MORGAN Stanley slashed its target price for Malayan Banking Bhd (1155) , the country's biggest bank, by more than 50 per cent, warning that more profit downgrades could be in the offing.

Its target price is now RM3.70 a share from RM8 before. Maybank faces multiple risks, among them aggressive lending into the Singapore property market that may result in unanticipated additional loan-loss charges.

Maybank, the largest foreign bank in Singapore, saw loans grow by 14.2 per cent on Singapore dollar basis, between September 2008 and September 2007.

"Maybank is a 'value-destroyer', we expect return on equity (ROE) to stay below our assumed cost of equity (13 per cent) over the next three forecast years ... In a nutshell, we see no reason to own the stock," analyst Roger Lum wrote in the report.

The research firm cut its earnings per share (EPS) forecast by between 33 and 42 per cent for the next three financial years. It also doesn't expect positive contributions from Maybank's recent acquisitions to exceed the increased financing costs before the end of 2011.
"It does not help that both the Indonesian rupiah and Pakistan rupee have been weakening against the Malaysian ringgit, thus reducing translated earnings," wrote Lum in the report.

As such, dividend expectations have also been trimmed, with the house now expecting Maybank to pay a dividend of 20 sen a share for the year ending June 2009.

In the financial year just ended, Maybank paid a 33 sen a share dividend, while in 2007 and 2006 it parted with 70 per cent and 82 per cent of its profits in dividend respectively.

In October, Cazenove Asia Ltd said that in the worst-case scenario Maybank could cut its short-term payout ratio by half to 30 per cent.

Morgan Stanley's steep cut comes barely two weeks after CLSA Asia valued Maybank at RM3.60 a share, the first to value the bank at below the RM4 mark this year.

The bank's share price, which have fallen by more than 40 per cent this year, currently trades above RM5.

Maybank this year embarked on its biggest overseas spending spree, paying US$2 billion (RM7.24 billion) for control of Indonesia's sixth-largest lender, and for stakes in banks in Pakistan and Vietnam.

It faced stinging criticism over the premiums paid for the acquisitions, which had triggered downgrades and selldowns on the stock.

http://www.btimes.com.my/Current_News/BTIM...icle/index_html
Citibank cuts Genting’s target price to RM3.79 and fiscal 2008 earnings by 6.5 per cent

SHARES of Malaysian power to gaming firm Genting fell 1.35 per cent by 9.08 am today after the company reported a third quarter loss of RM40.38 million and warned that its UK gaming operations would be hit.

The company said that its power division would be hit by lower demand and lower prices.

Citibank today cuts Genting’s target price to RM3.79 from RM3.88 ringgit and cut fiscal 2008 earnings by 6.5 per cent.

The stock was trading at RM4.38, having been as low as RM4.24. The main index was down 0.79 per cent. - Reuters

http://www.btimes.com.my/Current_News/BTIM...icle/index_html

cause "ye ye fat" mah

early window dressing????    

But, 99% of those buying 4D are lossing over the long term. Even one wins 10K or 100K, in the process, one might already 'invested' more than that amount already, just not realised about it only.
Actually it really want to bet, better bet on Toto, or big sweep that can win 10+ millions. OT already.

Just raise some comparison of fear part, as seen lot of people fear this stock would drop and that stock would plunge.

For stock, over 10-20 years, some good stocks already double or triple or more already. See IOI, Pbbank, BAT, are the classic example. IOI was merely a Rm1.00 or slight below that 10+ years ago. BAT was in teen number only (not including the generous dividend every year).
Fundamental (like in term of profitability and competitive within their industry) of the company is the most important part that dictate the ability of the stock can appreciate in value.

Although luck does play some important part in stock market, it is not entirely luck as well, there are some good fundamental stocks that we can see from the market, while some potato chips are only relied on goreng goreng for stock price appreciation but will fall back once goreng goreng finish.

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Added on November 29, 2008, 9:14 am

If market really turn afterwards, (although not now, surely one day, it will, if the stock fundamentally still in good shape), then one will gain the peanut and lose out the opportunity of bigger upside.

When people start feel the market is bullish, the market already surge quite significantly already. As generally when people bought at the bottom, they won't know it is the bottom, they scare it will go down somemore. Because only when extreme bearishness in the market, then one only able to buy at the bottom, be it temporarily short term bottom, or long term bottom.

Just like TM few days ago, people bought at 2.5-2.6 one, all are in fear, up 5-10 cents, all cabut, now more than 3.10 already. But those people bought at 2.50 are in fear in the first place, that's why I said, why fear, the worst is losing some money only, but you already bought a lot cheaper than a lot of people!

Not said which strategy is better, whether to take fast gain and buy back later when it drops or go for longer term is right or wrong. Just when people feel good about the market, it is already late.

new system .. market open down so many haha

Everytime, new system kick starts, most of the time, problematic one.

But at least it is running, not like last time trading halt (drop more than 10% time) which causing the whole market into stand still.

Sime its forecast heavily (about 50%), so research houses might downgrade it, which prompt fund managers especially foreign one are at the sell side.

KNM Q at 0.495....

SIME Q at 5.05....

If get these two, me no more bullets for this month... 

You guys are missing the big picture. Go check a longer timeframe for DJIA and you will see what i see.

If you are focus on long term, its a good time to buy for 2-3 months, if you are focus on contra, we still have room to fall.

Well, if the chart is true to its words, this month we should see a push up to 9500. BUT, will collapse after.

wow, this is hard hitting statement.