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Tuesday, December 28, 2010

ASN Dividend Payout At 6%

Amanah Saham Nasional Berhad (ASNB) today announced an income distribution of 6 cents per unit for Amanah Saham Nasional (ASN) scheme for the financial year ending Dec 31, 2010. This year's income distribution was 0.80 sen higher from the 5.20 sen per unit declared in 2009. 


The income distribution would involve a total payment of RM89.88 million compared with the RM81.52 million paid last year. PNB chairman told reporters that ASN's performance for the year ending Dec 31, 2010 was generally better than last year in line with the encouraging performance of the country’s economy and the stock market.

Monday, December 27, 2010

Rough Ride Ahead For Rubber Glove Makers?

Rubber prices climbed to a record high on last week, putting more pressure on the margins of rubber glove manufacturers, which are already grappling with oversupply and normalising demand issues. 

May 2011 delivery contract for the commodity traded on the Tokyo Commodity Exchange rose to RM15.48 per kg on last week. Tyre-grade SMR 20 rubber traded in Malaysia rose to RM14.81 per kg while the price of latex increased to RM9.79 per kg.

Saturday, December 25, 2010

Merry Christmas and Happy New Year!

It's Christmas! What a fruitful 2010 year for KLSE and investors. May this Christmas be bright and cheerful and may the New Year begin on a prosperous note! Well, perhaps prosperous not only in investment return, but also family, friendships, relationship and career. 

The old man says: "Thinking leads to action, action leads to success, success leads to happiness." For those who succeed in KLSE for the time being, congratulations. For those who fails, try again and never give up. Happiness should be the ultimate goal we are looking for isn't it?

Thursday, December 23, 2010

Local REIT Yields Expected To Fall in 2011?

The yields of Malaysian Real Estate Investment Trusts (REITS) are expected to come down next year in view of the surplus in office buildings with the completion of new projects. The yield, which is also known as return on investment in properties, is derived by dividing rental with property value. 


President of the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector, Malaysia, Choy Yue Kwong, said while the surplus in office buildings is expected if more developers receive the nod to build, there are very few premium-grade 'A' buildings. 

Wednesday, December 22, 2010

Timing Will Tell Right & Wrong?

Most of us are in the mood of Christmas, New Year and holidays. After working hard for a year, it's time to gather around with family, friends and relative to relax and have fun. Yes, time past very fast, Christmas and New Year are around the corner again!


Tuesday, December 21, 2010

8.75% Dividend & Bonus for ASB

Permodalan Nasional Bhd (PNB) has announced Amanah Saham Bumiputera (ASB) dividend today. Without much surprise, ASB unitholders will receive a dividend of 7.50 cents per unit this year compared with 7.30 cents declared last year. One unit is price at RM1.00.

As usual, ASB unitholders will also receive a bonus of 1.25 sen, similar to last year. Thus, the total dividend and bonus to be received is 8.75%, which is 0.2% better than last year.

Friday, December 17, 2010

Changes To Takeover Code

Good news to minority investors!

Several changes have been made by Securities Commission to the Malaysian Takeovers and Mergers Code, which now requires copanies to adopt a higher level of disclosure and makes independent directors more than just rubber stamps. The SC’s announcement on changes to the Malaysian Takeovers and Mergers Code should enhance transparency and the protection of minority shareholders, indirectly benefits us.

Thursday, December 16, 2010

Sozo Global Limited

Sozo? When I first hear this company name, it sounds very funny. It means it is crazy in cantonese. SOZO will be debut on tomorrow, which it's IPO has been oversubscribed 3.28 times by the public investors. CNOUHUA is the only KLSE China stock that is trading above the IPO price so far, which indicated a good start for China company to be listed in KLSE. 

Tuesday, December 14, 2010

Small-Cap Stocks Ruled?

Look at the market these 2 days, many of the small-cap stock prices are just went wild. But the blue chips and index are just remain steady. Do you think it is due to the charm of news and rumors trading or the market is almost at it's peak? Well, we really have to make sure most of the grandma and grandpa have not start to buy shares!

Anyway, I would like to touch on 3 companies today, namely MUDAJYA, CAREPLS and NOTION.

