INVESTMENT ANALYSIS

(BAFD2053)

NAME: NO. MATRIC:

MOHAMMAD RAFIE BIN ABDUL LATIF MC1506DC9337
ASMIRAFAZILA BT AMRI MC1506DC9215
PAVITRHEN A/L SHANKER MC1506DC9830
 CONTENTS

NO. TITLE PAGE

1. PART A:
Q1 1
Q2 1-4
Q3 5-8
Q4 8-9

2. PART B:

TENAGA NASIONAL BERHAD 10-11

NESTLE (M) BERHAD 11-12
UNITED MALACCA BERHAD 13-14
PARAMOUNT CORPORATION BERHAD 14-15
UNISEM (M) BERHAD 16-17
WCT HOLDINGS BERHAD
17-18
3. CONCLUSION 19-20
Part A:

1 Define investment.

Investment is the commitment of money or capital to purchase other assets in order to

gain profitable returns in the form of interest, income or appreciation of the value of the

instrument. Investment is related to saving or deferring consumption. For example when an

asset is bought or a given amount of money is invested in the bank there is anticipation that

some return will be received from the investment in the future.

An investment involves the choice by an individual or an organization such as a pension

fund, after some analysis or thought, to place or lend money in a vehicle, instrument or

asset, such as property, stock, bond, financial derivatives, or the foreign asset denominated

in foreign currency, that has certain level of risk and provides the possibility of generating

returns over a period of time.

2. Distinguish between the following:

a Investment and saving

Your "savings" are usually put into the safest places or products that allow you access to

your money at any time. Examples include savings accounts, checking accounts, and

certificates of deposit. At some banks and savings and loan associations your deposits may

be insured by the Federal Deposit Insurance Corporation (FDIC). But there's a tradeoff for

the security and ready availability of these savings methods: your money is paid a low wage

as it works for you.

 When you "invest," you have a greater chance of losing your money than when you

"save." Unlike FDIC-insured deposits, the money you invest in securities, mutual funds, and

other similar investments is not federally insured. You could lose your "principal," which is

the amount you've invested. Thats true even if you purchase your investments through a

bank. But when you invest, you also have the opportunity to earn more money than when

you save. There is a tradeoff between the higher risk of investing and the potential for

greater rewards.

b Investment and speculation

The main difference between speculating and investing is the amount of risk undertaken

in the trade. Typically, high-risk trades that are almost akin to gambling fall under the

umbrella of speculation, whereas lower-risk investments based on fundamentals and

analysis fall into the category of investing. Investors seek to generate a satisfactory return on

their capital by taking on an average or below-average amount of risk. On the other hand,

speculators are seeking to make abnormally high returns from bets that can go one way or

the other. It should be noted that speculation is not exactly like gambling because

speculators do try to make an educated decision on the direction of the trade, but the risk

inherent in the trade tends to be significantly above average.

As an example of a speculative trade, consider a volatile junior gold mining company that

has an equal chance over the near term of skyrocketing from a new gold mine discovery or

going bankrupt. With no news from the company, investors would tend to shy away from

such a risky trade, but some speculators may believe that the junior gold mining company is

going to strike gold and may buy its stock on a hunch. This would be speculation.
 As an example of investing, consider a large stable multinational company. The company

may pay a consistent dividend that increases annually, and its business risk is low. An

investor may choose to invest in this company over the long-term to make a satisfactory

return on his or her capital while taking on relatively low risk. Additionally, the investor may

add several similar companies across different industries to his or her portfolio

to diversify and further lower their risk.

c Investment and gambling

Gamble: - "To play at any game of chance for stakes. To stake or risk money or

anything of value, on the outcome of something involving chance."

Invest: "To put money to use, by purchase or expenditure, in something offering

profitable returns."

Investing:

"Any activity in which money is put at risk for the purpose of making a profit, and

which is characterized by some or most of the following (in approximately descending

order of importance): sufficient research has been conducted; the odds are favorable;

the behavior is risk-averse; a systematic approach is being taken; emotions such as

greed and fear play no role; the activity is ongoing and done as part of a long-term

plan; the activity is not motivated solely by entertainment or compulsion; ownership of

something tangible is involved; a net positive economic effect results."

