BURSA MALAYSIA TRADE STATISTICS 31 October 2012

BURSA MALAYSIA TRADE STATISTICS
31 October 2012 (Source Bursa Malaysia)
                             Participation  Bought             Sold             Net
                             (%)               (RMm)            (RMm)         (RMm)
Local Institutions   49.1              728.6               930.7            -202.1
Local Retail          24.4              417.6               408.4                9.2
Foreign                26.5              544.9               352.0             192.9
                         100.0            1691.1              1691.1                0.0

Thursday, 1 Nov 2012 ENVAIR – Stock Pick

ENVAIR ( 0080 : 0.16 ) : Targeting 0.20/Stop loss 0.14

Description

Resistance : 0.20
Support : 0.14

RSI of 57
RSI is on the rise

STOCHASTIC
It is oversold

Comment
Following the Double bottom at 0.13, it is heading higher to 0.20

Trading Strategy
Buy. Stop loss is at 0.14

Disclaimer
This report is provided for information purposes only. It is not a complete analysis of every material fact respecting any company, industry, security or investment. Opinions expressed are subject to change without
notice.

Thursday, 1 Nov 2012 GAMUDA – Stock Pick

GAMUDA ( 5398 : 3.60 ) : Take profit

Description

Resistance : 3.64
Support : 3.50

RSI of 62
RSI is approaching overbought

STOCHASTIC
It is overbought

Comment
On the buy of 7/9//2012 at 3.41, we are recommending to take profit as it is overbought

Trading Strategy
Take profit

Disclaimer
This report is provided for information purposes only. It is not a complete analysis of every material fact respecting any company, industry, security or investment. Opinions expressed are subject to change without
notice.

Thursday, 1 Nov 2012 PWROOT – Stock Pick

PWROOT ( 7237 : 1.00 ) : Targeting 1.22/Stop loss 0.97

Description

Resistance : 1.22
Support : 0.97

RSI of 47
RSI is on the rise

STOCHASTIC
It is oversold

Comment
As the current consolidation is hovering at the 0.97 support line, it is likely to head higher to 1.22

Trading Strategy
Buy. Stop loss is at 0.97

Disclaimer
This report is provided for information purposes only. It is not a complete analysis of every material fact respecting any company, industry, security or investment. Opinions expressed are subject to change without
notice.

Thursday, 1 Nov 2012 HOVID – Stock Pick

HOVID ( 7213 : 0.245 ) : Take profit

Description

Resistance : 0.25
Support : 0.23

RSI of 70
RSI is overbought

STOCHASTIC
It is overbought

Comment
On the buy of 3/9//2012 at 0.21, we are recommending to take profit as it is overbought

Trading Strategy
Take profit

Disclaimer
This report is provided for information purposes only. It is not a complete analysis of every material fact respecting any company, industry, security or investment. Opinions expressed are subject to change without
notice.

10 Things You Need To Know Before The Opening Bell

Matthew Boesler

 Oct. 31, 2012

Dimitrios Kambouris/Getty Images for QVC

Good morning. Here's what you need to know.

• Asian markets were higher in overnight trading, with the Nikkei and the Hang Seng both rising 1 percent. European markets are higher across the board after a down day yesterday, with Spain an Italy both up 1.1 percent. In the United States, Dow futures are up 60 points while S&P 500 futures are up 9 points.

• Greece unveiled its 2013 budget today, forecasting 189.1 percent debt-to-GDP next year. The budget needs to be approved by November 11 in order for Greece to secure more aid from troika lenders.

• Cleanup in the aftermath of Hurricane Sandy enters a second day today along the eastern seaboard of the United States. Public transportation in New York City remains scarce after the subway system took on the worst damage in its history. 

• The presidential election race resumes today after a brief pause during the storm, with election day now only six days away. Governor Romney will resume campaign appearances today in Florida, while President Obama will resume appearances Thursday after a tour of the damaged caused by the storm in New Jersey today.

• Disney acquired Lucasfilm, the company that owns the rights to the Star Wars franchise, for $4 billion. A new Star Wars film is slated for release in 2015, with creator George Lucas staying on as a creative consultant. 

• South Korean industrial output missed expectations and Japanese PMI numbers fell to an 18-month low, indicating a deeper manufacturing contraction. The new data suggest that perhaps an economic rebound in Asia is premature.

• German retail sales grew 1.5 percent last month, well above consensus estimates of a 0.3 percent gain. The better than expected data caused the euro to rally against the dollar.

• ArcelorMittal, the world's largest steelmaker, posted a loss nearly three times larger than expected today, citing a slowdown in demand from China. CEO Lakshmi Mittal said that the slowdown caused choppy trading conditions in Q3 that are likely to continue into Q4.

• The New York Stock Exchange will resume normal trading today after being shut down Monday and Tuesday due to the storm. 

• At 9:45 AM ET, the October reading of the Chicago PMI index is released. Consensus estimates are for a rise to 51.4 from 49.7 last month, which would indicate a shift from contraction in manufacturing activity to expansion.
• 
  

31 Oct 2012 Kuala Lumpur Closing Stock Prices

Close Prior Change % Change AMMB 6.38 6.37 +0.01 +0.16 BAT 63.24 64.30 -1.06 -1.65 C&C 2.78 2.80 -0.02 -0.71 Genting 8.85 8.91 -0.06 -0.67 GenM 3.59 3.52 +0.07 +1.99 IGB 2.44 2.45 -0.01 -0.41 L&G 0.46 0.47 -0.01 -1.08 MayBank 9.03 9.04 -0.01 -0.11 MAS 1.03 1.03 unch unch PetGas 19.60 19.66 -0.06 -0.31 PbBank 15.90 15.88 +0.02 +0.13 RHBCap 7.50 7.51 -0.01 -0.13 Sime 9.78 9.80 -0.02 -0.20 Telekom 5.98 6.00 -0.02 -0.33 Tenaga 6.95 6.96 -0.01 -0.14 TopGlove 5.35 5.35 unch unch UMW 9.98 9.99 -0.01 -0.10 YTL 1.75 1.75 unch unch

