Are stock splits good for investors?

stock-split

Dollarama recently posted another strong quarter. In addition to the quarterly results, the company also announced the proposal of a stock split in the ratio 1: 3. Dollarama shareholders can expect to receive two additional shares for each stock they own. According to the press release, only “shareholders registered at the close of business on 14 June 2018 are entitled to receive the two additional shares”. Does a split benefit the investors?

There is a major reason why companies are executing stock splits to improve liquidity. If the stock price of a company becomes too high for smaller investors, or if it is significantly higher than that of its competitors, a stock split leads to an impairment of the company’s share price. Therefore, a split can have the psychological effect of making the company more affordable for smaller investors, who in turn should buy more shares.

A study examining the 30 largest US companies in terms of market capitalization that conducted a stock split between 2001 and 2010 revealed no significant benefit. Exactly half of the companies achieved a positive return over a period of one year after the split and the other half a negative one.

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Rocket Internet has an eye on the 2018 profit zone

Rocket-Internet

The start-up blacksmith Rocket Internet from Berlin keeps an eye on the profit zone for certain holdings after further reduced losses in 2017. “For 2018, we expect further progress,” said CEO Oliver Samwer on Friday. Specifically, he did not want to commit himself, however, from what time which money should contribute to the coffers.

“Most companies are strong enough to formulate their own goals.” The past year has been very successful, emphasized Samwer. Rocket had failed to reach the goal of bringing three of his companies to profitability.

HelloFresh and Delivery Hero want in the black
The cooking box sender HelloFresh and the food delivery service Delivery Hero announced in recent weeks that they want to hit the black in the current business this year. Both companies have been listed since last year. According to media reports, the furniture retailer Home24 and the African retailer Jumia go public, but Samwer did not want to comment on that.

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IPO of superlatives: Finally, hot details about Saudi Aramco

saudi_Aramco

For decades, Saudi Aramco was a giant with no profile: everyone knew that the oil company was making billions, but how much was always unclear. Now, before the historic IPO, details leaked for the first time.

Apple, Amazon and the Google mother alphabet are running a race for the first group with a market value of one trillion dollars. But it would have to be more precise: the first group with a market capitalization of more than 1,000 billion US dollars.

Currently, Apple comes to 883 billion, Amazon to 701 billion and Alphabet to 719 billion US dollars stock market value. But that’s nothing compared to Saudi Aramco, the Saudi oil giant, which is said to be worth $ 2 trillion

A small part of the Saudis want to go public, and for the first time leaked to the business Saudi Aramcos concrete figures to the outside. For decades, the result of the group was accessible only to a small circle of initiates.

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Pacific Mutual says outlook for Malaysian market choppy

Pacific-Mutual-Fund

In a statement Pacific Mutual Fund Bhd, an investment management company under the OCBC Group, with internal resources to manage both local and global investments for its clients, has commented that the company expects greater market volatility ahead.

Commenting on the market outlook, Chief Executive Officer and Executive Director of Pacific Mutual, Teh Chi-cheun, said, “Both global and local economic data continue to be strong and sustainable.

This has translated into decent market performance to date in 2018, following a good run in 2017. The risk that has stemmed from policies and politics has caused markets to be more volatile. We expect markets to continue to be on an uptrend albeit with even more market volatility ahead. In short expect a ‘choppy’ market.”

Teh added, “Policies and political issues that could cause markets to be volatile include rising trade tensions although our base case assumption is no full-blown trade war, the impact of interest rate hikes in the US, tapering in Eurozone, changes in the US administration, Brexit negotiations and geo-political risk be it the Middle East, Russia or North Korea. Locally the impending general election in Malaysia might cause a slowdown in activities as investors and businesses await the dissolution of Parliament and the various political posturing and campaigning. That said, for the local bourse, there are pockets of opportunities in this environment.”

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Top Glove includes RM100mil to capital expenditure for its Vietnam factory

top glove

A leading rubber glove manufacturer, Top Glove Corp Bhd has added another RM100 million for its current fiscal year’s capital expenditure worth RM213.3 million to set up a new factory in Vietnam tailored for vinyl glove production.

According to The Edge, its executive chairman Tan Sri Dr Lim Wee Chai said the factory, which is projected to be completed in about one to two years, would also complement its China operation.

He also said that the decision to venture into Vietnam was because of lower labour and other costs.

