February 28, 2008

A.K has been a good friend to our previous P.M.When Pak Lah took over the position,there are no news about A.K and Pak Lah.While Vincent Tan still suck up to the new P.M,A.K look for other markets.In my opinion,A.K goes global partly because of unstable political condition which might affect his businesses.If you look at how A.K strategized his businesses,you will see the pattern in Maxis,Tanjong and Astro.Look at Maxis news here.

For Tanjong plc,it needs less explanation as its revenue base has been diversified globally.Astro is undergoing the same transformation into a global company.Astro is currently expanding its wings to India,Indonesia,China and U.K.See news about Astro here.

A.K PhotoIf you look at some businesses which are owned by Chinese and Indian tycoons,you will see a pattern. Some public listed construction companies owned by Chinese has diversified their businesses to Indonesia,India,Vietnam,China,Middle East and Australia.While some bumiputera owned construction companies still place out their empty plates to the government, such as UEM,many non-bumiputera companies have spreaded their wings to overseas markets.Some companies made it big, like WCT,some lost money, like  Ho Hup Construction. I do not generalised bumiputera companies/non-bumiputera companies as you will see the word ‘SOME’. Some non-bumiputera companies still depend heavily on the government too.

The latest hot news is on Gamuda which needs less explanation but needs more critical analysis.The MD knows what is happening in the political arena and whatever it is,he sees unfavourable future for construction businesses.Should you invest in construction companies now?Truthfully,I won’t put a cent in construction companies because of lack of transparency,high reliance on government,cyclinical,lack of good governance and unfavourable institutional framework

You should not believe analyst reports 100% either.They too,have conflict of interest in writing their reports.Nevertheless,since they are nearer to the source,you still can use it as a guide,but not decision.Read this post. 

What are the proves on Vincent Tan sucking up to BN? Read this news to understand.

Well,enough for today.I can see a lot of neurons moving in your brain now.Maybe it’s time to rearrange your portfolio?