Rank: Guoco vs Genting

Recently, a mid-size brokerage firm in London states the possible corporate tussle in UK gaming company - Rank. What's interesting in UK in fact is the two Malaysian tycoons, Tan Sri Quek Leng Chan and Tan Sri Lim Kok Thay. Rumour is brewing on the possible corporate tussle between the two to gain bigger control of the company.

As at June 30, 2010, Quek's Guoco Group Ltd and Lim's Genting Bhd owned 29.95% and 11.59% respectively. Speculation that Guoco may raise its stake in Rank to a more significant level has been around for some time. This seems more likely now because Rank has improved its operating performance, and it fits into Quek's style of owning at least a 60% stake in each of his core listed companies.

Genting is said to be monitoring the situation very closely, as Genting has just perform its multi-billion related party transaction (Genting Singapore sold its UK gaming operations to Genting Malaysia).

In my view, any actions taken would be coming from Guoco, not Genting side. Reasons being Quek has been actively on the look out for acquisitions. Guoco's cash holding has been decreasing, after launching a few acquisitions since 2008 crisis. Yet, Guoco is cash rich now.

Meanwhile, Genting Malaysia has utilized most of its cash after taking UK's gaming operations and US racino project. Although Genting Malaysia could raise cash easily, this could potentially falling out-of-favor from investors as a cash rich dividend stock.

Where is my MEATBALLS?

Once in awhile, I'll dine-in at this famous fast food restaurant. However, this time it surprised me!!!

As normal, I order a plate of meatball spaghetti with tomato sauce, which is nice in taste. Without thinking, I straight away started my meal once it was on my table. Regrettably, I should have taken a photo (for the sake of proof). I remembered that it should be 4-5 meatballs previously, instead of 2 meatballs currently.
4 vs 2 (50% missing!!!)

Where is my MEATBALLS ???

Without arguing for the missing meatballs, I wondering why the said fast-food company did it that way? After 2 minutes, I come out with my own conclusion.

1. The pretty waitress ate it while on the way of serving me. (2 meatballs in a mouth?)
2. This is a company way to improve profit margin.

Reason number 2 seems to be more logic. Recently, the said company reporting better quarterly results with higher net profit was recorded. How to increase net profit per customer basis?

1. Value-up or cross-sell other products to a customer
2. Cutting the costs

Due to the fact that they failed to convince me to value-up, cutting cost (meatballs) is the best way. Although profit is the most important things in any business, please earn it in proper ways, not by undermining the benefits of customers.

Please give me back my MEATBALLS !!!

New Fund: OSK-UOB Capital Protected Asia Gaming & Hospitality Fund

With the Asian economies leading in the run up to the global economic recovery, it is expected that the gaming and hospitality sector in Asia would be positioned for growth. Supported by a stead fast growing population and rising income, the gaming and hospitality sector in Asia is thus expected to flourish.

On such expectation OSK-UOB offer investor a new fund that will seek to capitalize on the expected growth of this sector in the Asian region, particularly in Macau and Singapore whilst protecting* investors' capital.

This is a 4-year close-ended capital protected* fund which aim to provide regular income over the medium term whilst protecting investors' capital* on the maturity date.

This fund is suitable for investors who:

1. have a low risk tolerance;
2. seek capital protection*;
3. share our view on the growth potential of the Asian gaming and hospitality sector during the run up to the world economic recovery;
4. have a medium term horizon (4-year);
5. seek regular income

Offer Period     : 5 Oct - 18 Nov 2010
Min Investment : Rm 1,000
Sales Charge    : 2.50%

* This capital protected fund is provided through investments in ZNIDs and not by a guarantee.

Why Malaysian market keeps going up?

Recently, I personally have a chance to met up with some businessman from different industries.

When we chat about business, they said "very competitive la".

When we chat about economy, they said "still very uncertain eh".

When we chat about KL market, they said "why keeps going up ahhhh?".

While newspaper and media are reporting a slew of  news regarding Euro debts problems, US high unemployment, Japanese deflation, and China's scary property bubbles, our market charging ahead unobstructed. In contrast, Ringgit is heading to a fresh 13-year high against USD, KLCI is trying to out-beat its highest ever level, surpassing the pre-crisis level now. Although our economy was not as good as pre-crisis, our KLCI did. Why?

Malaysia to gain from world's liquidity...

Taking a macro-economic view, this is all due to the liquidity that the world governments created to rejuvenate their economies out from the 2008 recession. Actually, we are one of the by-products of too much liquidity that was created. Just take yourself as an example.

Would you invest your money to get a better return compare to fixed deposit now?

What would be your investment then?

The answer is quiet clear-cut, YES, I will invest into share market, mutual funds, or property. Definitely not fixed deposit. Right?

Remember, US and other developed countries with great liquidity are having a near record low interest rate (almost zero). Ultimately, it encourages or forced people to invest and spend, instead of "eating" interest in banks.

Then, they channel their money into those high growth countries/region, the one which came out earliest from recession. 2009 we have Australia, New Zealand, and BRIC (Brazil, Russia, India, China). 2010 we have south-east Asian countries, where Malaysia is one of them together with Indonesia.

It's not purely based on our economy, but, liquidity from other countries.

* Hint: What are the most popular mutual funds in the market now? Then, you will know the answer...

Lotus: Proton vs Fernandes & co‏

After racing F1 for barely less than a season, our supposedly 1Malaysia F1 racing team (now known as Lotus Racing Team) are taking their own stance on the Lotus brand. The high-profile brand tussle case has been taken to British court now, in which definitely does not represent the 1Malaysia spirit at all.

Although I'm not a F1 fan, I did watch F1 occasionally. Now, I had switched my channel to the court case, which I think is more interesting than on-the-track sensations. In F1, other than performance, everything is about branding and reputation and $$$. If not, why they dumped in so much money? For the sake of getting a court case?

Behind the scene...

For Proton, they want to rebuild their fragile brand by using Lotus to showcase their expertise internationally.
For Fernandes & co, they want to establish their own brand to oversea especially for AirAsia which flew directly to Europe. And, maybe just participate for fun.

Both side will win?

Since I do not know much about law and due to limited information, I would not comment on the court case. But, for sure, there is only one winner who can use the trade mark "Lotus" in the end. And, for sure, the loser will lose all - brand and money and time, but not publicity. Oops, publicity is essential for branding too...