 Gambling:

"Any activity in which money is put at risk for the purpose of making a profit, and

which is characterized by some or most of the following (in approximately descending

order of importance): little or no research has been conducted; the odds are

unfavorable; the behavior is risk-seeking; an unsystematic approach is being taken;

emotions such as greed and fear play a role; the activity is a discrete event or series

of discrete events not done as part of a long-term plan; the activity is significantly

motivated by entertainment or compulsion; ownership of something tangible is not

involved; no net economic effect results.

Investing is a good thing, gambling is a bad thing.

In investing, the odds are in your favor; in gambling, the odds are against you.

Gambling can be addictive and destructive, but investing can't.

Gambling is entertainment, investing is business.

Investing is saving for specific goals, such as retirement, while gambling isn't.

Investors are risk-averse, while gamblers are risk-seekers.

Investing is a continuous process; gambling is an immediate event or series of

events.

Investing is the ownership of something tangible; gambling isn't.

Investing is based on skill and requires the use of a system based on research, while

gambling is based on luck and emotions.

3. Different investors have different levels of risk appetite. Explain briefly the three

different groups of investors with regards to risk:

a Risk averse
People are risk averse when they shy away from risks and prefer to have as

much security and certainty as is reasonably affordable in order to lower their

discomfort level. They would be willing to pay extra to have the security of knowing

that unpleasant risks would be removed from their lives. Economists and risk

management professionals consider most people to be risk averse. So, why do

people invest in the stock market where they confront the possibility of losing

everything? Perhaps they are also seeking the highest value possible for their

pensions and savings and believe that losses may not be pervasive. Risk averse is a

description of an investor who, when faced with two investments with a

similar expected return (but different risks), will prefer the one with the lower risk.

A risk-averse investor dislikes risk, and therefore will stay away from adding

high-risk stocks or investments to their portfolio and in turn will often lose out on

higher rates of return. Investors looking for "safer" investments will generally stick

to index funds and government bonds, which generally have lower returns.

If it seems like you're always late to the party when the market is swinging, it's

because other investors are beating you to the news. Stay ahead of the pack by

getting the latest insight and analysis in your inbox every morning and after the

market closes. If you're tired of making losing trades day after day and are looking for

an edge then why not sign up for free and start your day better informed and ready to

take on markets.

b Risk neutral
An entity is said to be risk neutral when its risk preference lies in between

these two extremes. Risk neutral individuals will not pay extra to have the risk

transferred to someone else, nor will they pay to engage in a risky endeavor. To
 them, money is money. They dont pay for insurance, nor will they gamble.

Economists consider most widely held or publicly traded corporations as making

decisions in a risk-neutral manner since their shareholders have the ability

to diversify away risk to take actions that seemingly are not related or have opposite

effects, or to invest in many possible unrelated products or entities such that the

impact of any one event decreases the overall risk. Risks that the corporation might

choose to transfer remain for diversification.

Risk neutral is a mindset where an investor is indifferent to risk when making

an investment decision. The risk-neutral investor places himself in the middle of the

risk spectrum, represented by risk-seeking investors at one end and risk-averse

investors at the other. Risk-neutral measures have extensive application in the

pricing of derivatives.
Risk neutral is a term used to describe the mental framework of a person

when deciding where to allocate money. Given two investment opportunities, for

example, a risk-neutral investor only looks at the potential gains of each investment,

and ignores the potential downside risk.

A risk-neutral investor, therefore, is only concerned about the expected

return of his investment. A classic experiment to define a person's risk-taking

appetites involves an investor faced with a choice between receiving either $100 with

100% certainty or $200 with 50% certainty. The risk-neutral investor has no

preference either way, since the expected value of $100 is the same for both

outcomes. In contrast, the risk-averse investor generally settles for the "sure thing" or

100% certain $100, while the risk-seeking investor opts for the 50% chance of getting

$200.

c Risk preferred

Risk seeking is the search for greater volatility and uncertainty

in investments in exchange for anticipated higher returns. Risk seekers might pursue

investments such as small-cap stocks and international stocks, preferring growth

 investments over value investments. That being said, risk-seeking investors should

conduct even greater due diligence when considering a riskier investment, due to the

increased implied risk of such investments.

