just wondering...

is anyone interested in buying BURSA? a share that linked-directly to KLCI



based on the above diagram,

take the nearest example,
in early Jan 08, thanks to plantation stocks, pushing our index up to near 1550
and BURSA was priced at RM 15.00

currently CI is around 1300
while BURSA priced at RM 9.95

do you forsee the price to go up if CI is going back to 1500 and above?

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some analyst said that KLCI physcological support is between 1260 to 1280

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due to unforseen circumstances, eg. GE, U.S entering to recession, CPO/gold price is rocketing up, bubbles, etc, those are the factors that will drag our CI & BURSA price further down, so those factors must be in our consideration as well

back to my question, would you buy BURSA and keep it as a mid term investment?

well for sure is a yes for long term invesment. even if this company going to die it will have angle come and help too.
so why not. and if this share die the other sahre can say almost no need to see already

RM 9.00 to RM 9.30 probably a price to enter

expecting CI to drop another 50 to 100 points, hmmm....

me wait, 2 more weeks

At RM9+, it is still trading at around 20 PE which is not cheap though. The company earned roughly 40+ cents for the last financial year.

Sometime i quite surprise BURSA performance during mid of August. From that time onwards, its share price keep rising from RM8 (17th August) until reach peak of RM16.90 (30th Oct 2007). More than double.

I foresee that there are 2 major news that could bring up BURSA.
First: it plan to partner/or sell some shares to other international bourse(not sure what bourse liao)
Second: it will launch USD denominated oil palm market.

(just my opinion though)..

For year 2007, it gave out 85 cents of dividends. That was considered the bull year for KLCI. From their quarterly report, you can see a clear trend downwards for their earnings and profit. 2008 is not going to be as bullish as last year or even turn bearish, so I would expect their quarterly down trend to continue.

thanks for you guys input, appreciate it, as i am still hesitating:

1. is BURSA worth keeping? (as mid term investment)
2. is the current price OK to buy?

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got some info here...
can use it as a reference
like i said before, BURSA price follows CI movement

Let me estimate and continue your trend for Bursa during a bearish run.

03/2008 RM9.90 KLCI 1300
12/2008 RM6.00 KLCI 1100
05/2009 RM4.00 KLCI 800

Not serious though because no one can predict the future.

Bursa share price has high correlation with the stock market movement and volume. So if one think the market will have a bull run in near future, (as bul run always associated with volume increment), then it might be a good buy. But if in near future, stock market is drifting lower one, then it has more room for the down side.

Don't look at its previous dividend for the dividend yield calculation as previous there are some special dividend or more accurately capital repayment which make the total 'dividend' higher. We should look at its EPS as a future guide of potential dividend.

How many counters in KLSE has monopoly business?

Which counter meets the above criteria and at the same time is considered one of the safest counter in KLSE? (‘Safe’ here is referring not to capital loss due to drop in share price but unlikelihood of the company/ business collapses.)

One counter that share investors should not neglect is BURSA MALAYSIA BERHAD.

Why so?

The chance of a stock exchange goes bankrupt is very small. Referring to the most recent 5 years financial statement for year 2003 till 2007, the company recorded both operating and net profit. It is very highly unlikely but in the event the company faces financial difficulty, I can’t imagine a stock exchange not been rescued from collapse as long as capitalism survives.

About 58% of its operating income is from clearing fee. This revenue has no concern on receivables.

No inventory in this business. No inventory management required and no inventory shrinkage loss or write downs of inventory.

Let’s look at the company’s business from Porter’s 5 competitive forces model:

Potential new entrants
- Will the government approved another stock exchange? This risk from the threat is almost negligible.

b. Bargaining power of customers
- It is menu-driven pricing. The clearing fee is fixed at 0.03% and the customers cannot bargain on the rate.

c. Bargaining of suppliers.
- Suppliers are basically information technology suppliers. The threat from this force is considered low as there are competition among suppliers and BURSA has bargain power as the orders usually involve huge amount of money.

d. Threat of substitute products
- With fast growing pace of unit trust, retail investors have option to invest in unit trust instead of investing directly in share market. Somehow, unit trust fund manager will put part of the investment amount into equities market (except those unit trust funds invested overseas). With advance development of information technology and telecommunication, international and local news can be disseminated to public within very short time. It very convenient to trade online and share investment has become more user-friendly with availability of more ready customer support to the retail investors.

e. Rivalry among competitors
- While there is no local rivalry, the penetration of overseas investment by retail investors is increasing. However, this threat has not caused real concern in foreseeable future.

Think big & good company prefer not to list here, they went elsewhere. The exchange hardly grow with all for past few years. Given choice, I rather buy other exchange.
They monopoly here, but nowadays it's not hard to get listed elsewhere also, HK, SG or even NY.

TM .. monopoly home fixed line and wired broadband .. it take time to competes with them except when PR manage to take over gov