I'm still aiming my Maybulk. My broker called few times already asking me want to enter or not, coz 2 of  the previous support I said have been broken. RM4, RM3.8 and next is RM3.5. I keep telling her to wait first, see how market want o die or not, then only enter. 

Many stocks like what? Other than utility, shipping and steel counters which has traditionaly low PER levels, I don't think the others are even near the PER of 10.

If oil really shoot up to USD200, we might see a lot of energy conservation programs taking off. Which is good for the environment as a whole. 

I see it's much higher now, but what are you trying to say, that all stocks PER less than 10 will one day fly up? That's not a good example. How many stocks can you quote out of all of KLSE has the same example as above?

I don't know how you pick that counter up out from the haystack, but from the last 10 minutes browsing through their company's past performance, I wouldn't even give it a second look much less try to buy it. Why?

Low cash but giving dividends, high debts that is not decreasing, high receivables every year. Their past 4 quarter's performance is less than average and suddenly their latest quarter is more than their whole of last year's profits combine.

I have no idea what they are doing but it must be something good, but why hasn't the price jumped up higher since it is performing so well. If it can deliver this kind of quarterly report for the next 3 quarters, their price would probably go up to RM2+ and I'm surprised it is still so low, unless of course this quarter's performance is a one time event?

Nevertheless, it was good that you spotted this low PER counter that paid off, but the question still remains, if all low PER counters are good, why isn't anyone buying up all of em?
Edit: But if the MUDA example is to prove that a company not from the industry I've listed, then I guess it's fair, although it's quite naive to think those are the ONLY industry to have low PER. High performance companies' will not have low PER unless it is an industry standard. Which is what I was trying to imply. 

Haha, if I ever had all the answers my friend. I'll be quiet and probably live off n a cave somewhere. To be inquisitive and question everything that moves is what differentiates a fact finder and luck stumbler. 

I wont even trust any of the accounting reports of Malaysian companies. There's too many unknowns, too much risk.

Seems like Malaysians companies, such as AirAisa are more creative than Enron and Worldcom combined. I always ask myself, how do these brokerage houses determine EPS/PER when the accounting statements are beautifully sugarcoated.
That's why i seldom speculate Malaysia shares; even more so now when the US equities are severely beaten up.

Actually, US doesn't tolerate writeoffs. Look at Bear Sterns, Lehman Brothers. Both Worldcom and Enron senior management team were indicted and sentenced to jail after a lengthy investigation.

Transparency is key in US equities. If you follow the Lehman Brother's case, you will understand that investors confidence are severely shaken when the CEO says he doesn't need to raise capital but now requires two major cash injection to stay alive. Shares were 80 dollars few months ago, nows its at 26 usd.

As for malaysia's equities, sure there are some potential ones but Malaysia has never created a 5 star global company. (Maybe PBB can be one) Nevertheless, until Malaysia's accounting crediblity is restored, then more foreign investors will be interested.

For PE discussion side, I would like to add on something. (which I had post once sometimes back)

Since inflation situation has worsen and economy high probably will slowdown significantly. Using PE to judge a stock, can be a trap as well. Some counters do trade at low PE like 8x or 10x, because market doesn't believe those company earning is going to be sustained as previously, aka market expect their earning going to drop in the future, that's why those share price reluctantly to go up.

Eg. as PER is using past year EPS to compute, let say a company's EPS last year is 10 cents, but its share trade at 1.00, so by right at PER 10x, it looks attractive and cheap but due to the fact economy slowdown will hurt the company future earning let say next year it only manages to earn 5 cents only. Then current price of 1.00 become a PER 20x already which become totally not attractive at all at the same price of 1.00

So this is why some counters being traded at low PER. Market doesn't necessary right on every stocks, so if company future earning does show good result which is not as same as market expected of going down. Then share price will react to the positively to upside.

But a lot of times, market is efficient enough and most of the time get it correct (Not all, market does get it wrong sometimes), typically eg. would be financial stocks in US. Previously, all were trading at 6x or 7x only, (like Citigorup was at USD 40-50), which by right is very very cheap, but market get it right, even at 6x or 7x, they are still bloody expensive and look at where those financial stocks now. No PE at all (because making tonnes of losses). FYI Citigroup now is less than USD20. 

So of purely look at PE alone, then one would buy at USD50, 40, 30. But won't buy at USD 20 because now has no PER already.  Just joking. 

Don't get me wrong, PER still a good way to judge a stock which is one of the basic fundmantal of stock investing. Just to remind people of potential PE trap (because PE figure is backward looking), as overall picture especially future of company is the main consideration of the stock market (as stock market is forward looking).

So using data and figure with due diligence. Don't rely a single data for any judgement, look at overall picture to justify so that view is much wider and potential being more accurate.

Just my 2 cents. 

Retail sales is higher than expected amid higher jobless claims. However, be prepared for another drop on Friday 13th.

Hm, so are you saying that having a higher rate of inflation is better than being in a recession?

Ok, i do understand that consumer confidence and business confidence affects markets; but how does it relate to higher inflation and a recession? Both these market conditions affect investors confidence.

I would think any Central bank governors will prefer a recession than a high inflation with price instability.

Central banks is independant from gov or politic. They don't receive order from gov, they made their decision based on their financial intelligent although they are appointed by the gov. They have their mandate to do which normally is to govern economy growth and controlling inflation through moeny supply. FYI ECB only has one mandate aka controlling inflation.
Fed and ECB are the 2 leading example of independant decision making.

But having said that, central banks in other countries esepcially those smaller one or less transparent one, more and less being influenced by gov policy, as we knew world is not perfect.

The big boys announced massive write offs was because of aggressive investment management in very risky asset classes. Ben & Co had to rescue Bear Sterns (amid controversies) because it will rattle the entire financial industry and caused greater harm overall if they did nothing.

I do agree the Feds are confused now; fighting inflation or rescuing the financial sector. But bear in mind, the US Federal reserve has always been independent regardless if there's a republican congress/president or vice versa.

Both trade and fiscal deficit was caused by Bush disastrous tenure as President. WAR in IRAQ/Afghan took billions of dollars from the Taxpayers. Not only that, American consumers were high on Chinese made product because it was so cheap. Indeed the Americans brought this to themselves. The FED could not avoid this since trade and foreign affairs policy were handled by the White House.

So i don't see why the Fed should take the blame for Bush's cowboy antics.

But then nowaday Robert Kuok is some wat off-hand... It's all left to his son or relatives (Kuok families)

So the theory of robert kuok risk calculation may not applies anymore....

Even though it's quite safe to say robert kuok won't let his investment down the drain.. but do not discount the possibilities....

Anyway... I've took Star Reit @ 0.845 

However, anyone has anything to say about it?

As far as I know Star Reit is heavily dependent on YTL group for its earnings....  

Yea... If you were checking the Stareit properly, you will find out more than 50% of the tenant is actually YTL Group....

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Added on June 13, 2008, 10:05 pm
I buy their shares because of the management capability not the brand name of 'Robert Kuok'.

Thus if one just buying the shares because of 'Robert Kuok' name, then it's dangerous as he's some what hands off...

You're saying he's moved with calculated risk but this is not the case as he's some what hands-off...

Thus if you're just buying Maybulk or any Robert Kuok related shares and you incorporate this factors...

This is not right. You've biased in the first place.

In fact, a good management team should not have something behind. Big Shareholder is such as trust funds, pension funds are mainly there to scrutinies the actions of management. They should not participate in management or intervent unless the management is doing something silly. Else it will be conflict of interest.