Risk seeking might also describe an entrepreneur who is willing to give up the

stability of salaried employment with another company to start his or her own

company in the hope of a greater financial and emotional payoff. A risk tolerant

investor, on the other hand, might seek more of a balance between risk and stability

by including more value stocks and fixed income securities in his or her portfolio,

a risk averse investor would focus mainly on investments with slow but steady

returns.

Example:

A person is given the choice between two scenarios, one with a guaranteed payoff

and one without. In the guaranteed scenario, the person receives $50. In the

uncertain scenario, a coin is flipped to decide whether the person receives $100 or

nothing. The expected payoff for both scenarios is $50, meaning that an individual

who was insensitive to risk would not care whether they took the guaranteed

payment or the gamble. However, individuals may have different risk attitudes.

A person is said to be:

Risk-averse (or risk-avoiding) - if he or she would accept a certain payment (certainty

equivalent) of less than $50 (for example, $40), rather than taking the gamble and possibly

receiving nothing.

Risk-neutral - if he or she is indifferent between the bet and a certain $50 payment.
Risk-loving (or risk-seeking) - if he or she would accept the bet even when the guaranteed

payment is more than $50 (for example, $60).

4. Distinguish between primary market and secondary market.

A study on the primary market and secondary market gives information on the

various aspects of the capital market trading. Both the primary market and secondary

market are two types of capital market depending on the issuance of securities.

For Primary Market when a company publicly sells new stocks and bonds for the first

time, it does so on the primary market. In many cases, this takes the form of an initial public

offering, or IPO When investors purchase securities on the primary market, the company

offering the securities has already hired an underwriting firm to review the offering and

created a prospectus outlining the price and other details of the securities to be issued.

Companies issuing securities via the primary market hire investment bankers to

obtain commitments from large institutional investors to purchase the securities when first

offered. Small investors are not often able to purchase securities at this point, because the

company and its investment bankers seek to sell all of the available securities in a short

period of time to meet the required volume and must focus on marketing the sale to large

investors who can buy more securities at once. Marketing the sale to investors can often

include a "road show" in which investment bankers and the company's leadership travel to

meet with potential investors and convince them of the value of the security being issued.

Furthermore, for Secondary Market is where securities are traded after the company

has sold all the stocks and bonds offered on the primary market. On the secondary market,
small investors have a better chance of buying or selling securities, because they are no

longer excluded from IPOs due to the small amount of money they represent. Anyone can

purchase securities on the secondary market as long as they are willing to pay the price for

which the security is being traded.

On the secondary market, an investor requires a broker to purchase the securities on

his or her behalf. The price of the security fluctuates with the market, and the cost to the

investor includes the commission paid to the broker. The volume of securities sold also

varies from day to day, as demand for the security fluctuates. The price paid by the investor

is no longer directly related to the initial price of the security as determined by the first

issuance, and the company that issued the security is not a party to any sale between two

investors. However, the company can engage in a stock buyback on the secondary market.

Part B:

TENAGA NASIONAL BERHAD (TRADING/SERVICES)

Tenaga Nasional Berhad (TNB) is engaged in the business of the generation, transmission,

distribution and sale of electricity. The Company operates through three divisions:

Generation Division, Transmission Division and Distribution Division. The Company also

manages and operates a transmission network-the National Grid. Spanning the peninsular,

the grid links TNB power stations and IPPs to the distribution network. The grid is also

interconnected to Thailand's transmission system in the North and Singapore's transmission

system in the South. TNB is also involved in diversified activities linked to the power industry.

Through its subsidiaries, the Company is in the manufacture of transformers, high voltage
 switchgears and cables; the provision of professional consultancy services; architectural,

civil, electrical engineering works and services, repair and maintenance; as well as in

research and development; property development, and management service.

