over the next few quarters are intact with the expansion in cement capacity and the ERL extension to KLIA2. Maintain Add,” it said.
The research house believes this setback will not derail the group’s comeback to the Malaysian infrastructure scene.
“We are still optimistic that YTLP will secure an IPP concession in the future to replace its expiring PPAs and we are still positive on YTL Corp’s chances for the high-speed rail project to Singapore.
“YTL Corp’s valuation is back near its 10-year low at 10.5x 1-yr fwd P/E, which underscores that the market is assuming no growth and no earnings catalysts for the conglomerate.
“We believe the current negative perception on the stock will prove to be a good buying opportunity,” it said.

Titijaya eyes more projects

Source: http://www.thestar.com.my/Business/Business-News/2014/07/30/Titijaya-eyes-more-projects/

PETALING JAYA: Property developer Titijaya Land Bhd is mulling over development projects on two parcels of land in the Klang Valley to beef up its already large gross development value (GDV).
Sources said that Titijaya was in the process of submitting a proposal to KTMB Bhd to build a massive commercial building on the piece of land that is located between the Subang Jaya Komuter station and Shah Alam. It is believed that there is an option for the building to be KTMB’s new headquarters.
It has been speculated that KTMB is looking to unlock the values of some of its land, including its current corporate office, which is a heritage building located in the heart of the city.
The proposal is also subject to approval from the Railway Assets Corp, a Federal statutory body under the Transport Ministry.
“Even if the authority gives the green light, the project may take time and was unlikely to commence until 2016, as they have to realign the KTM track first,” said a source.
The other parcel that Titijaya is targeting is located in the popular spot in Ampang near Mah Sing Group Bhd’s M City project.
The land, measuring less than 4.05ha, is near the Ampang-Kuala Lumpur Elevated Highway.
Sources said the high-rise mixed development had a GDV of some RM1bil.
It is unclear though who is the seller or the asking price for the Ampang land.
After Titijaya’s announcement of a RM2.5bil project in Jalan Eaton recently, analysts estimated Titijaya’s GDV at close to RM10bil.
RHB Research said the property player’s growth prospects were strong and underpinned by its stable stream of projects and gross margins that were higher than the industry average.
The brokerage said its gross margins ranged from 35% to 40%.
Titijaya has also ventured into Penang after it acquired an 8.1ha parcel near the Penang second link from its major shareholder and group managing director Tan Sri Lim Soon Peng for RM126mil.
In April, it signed a joint-venture agreement with Bina Puri Holdings Bhd to develop the RM1.3bil mixed development in Brickfields.

麥樸思籲港人分散投資 倡三成資產押新興股票

Source: http://www.mpfinance.com/htm/finance/20140730/columnist/ft2_ft2a1.htm

【明報專訊】新興市場去年表現不濟,資金紛紛回流成熟國家,有「新興市場之父」之稱的鄧普頓新興市場團隊執行主席麥樸思(Mark Mobius)信心十足指:「我從沒對新興市場失去信心!」的確,上半年新興市場已收復失地,麥樸思更以「Wonderful Period」(極美妙的階段)來形容新興市場現,估計強勢可以持續上百年。他建議以月供形式投資新興市場,組合中宜至少有約三成投資相關的股票資產,以捕捉高增長趨勢。

去年成熟經濟體系跑贏,但在今年上半年,印度市場在大選後重燃希望,中國經濟並沒有出現硬陸,卡塔爾及阿聯酋由前緣市場升格為新興市場,亦增加投資者興趣,新興市場已見回復。麥樸思指,除非再出現意外的負面消息,否則現可說是復蘇的甜蜜期。

看好銀行消費品能源板塊

「新興市場的基本面良好,包括較高的經濟增長率、較低的負債水平、較高的外匯儲備、生產力不斷提高和人口年輕等,而且相關市場的平均估值,仍較美國的吸引」。他更形容,現時簡直是新興市場有史以來的「Wonderful period」,更相信趨勢可持續很多年,甚至上百年,看好的板塊有銀行、消費品及能源等。

被問及多個新興市場正進行改革,例如中國去年三中全會推出的改革方案,印尼總統候選人維多多(Joko Widodo)已宣布其具抱負的計劃,旨在削減政府補貼和增加投資等,當中的變數會否為新興市場投資前景蒙上陰影?

智能手機普及 增資訊透明

麥樸思認為,互聯網和智能手機的普及應用扮演重要的角色,除有助提升生產力,資訊透明度提高,人民可更容易和迅速獲取所需資料,當人民有更大的反對聲音時,變革的速度亦會加快,在科技的幫助下,人民更能團結一致向政府表達意見,向政府施壓以求更佳的服務及管治,這有助社會監察政府和利於改革。

談論到投資市場最值得擔心的風險,麥樸思認為是波動性,「這不是指波動性本身,而是投資者對波動性的反應。當價格上上落落時,很多人會很憂心,選擇避險而不作投資,結果失去機會,這就是問題,若然你每事擔心而不作投資,就會很麻煩了。」他透露,即使是在近期局勢緊張的烏克蘭都有農產品的相關投資,而且表現還非常不錯。

