JUL

18

Engro Foods 20012 Results Overview

In 2011 Engro Foods aimed to raise Capital of PKR. 675 million through Initial Pu li! "ffering #IP"$ of 27 million shares% &hi!h &ere offered to the general pu li! at PKR. 25 per share in!luded PKR 15 per share premium. Capital &orth PKR 1. 2 illion &as alread' een generated through sale of () million shares to Pri*ate in*estors. +he !ompan' earned PKR 171 million profit after ta, in 2010. Engro Corporation started usiness in food industr' in 2006 and &ithin a small time frame of Five year, it e!ame a ma-or pla'er in the food industr' of Pa.istan. 70 million shares of or in other &ords /0.5)1 of Engro Foods paid2up !apital is o&ned ' Engro Corporation &hile remaining () million or 6. (21 are o&ned ' pri*ate in*estors. Currentl'% Engro Foods is engaged in the usiness of dair'% -ui!es and ne!tars% i!e !ream% dair' farms and ri!e pro!essing. Engro Foods has also made some in*estment outside Pa.istan ' a!3uiring a 4alal food !hain. 5s its first *enture EF""67 a!3uired 5l 7afa 2 the oldest 4alal meat rand in 8orth 5meri!a in 9a' this 'ear. 6uring the first 3uarter% 5l 7afa rand sales &ere Canadian : 2.5 million and loss after tax &as Canadian : 010 thousand. +hese losses are dire!tl' !onsolidated in Engro !orporation finan!ial statements and are not in!luded in the finan!ial performan!e of Engro Foods. 5t the time of IP" different anal'st ga*e different point of *ie&s ut &hi!h I li.e the most &as 5n e3uit' portfolio manager at one of the largest asset management !ompanies in Pa.istan said ;Engro Foods is a long term growth story, It is definitely worth having in our portfolio and given that it is a small offering, I think this is the time to buy it. Engro Foods has raised the highest amount of Rs1.)) illion in the past three finan!ial 'ears through offering ne& shares. Currentl' its share pri!e is PKR 67. <esterda' =ul' 7th% 2012 EF""67 announ!ed its 14C<12 results &here its 8et profit after +a, #8P5+$ stood at PkR1, 018mn against 8et profit after +a, #8P5+$ ofPkR217mn in 14C<11% depi!ting an EP7 of 1.65 as against EP7 of 0.29 anincrease of 4.7%<o<.

i$

Highlights or 1HC!12 r"s#lt in$l#%"& Re*enue in!reased ' (01<o< in 2>C<12 rea!hing P.R10%0//mn against P.R7%221mn in 2>C<11 anal'st strongl' elie*e that this rapid gro&th is due to strong *olumetri! gro&th in the dair' segment. ?ross margin in!reased ' 0.1ppts<o< in 14C<12% .eep in *ie& this rise is most li.el' due to the *ariations in pri!e li.e the in!rease of PKR 10@liter in "lpers and +arang mil.. "ther in!ome sho&ed a rapid in!reased of 2/(1<o< in 14C<12 to P.R172mn li.el' due to a etter !ash position. Finan!ial !harges de!reased ' 161<o< in 14C<11 to P.R((1mn.
Posted 18th July 2012 by Naveed ul hassan
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Pakistani Youth

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26

October crashes

October crashes
The U.S. economy is going to face a forthcoming and hostile threat. The financial projections indicate that the stock market will buckle -- I'm talking about a potential 10% loss in a single day of trading. The market will bear the brunt of the attack. You could see the major U.S. indexes lose half of their value -- or more. The U.S. government is fully aware of the threat -- yet it chooses to do nothing about it. On Oct. 1 US is going to suffer an extremely destructive financial event, a disastrous one-day loss in the economy this has happened only thrice in the history. Great Depression: October 28 & 29, 1929 - "Black Monday" : October 19, 1987, Let me explain what i figured out... Debt Ceiling: In July and August US had an earthquake & a storm in the same week. Congress tried its best to lead the U.S. economy but US Faced government-spending limit earlier than expected, federal debt ceiling were raised due to this crazy weather event. But it didn't matter toinvestors at that time. The market remained bullish, this whole thing ended in an awful announcement from Standard & Poor's on Aug. 5, 2011: A downgrade in the U.S Credit rating. The credit of the United States was called into question for the first time. Although it was from AAA+ to AA+, it was a major announcement reflecting that the effectiveness, stability and predictability of American policymaking and political institutions have weakened.