DATE CLOSE DATE CLOSE DATE CLOSE

3/31/2017 13.72 3/15/2017 13.68 2/28/2017 13.54
3/30/2017 13.74 3/14/2017 13.74 2/27/2017 13.54
3/29/2017 13.74 3/13/2017 13.78 2/24/2017 13.5
3/28/2017 13.74 3/10/2017 13.72 2/23/2017 13.5
3/27/2017 13.7 3/9/2017 13.74 2/22/2017 13.52
3/24/2017 13.72 3/8/2017 13.7 2/21/2017 13.58
3/23/2017 13.72 3/7/2017 13.7 2/20/2017 13.54
3/22/2017 13.72 3/6/2017 13.68 2/17/2017 13.48
3/21/2017 13.78 3/3/2017 13.62 2/16/2017 13.5
3/20/2017 13.72 3/2/2017 13.58 2/15/2017 13.56
3/17/2017 13.72 3/1/2017 13.54 2/14/2017 13.52
3/16/2017 13.72 2/13/2017 13.66

TENAGA NASIONAL BERHAD

13.9

13.8

13.7

13.6

CLOSING PRICE 13.5

13.4

13.3

DATE
 NESTLE (MALAYSIA) BERHAD (CONSUMER PRODUCT)
Nestle (Malaysia) Berhad is an investment holding company. The Company has two

segments: Food and beverages and others, which include Nutrition and Nestle Professional.

Its products are categorized into coffee and beverages, culinary aids/prepared foods, milks,

liquid drinks, junior foods, breakfast cereals, chilled dairy, ice cream, chocolate and

confectionery, healthcare nutrition, performance nutrition and Nestle professional. The

Company is the regional manufacturer for infant cereal. The Company's subsidiaries include

Nestl Products Sdn. Bhd., Nestle Manufacturing (Malaysia) Sdn. Bhd., Nestle Asean

(Malaysia) Sdn. Bhd. and Nestle Foods (Malaysia) Sdn. Bhd

DATE CLOSE DATE CLOSE DATE CLOSE

79.38 76.6 75.7
3/31/2017 3/15/2017 2/28/2017
79 76.6 76.04
3/30/2017 3/14/2017 2/27/2017
78.62 76.54 76
3/29/2017 3/13/2017 2/24/2017
78.6 76.4 75.98
3/28/2017 3/10/2017 2/23/2017
78.4 76.32 75.98
3/27/2017 3/9/2017 2/22/2017
78.48 76.3 75.98
3/24/2017 3/8/2017 2/21/2017
78.46 76.4 76
3/23/2017 3/7/2017 2/20/2017
78.2 76.3 75.92
3/22/2017 3/6/2017 2/17/2017
80.6 76.2 76.4
3/21/2017 3/3/2017 2/16/2017
77.38 76.2 76.08
3/20/2017 3/2/2017 2/15/2017
76.82 76.02 76.16
3/17/2017 3/1/2017 2/14/2017
 NESTLE (M) BERHAD
81
80
79
78
77
CLOSING PRICE
76
75
74
73

DATE

UNITED MALACCA BERHAD (PLANTATION)

United Malacca Berhad is engaged in cultivation of oil palm and investment holding. The

Company operates in two segments: Plantation and Investment holding. Plantation is

engaged in cultivation of oil palm and palm oil milling. During the fiscal year ended April 30,

2011 (fiscal 2011), the Company had a planted area of 47,112 acres (19,066 hectares). The

planted area consisted of 35,308 acres (14,289 hectares) or 75% of matured oil palms and

11,804 acres (4,777 hectares) or 25% of immature palms of less than 4 years old. During

fiscal 2011, production of fresh fruit bunches was 254,915 tons. During fiscal 2011, it

acquired a small parcel of 60 acres industrial land together with an office complex and labour

quarters located within Millian Labau Plantations. On June 15, 2011, the Company

completed the disposal of an associate, Malaysian Trustees Berhad.