31 Oct 2012 Kuala Lumpur Most Actives

31 Oct 2012          Kuala Lumpur Most Actives

Volume Close Change % Change Tiger 79,181,700 0.400 +0.050 +14.29 IngenCo 77,842,300 0.105 +0.015 +16.67 AMedia 62,184,900 0.425 +0.050 +13.33 THHeavy 55,198,300 0.590 -0.025 -4.07 Nextnat 48,919,800 0.125 +0.005 +4.17 Hubline 34,403,300 0.060 unch unch JCY 34,236,000 0.750 +0.070 +10.29 DSCSol 32,065,500 0.150 -0.005 -3.23 Takaso 27,260,800 0.335 +0.045 +15.52 Cybert 24,623,000 0.250 +0.030 +13.64 AGlobal 24,505,600 0.080 +0.005 +6.67 Luster 19,800,300 0.110 +0.010 +10.00 GOcean 17,816,000 0.350 +0.025 +7.69 Astro 16,049,800 2.710 -0.050 -1.81 Utopia 15,714,300 0.080 +0.005 +6.67 Itronic 15,437,200 0.650 +0.005 +0.78 PasukGb 15,115,600 0.615 +0.005 +0.82 NICORP 14,533,500 0.210 +0.005 +2.44 DiGi 13,338,500 5.310 -0.050 -0.93 Mtronic 13,224,100 0.120 unch unch Scomi 12,730,200 0.410 -0.005 -1.20 SKPetro 12,051,800 2.510 +0.030 +1.21 Gamuda 11,865,500 3.610 +0.040 +1.12 P.A. 11,267,400 0.105 unch unch Axiata 11,099,000 6.530 unch unch Telekom 10,715,600 5.980 -0.020 -0.33 MayBank 10,422,500 9.030 -0.010 -0.11 CIMB 9,891,800 7.630 +0.010 +0.13 AbleGroup 9,829,600 0.155 -0.015 -8.82 Perdana 9,732,100 0.965 -0.065 -6.31 IRCB 9,619,300 0.180 +0.015 +9.09 ASuprem 8,995,500 0.245 -0.005 -2.00 FastTrack 7,591,200 0.110 -0.005 -4.35 INIX 5,996,700 0.130 unch unch GPacket 5,959,000 0.605 -0.015 -2.42 UEMLand 5,937,000 2.120 unch unch Alam 5,933,200 0.725 +0.010 +1.40 AMMB 5,910,500 6.380 +0.010 +0.16 YTL 5,730,400 1.750 unch unch MRCB 5,682,700 1.760 +0.020 +1.15 Pesona 5,657,400 0.280 +0.005 +1.82 Permaju 5,556,700 0.445 +0.010 +2.30 CME 5,488,100 0.070 unch unch DutaLand 5,410,200 0.605 -0.005 -0.82 Tenaga 5,343,400 6.950 -0.010 -0.14 Maxis 5,264,700 6.960 -0.020 -0.29 GPRO 5,146,600 0.090 unch unch WCT 4,953,300 2.760 +0.040 +1.47 ETITech 4,847,000 0.100 unch unch MAS 4,786,000 1.030 unch unch

BURSA MALAYSIA TRADE STATISTICS 30 October 2012

BURSA MALAYSIA TRADE STATISTICS
30 October 2012 (Source Bursa Malaysia)
                             Participation  Bought             Sold              Net
                             (%)               (RMm)            (RMm)          (RMm)
Local Institutions   53.8               574.8              680.9             -106.1
Local Retail          24.9                283.4              296.8              -13.4
Foreign                21.3                308.2              188.7              119.5
                         100.0              1166.4            1166.4                  0.0

1987年股市崩盘梦魇势必重现

2012年 10月 30日 07:29

Mark Hulbert

做

好准备吧，股市将再次出现与1987年10月份一样猛烈的崩盘。

这一预期的确让人望而生畏，因为按照当前水平，这样的跌势意味着道琼斯指数在单个交易日内下挫3,000点以上。

不要以为熔断机制等市场监管改革能够阻止上述情况发生，这样想其实是自欺欺人。

近期一系列针对市场崩盘频率的有趣的学术研究揭示了这些发人深省的事实。认清这些事实也许是对1987年股市崩盘25周年的最好纪念，当年10月19日，道琼斯指数下跌了22.6%。

最初的研究要追溯到十年前一项名为“股市活动中的大幅波动理论”(A Theory of Large Fluctuations in Stock Market Activity)的研究，是由纽约大学(New York University)金融学教授加拜克斯(Xavier Gabaix)以及波士顿大学(Boston University)聚合物研究中心(Center for Polymer Studies)的科学家斯坦利(H. Eugene Stanley)、戈皮克里什南(Parameswaran Gopikrishnan)和普莱罗(Vasiliki Plerou)共同开展的。

加拜克斯早些时候接受电话采访时称，许多后续研究均验证了最初的发现。

大跌无可避免

研究者推导出了一个复杂的数学公式，用来预测股市发生单日大幅波动的频率。虽然他们相信他们的公式建立在坚实的理论基础之上，但正确与否还要依靠实践来检验。他们还发现，过去一个世纪不仅美国股市走势与该公式非常吻合，国际市场也是一样。

比方说，从长期来看，预计平均每隔104年会出现一次单日跌幅至少达到20%的情况，但崩盘任何时候都有可能发生。这就是为什么必须随时做好准备，因为你不知道崩盘什么时候会发生。

如果规模各异的崩盘发生的频率可以预测，那么我们是否也能够防范股市的急剧下跌呢？

加拜克斯教授的回答是“不可以”。崩盘是投资竞技场不可避免的特征，因为所有市场都是由最大的投资者支配的（程度大致相近）。当这些大投资者都希望抛售股票时（偶尔会发生），他们会设法规避监管机构可能设置的无数暴跌防范机制，比如熔断机制。