As soon as the news spread Dow dropped 650 points pertaining to a nearly 5.5% loss in one day. The Dow lost 11.6% of its value, over a 10-day period in the beginning of August, the largest loss since October 2008's meltdown. History repeats itself, first as tragedy, second as farce. Karl Max History is going to repeat itself, this time the results could be more devastating. The White House expected that on Sept. 30, 2012, U.S. government debt will be $16.3339 trillion." But Congress is well short, nearly by two months. That means US is going to hit the debt ceiling in early October... With a lot of government funds going out on the first of the month, it's likely itll hit the ceiling. Extended emergencyunemployment benefits and the Medicare doc fix have already increased U.S. borrowing more than expected. If we see the history the stock market was drastically hurt by the debt ceiling provision. So, what do you expect will happen this time????? -- in the last month of the election? Last year, S&P dropped the U.S rating because of the wobbly government. I doubt, its view will not be different this year too. According to CNNMoney: "Ratings agencies have made clear it would be a negative for the U.S. credit rating if lawmakers simply canceled some of the cuts and didn't offset them with other budget cuts." The question here is that What will be the other two ratings agencies, Moody's and Fitch, point of view? Could S&P downgrade U.S. debt any further? The market is just waiting for a real time bad news to shift from a steady into full-scale bear market mode. The stock market could see a potential double-digit decline in Oct., after US reaches the debt ceiling, -- making it one of the largest losses in history.

U.S is on the verge of the largest tax increase in history!!... As a result of the financial distress, a new tax rate will go into effect at the end of this year. It will increase. SmartMoney and The New York Times have dubbed it "taxmageddon" for the negative impact it will have on the economy. Rise in taxes leads to slow down in the economy --" These tax hikes will affect not only very rich, Middle-class citizens will suffer, as well. But this has nothing to do with the stock market...There are a some other provisions in these tax hikes that will punish investors and corporations and sink down the stock market. Long-term capital gains taxes will go up to 60%... Tax on dividends could triple for some Americans. These tax implications will obstruct the stock market and shred it of its value. Money will pour out in multitudes. We expect to see high trading volumes in the form of massive sell-off creating a panic as everyone will be trying to get out of the door at the same time. Blue-chip stocks -- especially ones that pay steady dividends -- are the targets of taxmageddon. Everything coming for the stock market is bad. In the near term, you will gain nothing by investing in stocks. And just like those infamous October crashes, this one-day loss will be just the start. Iqbal. A et al. (2011) examined the interrelationship between US stock market and emerging markets including Pakistan and India. By employing Granger Causality Test, studies showed that there is unidirectional causality from US stock exchange to Pakistan and Indian stock exchange. With the reference of the study it illustrates that there is short run impact of US stock exchange on Pakistan stock exchange. Which shows that, any trend flowed in US market cause and effects the Pakistan stock market as well. http://www.waset.org/journals/ijhss/v6/v6-1-6.pdf

Posted 26th September 2012 by Naveed ul hassan

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JUL

21

Investment and Portfolio Management in Relationship with Society!!!