市愈樂觀就愈危險

事實上,他認為市愈樂觀就愈危險,因為意味即將見頂,反之於投資者最悲觀時,市場就會見底回升,「因此,不要只在每個人都感到樂觀才投資,應嘗試在悲觀時入市,但並非人人可以做到,所以投資者可以月供形式買互惠基金,價高價低時均買入,以平均攤分成本」。

麥樸思又建議香港投資者,目光不應只停留本地市場,因為港股表現並非每年均冠絕全球,事實上沒有任何市場可連續兩年稱霸,一定要分散投資於全球各地,尤其是新興市場。其實,在過去十年,新興市場的表現只有三年跑輸已發展市場,而2013年就是其中一年,他指新興市場佔全球股市份額約32%,所以股票資產組合中,亦應約三成投資於相關市場。

未成熟國家 投資價值吸引

從環球角度出發,該公司認為,部分最吸引的投資機會就在前緣市場(Frontier markets),即發展程度沒有新興市場成熟的國家,目前的投資價值非常吸引,當中包括增長良好的尼日利亞、沙特亞拉伯及越南。該公司指,高增長國家內的企業未必全部都有高增長,但比起低增長國家,一間營運良好的企業在高增長國家內有較佳的發展機會,這當然仍要取決於行內競爭及多個其他因素。

明報記者

[余美玉 基金特區]

Tuesday, July 29, 2014

Ekovest to tap two major projects

Source: http://www.thestar.com.my/Business/Business-News/2014/06/07/Ekovest-to-tap-two-major-projects-Duke-extension-and-EkoCheras-to-be-worth-over-RM2bil/

THE time is ripe to relook toll concession operator, property developer and construction firm Ekovest Bhd.
With two major projects worth over RM2bil due for completion in three years’ time, profits are expected to see significant jumps over this period.
The two immediate high impact projects are the RM1.18bil expansion of the Duta-Ulu Kelang Expressway (Duke) extension and the development of its EkoCheras property project for RM1.63bil. They are targeted for completion by end-2016 and end-2017 respectively.
On May 28, Ekovest underwent a one-for-two share split, and is now trading ex-rights at RM1.15.
Ekovest also proposed a rights issue of 244.41 million shares with 122.21 million free warrants with one free warrant for two rights shares. The rights issue is on the basis of two rights shares for every five existing Ekovest shares.
The rights price have been determined at RM1, which is a discount of 17.9% from the theoretical ex-all price of RM1.22.
The narrow discount of the rights is a strong indication that the major shareholders of the company are not looking to reduce their shareholdings. If they had wanted to dilute their holdings, the rights would have been priced at a bigger discount to entice shareholders.
Ekovest is controlled by Tan Sri Lim Kang Hoo and Datuk Haris Onn Hussein, the brother of Defence Minister Datuk Seri Hishammuddin Hussein Onn.
Lim has a 32.38% stake in Ekovest while Haris owns 20.81% via Kota Jayasama Sdn Bhd.
Ekovest currently has a market capitalisation of RM855.45mil. The completion of the rights exercise will see Ekovest’s market capitalisation crossing the billion-ringgit mark.
Duke extension
The immediate catalyst for the company is completion of the 30% acquisition of Duta-Ulu Kelang Expressway (Duke) from Malaysia Resources Corp Bhd (MRCB) for RM228mil in January. This now gives it full ownerships of the 59-year concession up to 2059.
Back in 2012, Ekovest first bought a 70% stake in the 18-km Duke under an RM325mil share-swap deal. Ekovest owned the 70% via Wira Kristal Sdn Bhd. The owners of Wira Kristal are Lim and Haris.
Last December, Ekovest achieved financial close for the expansion of phase two of Duke where it raised RM1.18bil. Works have begun, and Ekovest’s construction arm will be handling the construction works for the highway.
The highway will expand the existing Duke from two ends; via a 7km link from Sri Damansara and a 9km link from Jalan Tun Razak.
“This expansion will give Duke a boost in traffic from both sides. Every year, we are already recording a 6% growth in ridership. With the completion of this expansion, we will see an additional 15% jump. So traffic will likely increase to 180,000 travellers from the current 120,000 travellers, once it is completed by end-2016,” said Ekovest managing director Datuk Lim Keng Cheng (pic).
For the quarter to March 31, 2014, Ekovest’s net profit dropped 59.43% to RM3.5mil on the back of a 145% increase in revenue to RM63.43mil.
The decrease in profits was mainly due to a lower recognition of interest income from the toll operations compared to the previous quarter as a part of the interest income was capitalised during the construction of Duke phase two.
For the nine-month period, net profit was down 67.76% to RM10.09mil on the back of a 129.13% increase in revenue to RM182.95mil.
Ekovest’s revenue stream is 40% from the construction and property development segment, while the toll concession contributes 30%.
Lim is especially excited over Ekovest’s immediate high impact maiden mixed development project, EkoCheras, with a gross development value (GDV) of over RM1.63bil located strategically along Jalan Cheras, next to the proposed Leisure Mall MRT station.
“Piling work on the EkoCheras project has started. Next up is EkoGateway and the EkoTitiwangsa venture which will begin soon,” he says.
Of EkoCheras’ RM1.63bil value, RM800mil is for the residential portion while the remainder is for the commercial portion.
Lim says some 60% of the RM800mil residential project has been sold to date.
“We intend to keep the commercial portion, as moving forward, we want to build our recurring income,” says Lim.
As it is, the company has property projects worth RM5.6bil in the Klang Valley and some RM4.4bil of projects in Danga Bay, Johor. All these projects will last the company until 2023.
The group now has some 20 acres land bank in Kuala Lumpur and 25 acres in Johor.
“Our land bank is situated mostly near major highways, Ekovest’s style is to buy land and wait for the area to mature and for more infrastructure to come up before we start developing. When Duke is completed, this will be another boost for our developments,” he says.
“Our Johor land is situated near the coastal highway and tourist hotspot of Danga Bay. We will wait for it to mature, before developing it,” he says.
Lim added that it was in talks with foreigners to jointly develop its land, although nothing concrete had materialised so far.
“I am still very positive on development in Johor despite so much talk of oversupply. Property has always been a long-term game. People do not realise that with the Chinese coming to buy Johor property, so much foreign direct investment is being created.
The River of Life
Another revenue earner for Ekovest will be the RM4.4bil River of Life (RoL) project in Kuala Lumpur. Ekovest has a 60% stake in the joint-venture company appointed the project delivery partner (PDP) of RoL in 2011 by the Government. MRCB holds the remaining 40%.
The RoL is a seven-year anchor project of the Economic Transformation Programme for Greater KL that aims to breathe new life into the polluted Klang and Gombak rivers.
The project calls for a massive cleanup and redevelopment of an 110 km stretch of river by 2019. In return, the contractors given the mandate get plots of land along the river for development.
Some RM3.4bil has been allocated for the river cleanup, while the remainder RM1bil is for the beautification of the river in which the PDP of Ekovest-MRCB is allowed to participate via a Swiss challenge method.
To date, Ekovest-MRCB has secure a RM130mil beautification works contract in Precint 7 under the RoL.
There are two other ways Ekovest can benefit from the RoL project. Firstly, as PDP partner, Ekovest can earn incentives up to RM300mil for its three main roles, which is to help the Government monetise its land along the river, and to help reduce government cost by providing alternative design for river cleaning and to ensure the key performance indicators of the river beautification programme are met.


