Bursa Malaysia Stock Information

In many areas of life, once someone has achieved excellence in a chosen field, regardless of whether that person is an athlete, lawyer, musician or scholar, we fully expect that he or she will continue to excel year after year. While this assumption usually holds true when applied to people, it is actually quite inaccurate when applied to public companies.

Changing economic conditions, globalization, competitors’ emulations, regulatory changes and the array of organizational frictions that come with growth are just a handful of factors that weigh heavily on companies once they achieve excellence.

In fact, when a company delivers a stellar year for investors, the odds are increasingly stacked against it to repeat. The stock market further compounds this reality by overpricing stocks with winning records and undervaluing those with a checkered past.

The market can indeed be fickle and can become too fond of glamorous stocks that have recently yielded great profits while at the same time scorning solid companies who experience a temporary setback.

What’s an ideal stock? Well, besides measuring up to all the criteria outlined in the previous six ingredients, it would be a solid company that has fallen out of market favor and become undervalued for the wrong reasons.

Most people looking to make a major purchase, such as a home or automobile, don’t base their decisions solely on the advice of the commission-based salesman. Usually, they seek outside independent advice. It’s simple common sense.
The same type of common sense applies to investing decisions. Whether it’s the fickle market commentators trying to make headlines (sometimes at the expense of providing unbiased information) or Bursa Malaysia analysts for example tailoring their recommendations to benefit valuable corporate clients, we as investors must be wary of every word we read.

Here’s why…

Every brokerage firm in existence derives much of its revenue from investment banking operations. Such is the case, public companies often seek out brokerages whose analysts give them favorable coverage. And though not every investment banker is unscrupulous, the structure of the system creates temptation—a recipe for disaster, in our opinion.

You don’t need to search very long to find investors who would agree.

Biases and inefficiencies have been witnessed time and time again, and there is no guarantee they won’t continue to burn investors.

Sometimes, in the hunt for market-beating returns, investors will take on a level of risk that leaves them awake at night staring at the ceiling. But it isn’t necessary to invest out of your comfort zone to beat the market—if you know where to look.

Savvy Means Long-Term

Far too many investors end up betting on next quarter’s earnings surprises instead of investing in the long-term growth of solid companies.

A savvy stock market investor must be prepared to give his or her chosen companies time to achieve the growth and earnings they want—there’s simply no shortcut around this.

The Star, 18, 2007

By SHANNEN WONG

PETALING JAYA: Axis REIT Managers Bhd’s proposed acquisition of a five-storey building for RM37mil will boost its asset size to RM618mil, bringing it closer to its target size of RM800mil by year’s end, Aseambankers Malaysia Bhd said.

In an announcement on Friday, Axis REIT proposed the buy of its 16th property, an office and factory in Petaling Jaya, from Wah Seong Industrial Holdings Sdn Bhd.

“The acquisition price appears fair at RM353 per sq ft with rising capital values,” said Aseambankers analyst C.T. Ong in a report. “The price compares well with recent office property transactions in the vicinity, like Nestle House at RM375 per sq ft and Menara Merais at RM358 per sq ft.”

The acquisition was expected to record a net property income of about RM2.6mil a year, or a net property yield of about 7%, he said, noting that it would increase Axis REIT’s net profit by 3.3% for the financial year ending Dec 31, 2008.

The acquisition, expected to be completed by February next year, was anticipated to generate income of some RM960,000 a year for the trust, Ong said.

Read more from The Star website.

See Axis Real Estate Investment Trust

The Star, 18, 2007

KUALA LUMPUR: Atrium Real Estate Investment Trust (REIT) has acquired an industrial building at Senai Industrial Park, Johor for RM12.5mil from Yong Jin Development Sdn Bhd.

In a filing with Bursa Malaysia, Atrium REIT said the property would be leased to Flextronics Technology (Malaysia) Sdn Bhd for five years. The tenancy which expires at the end of 2011 has the option for further five years. It said the rental income would provide Atrium REIT with an annual gross yield of about 9.6%.

The acquisition comprises 2.8 ha leasehold land expiring in 2054 and housing an electronic factory with a net lettable area of 125,173 sq ft. – Bernama

See Atrium Real Estate Investment Trust