因此，加拜克斯教授建议所有人──不管是个人投资者还是银行和共同基金等大型机构投资者──对投资组合进行缓冲，使像1987年那样的大崩盘不致产生致命后果。

但他补充道，可惜对多数投资者来说，这一点是说起来容易做起来难。只要市场不出现重挫，这些缓冲就会拖累投资组合的表现。如果市场在很长一段时间内不出现大崩盘，投资者就会纷纷抛弃这些缓冲，去追求短期利润。

结论是什么呢？监管者试图进行防止市场单日跌幅过大的改革其实是在做无用功。更糟糕的是，这些监管举措让容易轻信的投资者产生了一种虚幻的安全感。

跟我重复一遍：股市将再次出现与1987一样猛烈的崩盘，句号。

（Mark Hulbert是弗吉尼亚州安嫩代尔(Annandale)《赫伯特金融文摘》(Hulbert Financial Digest)的创始人，1980年以来他一直在跟踪160多份金融简讯提出的建议。）

本文译自MarketWatch

（本文版权归道琼斯公司所有，未经许可不得翻译或转载。）

业务重心转至印尼 亿丰网通（NEXTNAT) 放眼双位数成长

亿丰网通（NEXTNAT，0096，创业板）计划將其业务重心转移至印尼市场，並希望在2013財政年达到双位数的净利成长。

亿丰网通首席执行员郑博毅指出，印尼庞大的人口与消费总额约为大马的10倍，產品的潜在市场也比大马市场高出10倍左右，因此未来將会专注开发印尼市场，並相信印尼市场將在未来数年成为其主要的收入来源。

印尼营业额超越大马

「现財政年，来自印尼顾客的营业额贡献已超越大马顾客。就长期而言，相信印尼顾客的贡献將愈加显著。」

郑博毅是在该公司股东常年大会后，向媒体发表谈话。

他也透露，亿丰网通与印尼INVS的互联网外包服务合约在经过半年的试用期后，已于10月份开始正式投入运作，並开始带来正面的营业额贡献。

「我们成功通过试用期，表示INVS对我们的服务素质感到满意。希望在完成这份合约后，能从INVS手中获得更多的工程。」

郑氏补充，希望通过两个季度的时间来说服对方，以取得更多的合作机会。

同时，郑氏指出，该公司上財政年起已削减低赚幅的业务，转而將资源投入在更高赚幅的业务，因此相信2013財政年將会有更好的表现，並冀望取得双位数的净利成长。

另外，他表示，目前与INVS的合作项目並未面对资金问题，因此短期內將不会进行融资活动。

「若一切顺利进行，我们將在未来两个季度后再商討下一步行动。」

f

Tuesday, 30 Oct 2012 ARANK – Stock Pick

ARANK ( 7214 : 0.56 ) : Take profit

Description

Resistance : 0.58
Support : 0.54

RSI of 78
RSI is overbought

STOCHASTIC
It is overbought

Comment
On the buy of 12/10//2012 at 0.51, we are recommending to take profit as it is overbought

Trading Strategy
Take profit

Disclaimer
This report is provided for information purposes only. It is not a complete analysis of every material fact respecting any company, industry, security or investment. Opinions expressed are subject to change without
notice.

Tuesday, 30 Oct 2012 PERDANA – Stock Pick

PERDANA ( 7108 : 1.00 ) : Take profit

Description

Resistance : 1.02
Support : 0.94

RSI of 82
RSI is overbought

STOCHASTIC
It is overbought

Comment
On the buy of 11/10//2012 at 0.88, we are recommending to take profit as it is overbought

Trading Strategy
Take profit

Disclaimer
This report is provided for information purposes only. It is not a complete analysis of every material fact respecting any company, industry, security or investment. Opinions expressed are subject to change without
notice.

Tuesday, 30 Oct 2012 RSAWIT – Stock Pick

RSAWIT ( 5113 : 0.97 ) : Take profit

Description

Resistance : 0.99
Support : 0.94

RSI of 54
RSI is neutral

STOCHASTIC
It is overbought

Comment
On the buy of 12/10//2012 at 0.93, we are recommending to take profit as it is overbought

Trading Strategy
Take profit

Disclaimer
This report is provided for information purposes only. It is not a complete analysis of every material fact respecting any company, industry, security or investment. Opinions expressed are subject to change without
notice.

Tuesday, 30 Oct 2012 GPACKET – Stock Pick

GPACKET ( 0082 : 0.64 ) : Take profit

Description

Resistance : 0.68
Support : 0.60

RSI of 73
RSI is in a sell divergence

STOCHASTIC
It is overbought

Comment
On the buy of 17/10//2012 at 0.54, we are recommending to take profit as it is overbought

Trading Strategy
Take profit

Disclaimer
This report is provided for information purposes only. It is not a complete analysis of every material fact respecting any company, industry, security or investment. Opinions expressed are subject to change without
notice.

US Futures Are Trading And They're Tanking Again

Sam Ro

 Oct. 29, 2012

Scott Olson / Getty Images

U.S. stock market futures reopened at 6:00 PM EST, and they tanked instantly and have been near their lows for the past hour.

Dow futures are down 90 points.

S&P 500 futures are down 8.8 points.

Nasdaq futures are down 23.2 points.

Earlier today, the SEC and major stock market operators confirmed that the markets would be closed again on Tuesday. 

This announcement came after futures trading closed at 9:15 AM.

Wednesday October 31 marks the last day of the fiscal year for mutual funds.  As such, futures activity could be reflecting hedging for any anticipated tax loss selling.

10 Things You Need To Know This Morning

Mamta Badkar

 Oct. 29, 2012

Spencer Platt/Getty Images

Good morning. Here's what you need to know.

• Asian markets were mostly lower in overnight trading with the Shanghai Composite down 0.35 percent. Europe is selling off and all U.S. stock markets are closed today as the east coast braces for Hurricane Sandy.