Friday, December 10, 2010

Stay Away From News or Rumors Trading

There are handful of stocks heating by the news and rumors and bringing profit opportunity to short-term investors recently. Majority of them involving acquisition and merger. QSR, KFC, KULIM, IJMLAND, MRCB, DRBHCOM, SUNRISE, UEMLAND, SUNWAY, SUNCITY, etc, you name it. 

Wednesday, December 8, 2010

Mudajaya Group Bhd - Part 2

Well well well, look at MUDAJYA share price today, it has dropped about 6% after I've accumulated it on last 2 weeks ago. What's the bad news that caused the share price further down?

Basically it has no bad news lately, except the 3Q10 earning is a little bit fading compare to 3Q09 due to monsoon season. Nonetheless, the upcoming quarter earnings will be expected running strong due to India IPP project phase claim and monsoon season is over. I also hope MUDAJYA can award with some projects within the country.

Sunday, November 28, 2010

Careplus Group Bhd

Can you believe it, Careplus IPO public issue has oversubscription rate of 46.75 times! The highest oversubscribe rate this year so far. The success rate is very low, I would say it is a lot lower chance than MHB and PCHEM that you will get it. For your info, I did not apply Careplus IPO. 

Due to the price is 23 cents per unit, it is affordable to buy more per applicant. Nonetheless, by looking at the applications, it has only close to 1,000. That's mean, less buyers but more lots applied.

Friday, November 26, 2010

Newbie In The House

Wow, PCHEM's charm is irresistable! It took 41% of KLSE total volume today, at 0.64 billions. What a fat water for broker firms! Just too bad that the index is retraced today, and PCHEM is selling all the way from RM5.71 to RM5.30 and closed at RM5.31. Not as impressive as MHB but same fate as MAXIS.

That's the problem for large IPO in this country. The number of retail traders are not mature and the price is not cheap. The local market is not overwhelm by foreign investors but they are in the neighbor countries. In addition, the key fund managers already in during the IPO. So who else left to push up the price? Nonetheless, PCHEM debut is definitely a good news for KLSE. Welcome!


Thursday, November 25, 2010

Petronas Chemical Bhd

Tomorrow will be the day for PCHEM listing, which is Southeast Asia''s biggest IPO. It has the potential to outshine that of other big-capitalised firms in KLSE. According to Maybank IB research, they believe the share prices for PCHEM worth around RM6.64 per share, using discounted cash flow and PER valuation metrics, where OSK targets it to be RM5.51.


Tuesday, November 23, 2010

Stupid Mistake

This morning, I don't know why, I made a weird mistake which I guess not many of you did it before. I believe it is due to my careless behavior. Thus, I comitted a stupid mistake that you would be laughing at me this morning.




Friday, November 19, 2010

Masterskill Education Group Bhd

Many investors are eyeing on MEGB recently, not because they want to send their childrens in to study, but it's attractive trading share price which selling pressure accelerated sharply over the past few months. 

MEGB, Malaysia's largest operator of non-government nursing colleges, offers nursing courses and allied health education programmes. According to a few analysts, MEGB track record and fundamental still look good. With a shortage of nurses and the rising demand, MEGB is still a potential growth stock to go for.

Tuesday, November 16, 2010

What Is Wrong With Shanghai China CI?

It was a surprise today when I login to my trading account and noticed 4 of my queuing stock prices were fully matched around 4.30pm. With a quick check, many of the small cap stocks falls by 4 to 5% and allow us to buy in at a bargain price.

Friday, November 12, 2010

Tomypak Holding Bhd

Finally, KLSE index finally comes down after being pushed up 50 points within 3 weeks time. In fact, it's global effect, where KLSE index is just a follower. Another minor correction? Never mind, we don't have to guess it, overall we are still ride on this bull trend. Most probably the game is just begin. It's happy to see some blue chips price are dropping steadily.


Wednesday, November 10, 2010

Am I KLSE Loser?

I feel bad recently, not because I'm lossing money in stock market. I feel bad because my stocks pick just don't shoot and I don't make good money lately, especially during this golden bull period.

In my few previous posts, I made buy calls on SUPERMX, HARTA, JCY, MUDAJYA. It seems like most of these stocks price are worst than the time I called.