房产业务明年进账 怡克伟士冀盈利翻倍

Source: http://www.nanyang.com/node/637772?tid=462

(吉隆坡25日讯)怡克伟士(EKOVEST,8877,主板建筑股)将从2015财年开始纳入产业业务贡献,加上刚刚完成最新大道股权收购行动,放眼明年盈利翻倍。
怡克伟士董事经理拿督林景清接受《南洋商报》专访时坦言,2015财年对公司而言,将会是优异的一年。
“我们的盈利会增加……营业额会增加,盈利亦会翻倍增长。”
他指出,已售罄的蕉赖亿国城(EkoCheras)产业发展计划,料贡献约8亿令吉,还有白沙罗淡江大道(DUKE)第二期工程将贡献12亿令吉。
他补充,除了产业和大道业务贡献,建筑业务订单逾22亿令吉,意味着未来3年营收,超越现有水平。
或提高派息
基于将从下财年开始交出亮眼成绩,他不排除派发更高股息,回馈股东。公司目前派发至少1%面值的股息。
怡克伟士上财年派发每股1仙股息,2012财年则派发5仙股息。
怡克伟士截至3月杪首9个月,净利为1008万6000令吉,营业额报1亿8295万令吉。
怡克伟士现财年第三季净利为350万4000令吉,较上财年同期跌59.43%,主要是大道业务入账利息收入降低。
旗下Wira Kristal去年5月完成整合后,带动怡克伟士第三季营业额,涨升145%,报6343万令吉。
在6月间,怡克伟士完成收购白沙罗淡江大道其余30%。
独家报道:翁慧琪 