• On the east coast all eyes are on Hurricane Sandy, the biggest storm in a 100 years that is expected to make landfall in New Jersey late Monday night. 10 million people are expected to lose power, according to Johns Hopkins engineer Seth Guikema. 375,000 people in low-lying parts of New York have been evacuated according to Bloomberg.

• Sicilians voted on Sunday for a regional government and early polls showed a lead for anti-establishment party 5 Star Movement, according to Reuters. Meanwhile, former prime minister Silvio Berlusconi threatened to oust the Monti government increasing uncertainty over the nation's governance and contributing to the rout in the Italian market.

• UBS shares surged over 5 percent after reports that the bank was cutting 10,000 jobs and splitting up its fixed-income operations into a separate division that would eventually be wound down.

• Honda posted a 36 percent jump in profits in the July-September quarter as the Japanese automaker recovered from the impact of last year's tsunami. But Honda lowered its annual forecast to 4.1 million vehicle sales because of the current dispute with China over the Diaoyu-Senkaku islands. 

• Personal income and outlays for September will be out at 8:30 a.m. ET, followed by the Dallas Fed manufacturing survey at 10:30 a.m. ET. Expectations are for personal income to rise 0.4 percent month-over-month, and for the business activity index to rise to 2.

• Italian prime minister Mario Monti and Spanish prime minister Mariano Rajoy are meeting in Madrid today. The two are expected to hide a growing rift over Europe's new bailout strategy.

• India's finance minister outlined a plan to reduce India's deficit to 5.3 percent of GDP this fiscal year, and 4.8 percent in the next fiscal year.

• percent gain. The end of government subsidies for car purchases dampened demand.

• UK home prices fell 0.1 percent month-over-month in October, and were down 0.4 percent from a year ago, according to property research group Hometrack. 

29 Oct 2012 Kuala Lumpur Closing Stock Prices

Close Prior Change % Change AMMB 6.35 6.36 -0.01 -0.16 BAT 64.78 64.80 -0.02 -0.03 C&C 2.75 2.84 -0.09 -3.17 Genting 8.89 8.94 -0.05 -0.56 GenM 3.48 3.54 -0.06 -1.69 IGB 2.43 2.43 unch unch L&G 0.45 0.43 +0.02 +3.49 MayBank 9.05 9.03 +0.02 +0.22 MAS 1.03 1.06 -0.03 -2.83 PetGas 19.66 19.80 -0.14 -0.71 PbBank 15.74 15.42 +0.32 +2.08 RHBCap 7.49 7.46 +0.03 +0.40 Sime 9.80 9.80 unch unch Telekom 6.01 6.08 -0.07 -1.15 Tenaga 6.97 6.95 +0.02 +0.29 TopGlove 5.35 5.33 +0.02 +0.38 UMW 9.99 9.99 unch unch YTL 1.76 1.76 unch unch

29 Oct 2012 Kuala Lumpur Most Actives

Volume Close Change % Change AGlobal 68,716,900 0.080 +0.010 +14.29 Tiger 60,947,300 0.310 +0.025 +8.77 GPRO 46,004,300 0.100 +0.005 +5.26 Scomi 34,077,200 0.405 -0.020 -4.71 Astro 20,144,300 2.780 -0.080 -2.80 THHeavy 19,158,500 0.580 -0.025 -4.13 GPacket 16,206,900 0.625 -0.045 -6.72 Eduspec 16,008,300 0.095 +0.010 +11.76 CME 15,248,200 0.070 +0.010 +16.67 Dgsb 14,855,400 0.055 unch unch Mtronic 14,541,200 0.120 +0.005 +4.35 Alam 12,086,000 0.725 +0.020 +2.84 DRB-HICOM 11,102,400 2.530 +0.060 +2.43 CIMB 10,020,400 7.610 -0.010 -0.13 SAAG 9,954,900 0.015 unch unch NICORP 9,898,000 0.205 unch unch GOcean 9,227,500 0.300 -0.030 -9.09 DSCSol 9,082,100 0.145 +0.005 +3.57 Gamuda 8,680,900 3.570 +0.070 +2.00 Compugt 8,397,600 0.090 -0.005 -5.26 Fitters 8,344,400 0.665 -0.005 -0.75 MayBank 8,230,100 9.050 +0.020 +0.22 Axiata 8,086,500 6.530 -0.020 -0.31 DiGi 7,554,700 5.380 -0.040 -0.74 IHH 7,465,000 3.280 -0.020 -0.61 Nextnat 7,454,900 0.115 +0.005 +4.55 Pasukgb 7,184,400 0.720 +0.040 +5.88 Telekom 7,002,900 6.010 -0.070 -1.15 IngenCo 6,926,000 0.090 unch unch SKPetrol 6,205,300 2.480 unch unch Benalec 6,050,200 1.400 unch unch Tenaga 5,983,800 6.970 +0.020 +0.29 YTL 5,783,000 1.760 unch unch P.A. 5,748,000 0.105 +0.005 +5.00 JCY 5,568,700 0.670 -0.015 -2.19 Maxis 5,447,800 6.950 +0.020 +0.29 INIX 5,329,800 0.130 -0.005 -3.70 UEMLand 5,294,900 2.130 unch unch CNI 5,256,000 0.135 +0.020 +17.39 LionCorp 5,236,100 0.300 +0.060 +25.00 Genting 5,223,800 8.890 -0.050 -0.56 Hubline 5,212,500 0.060 unch unch FastTrack 5,130,000 0.110 unch unch UOADev 5,101,200 1.700 -0.070 -3.95 AirAsia 5,023,400 3.040 -0.010 -0.33 DutaLand 4,883,700 0.610 +0.020 +3.39 PJI 4,599,500 0.145 +0.010 +7.41 RGB 4,392,200 0.090 +0.005 +5.88 CSL 4,291,300 1.020 -0.020 -1.92 Focus 4,243,400 0.105 +0.010 +10.53

Monday, 29 Oct 2012 JAKS – Stock Pick

JAKS ( 4723 : 0.38 ) : Targeting 0.44/Stop loss 0.36

Description

Resistance : 0.44
Support : 0.36

RSI of 41
RSI is on the rise

STOCHASTIC
It is oversold

Comment
The current recovery is heading for 0.44

Trading Strategy
Buy. Stop loss is at 0.36

Disclaimer
This report is provided for information purposes only. It is not a complete analysis of every material fact respecting any company, industry, security or investment. Opinions expressed are subject to change without
notice.

