Cigar Butt to note in Bursa

February 29, 2008

puncak.jpgUtilico Emerging Markets Limited owned 5.44% of PUNCAK on 8 Jan 2007. It increases its stake gradually to 7.94% on 27 Feb 2008. A quick check on Utilico’s website shows that Puncak is in the fund’s top 10 list.What does Utilico see in Puncak? Is it the 2009’s potential water tariff hike? Why another water tariff hike after the 2006’s hike? A 40 per cent tariff hike in 2001 was followed by a 30 per cent increase in 2003 – contrary to state regulations allowing only a 30 per cent rise every three years. There will be 30% water tariff hike every 3 years.This is truly a windfall for Puncak.It’s time to buy Puncak? Get to know Utilico by downloading utilico.pdf

Another cigar butt which drew a lot of attention today is ten.jpgTNB. A check in KLSE announcement showed that SKIM AMANAH SAHAM BUMIPUTERA have increased its shares from 345,284,200 shares on 30/5/06 to 371,403,100 shares on 22/02/2008. We all know this ASB is for bumiputera only and it is a channel to distribute wealth to bumiputera.See NEP. This increase in stake should signify tariff hike for electricity soon,maybe after the election.Should you buy TNB to ride on the wave? tenaga-report-by-sp.pdf