Friday, November 5, 2010

UEMLAND Eaten SUNRISE

Can you believe it, the biggest property player is taking control over another. I was surprise that UEMLAND made the move so soon. Yes, UEMLAND is taking control of SUNRISE in a RM1.4 billions deal. As we knew, there are an online community is buying in SUNRISE in the early of last month, as they foresees the future potential earnings and low PER of it.

Sunday, October 31, 2010

Malaysia Marine and Heavy Engineering Holdings Bhd

I failed to be selected as one of the investors for MHB during IPO. Many of my friends failed as well. How about you? If you are the lucky one, congratulates to you. I believe invest in MHB IPO just like buying Amanah Saham. It's hard and require a lot of chances and luck, especially for non-bumiputra. Of course, selected investor would be consider entering at a safe entry point, just like Maxis IPO.

Tuesday, October 26, 2010

Should Investors Exit Malaysia Glove Makers?

Malaysian rubber glove makers are getting used to a slower life after years of scorching growth as demand drops, latex prices soar and the dollar weakens. World’s No.1 glove exporter Top Glove recently said it expects to grow at a meagre 10 per cent in 2011, a far cry from the 50 per cent growth rate it has seen in the last two years.

Shares of Top Glove and its Malaysian peers such as Supermax Corp and Kossan Rubber, have dropped more than 20 per cent since touching all-time highs in July. Same question, will a rising ringgit and high latex prices continue to depress the stocks, or are the low prices a good entry point into the sector?

Saturday, October 23, 2010

What's Wrong With PNB 100-Storey Skyscrapper?

The apparently growing opposition to plans by Permodalan Nasional Bhd (PNB) to build a 100-storey skyscraper as part of the Warisan Merdeka integrated project is a classic example of what can go wrong when information is either badly presented or poorly received.

Prime Minister and Finance Minister Datuk Seri Najib Razak, when announcing the project in his 2011 Budget speech on October 15, said the landmark, which will be developed by PNB, is to be completed by 2020.

Tuesday, October 19, 2010

Mudajaya Group Bhd

Are you looking into or still holding any Mudajaya Group Bhd shares?

Last 2 weeks ago, Mudajaya has received a letter from SC and that came to an end to SC query as well as the poison letter. Nonetheless, even though all research analysts are positive with this company future earnings and outlook, it seems that the share price is dropping everyday right after the 'end' news. We also can see Mulpha is borrowing this opportunity to absorb more Mudajaya shares at average lower price. So what does it indicates?

Friday, October 15, 2010

Top 10 Heavyweights From Malaysia's Budget 2011

Our Prime Minister cum Finance Minister Datuk Seri Najib has given the country's budget 2011 today's late afternoon. With the reference of the report, below are the top 10 heavyweight highlights:

(1) Pay 6% service tax for watching Astro
Astro monthly subscription fee will be added with a service tax of 6% effective from next year. The relevant tax will be imposed on paid satellite broadcasting services.

(2) Toll rates in 4 highways will not be raised
Toll rates in 4 highways owned by PLUS Expressway Bhd will not be raised for the next 5 years, effective immediately.


Wednesday, October 13, 2010

JCY International Bhd

I was looking at JCY on last weekend and on yesterday, it has formed a nice Ghost Town pattern and drew more of my attention onto it. The hard disk drive manufacturer price has plunged more than 50% few months, and also thanks to the lately delayed market response to labor protests in mid of August.

By looking at JCY fundamentals, it is a solid technology stock with good figures, including healthy track records, high ROE of 20%+ and positive future earnings. Compare to Notion (another technology stock dropping like shit), it is a better pick and the current price is also very attractive to buy. 

Sunday, October 10, 2010

Big Is Beautiful? Think Again

The Employees Provident Fund (EPF) is one of Malaysia's success stories. The pension fund was the world's seventh biggest state pension fund in 2006, according to a Watson Wyatt study. Today, it manages more than RM300 billion of assets. In 1985, this was only RM26 billion. As always, millions of its members look forward to a good dividend payment and when you are close to retirement, a bigger number would obviously make your day.