'o"s (n)"stm"nt an% Port olio *anag"m"nt ha)" a r"lationship +ith th" so$i"t,From m' point of *ie&% this su -e!t is in dire!t relation &ith the so!iet' for its etterment. 8o& the 3uestion arises is How . +hat benefits %o"s an in%i)i%#al $an g"t rom this s#/0"$t+o in*estigate this 3uestion there is need to understand the !ore *alues of this su -e!tA It primaril' relates to In*esting and managing in*estments. Investment is to put money into something to earn profit which is associated with risk. 9one' should not e put idol% it should e in*ested some&here either in usiness% or in the shape of sto!.% onds et!. +he prime fo!us of this su -e!t is to put some light on the In*estment an.ing% &hi!h adds to so!iet' primaril' ' pro*iding *alua le intermediation ser*i!es. +he' a!tuall' lin.ed indi*iduals &ithin the so!iet' and pro*ided them capital to those &ho need it. +his parti!ular s'stem allo&s people to in*est their mone' directly or indirectly and along &ith that helps !ompanies%go*ernment and indi*idual to raise funds ' ond selling% se!urit' sales and issuing of IP". In*estments in sto!.s are meant to e direct investments% indi*iduals in*est dire!tl' &hereas indirect investments are in 9utual funds &here asset management !ompanies pro*ide and de*elop different portfolios and manage them for their in*estors. +his fa!ilitates and en!ourages those people &ho are Ris. in*erse. I have a strong feeling that investment is one of the rare subjectsthat one individual person as a whole or as a part of an organi ation can be

of immense value in increasing the wealth of an individual orthe wealth of corporation or an organi ation in which you may be associated with. E!onomies those &ants gro&ing finan!ial status re3uires the ser*i!es of an In*estment !onsultants or more spe!ifi!all' In*estment an.ers &hi!h pla' a *ital role to oost the e!onom' of the !ommer!ial se!tions of the so!iet'. In other &ords%the' !reate more opportunities for oth the employed and unemployed indi*iduals to raise !apital and ma.e a profit. Both !an in*est in sto!. or ond or !onta!t an asset manager &ho !an guide him and he !ould earn di*idend or !apital gain as a plus to their regular in!ome. In*estment an.ers are an essential part of an' so!iet' and ma.e so!iet' more effi!ient. +he' pro*ide mone' for usinesses to gro& through de t and e3uit' !apital mar.ets. 9' personal e,perien!e regarding in*estment i &ant to mention here. In =ul' 2011% an IP" of a !ompan' &as issued at PKR. 25. 5t that time% one of m' friends &as doing internship in a ro.erage firm. Implementing the in2 depth .no&ledge of this su -e!t along &ith the guidan!e from his seniors !arefull' anal'Ced the !ompan' and !ome up &ith the results that this !ompan' !ould e a lue !hip for future. 7o he pur!hased 20%000 shares ' in*ested PKR 5% 00%000. Dith the passage of time the pri!e of the share .ept on in!reasing and rea!hed the highest le*el of PKR )0 per share. 5gain using the anal'sis and te!hni!al aspe!ts of the sto!. mar.et% he !on!luded that no& itEs time to get out of the mar.et% and he sold all the shares getting a !apital gain of PKR 16% 00%000. Earning this man' amounts in short period of 10 months is not an eas' tas.. If he had not in*ested that mone' than pro a ilit' is that he might ha*e the same amount of mone' sa*ed i.e. PKR 5%00%000 and in a !ountr' &ith inflation in dou le figures most pro a l' his u'ing po&er !ould ha*e een dropped do&n. From the a o*e real life e,ample% !ome up &ith result that ho& he utiliCed his .no&ledge and in!reased his &ealth. 5lthough he had studied this parti!ular su -e!t ut it doesnEt mean that people &ho donEt ha*e this .no&ledge !annot enefit from it. In*estment !onsultants are there to help the indi*idual of the so!iet' to generate in!ome. 7o &hat &e !on!luded is that In*estment F Portfolio 9anagement pro*ides an open plat form to e*er'one% e*en people &ith lo& le*el of in!omes% -o holders% students% and retired indi*iduals !an also e!ome a shareholder of a !ompan'. It pro*ides opportunities to the e*er' indi*idual of the so!iet'. People !an se!ure their future ' in*esting in retirement plans. It !reates emplo'ment% profit

generating opportunities% usiness% health' returns% de*elopment of e!onom' and all this leads to de*elopment of 7o!iet'. What is necessary to change a person is to change his awareness of himself.
Posted 21st July 2012 by Naveed ul hassan
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JUL