Monday, 29 Oct 2012 MRCB – Stock Pick

MRCB ( 1651 : 1.74 ) : Take profit

Description

Resistance : 1.85
Support : 1.70

RSI of 68
RSI is overbought

STOCHASTIC
It is overbought

Comment
On the buy of 20/9/2012 at 1.66, we are recommending to take profit as it is overbought

Trading Strategy
Take profit

Disclaimer
This report is provided for information purposes only. It is not a complete analysis of every material fact respecting any company, industry, security or investment. Opinions expressed are subject to change without
notice.

Monday, 29 Oct 2012 MALTON – Stock Pick

MALTON ( 6181 : 0.54 ) : Targeting 0.60/Stop loss 0.52

Description

Resistance : 0.60 0.65
Support : 0.52

RSI of 54
RSI is on the rise

STOCHASTIC
It is oversold

Comment
The current recovery is heading for 0.60

Trading Strategy
Buy. Stop loss is at 0.52

Disclaimer
This report is provided for information purposes only. It is not a complete analysis of every material fact respecting any company, industry, security or investment. Opinions expressed are subject to change without
notice.

6 Reasons Why So Many Acquisitions Fail

Jim Price, 

University of Michigan

Jim Price

Jim Price is a startup maven who loves the entrepreneurship craft.

Recent Posts

• Why Innovation Through Acquisition Is Such A Darn Good Idea
• Why I Always Tell Co-Founders To Sign A 'Prenup'
• First-Time Entrepreneurs Should 'Listen To The Yodas'

• Igniting Innovation through the New Master of Entrepreneurship Program
• Building on the Ross Tradition of Leadership Excellence
• BBA Growth Bringing Expanded Opportunities for Students and Employers

In my last post, Why Innovation Through Acquisition Is Such A Darn Good Idea, I commented on the crucial importance of mergers and acquisitions in the business innovation ecosystem. From an entrepreneur’s-eye-view, M&A provides lucrative shareholder exits. Viewed through the lens of the public company, innovation-through-acquisition can be a legitimate strategy for entering exciting new technologies or markets by first allowing startups to do the de-risking. 

And yet history shows that, in at least half of all cases, after the deal closes, acquisitions sour. (There are dozens of studies and papers, and estimates of how many M&A deals fail to meet financial expectations run from 50 percent to as high as 90 percent.)

So all too often from a startup’s perspective, the good news is that entrepreneurs, option-holders and investors cash out, but the bad news is that the employees find themselves in an oxygen-starved bureaucracy and the startup’s customers end up confused or even orphaned. And from the acquiring company’s perspective, it’s all too common for the business advantages they sought – some combination of access to new products, access to new markets or geographies, market share increases, growth faster than purely organic growth, and/or economies of scale – to simply fail to materialize.

I’ve sat on both sides of the fence in M&A on multiple occasions, selling my startups to public companies as well as being on the acquiring side. I’ve witnessed things from the executive seat, the board seat, and as an advisor, and I’ve experienced superb outcomes, mediocre results, and unmitigated disasters.

From that perspective, here’s my list of 6 key reasons why M&A deals come unraveled after the fact – and what you can do about it:

1. Misgauging Strategic Fit

If the acquisition is too far outside the parent company’s core competency, things aren’t likely to work. A company that sells to its business customers chiefly through catalog and Internet sales ought to be very cautious about acquiring a company that relies on direct sales – even if the products are, broadly-speaking, in the same industry. Similarly, a company whose traditional strength lies in selling products to businesses might want to think twice before making a foray into a consumer-oriented business. Consulting firms have been known to acquire software companies driven by the rationale that the parent’s client companies use these sorts of software apps, and the applications are in the same broad domain as the consulting firm’s expertise; then they discover that selling B2B applications is wholly different from managing consulting engagements. An honest strategy audit up-front is the answer: don’t stray beyond your core competencies, and ask whether the target company fits your strategy, your operations, and your distribution channels. 
 
2. Getting the Deal Structure Or Price Wrong

We all understand that if the acquiring company pays too much in an auction environment, it’s going to be tough to get the acquisition to show a positive ROI. To protect themselves, some acquiring companies like to structure acquisitions with half or more of the purchase price held back based on achievement of future performance hurdles. But watch out: such earn-outs can backfire on the acquiring company in unexpected ways. If, for instance, a major payment milestone is based on post-acquisition sales performance but 99 percent of the sales people are working for the parent company – and therefore are neither aware of nor incentivized by the sales milestones – then the acquired company employees may well feel demoralized due to having scant control over achieving major payment milestones.  I’ve seen similar things happen with product-delivery-oriented earn-out payments: the good news is that the parent company hires in dozens of additional product developers, but the bad news is that only a tiny proportion of the newly-constituted product team knows about or is incentivized by achievement of a major earn-out milestone for the acquired company. In both cases, well-intentioned deal structures that held back payments based on future performance ended up having unintended consequences and souring the deal. The better bet – easier said than done – is negotiating a fair price up-front.

3. Misreading The New Company’s Culture

Just because your two companies are in the same industry doesn’t mean you’ve got the same culture.  It’s all too easy for the acquiring company’s integration team to swagger in with “winner’s syndrome,” and fulfill the worst fears of the new staff. Far better if they enter the new company’s offices carrying themselves with the four H’s: honesty, humanity, humility, and humor.