klia2 成本重 财测被猛砍 大马机场下半年恐续亏

Source: http://www.nanyang.com/node/637780?tid=462

(吉隆坡25日讯)大马机场(AIRPORT,5014,主板贸服股)次季意外陷亏,促使证券行大砍盈利预估,随着吉隆坡第二国际机场(klia2)成本将全面反映,下半年可能会继续“见红”。
因klia2营运成本高企,加上廉航终站(LCCT)折旧及摊销费偏高,大马机场现财年次季核心净亏高达2300万令吉,也是自1999年上市以来首次季度蒙亏。
因业绩表现让市场大跌眼镜,各家分析员纷纷调降2014至2016财年盈利预估,减幅从19%起跳,有者更是直接砍半,削减90%,目标价也难逃劫数,多被下调。
其中,联昌国际投行研究是最不看好大马机场的证券行,预料下半年将继续录蒙亏,3财年盈利预估被砍高达64至94%。
搭客量看跌
“我们认为,klia2相关成本将全面反映在下半年,大马机场亏损难逃。自今年5月以来,每月搭客流量也按年跌2至4%,逆转年初双位数增长的情景。”
该行将今年搭客流量增长预估,从原本的年增11.2%,下调至7.7%。
借机调涨机场税?
分析员也认为,蒙亏或许是大马机场最好的借口,借此调整机场税等。
若吉隆坡国际机场(KLIA)和klia2之间的机场税价差收窄50%,将可见目标价格调高至9.67令吉,目前为7.50令吉。
相较之下,马银行投行研究与部分证券行,认为蒙亏只是因单次费用所造成,下半年业绩表现可回稳。
该行的说法是,下半年通常是航空旅游需求强劲的时期,同时也可带动购物开支。
再者,klia2已投入运作推高大马机场生产力,成本将会稳定,并不会出现再多的初期成本。
“随着klia2的免税店在8月开张,加上许多商业店面是从次季末开始营运,租金将可激励营收。”
此外,亚洲航空(AIRASIA,5099,主板贸服股)下半年开始增加座位容量,这有助提高机场搭客流量。

Chan Kit Whye: TIGER AIR Shares Could Be "Technically Worthless"

Source: http://www.nextinsight.net/index.php/story-archive-mainmenu-60/924-2014/8794-chan-kit-whye-on-tiger-air-

Prior to his retirement, Chan Kit Whye (left) worked more than 30 years as Regional Finance Director, Financial Controller and Manager in a multinational specialty chemical business. He has played an active role in CPA (Australia) Singapore Branch, taking up positions in its Continuing Professional Development and Social Committees. Kit Whye is a Fellow of CPA Australia, CA of Institute of Singapore Chartered Accountants and CA of the Malaysian Institute of Accountants. He holds a BBus(Transport) Degree from RMIT, MAcc Degree from Charles Sturt University and MBA from Durham Business School.


Tiger Air 24 July 2014: Announces a Q1 loss after tax of $65 million, of which $35 million represents share of loss of associates and $14.5 million shutdown costs for PT Mandala Airlines. 

tiger_airways_550Tiger Airways' current liabilities of S$316.3 million exceeded its current assets of S$232.6 million, as at the balance sheet date of 30 June 2014. NextInsight file photoOn the balance sheet, its accumulated losses have already wiped out all its ordinary share capital, leaving $218 million perpetual convertible capital securities. 

The big ticket item in the balance sheet is left with a $338 million debt and a cash balance of $167 million. 

Its working capital ratio is 0.73 and may trigger solvency issues in the near term. In other words, all those of you holding Tiger Air ordinary shares are holding shares which could be considered technically worthless at this moment. 

Believe it or not, it is market sentiment and the prospect of further restructuring that maintain its share price at the current level. 

Even at the current level, fundamentally, it is of very little value. Although the report put the NAV at $0.22, I would dare to say that all the value belongs to the perpetual security holders, not ordinary shareholders.

Can the company turn around? Yes, anyone can say it is possible to turn around the company, only if there is cash injection. Can the CEO dare to say there would be a turnaround without tapping more funding? 

Saturday, July 26, 2014

101 Warren Ways to Close a Deal

Source: http://klse.i3investor.com/blogs/kianweiaritcles/56640.jsp

101 Warren Ways to Close a Deal

Warren Way 1. Opportunity attracts money. “Money will always flow toward opportunity, and there is an abundance of that in America,” Buffett told his stockholders in 2011.

Warren Way 2. How to choose deals. Buffett to the Wall Street Journal: “It’s like when you marry a girl. Is it her eyes? Her personality? It’s a whole bunch of things you can’t separate.”

Warren Way 3. Integrity matters. “Somebody once said that in looking for people to hire, you look for three qualities: integrity, intelligence and energy,” Buffett told the Omaha World-Herald, long before he purchased the newspaper in 2011. “And if they don’t have the first, the other two will kill you.”

Warren Way 4. Avoid risky deals. “We’ve done better by avoiding dragons rather than by slaying them,” says Buffett.

Warren Way 5. On choosing deals. “I want to be in businesses so good that even a dummy can make money,” Buffett told Fortune magazine in 1988.

Warren Way 6. On price. Buffett is widely quoted as saying: “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

Warren Way 7. Investment criteria in a nutshell. Here are Buffett’s views from his 1996 annual report. “Your goal as an investor should be simply to purchase, at a rational price, a part interest in an easily understood business whose earnings are virtually certain to be materially higher, five, ten and twenty years from now. Over time, you will find only a few companies that meet those standards— so when you see one that qualifies, you should buy a meaningful amount of stock.” Or in Buffett’s case, make a deal for the whole company.

Warren Way 8. Don’t let your deal-making reach exceed your grasp. “I don’t try to jump over seven-foot bars: I look around for one-foot bars that I can step over,” says Buffett.

