well, according to analyst, US finance sector profit might downfall up to 30% with share might go south for almost 50% of the current value.

do you think it's good to invest in finance sector in malaysia? but based on the current price, a lot of the stocks are very expensive vs the economy outlook.

do you think investing in gambling industry would be a good? I've read sin chew and they've recommended DGATE which produces slot machines and other electronic machine for gambling industry, with taiwan and thailand considering casinos over there.

resort too..

what do you have to say about it?

Are you asking us if we think the counters like Dgate and Resorts would do well in times of US recession? As well as whether finance stocks in Malaysia is good when US finance sector is getting hit?

It would be nice if you would be more specific on what you want to know rather than asking a general question.

Since we are all learning as well, we always like to share information on what we read or what we think. it would be nice of you to let us know your thoughts as well so we either learn from it or pile on additional information when we think everyone should know.

For me Resorts seems like a good bet, don't know much about DGATE though.

Banks in Malaysia weren't exposed to what US banks were playing with so it's safe to say our banks are quite safe from collapsing from the sub-prime issue. But I do not know if most finance counters in Malaysia can withstand a US recession.

Local banks are highly depended on local front issue aka economy growth as most Malaysia banks are more conservative in nature, they have less exposure, some none at all to those CDO or securitised mortgages.

With economy growth, their loan also grow which just mean for more profit ahead as the spread of interest rate is pretty high and staying at current level for years.
But if US recession come with a bad shape one, and affect world economy and Malaysia export, surely Malaysia economy growth will more and less being affected. Malaysia is not a self-sustained economy, its export industry accounted almost half of the GDP growth
If Malaysia economy doesn't growth, then the level of NPL will go up which eventually will affect the banks' profitibility.

sorry that my question derailed. what i meant was analyst issued profit warning for financial institution amid to the subprime / recession. i wanted to ask if the gambling industry is bullet proof to that or rather without significant effect.

also, since they were saying that US stock might go south, do you think it is worth investing when it's at low tide?

You could be surprised most exporters of E & E are not even listed in Bursa. Such companies are Sony, Samsung, Motorola, Intel and many other Japanese companies.

For the Japanese companies, their borrowings are backed up from Japan. In Malaysia, our bankers are acting as distribution agents.

Our local exporters quite a lot are related to oil and gas and palm oil.

In other words, the impact would to some extent lesser than what could happen in US.

Few months before GE, the foreign sharing holdings of our banks were very high . They came in to park their money in Malaysia as a " safe haven". And they expect our currency to appreciate against US $ in near term. Things changed quite a lot after the GE due to the political uncertainties. The foreign investors also say our policies are not pro business.

But if many Malaysians are losing their jobs, then our local banks could end up with higher NPL.

Our Government supposed to jump start the engine ( mega projects ) , but some minor political crisis is going on.

This post has been edited by SKY 1809: Mar 26 2008, 01:13 PM

Panasonic Malaysia is listed as Panamy in Bursa.

sorry. just amended.

Nothing is bullet proof if recession does kick in, only degree of effect is less or more.