QUOTE(AzerothJr @ Jan 24 2009, 10:41 PM)
He had mentioned that it won't be used for GLC or any company related to personal interest.
However he didn't really mentioned those company that is in-directly a GLC company due to some ministerial interest in it.
Yeah... I remember reading that the money won't be used to buy GLC companies. Only those selected "battered" stocks....
Anyway, news from Maybank Investment Bank, saying that the government is expected to decide on toll rates for 9 expressways next week (which were due for upward revisions early this year). They remained "Overweight" on toll concessionaires for their defensive earnings models.
Among those listed, PLUS and LITRAK (as always, being picked for their defensive qualities) was the top pick.
From their analysis, I'm thinking of going for LITRAK for the potential rally (?), good dividend and long-term investment (if it doesn't rally)
Would an announce of an increase in toll rates cause a price jump?

Here's an excerpt :
QUOTE
Government to decide on toll hikes next week?
- Next week, the government is expected to decide on toll rates for nine
expressways, which were due for upward revisions early this year.
- Nationalisation of toll roads is not commercially sensible; the money
could be better spent on new alternative roads and upgrading.
-We remain Overweight on toll concessionaires for their defensive
earnings models, expecting sanctity of existing contracts to prevail.
Decision time next week? We understand that the government will decide
next week, if toll charges at nine expressways will be raised. This includes six
toll roads where rate adjustments due early last year were postponed by a
year, in return for total compensation of around RM242m: NSE, NKVE, FHR2,
Penang Bridge, Sprint (Kerinchi and Damansara Links) and Ampang Elevated
Highway. The others, which are due for rate hikes this year, are the Sg Besi
Expressway, New Pantai Expressway and Kajang Ring Road. Indications are
that motorists will have to pay more on most of these toll roads, while a rate
hike at the NSE may be deferred by six months. Also, the Penang Bridge may
not get its wish (again). We estimate total compensation to be RM120m for the
rate hike deferment at the NSE (six months) and Penang Bridge (one year).
Nationalisation not sensible... Nationalisation sends an extremely negative
signal to businesses and investors on government’s “integrity”. As we had
highlighted on 13 Mar ’08, toll concessions, just like any other businesses,
compensates the concessionaires for major capex, financing costs and the
inherent business risks (in particular, traffic). A progressive toll rate is a
necessity for toll structures that depend on rising standards of living. The
problem arises when living standards do not rise fast enough. The strong
resentment towards toll hikes in the past was partly also due to poor
dissemination of information on the concessions’ costs and the bankable
required return on investments to the public. We had also noted earlier that the
government and concessionnaires have to educate the people towards a payculture.
This has been partially addressed with toll concession documents
being declassified for public viewing since early this year.
… people’s money could be put to better use. Nationalisation of toll roads
would use taxpayers’ money to “subsidise” paying motorists. Also, road
maintenance and upgradings post nationalisation burdens the government.
Expropriation clauses are clear in toll concession agreements that the
government must compensate and assume the concession debts, should it
take back the concessions. We estimate that just to take back the NSE
concession alone, it could cost >RM25b to pay off PLUS and to settle its debts.
Instead, the amount could be better spent on upgrading the existing federal
trunk road which run almost parallel to the NSE, and improving public
transportation, especially in the Klang Valley, Penang and Johor Bahru. The
construction and upgrading of alternative routes also serves the government’s
objective of fiscal stimulus under current trying economic conditions.
Maintain Overweight. We retain our Overweight call on toll concessionaires
for their defensive earnings models, expecting sanctity of contracts to prevail.
Also, dividend structures should remain intact, with net yields (due to the single
tier tax system) remaining good at >5% at current share price levels. We retain
our Buy calls on PLUS Expressways (PLUS MK; TP: RM3.20) and Lingkaran
Trans Kota Holdings (LTK MK; TP: RM2.88). In 2008, PLUS share price had
outperformed the broader market: PLUS -9% vs. KLCI: -39%. We expect this to
continue into 2009 as investors seek refuge in defensive stocks.
This post has been edited by kmarc: Jan 24 2009, 10:55 PM