Warren Way 9. Have the discipline of Ted Williams. From The Essays of Warren Buffett: “We try to exert a Ted Williams kind of discipline. In his bookThe Science of Hitting, Ted explained that he carved the strike zone into 77 cells, each the size of a baseball. Swinging only at balls in his ‘best’ cell, he knew, would allow him to hit .400; reaching for balls in his ‘worst’ spot, the low outside corner of the strike zone, would reduce him to .230. In other words, waiting for the fat pitch would be a trip to the Hall of Fame; swinging indiscriminately would mean a ticket to the minors.”

Warren Way 10. Don’t confuse price and value. “Price is what you pay. Value is what you get.”

Warren Way 11. Valuing a deal. “Valuing a business is part art and part science.”

Warren Way 12. Be wary of advice. “Never ask the barber if you need a haircut.”

Warren Way 13. Don’t mindlessly imitate. “You have to think for yourself. It always amazes me how high-IQ people mindlessly imitate. I never get good ideas talking to other people.”

Warren Way 14. Know the language of business accounting. “When managers want to get across the facts of the business to you, it can be done within the rules of accounting. Unfortunately, when they want to play games, at least in some industries, it can also be done within the rules of accounting.”

Warren Way 15. High IQ isn’t everything. “You should have a knowledge of how business operates and the language of business [accounting}, some enthusiasm for your subject, and qualities of temperament, which may be more important than IQ points.”

Warren Way 16. Hunting big deals. Author Janet Lowe reported in Warren Buffett Speaks that on a 2002 trip to Britain, Buffett told the U.K. Sunday Telegraph that he was looking for a “big deal” in that country. “We are hunting elephant…. We have got an elephant gun and it’s loaded.”

Warren Way 17. Think big or go home. At the beginning of an annual stockholders’ meeting, Buffett tapped the microphone to see if it was on: “testing… one million … two million … three million.”

Warren Way 18. Buffett admires frugality. “Whenever I read about some company undertaking a cost-cutting program, I know it’s not a company that really knows what costs are all about. Spurts don’t work in this area. The really good manager does not wake up in the morning and say, ‘This is the day I’m going to cut costs,’ any more than he wakes up and decides to practice breathing.”

Warren Way 19. Deal making is a no-called-strike game. Buffett says, “You don’t have to swing at everything—you can wait for your pitch.” Buffett is fond of baseball and often uses the game to illustrate his philosophy. In deal making, you get to stand at the plate all day, and you never have to swing. Sometimes the best deals are the ones you don’t make.

Warren Way 20. On patience and baseball. “I’ve never swung at a ball while it’s still in the pitcher’s glove.”

Warren Way 21. Change is unavoidable. “It’s no fun being a horse when the tractor comes along, or the blacksmith when the car comes along.”

Warren Way 22. Choose quality. “It’s far better to own a portion of the Hope diamond than 100 percent of a rhinestone.”

Warren Way 23. Mediocre works too. “Never count on making a good sale,” says Buffett. “Have the purchase price be so attractive that even a mediocre sale gives good results.”

Warren Way 24. Management is key. “Management changes, like marital changes, are painful, time-consuming, and chancy.”

Warren Way 25. To thine own self be true. Think for yourself, and don’t get caught up in the herd mentality. “Would you rather be the world’s greatest lover and have everyone think that you are the world’s worst lover? Or would you rather be the world’s worst lover and have everyone think that you are the world’s best lover?” Warren Buffett has spent his life going against the herd.

Warren Way 26. Passion matters. Deal only with those who believe in their products and services. “I don’t want to be on the other side of the table from the customer. I was never selling anything that I didn’t believe in myself or use myself.”

Warren Way 27. You can’t make a good deal with a bad person. Every deal that Buffett makes is sealed with a handshake. Then the lawyers come in and memorialize the details. If you are closing a deal with a bad person, there is no contract in the world that will protect you.

Warren Way 28. Honesty is the best policy. “We also believe candor benefits us as managers: The CEO who misleads others in public may eventually mislead himself in private.”

Warren Way 29. Plan for rough roads ahead. “The roads of business are riddled with potholes; a plan that requires dodging them all is a plan for disaster.”

Warren Way 30. Nobody’s perfect. Don’t expect perfection from those you are making deals with or from yourself. Be willing to make mistakes now and then. Warren said, “I make plenty of mistakes and I’ll make plenty more mistakes, too. That’s part of the game. You’ve just got to make sure that the right things overcome the wrong ones.”

Warren Way 31. Learn from others. Buffett credits many people whom he has learned from along the way, such as his professor at Columbia Business School, Ben Graham, and his partner at Berkshire Hathaway, Charlie Munger. “You don’t have to think of everything. It was Isaac Newton who said, ‘I’ve seen a little more in the world because I stood on the shoulders of giants.’ There is nothing wrong with standing on other people’s shoulders.”

Warren Way 32. Research deals carefully. In 1994, Buffett said: “Look for the durability of the franchise. The most important thing to me is figuring out how big a moat there is around the business. What I love, of course, is a big castle and a big moat with piranhas and crocodiles.”

Warren Way 33. Top two rules. “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1.”

Warren Way 34. Character counts. “When you have able managers of high character running businesses about which they are passionate, you can have a dozen or more reporting to you and still have time for an afternoon nap.”