 DATE CLOSE DATE CLOSE DATE CLOSE
6.46 5.81 5.82
3/31/2017 3/15/2017 2/28/2017
6.5 5.85 5.89
3/30/2017 3/14/2017 2/27/2017
6.27 5.8 5.89
3/29/2017 3/13/2017 2/24/2017
6.1 5.81 5.88
3/28/2017 3/10/2017 2/23/2017
6.06 5.81 5.87
3/27/2017 3/9/2017 2/22/2017
6.1 5.82 5.89
3/24/2017 3/8/2017 2/21/2017
6.15 5.84 5.88
3/23/2017 3/7/2017 2/20/2017
6.15 5.81 5.85
3/22/2017 3/6/2017 2/17/2017
5.95 5.81 5.88
3/21/2017 3/3/2017 2/16/2017
5.9 5.8 5.88
3/20/2017 3/2/2017 2/15/2017
5.84 5.8 5.9
3/17/2017 3/1/2017 2/14/2017
5.82 5.88
3/16/2017 2/13/2017

UNITED MALACCA BERHAD

6.6

6.4

6.2

CLOSING PRICE 5.8

5.6

5.4

DATE
 PARAMOUNT CORPORATRION BERHAD (PROPERTY)
Paramount Corporation Berhad (Paramount) is an investment holding company, and

engaged in the provision of management services to its subsidiaries. The Company operates

in four segments: property development, construction, education and investment and others.

Property development is engaged in the development of residential and commercial

properties. Construction is engaged in the construction of buildings and provision for

engineering services. Education is engaged in the operation of private educational

institutions. Investment and others are investment holding, property investment, and

provision of Group-level corporate services. On November 11, 2010, Paramount disposed of

its entire investment in KDU International Sdn Bhd (KISB), the holding company of KDU

International Language Training School. On December 1, 2010, Paramount through

Paramount Global Assets Sdn Bhd (PGA) disposed of its 20% interest in Jerneh Insurance

Berhad (JIB).

DATE CLOSE DATE CLOSE DATE CLOSE

1.74 1.71 1.66
3/31/2017 3/15/2017 2/28/2017
1.73 1.7 1.67
3/30/2017 3/14/2017 2/27/2017
1.75 1.69 1.67
3/29/2017 3/13/2017 2/24/2017
1.75 1.68 1.67
3/28/2017 3/10/2017 2/23/2017
1.77 1.66 1.68
3/27/2017 3/9/2017 2/22/2017
1.78 1.65 1.67
3/24/2017 3/8/2017 2/21/2017
1.77 1.66 1.7
3/23/2017 3/7/2017 2/20/2017
1.74 1.64 1.7
3/22/2017 3/6/2017 2/17/2017
1.73 1.66 1.68
3/21/2017 3/3/2017 2/16/2017
1.74 1.66 1.66
3/20/2017 3/2/2017 2/15/2017
1.73 1.66 1.64
3/17/2017 3/1/2017 2/14/2017
1.72 1.66
3/16/2017 2/13/2017
 PARAMOUNT CORPORATION BERHAD
1.8

1.75

1.7

1.65
CLOSING PRICE
1.6

1.55

DATE

UNISEM (M) BERHAD (TECHNOLOGY)

Unisem (M) Berhad (UNISEM) is a semiconductor packaging and test services provider in

Malaysia. Its semiconductor packaging and test facilities are located in Ipoh, Perak,

Malaysia. The Company offers integrated suite of packaging and test services, such as

wafer bumping, wafer probing, wafer grinding, as well as range of leadframe and substrate

integrated circuits packaging, wafer level chipscale packaging and radio frequency, analog,

digital and mixed-signal test services. Its services include design, assembly, test, failure

analysis, and electrical and thermal characterization. Unisem also has factory locations in

Crumlin, South Wales, the United Kingdom; Chengdu, Batam, Indonesia and Sunnyvale,

California, the United States of America (USA). The Company's subsidiaries are Unisem II

Sdn. Bhd., Unisem Advanced Technologies Sdn. Bhd., Unisem (Europe) Holdings Limited,
 Unisem Chengdu Co., Ltd., Unisem (Mauritius) Holdings Limited and Unisem International

(Chengdu) Ltd.

