Tuesday 16 September 2014

WILL GHLSYS BOOM BECAUSE OF ALLIBABA SPECTACULAR VALUATION? -by CG


            




















Essense No 1.
GHL WILL NEVER RUN OUT OF SHARES INSTEAD IT HAS SHORTAGE RECENTLY

If the share value were to be allowed to adjust, there are always shares that are available to everybody. Sure, it will be expensive or cheaper, but always available to buyers and seller to match. Price gouging often hurts investors despite their sympathetic intention. Stock prices allowed to change rapidly, yes, they do. Value plunged upon hearing news that the tsunami has hit Japan. Ghlsys value plunged. Upon knowing Ghlsys mergers announced, their shares rocketed. This price swing does not due to supply and demand issues rather than investor irrational behavior that hardly can be explained. Looking at the other side of it, all sellers and buyer can able to match, the demand and supply is efficiently managed by the market. So, when we hear someone saying the price jump just before they buy or the value drops just when the click the button, these are only a misperception.
While they are buyers willing to pay for a lower price, there is also someone willing to sell at that price. The company fundamentals don't change every day, while it may appear to be like price manipulation,its simply marginal traders are trying to do the same thing as others do. If an investor thinks that it is a good time to buy or sell , chances are that others do too. And that's why the price moves are usually adverse, everybody is doing the same thing at the same time. As we invest in a company, I don't spend time trying to beat the market, they are not the one to beat. There are always supply and demand to be matched. Instead, I will try to figure out how news and events will affect the supply and demand to this company and use that knowledge to trade with. And I will profit in return. There is always a hidden message from Ghlsys all the while. It is how we can explore all the available news that they have in their records from day one.If I am looking at the trends recently, the shortage of shares is obvious to me as at today.

Essense No 2.
A PATIENT WAY TO FIND THE HIDDEN FORTUNE AT GHL
Every investors dream is to make a small fortune in the stock market. Are there a short cut around? I have been trying for years. But it is much easier to pick a great stock over the years of long term investing. However, any company that wants to stay successful need a time to build up their business. It must build up their foundation over time, invest in new products, retain their good employees and keep looking for good opportunity that is beneficial to their business. It must continue to grow and bring in revenue year after year. Sounds familiar? Yes, it is. How about time? Will it happen overnight? Of course not. Over the time they will be known. They will make themselves known because they have done things right. How can we take advantage of it? Patience. True, patience will eventually bring huge fortune to the investors. Forget the noises. Pace yourself. While forgetting all the companies that we have never heard of, the meaning of on a gain one day and a drop the next. We can have an option to sleep soundly and smile happily.
I look at a company that are good yesterday, better today and greater tomorrow. There are no guarantees, at least we invest in companies that we know and we understand. The company they are in the right sectors, honest reporting and proven track record of success. In return, they are dedicated building real wealth with us. They are working out day and night while we are watching them grow. Eventually the result may be not only wealth, we have own a part of their business, learned the business and earned every penny in return.
Ghlsys have mentioned in 2012, they will acquire a company in 2013. They have done it. Last year, they said they will double their profits and are trying looking at another acquisition. Will they prove it again?

Essense No 3.
THERE IS A GREAT FORTUNE AT GHL STSTEMS BHD UNDISCOVED
Recently we have witnessed that more and more Chinese giant companies are some actively snapping up opportunities in this region especially in South East Asia. In Malaysia these super rich companies are snapping up lands, buildings, good companies and private Joint ventures. One of the company is Alibaba Group in technology sectors and Country Garden Property in property development. Alibaba itself have been aggressively penetrated South East Asia due to the underdeveloped experience and huge opportunities for these nations to offer a Chinese product in this region. Notable moves that joining the rush is Japanese internet company.
While the government of these nations is encouraging the cashless society, they did not have the speed and benchmark as these giants have, like Alibaba and Tencent can do. To facilitate the buying and selling their products and goods, they have to first set up the ecosystem. Since they are already committed their goals in these countries on their expansion trails, they are well ahead of western company that may be joining the next rush. They have to collaborate with local companies to have an easier access and manners. In the near future, the activities will be more likely to be notable. The first necessary step is to ACQUIRE.

Essense No 4.
THE TRANSITION TO CASHLESS SOCIETY WILL BRING GREAT FORTUNE TO GHLSYS.
Social efficiency will bring tremendous progress to new edge business. Only the best  brainers and best  business corporation will ensure the success of most business sectors in Malaysia. Government can initiate but mostly has failed because it is too complex and hard to penetrate by certain conditions that most people know. Not only MSC has not progressed, most of the corridor that regards to Mission 2020 corridors, is not progressing well because of complex regulation imposed on business societies. MSC is too diversified and outdated. It has stopped chasing the trends. It is mainly used as a platform to realize Mission 2020. To focus on CORE business is very important.
The technology transition is changing fast. Too fast that what we can imagine. The Government has launched many Corridors. Mostly has not progressed well. We all understand why. The only Corridors that are beginning to show results is Iskandar Corridor, Johor. That is also because of the influx of Large Foreign Investors,including Large Chinese Corporation like Country Garden Property and etc. They are very efficient and focus on their core business. They are serious and know what they want. Without their participation, there is no way to find the speed of result and progress in Iskandar, Johor. Technology will change the way we live. That is the future. If you can do and detect something earlier than anyone else,you will have the advantage to be successful.Now that the Titans of the internet has begun theirs acquisition trail, the transition may be faster than what we can imagine.
The migration of cashless societies through technology will set a benchmark to collaborate with the aim of universal social development and progress, not only our Government need to implement it, it must be blended in the ecosystem before the GST program begins. GST cannot be implemented effectively without these mechanisms. The new WAVE IS COMING.