“The operation cost in China is getting higher, therefore, instead of expanding in China, we plan to expand in Vietnam on vinyl gloves and potentially for latex gloves as well,” he told at a media briefing on Friday.

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Alibaba signs deal to offer Disney shows on video platforms

alibaba disney signs deal

Alibaba Group Holding Ltd’s entertainment arm has signed a licensing agreement with Walt Disney Co in a deal that will provide the Chinese group’s Youku video streaming platform with the largest Disney animation collection in China.

Alibaba said in a press release on Monday that the multi-year licensing agreement signed between Alibaba Digital Media and Entertainment Group and Disney subsidiary Buena Vista International Inc will see more than 1,000 Disney episodes released on Alibaba platforms which include set-top boxes.

The deal comes as Disney has faced obstacles in getting digital television content into China. In 2016, its DisneyLife online content venture, which it launched with Alibaba, was shut down by Chinese regulators less than five months after operations began. The reason for the shutdown was “The addition of Disney content greatly enriches the library of quality international content on Alibaba’s media and entertainment ecosystem, giving us a leading edge in foreign content distribution in China,” said Yang Weidong, president of Youku at Alibaba Digital Media and Entertainment Group.

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Two more JVs from YTL and Naza to oversee KL-Singapore HSR

Two more joint ventures (JVs) involving YTL Group and Naza Group have joined the fray to bid for the job of project delivery partner (PDP) to run the civil works portion of the Kuala Lumpur-Singapore high-speed rail (HSR) project.

The Star reported that according to sources, the YTL group has teamed up with the SIPP group to bid for the job of PDP, while another JV is between Naza Group and China Communications Construction Co Ltd (CCCC).

Concurrently, there are two JV companies comprising established names in the construction industry that are already bidding for the PDP job of the HSR.

The current JVs are Gamuda Bhd-Malaysian Resources Corp Bhd (MRCB) and a four-party consortium comprising IJM Corp Bhd-Sunway Construction Group Bhd (SunCon)-Jalinan Rejang Sdn Bhd-Maltimur Resources Sdn Bhd.

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Malaysian market is expected to remain volatile in 2018

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Investment analysts and equity strategists do not think Bursa Malaysia is in calmer waters now on the back of when the local stock market regained some lost ground recently after the two-day fall.

According to Maybank Kim Eng head of research and global investment strategist Sadiq Currimbhoy, volatility could be the norm this year.

The Edge reported that Currimbhoy expects the bond yield is going to climb further due to concerns about inflation particularly in the US.

“I think that is going to create market volatility for equities… at least for the first part of the year,” he told the press on the sidelines of the Fifth World Capital Markets Symposium 2018 on Feb 7.
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Genting gives ex-Jewish leisure escapade Borscht Belt hotel in upstate New York high-end gambling makeover

empire resorts genting catskills casinoEmpire Resorts Inc., controlled by Lim Kok Thay, chairman of Genting Bhd. is gambling big: He is opening the Resorts World Catskills, a $1.2 billion casino, hotel and entertainment complex at the site of the old tourist destination for tens of thousands of New Yorkers, primarily Jews.

From the 1920s to the late 1960s, the New Yorkers seeking an from the clatter and chaos of city life would find solace in the area popularly known as the “Borscht Belt,” for the sunbathing, swimming, dining, dancing and more.

But by the 1970s, the vacationers who had packed the bungalows and hotels abandoned the Borscht Belt. The place fell in ruins.

But on Feb 8, the Catskill Mountains will get its own gambling den.

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Azira, the latest residential product from Sime Darby Prop to fulfill the key needs

sime-darby
The latest residential product from Sime Darby Property launched in Bandar Bukit Raja (BBR), Klang – Azira has received positive response from the public with over 70 per cent take-up rate recorded in just one weekend.
The Star reported that the residential comprises 111 units of 20’ x 75’ double-storey link homes with built-up areas ranging from 1,901sq ft to 2,275sq ft. It comes with four bedrooms and four bathrooms.
A continuation and evolution of the earlier BBR homes, Azira boasts a contemporary modern tropical design that includes large openings with wide picture windows that help improve ventilation.
Offering freehold ownership, Azira’s prices start from RM678,888 (before bumiputera discount), which completion is expected on January 2020.
Sime Darby Property chief operating officer Datuk Wan Hashimi Albakri said, “The encouraging take-up rate for Azira is achieved by staying true to our strategy of offering the right products at the right time, location and price, to fulfil the needs of homebuyers.

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