But being big is not all that it's cracked up to be. For starters, you need to make more to pay dividends when assets are big. For example, if you manage RM100, a 5 per cent dividend is RM5 but if you take care of RM1000, 5 per cent is RM50. You need to make 10 times more in investment income to pay the same level of dividend as the guy that has a smaller fund.


Monday, October 4, 2010

Stock Market Book Review: Market Wizards

If you like my previous book review on Payback time, perhaps you will like this post. 

Do you believe reading successful traders' stories will make you more success? May be. Experts always told us that we can advance further by learning how others success in doing the same thing. However, in reality, it may not always the case. 

Market Wizards: Interview With Top Traders, written by Jack Schwager, is one of the best selling classics that delves into some of the most successful wall-street traders minds. 


Friday, October 1, 2010

Rubber Glove Makers Revived

Let's just face the reality. After so many bloggers and other analysts boast about the attractive price of rubber glove makers recently, they just won't be as influence and effective than CIMB Research house and Terence Wong promoting about it.

Rubber glove markers finally advanced altogether right after CIMB Research house maintained the rating for this sector despite influence by the negative impacts in this afternoon. Terence mentioned that the gloves demand will still continue to grow at a healthy clip for the time being. In addition, he also stated rubber glove makers from Malaysia would maintain its leadership in the global market.

Tuesday, September 28, 2010

Is AirAsia X Public Listing A Right Choice?

Wow, AirAsia share price is having a exceptional rally since early of July. AirAsia has up for more than 80% just within 3 months, the history highest since it's listing. This might be due to the share accumulation from EPF, greatly improved earnings and brighter future earnings from investors point of view.

No doubt, AirAsia fundamental looks quite good, as more and more people get to know about this brand and use it's services, while it is aggressively developing more new routes, like the launching of Tokyo, Japan on last week. It's not only benefit to those who like to travel around, but also bringing the company to a better prospect.

Sunday, September 26, 2010

The First Resort Casino in Sabah?

Hi folks, how's your OSK Investment Challenge result so far? The contestants will have about 1 week to go before the winners are born.

For contestants, if you managed to hit GENS and KBUNAI in your list on last week, you are the man. Talk about KBUNAI, have you been to Karambunai Resort for vacation before?



Thursday, September 23, 2010

6.38% Dividend For AS1M


After waiting for a year, I finally see Amanah Saham 1 Malaysia (AS1M) dividend news this evening. According to PNB, AS1M buyers will be distributed with 6.38 cents per unit! In fact, it shouldn't be a surprise for us, as the KLCI index has been up for more than 250 points, around 21%. Overall, I'm satisfied with the dividend yield, as 6.38% is the slightly better than ASM and ASW2020, 6.30% and 6.35% respectively. 

Wednesday, September 22, 2010

Sunrise or Sunset of Rubber Glove Stocks Part 2


Aduh, the entire rubber glove makers' prices are continue to drop like nobody, including the leader. Overall, they have dropped around 23 to 38%. Harta has the strongest resistant so far, where share price only fallen around 23%, where Latexx and Supermx have fall 38% respectively.

The selling pressure continues after our hot topic discussion, and even worst on yesterday, thanks to OSK Investment downgraded from overweight to neutral, neutral call for Topglov, as well as Ringgit continues to strengthen up to RM3.09 today, the highest since the previous Asian crisis. And yet, still no buy back action from management.

Saturday, September 18, 2010

Sunrise or Sunset for Rubber Glove Stocks?


Hi folks, I hope you are doing well in your stock contest so far?

As per discussion on Rubber Glove stocks in my previous post, they are expectedly to continue to face selling pressure this week, after a reversed bullish day on 9th Sept. Their prices are continue to drop due to the further strengthen of Ringgit against US dollars. Apart from that, latex price remain at high level of RM700. Compare to previous month, the latex price has slightly went down.This is a good sign. On the other hand, Ringgit has no sign of weakening for the time being, as Bank Negara will continue to hike the interest rate while US economy is still at the bottom of recovering. This could be short to mid term.