4. Not Communicating Clearly — Or Enough

In the absence of information and clear communication, rumors will fly, and people at the acquiring company will assume the worst. Communicate to the entire team, not just the top executives. Communicate clearly and honestly and consistently.  If there’s bad news, be sure to deliver it all it once, not piecemeal, and make it clear that that’s all there is – that folks don’t have to worry waiting for another shoe to drop. And when you think you’ve communicated enough, you’re one-quarter of the way there.

5. Blindly Focusing On Integration For Its Own Sake

Don’t assume that all integration is good. I’ve watched all too often as the parent company insists on fixing things that aren’t broken: The acquired company has established a strong brand, but the parent insists on “improving things” by replacing it with something that blandly blends with the corporate naming conventions. New standard operating procedures are imposed that suck all the oxygen from the room and demoralize the team. A small sales team has clear account authority, but the parent knows better and makes the newly-acquired offering the 1,400th anonymous product in its sales force’s price list.  The acquired product works perfectly well as-is, but the parent company insists on rebuilding it so that it fits into the parent’s technical architecture – thereby punishing customers and freezing all product enhancements for years. The bottom line is don’t be too heavy-handed. If this company was worth acquiring, it’s probably worth trusting, funding and encouraging to thrive.  

6. Not Focusing Enough On Customers And Sales (vs. Cost Synergies)

The most fundamental scorecard of acquisition success is financial performance, and on that count it’s far more important to focus on revenue growth than cost control. An insightful McKinsey study (published a decade ago, but whose conclusions remain completely valid) pointed out that small changes in revenue can outweigh major changes in planned cost savings. A merger with a 1% shortfall in revenue growth requires a 25% improvement in cost savings to stay on-track to create value. Conversely, exceeding your revenue-growth targets with your newly-acquired company by only 2 to 3 percent can offset a 50 percent failure on cost-reduction.

And the worst thing you can do is have a sales drop-off immediately after the acquisition – which is all too common given confusion among the newly-merged team and the customer base – because you can never make up those lost sales. Knowing the paramount importance of uninterrupted revenue – read: sales momentum – the first thing the parent company ought to do in concert with the acquired-company team is get out in front of customers, tell them what’s going on, and reassure them. Yet it’s amazing how rarely that happens. As with the acquired company’s staff, with their customers, in the absence of clear communication, rumors and negative assumptions will fill the void.  So get out in front of your newly-acquired customers, tell them they’re still loved, and provide them with a clear, comfortable, consistent and honest story. And when you think you’re done communicating with your new customers… you’re probably one-quarter of the way there.

Jim Price is a serial tech entrepreneur who also teaches entrepreneurship and innovation at Michigan's Ross School of Business. ©2012, James D. Price.

STOCKS ARE CALM BEFORE THE STORM: Here's What You Need To Know

Sam Ro

Wikimedia Commons

GDP grew more than expected in Q3.  However, everyone's attention is on "Frankenstorm."

First the scoreboard:

Dow: 13,107, +3.5, +0.0 percent

S&P 500: 1,414, +1.0, -0.0 percent

NASDAQ: 2,987, +1.8, +0.0 percent

And now the top stories:

• Markets were getting pummeled overnight, but they bounced back aggressively after the GDP report.

• The Bureau of Economic Analysis published said its advanced reading Q3 GDP was much better than expected.  The economy grew at a 2.0% rate, which compares to economists' expectation for 1.8%.  Personal consumption climbed 2.0%, which was just shy of the 2.1% expected.  The key driver of growth was government spending, which saw a huge boost in national defense spending.  

• The University of Michigan Consumer Confidence was a disappointment, falling to 82.6 from a preliminary reading of 83.1.  Economists were looking for 83.0.

• Two tech behemoths delivered disappointing quarterly earnings.  Amazon.com reported a $0.60 per share net loss, which shocked everyone.  Analysts were looking for an $0.08 loss.  However, the bulk of that loss was related to a writedown taken on the company's investment in coupon giant LivingSocial.  Surprisingly, shares rallied today.  

• Apple's earnings announcement was mixed.  Revenue came right in line at $36 billion.  But earnings per share was weak at $8.67.  iPad sales were a bit light.  But iPhone sales blew past expectations with 26.9 million units being sold.

• The eastern U.S. is bracing for Hurricane Sandy aka "Frankenstorm."  Meteorologists forecast Hurricane Sandy will come up from the Bahamas and collide with a second storm coming from the midwest to form what could be the worst storm the Northeast has seen in a century.  New York City Mayor Bloomberg is warning people to prepare to evacuate on Tuesday.

周息率高 波动稳定 基金经理抢进电讯股

• 财经新闻
 
• 财经
 

 2012-10-25 07:46

• 

1 of 2

投资者对高股息且波动较低的股票需求增加，进而推高大马电讯股的估值，此外，不少顶级基金经理认为电讯股的涨势仍未结束。

MSCI大马电讯服务指数的本益比已经上涨至24倍，是自2006年以来的最高位，也是新兴和先进国家中最贵的股项。

此外，大马的电讯股是我国9个行业当中，派息率最高的，而股项的波动却低于世界主要市场。

黄氏发展投资管理总投资长吴大卫（译音）表示，将继续持有亚通（Axiata，6888，主板贸服股）和数码网络（Digi，6947，主板基建股），两个股项在今年已上涨了29%，让黄氏发展特定股息基金（Hwang Select Dividend Fund）的表现，超越了97%的同类型基金。

周息率超越债券

受益于大马对智能手机的需求增加，这些电讯公司的周息率都超越大马债券。

他表示，由于业务比较稳定，这些高股息股的表现也出色。

他说：“投资者主要追求收入和稳定。”

