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Some companies hasn’t got affected by the financial turmoil.

Titan Chemicals Corp Bhd (5103) recorded a higher pre-tax profit of RM156.7mil for the first quarter ended March 31, 2009, compared with RM52.9mil in the same period last year.

The company said in a statement that revenue declined to RM1.13bil from RM1.66bil previously.

Its profit after tax was RM132.8mil, a 2% year-on-year growth driven by improved sales margin for its polymer-naptha resulting from customers re-stocking.

During the quarter, Titan Chemicals achieved a 61% increase in sales volume although average selling prices for products fell 41%. – Bernama

The company also said that demand for polymer products this year was expected to be affected by the uncertain global economic outlook.

“Going forward, we expect business environment under the current economic situation to be challenging. Barring unforeseen circumstances, we expect our integrated business to remain profitable in 2009,” it said.

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• Titan Chemicals – divestment by PNB and Taiwan group

With the yearly increase of ‘sin’ tax on alcohol, Carlsberg (2836) is looking to expand outside Malaysia market to increase earning. Carlsberg Brewery (M) Bhd hopes to complete the acquisition of two beverage manufacturers in the region this year, says chairman Datuk Lim Say Chong.

“We are looking at opportunities and hope to conclude the discussions this year,” he said after the company AGM yesterday.

The brewery is cash-rich with about RM227mil as at end-2008.

Lim said he could not disclose further information but added that the acquisitions were important for long-term growth.

According to managing director Soren Holm Jensen, Carlsberg does not view the acquisitions as “necessary”, given its strong market position and brand.

“It is not necessary but is an opportunity for us to make our money work in a better way,” he said, adding that it was also possible to make acquisitions at more “favourable” rates at this point in time.

Jensen said the main challenge for the company this year was the economic downturn, which would affect consumer spending.

“However, the beer market is relatively resilient and so far, we have not seen clear signals of a slowdown,” he said.

Other challenges include high raw and packaging material costs due to the company’s forward-buying policy (raw material prices have come off lately) and illicit alcoholic beverages, which made up about 20% of the market.

For the financial year ended Dec 31, Carlsberg made a net profit of RM76.1mil on a turnover of RM960.2mil.

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This posting is about the type of stocks available to trade in Bursa Malaysia.

Ordinary Stocks

When purchasing an ordinary stock, you own a share of the company. This entitles you to receive profits from the operations of the company in the form of dividends. At the annual general meeting (also referred to as an AGM), you have voting rights. Ordinary stocks are what you will start to trade in and most traders never venture beyond this.

Preferential Stocks

A preference stock is different from an ordinary stock. Preference stockholders receive dividends before dividends on ordinary stocks are announced. If the company is wound up, preference stockholders rank above ordinary stockholders in the distribution of assets. Preference stocks can often have a fixed dividend rate.

Bonus Issue

This is a free issue of stocks to the stockholders based on the number of stocks already owned.

Rights Issue

A rights issue can be granted to stockholders to buy stocks in the company, often below market price.

Derivatives

There are also securities you can trade on the market that derive their price from the parent stocks.

There are two types – Options and Warrants – and these are collectively known as Derivatives.

Options

There are two parties involved in an options contract, the writer or seller and the taker or buyer. The writer writes the option and has the obligation of accepting or delivering the stocks. The takers have the right, but not the obligation, to buy or sell the stocks. There are many advantages of options trading, the least of which is leverage. An option can be bought and sold for a fraction of the stock price, giving an effective higher return (or loss) on investment for a stock price move.
Warrants

Warrants, like options, derive their price from the parent security. Warrants though are issued by banks and other financial institutions and are classified based on whether they have an investment or trading purpose. Warrants may be issued over securities, a portfolio of securities, a stock price index, currency or commodities.

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