Sunday, September 12, 2010

OSK Investment Challenge


Good news. I just discovered I've some advertisement income from Nuffnang regarding OSK investment challenge. I must promote it, because these are easy money if your luck is come at the right time. I'm sorry I was a bit late as the challenge has started since 16 August. It was my birthday, though. But don't worry, perhaps you knew and in the contest already. Furthermore, the end date is 1st October. We still have 3 weeks time to catch up.

Saturday, September 11, 2010

Exam Update, Property Developer & Rubber Glove


My thousands apologies to you that I was MIA from this blog for more 3 months. To be honest, I've stopped trading for 2 months right after my previous post, as I've spent quite a lot of my free time to do my professional certification study for my career exam. I'm glad that I passed it with flying color. In the mean time, I also refined and corrected my trading strategy, as well as doing some virtual trading to attest it. The virtual trading outcome was fantastic, and I've just re-active in the stock market recently.

Friday, June 4, 2010

Kenmark vs Rule #1



Kenmark became KLCI star of the week, month or perhaps the year. I hope you are not holding or buying any of it?


Several financial institutions, including a number of stand-alone brokerages, may be facing millions in losses after they were forced to dump shares in Kenmark, previously held as collaterals, at rock bottom prices. They were forced to sell the pledged Kenmark shares after their clients were unable to top up their margin accounts. The margin call was triggered after the stock price sank below a pre-determined threshold level. The loses they suffered are a few millions ringgits.


Sunday, May 30, 2010

Knowledge-Based Stock Challenge Lesson

So have you joined the first knowledge-based stock challenge held in March 2010 earlier? If you missed it, no worry. It is organized twice every year, many chances for you to participate. 

Result has been released. I feel disappointed because I'm defeated by a UM student and 2 engineers. The student managed to grab away with RM8,888, which suppose to belong to me in the first place. According to the 26 year old student (the winner) interview, he has 3 years trading experience. He makes use of  RHB Analyzer and RHB ShareInsight. And he said he spent 3 to 4 hours daily to study the fundamental and price chart of the companies. He also mentioned that he would like to use the winning money to invest in RHBCAP.

Okay, the winner looks like a nerd. He deserved the prize.

From the look at it, I highly suspecting RHB Investment taught him to provide such a commercial speech. We all know RHB trying to utilize the winner to promote it's products. Damn, I don't think I can trust him anymore. But one thing for sure he deserves the win and prize, he did his homework. He spent 3 to 4 hours a day to do his homework, where I only spent 5 to 10 minutes to do some stock scanning and trading. I don't have a trading plan some more. How can I beat him? No way.

So, in order to win in KLSE, spend plenty of time to do homework seems like an honest feedback from the winner to us. This is the best route if we want to make money with dignity. Okay I get the picture now, will I be the winner of the next round contest? 

Ops, I should stop dreaming from now.

Friday, May 28, 2010

Market Will Continue Down or Up?

I believe this theme has been bothering most of the traders for the past 2 weeks, due to one or two negative news attacking the global market, Euro debts worsen and dispute between South and North Korea. I saw many trading bloggers took profit and watch the global market slump. With no surprise, KLCI index has gone down nearly 100 points for the past 9 days, and finally rebounded strongly on yesterday. So what did you do during the past 10 days?

For me, I missed this interesting drama and I was doing other more important things for the past 10 days. I'm not even spend my time well to blog, really sorry about that, folks! I know I should have listen to other bloggers to take some profits before May. Once I have a look at my portfolio 2 days back, my unrealized profit gathered since end of February was all wiped out by this little bear, and turn into unrealized loss. What a joke! However, somehow the market rebounded strongly on yesterday. 

                                                            Why bear? Because bear's eyes are facing down.

If you have unrealized loss, don't worry, I'm with you for the time being. I'm not sure (of course) whether this little bear will extend it's attack, but Malaysia and global economy outlook is obviously under recovery and in a bright side. Most of the companies are making money. So if little bear attack the market, it is an opportunity for everyone of us. I'm surprise that everyone is very hot in discussing about the market and stock during the past 10 days, especially in forum. That's a good sign, because they learned from their mistakes and busy doing their homework?

Whatever it is, the advice is always unchanged. If you want to make money from any field, you got to do your homework. That's the deal. That's mean, after away for 10 days, I also need to do my homework from now on. 