18

Engro Foods 20012 Results Overview

In 2011 Engro Foods aimed to raise Capital of PKR. 675 million through Initial Pu li! "ffering #IP"$ of 27 million shares% &hi!h &ere offered to the general pu li! at PKR. 25 per share in!luded PKR 15 per share premium. Capital &orth PKR 1. 2 illion &as alread' een generated through sale of () million shares to Pri*ate in*estors. +he !ompan' earned PKR 171 million profit after ta, in 2010. Engro Corporation started usiness in food industr' in 2006 and &ithin a small time frame of Five year, it e!ame a ma-or pla'er in the food industr' of Pa.istan. 70 million shares of or in other &ords /0.5)1 of Engro Foods paid2up !apital is o&ned ' Engro Corporation &hile remaining () million or 6. (21 are o&ned ' pri*ate in*estors. Currentl'% Engro Foods is engaged in the usiness of dair'% -ui!es and ne!tars% i!e !ream% dair' farms and ri!e pro!essing. Engro Foods has also made some in*estment outside Pa.istan ' a!3uiring a 4alal food !hain. 5s its first *enture EF""67 a!3uired 5l 7afa 2 the oldest 4alal meat rand in 8orth 5meri!a in 9a' this 'ear. 6uring the first 3uarter% 5l 7afa rand sales &ere Canadian : 2.5 million and loss after tax &as Canadian : 010 thousand. +hese losses are dire!tl' !onsolidated in Engro !orporation finan!ial statements and are not in!luded in the finan!ial performan!e of Engro Foods. 5t the time of IP" different anal'st ga*e different point of *ie&s ut &hi!h I li.e the most &as 5n e3uit' portfolio manager at one of the largest asset management !ompanies in Pa.istan said

;Engro Foods is a long term growth story, It is definitely worth having in our portfolio and given that it is a small offering, I think this is the time to buy it. Engro Foods has raised the highest amount of Rs1.)) illion in the past three finan!ial 'ears through offering ne& shares. Currentl' its share pri!e is PKR 67. <esterda' =ul' 7th% 2012 EF""67 announ!ed its 14C<12 results &here its 8et profit after +a, #8P5+$ stood at PkR1, 018mn against 8et profit after +a, #8P5+$ of PkR217mn in 14C<11% depi!ting an EP7 of 1.65 as against EP7 of 0.29 anincrease of 4.7%<o<.

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Highlights or 1HC!12 r"s#lt in$l#%"& Re*enue in!reased ' (01<o< in 2>C<12 rea!hing P.R10%0//mn against P.R7%221mn in 2>C<11 anal'st strongl' elie*e that this rapid gro&th is due to strong *olumetri! gro&th in the dair' segment. ?ross margin in!reased ' 0.1ppts<o< in 14C<12% .eep in *ie& this rise is most li.el' due to the *ariations in pri!e li.e the in!rease of PKR 10@liter in "lpers and +arang mil.. "ther in!ome sho&ed a rapid in!reased of 2/(1<o< in 14C<12 to P.R172mn li.el' due to a etter !ash position. Finan!ial !harges de!reased ' 161<o< in 14C<11 to P.R((1mn.
Posted 18th July 2012 by Naveed ul hassan
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JUL