DATE CLOSE DATE CLOSE DATE CLOSE

3.14 3.04 2.71
3/31/2017 3/15/2017 2/28/2017
3.15 2.96 2.75
3/30/2017 3/14/2017 2/27/2017
3.15 2.94 2.74
3/29/2017 3/13/2017 2/24/2017
3.21 2.91 2.74
3/28/2017 3/10/2017 2/23/2017
3.23 2.87 2.78
3/27/2017 3/9/2017 2/22/2017
3.2 2.95 2.7
3/24/2017 3/8/2017 2/21/2017
3.26 2.93 2.7
3/23/2017 3/7/2017 2/20/2017
3.19 2.91 2.72
3/22/2017 3/6/2017 2/17/2017
3.12 2.83 2.71
3/21/2017 3/3/2017 2/16/2017
3.08 2.76 2.72
3/20/2017 3/2/2017 2/15/2017
3.08 2.7 2.7
3/17/2017 3/1/2017 2/14/2017
3.06 2.68
3/16/2017 2/13/2017

UNISEM (M) BERHAD

3.5
3
2.5
2
1.5
CLOSING PRICE 1
0.5
0

DATE
 WCT HOLDINGS BERHAD (CONSTRUCTION)
WCT Berhad is engaged in civil engineering works specializing in earthworks, construction

of highway, building and related infrastructure works, investment and property holding and

provision of management services to the subsidiaries. The Company operates in three

segments: civil engineering and construction, which is engaged in civil engineering works

specializing in earthworks, highway construction and related infrastructure works; property

development, which is engaged in development of residential and commercial properties,

and property investment, which is engaged in holding of assets for capital appreciation and

rental income. On August 24, 2010, the Company acquired Green Sdn. Bhd. On October 5,

2010, the Company acquired Segi Astana Sdn. Bhd. On December 2, 2010, it acquired

Platinum Meadow Sdn. Bhd. In November 2011, the Company announced that its wholly

owned subsidiary, WCT Land Sdn Bhd had acquired WCT Hartanah Jaya Sdn. Bhd.

DATE CLOSE DATE CLOSE DATE CLOSE

1.93 1.86 1.89
3/31/2017 3/15/2017 2/28/2017
1.94 1.83 1.84
3/30/2017 3/14/2017 2/27/2017
1.84 1.8 1.86
3/29/2017 3/13/2017 2/24/2017
1.85 1.86 1.91
3/28/2017 3/10/2017 2/23/2017
1.87 1.88 1.9
3/27/2017 3/9/2017 2/22/2017
1.86 1.88 1.91
3/24/2017 3/8/2017 2/21/2017
1.86 1.88 1.91
3/23/2017 3/7/2017 2/20/2017
1.83 1.87 1.9
3/22/2017 3/6/2017 2/17/2017
1.86 1.86 1.91
3/21/2017 3/3/2017 2/16/2017
1.88 1.88 1.9
3/20/2017 3/2/2017 2/15/2017
1.88 1.87 1.9
3/17/2017 3/1/2017 2/14/2017
1.88 1.9
3/16/2017 2/13/2017
 WCT HOLDINGS BERHAD
2

1.95

1.9

1.85

CLOSING PRICE 1.8

1.75

1.7

DATE
81 16

80 14

79 TENAGA NASIONAL BERHAD UNITED MALACCA BERHAD 12

78 10

77 8

PARAMOUNT CORPORATION BERHAD UNISEM (M) BERHAD

76 6

75 4

WCT HOLDINGS BERHAD NESTLE (M) BERHAD

74 2

73 0
CONCLUSION

In every real estate transaction, there are closing costs. Everyone and anyone who had

anything to do with the transaction has their hand out at the closing. That means the title

company prints multiple checks to pay the brokers, the surveyor, the attorneys, the courier,

and anyone else who can stake a claim against the property or its owner. So if you had your

property staged and asked that the decorators be paid at closing, then they too get a check.

If you had the bathroom remodelled and told the contractor you would pay them when the

house sold, its now payday.

Just to make it more confusing, closing costs vary by location. Every state, city, and county

has the authority to add fees, sometimes called transfer taxes or impact fees, to your

transaction. Closings, in essence, are a money grab.