Let's fight (enjoy) together, for money. 

Sunday, May 16, 2010

The Pros of Technical Analysis

What's so great about Technical Analysis (TA), folks? We always heard people complaint and doubt about the accuracy of TA. To TA expert, this is not always true, because FA also has it's own weaknesses. And some TA experts only use TA to make money from stock market.

Today, let's look at what TA can offers us as a trader, as below:.

I don't really use to draw my price chart looks like this complicated.

1) To Catch the Right Entry and Exit Timing
TA can provides you the signal of entry and exit. Even though the signal is not always right (still depends on how you create your signal), it is a good reference to support your decision. The concept is based on the level of supply and demand.

2) Faster to Discover a Potential Stock
With TA, accumulating volume via stock scan for example, you may able to lead the rests to discover various stocks that have potential to go upside, instead of reading the company annual report one by one. You may also take one step ahead over stock analysts and investors to discover the gems!

3) Easy to Learn and Use, Save Your Time
TA saves you plenty of time, because most of the tools are ready made and available for free. You just need to tune them to fit into your trading strategy. With stock scanning subscription available in the market, it only takes you a tens of minutes a day to do your homework. Of course, the existing KLSE tools are a lot more to improve compare to Forex investment tools.

4) Ability to Detects the 'Lousy' Stock
FA traders always claimed that TA traders might bought a poor fundamental stock, if they merely based on TA. To TA investors, price chart also can tell a stock whether a stock is healthy. For example, if the stock has poor fundamental, normally there will be selling pressure. Once they notice it, they won't even look at it. Price chart analysis also enable you to obtain the pre-signal whether the market or certain stock is going for the downside.


5) Potential to Make Money in the Short-Term
TA traders have the ability to make money in a very short-term, by referring to the shorter term price chart, such as hourly and daily. You always manage to obtain a more accurate entry point, such as trend line breakout (after correction or sideway), rebound from the bottom, etc. And exit to cut loss or grab profit earlier than others when there is selling pressure detected.

Do you think this trend line breakout really works?

There are other pros to use TA for stock trading.

How about FA vs TA? In fact, both FA and TA have their own blind spots, even you use the combination of them. To me, it really doesn't matter to argue which one is better. Do you think the 90% traders have not try each of the method before? Why they are still donating money to the minority?

Like what Deng Xiao Ping said, 'it does not matter a white or a black cat, whichever can catch a mouse is a good cat'. So, just stick to whichever method works for you. else, look for a better one.

Note: The post above is just my personal opinion, I believe you would have yours too. ;)

Saturday, May 8, 2010

BJCORP Part II

Why BJCORP again? I hope you are yet to sick about it. We all learn from mistaken, isn't it? 

It became the star of KLSE on yesterday, after the government told reporters that they may issue soccer betting licenses, and the speculation goes to Berjaya and MPHB. It's a good news and wise decision from government, I guess? By right, they should legalize it in many years back.

I personally prefer simple business, because it uses less brain and time to take care. Problem may be easier to spot, in addition. By removing the complexity of the businesses from BJCORP, it really has many positive earning outlooks for the coming 3 to 5 years, the corporate's plans including:

Tan Sri Vincent Tan, 10th richest man in Malaysia and 828th in the world.

(1) Strong development projects at Vietnam
With the purpose of mimic what BJCORP has done in Malaysia, it is aggressively developing Vietnam projects that worth US$12 billions. This year should be falls at phase 3.

(2) Thumbs up for Cosway
I believe you have seen how Cosway grows. It's strong growth is one of the strong key for BJCORP. For the coming 5 to 10 years, it will continue to expand the business to around 50 countries around the world. So the future Cosway income shall be contributed by overseas revenues.

(3) Car making venture with BYD Auto Co Ltd.
If BJCORP managed to obtain car making and parts license, the production factory shall be setup in Malaysia. If the venture goes well, Tan Sri Vincent shall make the vehicle division another listed company in Malaysia.

(4) Expansion of gambling business
So far BJCORP has successfully obtained betting licenses at Philippines and South Korea. Tan Sri Vincent is now applying an official license in Malaysia itself. And now we talk about gambling license for soccer in Malaysia. It's cool, isn't it?