Children need your PRESENCE more than your PRESENTS. I ha*e a 172'ear2old rother. ItGs interesting to o ser*e a o' !ome of age% to !hangeo*er to maturit' in these !raC' times. I am an,ious a out his future and that if I donGt e3uip him &ell% if I donGt turn a o' into a smart person% he &ill not pre*ail in this fast2!hanging &orld. 4e surprised me 'esterda' &hen &e &ere ha*ing a !hat in the e*ening. 4eGd seen that one da' I might e tal.ing a out health% se!urit' and ph'si!al strength. 5nd another da' I &ould tal. a out &hat an asset and a

lia ilit' is ho& finan!ial mar.ets &or.. 5nd the other da' ad*ising him a out his future prospe!ts. H( +ant /" a 1illionair"%H m' rother said to me% staring at a shin' la!. B9D standing ne,t to our door. HBut I donGt .no& &here to egin.H I &as -ust surprised a out the &ords !oming out of his mouth. But politel' I said 'ou egin as 'ou -ust didI B' stating &hat 'ou &anted% and most of all% /, /"li")ing in ,o#rs"l that ,o# $an %o it. 1"ing $l"ar in ,o#r min% a/o#t mon",, ho+ it +orks, an% ho+ to g"t it.2 It -ust seems li.e su!h a ig thing to a!hie*e. 9' po!.et mone' is -ust Rs.00002 5000 for a month% depending on 'our mood% &hi!h hardl' meets m' personal e,penses. In a !ountr' &here inflation is in dou le figures% unemplo'ment at its highest le*el unending pro lem of ele!tri!it'% ig time ris. for usiness. I said% H5 -ourne' of a thousand miles egins &ith a single step.GH HDhat do 'ou meanAH 4e loo.ed surprised. I said% HItGs one of the iggest su!!ess se!rets out there. ItGs &hat I !all Gma.ing molehills out of mountains.GH H6onGt 'ou mean Gma.ing mountains out of molehillsGAH he said. H8o. +hat is something &hi!h e*er' person does. I &ant 'ou to do something out of the o,. 5 mountain is a lot harder to !on3uer than a molehill. 7o &hat I &ant 'ou to do is rea. up that mountain into man' molehills. 5nd if 'ouGre dis!iplined and patient all 'our molehills &ill &eigh as mu!h as a mountain. <ouGll -ust &a.e up one da' and 'ouGll e a Billionaire. 4e too. out his !ell phone and opened the !al!ulator appli!ation. I smiled as I figured out &hat he &as doing. HBut ro... that &ould ta.e me 16%667 'ears of sa*ing m' monthl' po!.et mone' to get a Billion rupees. 5nd thatGs &ithout me spending an' of it.H H<ou get that monthl' for doing 'our !hores. In other &ords% 'ou &or. for mone'. ItGs li.e IGm 'our emplo'er.H H<eah% and &hen IGm an adult IGll ha*e more mone' to sa*e.H H<es% ut &hen 'ouGre an adult the things get more e,pensi*e% itGs not a out -ust sa*ing mone'. ItGs a out the fa!t that 'ouGre &or.ing for mone'. !o# n""% mon", to +ork or ,o#J 'ou need to !ontrol the time and mone' of other people to ma.e that Billion efore 'ouGre too old to en-o' it.H H7o donGt e s!ared of going after &hat 'ou &ant% e!ause 'ou !an do it if 'ou see things right. 6onGt a!. a&a'.

34o th" p"rson +ho %o"s not kno+ +h"r" h" +ants to go th"r" is no a)ora/l" +in%.5 H+hatGs right.H 7a'ing this &e left out for pra'ers. I .no& &eGre all us' &ith our o&n thoughts in these times% e*en &e are e!oming a frustrated nation &ith lots of so!ial% ethi!al% ps'!hologi!al !urse in our so!iet'% But I plead 'ou to !onsider the !hallenges 'our .ids% 'our 'oungerEs fa!e dail' as &ell. +he' represent !67J the' are our future. De are all !hildren of +he Re*olution% ut this is th"ir time no&. 6onGt s3uander it. +he' need 'our presen!e a lot more than 'our presents.
Posted 7th July 2012 by Naveed ul hassan Labels: Children need your PRESENCE more than your PRESENTS
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