Essense No 5.
GHL GREAT FORTUNE FROM EATING THE LUNCH FROM TRADITIONAL BUSINESSES
Owning the customers, will be key to success in most businesses. A rising tide of internet technology will definitely threaten the traditional businesses. It is a revolution. This is the transition from now to the future lifestyles of new aged population, young generation societies and cashless societies. In the past, we were focusing on traditional business that monopolize the market easily, such as financial and consumer retailer sectors. I have seen the threat as real. Technology innovation will disrupt the industries in the coming years. The scale of impact of changing technology innovation has begun to emerge. They began to eat at the lunch of their dominance. The technology savvy companies have been used to shake up the traditional finance and certain consumer retailers.
They are disrupting their active management industries. Once these INTERNET TITANS launching their financial services into their web platform, there will be more disruption coming to threaten their conservatism. The music of greater prospects of competition is a fortune to innovative technology titans at this moment. Perhaps it is for the traditional businesses to wake up and to improve their services ( instead of customers lining up and stand for hours ) and begin to understand the power of technology can take their lunch away easily now. This fortune is real and is COMING. The ecosystem of technology is penetrating South East Asia. The fortune of this transition is REAL.The UNIQUEcombination of Ghl and E Pay is not only focused on dollars and cents. LOOK BEYOND.

Essense No 6.
WITH MOL VALUED AT RM 2.6 B, GHL WILL HAVE GREATER FORTUNE ! 
What is the difference between MOL and GHL? What is the real value to determine both that bring fortune to the founder of this company? MOL has a revenues of around 400 million as reported in their announcement. But not their profit is seen. So what is the catalyst to differentiate both company's real value? In another way GHL is estimated to announce their revenues in the region around 120 million this financial year. Conservatively. If there are a suprise of upside, it will be even more interesting.This is according to the latest net research report. So, now that both the potential of the technology company has been put in papers. I notice that MOL is valued based on their branding and they are longer in the market compared to the GHL, because their merger aged is around four months and relatively young.
I trust MOL valuation of 18 times more than GHL is acceptable.Because it will indirectly hints the real value of GHLSYS. Nobody is stupid in the financial market. It is the future earnings that dictate the valuation today. Beyond that, all bases for understanding the business and knowledge about the internet technology that will soon make a great impact in the region. This is real and it comes to facts. Nothing is not transparent. Especially with the coming IPO of Alibaba Group that valued at hundreds of times more than these two company mentioned. Yes, of course Alibaba Group is very much larger than both Malaysian company. But there is one factor is the same here, the high expectation of this sector. The Rich and Famous is seeking these type of companies. They shared the same vision. They have confidence in the shift of social responsibility. More and more FOREIGN FUNDS are looking at GHL. Because they are still no nearer competitors at the moment. And they are on the right track. THE TIME WILL COME to prove this. Base on fact and figures. And there will be a huge premium to be tagged on GHLSYS.

Essense No 7.
UNDERSTAND WHAT FORTUNE IS AND YOU WILL RETIRE EARLY
As you are reading this, perhaps you have a same common goal to build up your finances for you and your family. There are plenty of resources that can provide more information and knowledge for everyone to to succesful. A surest way is to build an enormous fortune is to acquire a business that has good characteristics. They are 1. Good returns. 2. Sustainable. 3. Competitive edge. This is only achievable if a person itself has good characteristics and good attitudes to attain the said good fortune. A good character will attain fortunes from a vehicle that will allow them to earn more money than their labor alone could. Didn't notice the pattern? Most of private equity firm started in just this manner. In order to get a true fortune most private entrepreneurs want to own as much of their company as possible. Like Ghlsys Simon Loh. He never sells a single share in his history in Ghl and E-Pay. That is a good example of a good characteristic to build a business. He is confident of the future of his company. Did you ever see a successful businessman ever trade his own company shares?
There are so many successful entity founders wanting to own more than ever. They are real genuine company builders. Their company is worth more than anything else. As the information and knowledge of successful tips are easily available in just a click away, why there are so few of people cannot able to find a good fortune? I have to say that, in order to achieve a fortune , one must have a good characteristic, minus that is will be "misfortune" to oneself. I wish all investors and traders all the best in building a good characteristic in investing and a good attitude in finding the long lasting fortune.

THE END

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