MSCI大马电讯服务指数，今年至今已上升了32%，是9个行业当中最高的，也是MSCI大马指数5.3%涨幅的6倍。

K&N肯南嘉在报告中指出，电讯股上涨主要由流动数据营业额增加所带动，预计这情况会将随着智能手机价格下降而持续。

全球经济增长趋弱，也让盈利较具韧性的公司更具吸引力。

他同时也持有大马第二大通讯公司———明讯（Maxis，6012，主板贸服股）。

根据彭博汇整的数据，他负责的基金，今年的回酬达26%。

官联基金支撑

另一方面，周息率也随着股价上扬而下滑。

MSCI大马电讯指数平均周息率，从一年前的4.3%跌至3.9%。

不过，大马电讯股的周息率，依然优于MSCI大马指数公司的2.7%。

三星资产管理的阿伦理查森认为，通讯股的估值有点过高，因此该公司避开电讯股。

负责K&N肯南嘉的陈利广（译音）表示，大马官联资金的购兴将支撑电讯股，并抑制了波动。

根据大马交易所网站，上个月，本地机构占了315亿令吉股票交易的48%。

陈利广表示，大马股市结构显示，参与的主要是官联公司。

“在充满不确定因素的动荡时期，他们会寻找安全的避风港投放资金，而电讯股是选择之一。”

雇员公积金局（EPF）持有亚通12%股权，也分别持有明讯和数码网络7.2%和16%股权。

彭博的数据显示，这3家的周息率至少达3.4%。

每股盈利年增25%

MSCI大马电讯服务指数的每股盈利，在过去一年上扬了25%，比范围较广的MSCI大马指数12%的涨幅高出一倍。

此外，电讯指数的股息增加了26%，而马股整体股息则下滑了8%。

邓普敦（Templeton）新兴市场集团执行主席马克莫比斯表示，大马通讯股表现佳是因为股息，长期而言，这情况可持续。

另外，数码网络刚宣布的第3季盈利，上涨了7.8%至3亿1540万令吉。除了每股4仙的中期股息，该公司也宣布派发每股8仙的特别股息。

在上月宣布的财政预算案，首相纳吉调低个人所得税，提高公务员退休金，以及低收入者派发现金，将刺激国内消费。

香港道富环球投资安东尼姚表示，投资者对高风险证券的“胃口”增加，将影响大马通讯股的表现。

上周宣布的报告显示，中国经济增长在9月开始恢复，而美国房产市场也4年来表现最好。

由于建筑活动和消费增加，大马次季经济增长比预期中快速。

大马经济研究院（MIER）也把明年的经济增长预估，从7月的4.7%预估，上修至5.4%。

y

2.4 亿人口内需庞大 全球兵家抢攻印尼商机

• 
  印尼拥有2.44亿人口的消费市场， 消费占国内生产总值比重达7成。

雅加达栉比鳞次的摩天大楼里越来越多外资商办和高级购物中心，节节高升的消费力让印尼民众买得起高价商品。

2.4亿人口的庞大内需更让印尼市场成为全球兵家必争之地。

中央社报道，在反映消费力的平均国民所得方面，根据市场研究公司尼尔森的资料显示，从2004年起，印尼平均国民所得以倍数增长至2008年的2212美元（6746.6令吉），2011年更突破3000美元大关，达到3509美元（1万702令吉）。

2011年世界各国消费者信心指数调查中，印尼更是排名第2。

首都雅加达目前约有20至30家的大型购物中心，规模约是台北大型购物中心的5、6倍，展场之大往往让初来者分不清东西南北。

许多欧美高价精品都已进驻其中，而台湾3C产品和精致餐饮也抢占一席之地。

占经济70%

“我们就是要做精品餐饮，不是做速食店。”拥有6家印尼鼎泰丰分店的姚皇泓指出，虽然鼎泰丰的产品单价对一般印尼民众不算便宜，不过，印尼鼎泰丰就是锁定中、高阶层，提供精致、富特色的餐饮。

而同样一杯来自台湾知名饮料连锁店COME BUY的手摇杯饮料，在雅加达购物中心单价近乎台湾的两倍，在印尼算是高价饮品，不过仍吸引当地消费者大排长龙。

印尼拥有2.44亿人口的消费市场，消费占国内生产总值（GDP）比重达7成。

y

罢工连连 雅加达调升基薪

面对接二连三的劳工上街抗议，雅加达华裔副省长锺万学允诺，将调高目前150万印尼盾（480令吉）劳工最低月薪。

印尼10月初爆发大罢工，导致雅加达、勿加西、唐格朗、茂物、巴淡岛、万隆、三宝龙等地至少12个工业区陷入瘫痪，甚至连台商在雅加达郊区的工厂也受到波及。

大雅加达地区目前法律规定最低工资为月薪150万印尼盾。昨天又有大批劳工走上雅加达街头抗议，要求调高最低薪资至280万印尼盾（896令吉）。

印尼工会联盟（KSPI）秘书长鲁希迪接受《雅加达环球报》访问时说，多年以来，印尼廉价劳工的政策造成劳工及其家庭陷入悲惨生活。

鲁希迪说，目前的最低工资无法支撑劳工实际生活所需，也让7成的劳工借贷度日，有些人甚至还因此向高利贷借钱。

对于劳工的悲惨处境，刚上任的雅加达副省长锺万学指出，他已要求和印尼工会联盟代表、雅加达人力部门主管苏康达开会，讨论解决方案。

不过，锺万学强调，工会联盟要求劳工最低月薪280万印尼盾的数字太高，调整后的最低工资不会达到这个数字，毕竟从雇主的角度而言，他们还是需要负担税负。

锺万学也邀集企业代表，讨论调高最低工资的方案。他和企业代表都呼吁抗议劳工应冷静下来，好好讨论这项议题，而不是罢工、抗议，影响印尼整体的投资环境。

y

與中國文具（CSL) 換股結盟‧百利金國際（PELIKAN) ：不排除合併

• 大馬
 

 2012-10-25 10:02

百利金國際（PELIKAN，5231，主板消費品組）首席執行員呂少傑表示，該公司與中國文具（CSL，5214，主板消費品組）換股結盟後，不排除這僅是“前奏曲＂，未來或有更大的合作與併購。