Tan Sri Vincent is aggressively restructuring it's current businesses in order to walk out from the past failures. With these 4 strong positive earning outlooks in mind, do we still need to take it's current poor earning and negative ROE into consideration? Well, based on the current Malaysia economy and earning outlook of BJCORP, the profits will definitely improve, with the support from BJTOTO and Cosway revenues. 

The corrected price of  RM1.43 on yesterday morning at 61.8% retracement seems a very good investment entry point.

Happy investing, folks!

Note: The post above is just my personal opinion. I'm not responsible for any of your trading decision. ;)

Saturday, May 1, 2010

Why Buffet Chose Coca-Cola?

Needless to say, many investors are the admirers of Warren Buffet, who is one the current greatest investor in the world. Well, we might know how Buffet picks stock. He picks what he likes and understand. According to Buffet, he likes to to have drink contained with caffeine, and that's why he chose to   buy 7% of Coca-Cola shares at 1988, up to USD1.02 billions.   

Up to February 2007, Coca-Cola bringing more than 20% annual return for Warren Buffet. That's what Buffet described Coca-Cola as an irresistible, low risk, long-term holding company. He also likes the simple business model from the company, with high ROE of over 30%.

Coca-Cola is really doing very well in China market these few years.

By looking at similar stock in Malaysia, it seems like only BAT and Nestle are meeting the requirements. They have created a wide moat that most of the consumers need them daily, with steadily growing market share and revenue, as well as simple business model. So if you are invested and holding these 2 companies' shares since 10 years back, are you getting around 20% annual return?

Well, we are not Warren Buffet, and of course we are not the same. But the concept seems work on a small pool of stocks. So which companies are having similar characteristics now? If there is, are you willing to dump your money to that company, wait for 10 years to see and enjoy the average of 20% annual return?

Not surprising that many people are reluctant to do so. All they want is to buy a stock today, and get 20% on tomorrow or the maximum deadline is next month.

Happy Investing, folks.

Monday, April 19, 2010

What a Hammers Day!

Ow, it's red army ruling the KLSE and the global stock market today.


After look at the price chart, can you believe that? Most of the stock daily charts are showing a hammer today, especially FBMKLCI index! What a bunch of pretty bullish hammers, which is the 1st time I seen! 




If this is true, we shall see the green army to rule the market very soon! Let's keep our finger cross and may the luck be with us.


Happy investing!

Sunday, April 18, 2010

Promotion Offer From Online Stock Brokers



As for Premier88, investors with balance of RM30,000 and above in their account will be guaranteed five free trades every month. This is the best I ever heard. 5 free trades, folks! 



Well, since there are so many stock broker firms are available in Malaysia and they are getting more and more competitive, retail investors like us will be having more benefits and choices. Keep it up!

If you yet to know, ECM Libra Investment Bank has made a follow-up move like other broker firms by launching an online stock trading portal, in hope to reach more retail investors across the local market through the Internet.


Yes, indeed this is a good strategy, as it is a faster way to expand, and cheaper compared to setting up of branches in various locations to cover the market. Just like my favorite broker firm, Jupiter Securities, they spent money to build up their online portal and offer lower transaction fees rather than setting up branches around the country.


Jupiter Securities also offers low brokerage rate to trade Hong Kong and Singapore shares.

Up to last month, ECM Libra has about 10,000 active retail customers with RM15 billion traded volume last year. Of this total, 18 per cent of customers trade online, according to the response in the past six months after its soft launch.


The portal offers the lowest brokerage of 0.05 per cent or a minimum fee of RM8 per contract during the promotion period. Just the same rate as Jupiter Securities. After that it will be 0.08 per cent or RM12 per contract. The portal houses four products, namely cash upfront, collaterised, DayTrading88 and Premier88.


In the case of DayTrading88, investors will pay brokerage fee only when profits are made per stock traded during the day, he said.


Monday, April 5, 2010

KLCI 10 Consecutive Days Rally

What a rally! KLCI has surged for consecutive 10 days, due to the positive news from internal and external. This is really rare, but it just managed to make a short-term history. Most of the good fundamental stocks have been going up rapidly during this 10 trading days. As what I projected in my previous posts, KKB and POS are continue to have a good rally today. 