Warren Way 35. Beware the pathology of many big deals. The Harvard Business Review reported on a 1994 letter to Berkshire Hathaway shareholders in which Buffett commented on the ego of big deals. “Some years back, a CEO friend of mine—in jest, it must be said—unintentionally described the pathology of many big deals. The friend, who ran a property-casualty insurer, was explaining to his directors why he wanted to acquire a certain life insurance company. After droning rather unpersuasively through the economics and strategic rationale for the acquisition, he abruptly abandoned the script. With an impish look, he simply said, ‘Aw, fellas, all the other kids have one.’”

Warren Way 36. Research isn’t everything. “If past history was all there was to the game, the richest people would be librarians.”

Warren Way 37. Don’t think computers can do your thinking for you. “Beware of geeks bearing formulas.”

Warren Way 38. Don’t adopt sloppy deal-making habits. “Chains of habit are too light to be felt until they are too heavy to be broken.”

Warren Way 39. To the dealmaker goes the rewards. “I don’t have a problem with guilt about money. The way I see it is that my money represents an enormous number of claim checks on society. It’s like I have these little pieces of paper that I can turn into consumption.”

Warren Way 40. Invest in the company that you keep. “It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.”

Warren Way 41. Every deal must be penciled out in advance. “You ought to be able to explain why you’re taking the job you’re taking, why you’re making the investment you’re making, or whatever it may be. And if you can’t stand applying pencil to paper, you’d better think it through some more. And if you can’t write an intelligent answer to those questions, don’t do it.”

Warren Way 42. There is risk in every deal. “Risk is part of God’s game, alike for men and nations.”

Warren Way 43. Premium had better mean special. “Your premium brand had better be delivering something special,” warns Buffett, “or it’s not going to get the business.”

Warren Way 44. Seek simplicity in deals. Don’t overcomplicate agreements. “The business schools reward difficult complex behavior more than simple behavior, but simple behavior is most effective.”

Warren Way 45. Deal making shouldn’t be difficult. “There seems to be some perverse human characteristic that likes to make easy things difficult.”

Warren Way 46. Be ready, but don’t force deals. “You do things when the opportunities come along. I’ve had periods in my life when I’ve had a bundle of opportunities come along, and I’ve had long dry spells. If I get an idea next week, I’ll do something. If not, I won’t do a damn thing.”

Warren Way 47. All it takes is a few right deals. “You only have to do a very few things right in your life so long as you don’t do too many things wrong.”

Warren Way 48. Don’t overleverage yourself. “Only when the tide goes out do you discover who has been swimming naked.”

Warren Way 49. Beware the G-word in deal making. “I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.”

Warren Way 50. Make deals in areas you understand. In 2008, Buffett was asked by CNBC about his interest in making a deal with candy giants Wrigley and Mars. “Well, I understand a Wrigley or a Mars a whole lot better than I understand the balance sheet of some of the big banks. I know what I’m getting in this, and some of the larger financial institutions, I really don’t know what’s there.”

Warren Way 51. Take a long-term view when you make a deal. Buffett likes the adage: “Someone is sitting in the shade today because someone planted a tree a long time ago.”

Warren Way 52. Deals can take time. “No matter how great the talent or efforts, some things just take time. You can’t produce a baby in one month by getting nine women pregnant.”

Warren Way 53. Sellers of a business beware. From The Essays of Warren Buffett: “Most business owners spend the better part of their lifetimes building their businesses … In contrast, owner-managers sell their business only once—frequently in an emotionally-charged atmosphere with a multitude of pressures coming from different directions.”

Warren Way 54. Sometimes all you have to do is show up. When he was in college, Buffett read an item in the school newspaper that said that a $500 graduate school scholarship was to be awarded that day. Applicants should go to Room 300, and they could earn a scholarship to the accredited school of the student’s choice. “I went to Room 300 and I was the only guy who showed up. The three professors there kept wanting to wait. I said, ‘No, no. It was three o’clock.’ So I won the scholarship without doing anything.”

Warren Way 55. Pick your battles. Buffett learned this during his dealings with Salomon. “I could have fought harder and been more vocal. I might have felt better about myself if I did. But it wouldn’t have changed the course of history. Unless you sort of enjoy combat, it doesn’t make sense.”

Warren Way 56. Focus. Focus. Focus. From the biography The Snowball comes this tale from the day in 1991 when Buffett met and spent the Fourth of July with Bill Gates and his family. Buffett recalls: “Then at dinner, Bill Gates Sr. posed the question to the table: What factor did people feel was the most important in getting to where they’d gotten in life? And I said ‘Focus,’ and Bill [Bill Gates Jr.] said the same thing.”

Warren Way 57. Get your facts straight. “And the truth is, you are neither right nor wrong because people agree with you. You’re right because your facts are right and reasoning right. In the end, that’s what counts.”

Warren Way 58. Don’t compromise on your career. Don’t waste time with your time or your life. When it comes to your career, go for the deals you really want. “It’s crazy to take little in-between jobs just because they look good on your resume. That’s like saving sex for your old age.”