呂少傑回覆《The Edge》電郵訪問時說，只要具有商業效益，任何事都可能，包括未來兩家公司可能合併。

互委代表進入董事局

他不排除未來兩家公司攜手共譜盟曲，主要是兩家公司可各展所長馳騁全球文具業；他說，兩家公司也將互委代表，進入各自的董事局。

呂少傑目前在百利金國際持股27%，朝聖基金局持股30.74%，完成上述換股後，呂將持有中國文具1.28%股權。中國文具執行主席關永賢及其家族透過L e a dChampion公司持有74.88%股權，仍是最大單一股東，而朝聖基金局則擁有2.23%股權。

他說，中國文具看到百利金國際的價值所在，基於歐債危機百利金目前股價折價交易，相信未來幾年可彰顯價值；目前未知中國文具會否再增持股權，不過目前首要工作是博採各家之優勢。

中國文具週二宣佈透過發股方式，以5千萬令吉向百利金國際三位股東收購9.8%股權。中國文具將發售最高近4千717萬新股作為收購代價，每股1令吉零6仙發售價。收購完成後，百利金國際將持有中國文具3.8%股權。

提到一旦完成換股程序，百利金國際是否提名他進入中國文具董事局，他指出這交由董事局決定。他未特別說明中國文具會否提名代表進入百利金董事局。

換股達“雙贏＂

他形容這次換股是“雙贏＂，百利金強於產品開發與經銷，中國文具則有產品製造能力；中國文具在中國的地位，有助於百利金擴大市場至此區域。

他承認，基於歐債危機來襲，百利金過去多年無法攫取更大亞洲市佔率，因而就磋商是否可利用中國文具平台打進亞洲市場。

“若協調良好，相信可和具績效的實現願望，未來可考慮利用其在福建之生產設施迎合需求。＂

他說，百利金的技術與設計知識豐富，不過只專注於本身品牌產品開發與經銷，百利金也可藉助其資源為其製造，而向百利金採購。

他指出，歐洲對文具產品素質非常嚴謹，百利金在區域的足跡，也有助中國文具擴大市場版圖。

c

2009年崩盤慘劇料不重演‧東盟出口漸失動能

• 大馬
 

 2012-10-25 17:45

電子產品需求疲弱，加上原產品價格潰跌，亞洲出口引擎明顯喪失動力，經濟學家認為，儘管區域出口短期難見曙光，但相信不會重演2009年崩盤，歐美極力救市和中國經濟見底反彈，可帶動亞洲出口邁向復甦。

不過，考量短期展望黯淡，且區域出口比預期虛弱，聯昌研究下調5個東盟國全年出口預估，其中，大馬全年3至4%出口成長預估，被下調為2至3%。

亞洲出口逼近2009年低點

聯昌研究首席經濟學家李興裕坦言：“雖然區域出口放緩在預料之內，但跌幅比預期來得嚴重，各出口國普遍垂頭喪氣，且相信難在短期內找回活力，令我們決定再下調區域出口成長預測。＂

他指出，亞洲各國出口在今年7月至9月間寫下1.4%至24.3%跌幅，隨著全球經濟持續放緩及原產品價格深跌，儲貨商擔憂最糟情況尚未到來，但實際上，亞洲出口跌幅目前已逼近2009年低點。

先進經濟體復甦腳步蹣跚，中國經濟放緩，對亞洲原產品和製造業產品需求造成打擊，其中，歐洲國家需求跌幅尤其明顯，自去年10月來深跌3至26.5%不等，區域貿易也盡顯疲態。

除晶片和電子相關產品需求受挫，依賴天然資源的經濟體亦遭原油和原棕油近期跌勢打擊，遭遇最嚴重衝擊的是兩大棕油出口國――大馬和印尼，泰國白米出口也因備受爭議的米價扶持政策而暴挫46%。

受生物燃油需求走低和生產國庫存高企衝擊，原棕油價今年至今已下跌20%，並較今年4月每公噸3千471令吉低27%。

亞洲出口復甦路漫漫

李興裕說，出口佔亞洲各國國內生產總值的25至228.1%不等，因此出口深跌可能直接拖垮亞洲整體經濟成長，為捍衛經濟成長，各國領導人已落實一系列反週期策略來緩衝外圍弱勢，如中國就兩度下調借貸利率，替銀行業注入更多融資。

“我們相信亞洲出口距離復甦還有一段路程，得待美國和歐洲完全扭轉現有窘境，及中國經濟成長見底反彈，根據現有經濟指標，亞洲出口弱勢料將延續。＂

最新OECD綜合領先指數（CLI）顯示，主要工業經濟體活動仍然低迷，顯示經濟弱勢可能延續至2013年初，採購經濟指數（PMI）則跌破50點分水嶺，反映製造業因需求放緩而苦苦掙扎，同時，8月份全球半導體晶片銷售按年下滑3.2%，重新跌入萎縮軌道，訂單出貨比則滑落至0.84倍，反映領域投資降低。

無論如何，李興裕認為儘管亞洲出口可避開長期萎縮局面，主要因聯儲局和歐洲中行適時插手將避免歐美經濟衰退，全球貿易融資情況保持健康，而且原棕油和消費科技產品需求則預料年杪反彈。

國際總商會（ICC）和國際貨幣基金組織（IMF）年初發表的聯合市場報告提到，儘管貿易融資供應仍在，但亞洲發展中國家貿易融資成本卻有上升跡象，所幸多邊發展銀行及中央銀行協助消除風險和資金壓力。

不過，李興裕相信融資貿易成本未來可能被兩大顧慮推高，包括更嚴謹法律架構，如巴塞爾III資本架構可能增添資金成本和流動性壓力，出口能見度模糊也導致貿易融資風險高於其他類型營運資本融資。

c