If you ask when is the best time to let them go, I would say this week may be is the time. This is because market won't go up everyday, buyers will eventually running out and negative news will eventually come out. We don't know how soon is it, but we let others to continue to be greedy. 

However, not everyone want to exit for quick profit, especially during strong bull trend. If you have the true mindset of 'investment' or a long-term investor, you may want to grab those good quality stocks even though you know there will be a correction. At least you don't have to worry on when to enter and exit in a short-term.

Happy investing, folks.

Friday, April 2, 2010

KLSE Stock Talk 1Q2010

It's Good Friday today. The index has been up from pre-CNY of 1,224 to new high of 1,335 today. Every investor is making money out there, the country economy growth seems positive, and everything sounds too good isn't it? So when will this good thing ends? Analyst forecast there will be a correction by May or June, what do you think?

In my opinion, based on the recent trading volumes, correction might not coming too soon. But who know. Just like BJCORP, it has been shot up close to 30% right after my negative post on it. Even with the annual net loss announced on the past few days in addition to Tan Sri Vincent Tan disposed his shares, the share price is not really affected. Great.

Looking at my trading portfolio, most of the picks are growing very well, especially SUPERMX, and some minor stocks are just ignored the KLCI index performance by going sideway, i.e. GENTING. It's okay, I can't win all of them, but at least they are growing steadily in overall. I hope you are doing well too, with such a strong growth condition.

I don't know why this editor is so pissed off with POS.

Let's get back to the local market. It seems like it is getting harder to find gems from the stock market nowadays. I'm pleased that POS finally shot up 20% today, after our Prime Minister provided a great stock tips to us on past Tuesday. I believe POS price has more potential to grow upside after today. ;)

Let's proceed to 2Q2010!

Friday, March 26, 2010

Attended RHB Invest Market Chart 2010

I would like to sincerely apologize to you all, as I have been away from blogging for more than a week. I've my reasons to do so, so please forgive me okay.

On the past few days, I've attended 2 free stock talks, one of them was RHB Invest Market Chart 2010. The seminar managed to attract more than 100 people attend. As you might already expected, 85% are males, and majority of them are 'uncles' level. So, I didn't bring my camera as well. ;)


In short, I witnessed Lim Chee Seng, head of RHB Research Institute sharing his opinions on global and local market outlook, as well as individual sector, based on fundamental analysis. Without surprise, his opinions are more or less the same as mine, except minor sectors that I'm not totally agreed with his thinking. 

Since it was a half day seminar, there were 2 other sessions related to ETF fund and technical analysis. But I chose to skip it, as my friend who accompanied me, starting to fall asleep. 

This RHB seminar reminded me about RHB Stock Challenge, which I totally forgotten to manage my account. How are you doing so far?

Sunday, March 14, 2010

KKB

Sorry folks, BJCORP has managed to gather some investors attention to push it's price shot up more than 9% after my previous post regarding discouragement of investing in this company. Not to worry much about it, as different people have different opinion. If you really agreed that BJCORP has a bright outlook, then you may think it is undervalue for now.

Nevertheless, BJCORP is not the star we want to discuss further today, I would like to share with you about a star which has been greatly shinned for the past 2 weeks. I believe you should already heard about KKB Engineering Bhd. It is a Sarawakian holdings and it's business involved in steel fabrication, civil construction, hot dip galvanizing and manufacture of LPG cylinders, steel pipes and related products. 


KKB has gained more than 45% revenue and close to 250% profit over the previous year. This is extremely shocking result, as 2008-2009 is the worst financial year for most companies. You must be wonder why KKB can do and recover so well in 2009, compare to it's competitors and especially the fall of steel demand. Well, if you've read KKB 2008 Annual Report, you should figure out why.

KKB share price has been shot to new high of RM6.09 after the released on it's outstanding 4Q09 result, with the support from all stock analysts. A 67% gain rally in 2 weeks, perhaps more to come? Invest a stock based on fundamental analysis is just too good to be 'true', isn't it?


Note: The post above is just my personal opinion, I'm not responsible for any of your trading decision.

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