Warren Way 59. Definition of an ideal business. This is what Buffett looks for when he seeks a business to obtain. “The ideal business is one that earns very high returns on capital and that keeps using lots of capital at those high returns. That becomes a compounding machine.”

Warren Way 60. Love is the greatest return. From the Buffett biography The Snowball: “That’s the ultimate test of how you have lived your life. The trouble with love is you can’t buy it. You can buy sex. You can buy testimonial dinners. You can buy pamphlets that say how wonderful you are. But the only way to get love is to be lovable.”

Warren Way 61. Share the profits with your key players. Rock superstar Bono of U2 asked for 15 minutes of Buffett’s time at a corporate event. “I love music. But actually U2’s music doesn’t blow me away. What interests me is that Bono splits the revenue of U2 among four people absolutely equally.”

Warren Way 62. Set aside reserves for when deals go bad. “You absolutely never want to be in a position where tomorrow morning you have to depend on the kindness of strangers in the financial world. I spent a lot of time thinking about that. I never want to have to come up with a billion dollars tomorrow morning. Well, a billion I could.”

Warren Way 63. Have a little cash in reserve. “Cash combined with courage in a time of crisis is priceless.”

Warren Way 64. On good deal making and the snowballing effect. People from Nebraska know about snow and how to make snowballs. From the biography The Snowball: “The snowball just happens if you’re in the right kind of snow, and that’s what happened with me. I don’t mean just compounding money either. It’s in terms of understanding the world and what types of friends you accumulate. You get to select over time, and you’ve got to be the kind of person that the snow wants to attach itself to. You’ve got to be your own wet snow, in effect. You’d better be picking up snow as you go along, because you’re not going to be getting back up to the top of the hill again. That’s the way life works.”

Warren Way 65. Think for yourself. In graduate school, Buffett was amazed at how other students were willing to go with the flow of conventional wisdom. “I don’t think there was one person in the class that thought about whether U.S. Steel was a good business. I mean, it was a big business, but they weren’t thinking about what kind of train they were getting on.”

Warren Way 66. Price isn’t the be-all and end-all. From The Essays of Warren Buffett: “Price is very important, but often is not the most critical aspect of the sale.” Buffett looks hard at people issues and the terms of the deal.

Warren Way 67. Know the true value. In 1973, the market price for the Washington Post Company was $80 million, and the company had no debt. Buffett uses this as an example of a great deal. “If you asked anyone in the business what [the Post’s] properties were worth, they’d have said $400 million or something like that. You could have an auction in the middle of the Atlantic Ocean at 2:00 in the morning, and you would have had people show up and bid that much for them. And it was being run by honest and able people who all had a significant part of their net worth in the business. It was ungodly safe. It wouldn’t have bothered me to put my whole net worth in it. Not in the least.”

Warren Way 68. Judging humans is imperfect at best. “There is no way to eliminate the possibility of error when judging humans.”

Warren Way 69. No bluffing. No kidding. “We don’t bluff. It’s not my style anyway. Over a lifetime, you’ll get a reputation for either bluffing or not bluffing. And therefore, I want it to be understood that I don’t do it.”

Warren Way 70. No pressure. “People tell me I put pressure on them. I never intend to. Some people like to apply pressure. I never do. It’s actually the last thing I like to do.”

Warren Way 71. Match your people to your principles. “I said we would have people to match our principles, rather than the reverse,” Buffett once mused. “But I found out that wasn’t so easy.”

Warren Way 72. Know what deals work for you and then focus on those deals. From The Essays of Warren Buffett: “Charlie [Munger] and I frequently get approached about acquisitions that don’t come close to meeting our tests: We’ve found that if you advertise an interest in buying collies, a lot of people will call hoping to sell you their cocker spaniels. A line from a country song expresses our feeling about new ventures, turnarounds, or auction-like sales: ‘When the phone don’t ring, you’ll know it’s me.’”

Warren Way 73. Give something back when the dealing’s done. “What better can you do with money,” Buffett told USA Today, “than to help thousands of people change their lives in a very, very positive way?”

Warren Way 74. Support success. “I like to back success,” Warren told USA Today in 2012. “I like things that change people’s lives.”

Warren Way 75. Think long term. “Our favorite holding period is forever.”

Warren Way 76. Folly is your deal-making friend. Economic fluctuations create motivated sellers who are willing to discount. “Profit from folly rather than participate in it.”

Warren Way 77. You can’t hurry love or deals. From The Essays of Warren Buffett: “In the search, we adopt the same attitude one might find appropriate in looking for a spouse: It pays to be active, interested, and open-minded, but it does not pay to be in a hurry.”

Warren Way 78. Deals begin at home. Buffett encourages his shareholders to buy from company-owned businesses. “Remember,” he told shareholders at the annual meeting, “anyone who says money can’t buy happiness simply hasn’t learned where to shop.”

Warren Way 79. Cash in and out determines value. From The Essays of Warren Buffett: “In Theory of Investment Value, written over 50 years ago, John Burr Williams set forth the equation for value, which we condense here: The value of any stock, bond or business today is determined by the cash inflows and outflows—discounted at an appropriate interest rate—that can be expected to occur during the lifetime of the asset.”

Warren Way 80. On the future of deal making. “Human potential is far from exhausted, and the American system for unleashing that potential—a system that has worked wonders over two centuries despite frequent interruptions for recessions and even a Civil War— remains alive and effective.”

Warren Way 81. It’s never too soon to be talking about money. As told in The Essays of Warren Buffett, Buffett is crystal clear on what he is looking for when he looks for companies: “An offering price (we don’t want to waste our time or that of the seller by talking, even preliminarily, about a transaction when price is unknown).”

Warren Way 82. Be wary of projections. In 1982 Warren said, “While deals often fail in practice, they never fail in projections.”

Warren Way 83. Don’t trust financial projections. From The Essays of Warren Buffett: Why potential buyers put much stock in financial projections baffles Buffett, but he keeps in mind the story of the man with an ailing horse. “Visiting the vet, he said: ‘Can you help me? Sometimes my horse walks just fine and sometimes he limps.’ The vet’s reply was pointed. ‘No problem—when he’s walking fine, sell him.’”

Warren Way 84. Be thankful for a free press. “The smarter the journalists are, the better off society is.”

Warren Way 85. Deal what you know. Buffett says you need to love the deals you make and leave the others alone. “There are all kinds of businesses that Charlie [Munger] and I don’t understand, but that doesn’t cause us to stay up at night. It just means we go on to the next one.”

Warren Way 86. Dealmakers beware. From The Essays of Warren Buffett: “Talking to Time magazine a few years back, Peter Drucker got to the heart of things: ‘I will tell you a secret: Deal making beats working. Deal making is exciting and fun, and working is grubby. Running anything is primarily an enormous amount of grubby detail work … deal making is … romantic, sexy. That’s why you have deals that make no sense.’”

Warren Way 87. Be opportunistic. “You do things when the opportunities come along,” says Buffett.

Warren Way 88. Do your homework. “Risk comes from not knowing what you are doing,” says Warren.

Warren Way 89. Pay attention to trends. Read, read, and read some more about trends that could affect your deal. In 2008, Buffett shared this story in a CNBC interview. “Well, I’ve got a son that’s a farmer. He’s a very happy fellow. They used to tell the story out here in Nebraska about the farmer that won the lottery, and they sent a television crew out to see him. And the television interviewer said, ‘You know, you’ve just won twenty million dollars in the lottery, what are you going to do with it?’ And the farmer said, ‘Well, I think I’ll just keep farming until it’s all gone.’ Well, that was the situation in farming until the last year or so, but it’s a different world now.” The moral of the story is pay attention to trends. Thanks to advances in fuels like ethanol, farming is as much about energy these days as it is about food.

Warren Way 90. Marry your fortunes well. Buffett once said: “Our situation is the opposite of Camelot’s Mordred, of whom Guenevere commented, ‘The one thing I can say for him is that he is bound to marry well. Everybody is above him.’”

Warren Way 91. Dealmaker beware. From The Essays of Warren Buffett: “We believe most deals do damage to the acquiring company. Too often, the words from HMS Pinafore apply: ‘Things are seldom what they seem, skim milk masquerades as cream.’ Specifically, sellers and their representatives invariably present financial projections having more entertainment value than educational value.”

Warren Way 92. Don’t do deals just to do deals. Buffett says, “We don’t get paid for activity, just for being right.”

Warren Way 93. Complex calculations are not necessary. “If calculus or algebra were required to be a great investor, I’d have to go back to delivering newspapers,” admits Buffett. “I’ve never seen any need for algebra. Essentially, you’re trying to figure out the value of a business.” His uncommon gift for closing a deal is common sense. Simple mathematics and a logical brain are what you need in order to withstand the emotions of deal making, because emotions can get in the way of closing a deal.

Warren Way 94. Keep your promises. From The Essays of Warren Buffett: “When we tell John Justin that his business (Justin Industries) will remain headquartered in Fort Worth, or assure the Bridge family that its operation (Ben Bridge Jeweler) will not be merged with another jeweler, these sellers can take those promises to the bank.”

Warren Way 95. Have fun doing the deals. “We enjoy the process far more than the proceeds.”

Warren Way 96. If you smell a bad deal, do what you can to get out gracefully. “Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.”

Warren Way 97. Invest in the deals that turn you on. Buffett says it pays to specialize in areas that interest you. “Why not invest your assets in the companies you really like? As Mae West said, ‘Too much of a good thing can be wonderful.’”

Warren Way 98. Think for yourself. “My idea of a group decision is to look in the mirror.”

Warren Way 99. Be honest in your deal making. Buffett told his son Howard: “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”

Warren Way 100. Put away the rose-colored glasses. Be optimistic about deal making, but be realistic, too. From The Essays of Warren Buffett: “In the production of rosy scenarios, Wall Street can hold its own against Washington.” Hope for the best, but prepare for the worst in your deal.

Warren Way 101. Predicting the future. Buffett: “In the business world, the rearview mirror is always clearer than the windshield.” Nobody knows for certain what is going to happen down the road.