Tuesday, December 2, 2008

Company: Chaoda

Name: Chaoda Modern Agriculture (Holdings) Limited
Listed: Hong Kong (HKG)
Stock Code: 682
Chairman: Kwok Ho

Description:
Chaoda Modern Agriculture (Holdings) Limited is an investment holding company. The Company, through its subsidiaries is engaged in producing and selling agricultural products. The subsidiaries of the Company include Timor Enterprise Limited, Insight Decision Limited, Huge Market Investments Limited, Worthy Year Investments Limited, Great Challenge Developments Limited, Good Add Holdings Limited, Chaoda Vegetable & Fruits Trading Limited, Fuzhou Chaoda Modern Agriculture Development Company Limited, Fujian Chaoda Green Agriculture Development Company Limited, Fujian Chaoda Livestock Company Limited and Chaoda Vegetables & Fruits Limited.


Technical Analysis

Technical Analysis is one of the securities analysis used to forecast the future possibilities of direction of price through the study of past market data, primarily price and volume.

The chart of the price and volume was recorded and some formula were apply to read the chart. Lot of the traders ignore the fundamental analysis and the actual nature of the company, market, currency or commodity when they trade in the market. This is because they believe all the sentimental is factor in the price and volume which cause by the human behavior.I recommend technical analysis is just a reference tools and investment still need to go back to fundamental. 

Well, technician says that market's price reflects all relevant information, so their analysis looks more at "internals" than at "externals" such as news events. Price action also tends to repeat itself because investors collectively tend toward patterned behaviour, hence technicians' focus on identifiable trends and conditions.

Basically, technical looks at the price trends, moving average, indicators such as volume trend, MACD, RSI, Stochastic, DMI, Retrenchment, Support and Resistant, and so on.

Sunday, November 9, 2008

Balance Sheet Statement

In a financial statement, balance sheet provides information regarding the financial position of the company at particular date. It is a snapshot of the financial position of the company at that point in time.

Balance sheet shows what a company owns, what it owes and the value of the company to the owners, on date that it is prepared. Consequently, a balance sheet is made up of three parts, which are:

1. Assets : What a company owns

2. Liabilities: What a company owes

3. Shareholders' Equity: The value of the company to its owners.

Since the company holds assets that it uses to generate revenue. These assets are funded either by shareholders' equity or by liabilities. This relationship is expressed in the accounting equation: Assets = Liabilities + Shareholders' Equity

Friday, October 31, 2008

Brokerage Charges

When you buy or sell in stock market, there are some charges for the transaction. Different country will have different policy. Here are some charges for different country:

Malaysia:

Brokerage

0.7% (Max) or RM40

Clearing Fees

0.015%

Stamp Duty

RM1 for every RM1000 value


Singapore:

Brokerage

0.25% (Max) or SGD30

Clearing Fees

0.04%

Access Fees

0.005%

Hong Kong:

Brokerage

0.1% (Max) or HKD50

Clearing Fees

0.0025%

Stamp Duty

0.1%

Levy Fees

0.004%

Trading

0.005%

Thailand:

Brokerage

0.4%

Bank fix charge (depend on bank)

THB500

Vat charge

0.021% - 0.571%

Capital gain tax (selling only)

0.15%

Forex differences will be count on the day of the transaction.

Most of the Securities Firm in Malaysia, if there is dividend, pay out by foreign listed company, the dividend will send to the Securities Firm, then only distribute to the shareholder accordingly.

Tuesday, October 14, 2008

Update Current Financial Situation


A picture can tells thousaand words.

Friday, September 5, 2008

Corruption

As I personal see lot of deal in Malaysia, corruption has spread wide and deep into every people. This is a social and economy problem which will brings unstable and unhealthy to both of the issue.

Corruption means stop developing and improving, worst will reverse the progression. It encouraging mistake. It widens the gap between rich and poor. Rich become richer while poor become poorer.

At first, government gives out project for tender. Which proposal is the best, lowest cost, highest performance, suppose government award the project to the proposal. This is just to make sure everything is lowest cost and highest quality among the choices.

When corruption come into the picture, the project award to who propose higher under table money amount. There is no cost, quality, and performance taking into consideration. The result will be collapse building in construction sector, bad dept in financial sector, low quality and affected sale in long run in manufacturing sector, unhygienic food from food and beverage sector, doctor who have to don’t know how to diagnose and cure, a city development with square, triangle, round and other shapes and so on.

When higher authority starts corruption, their subordinate will follow. This will spread to every society level, diffuse to everyone mindset, and enter to deal. Those who get rich with this method will keep this method to conquering other deal. Rich will get richer; it didn’t encourage quality and ideas. Therefore, everyone start to stop improving and learning, they start migrate out since no opportunity, or start to build relationship with money. Soon, whole country left corruption people stay in the position and get wealth.

Recently Malaysia political tsunami, have prove that most of the citizen is out of the comfort zone. They feel not secure for their securities, their rights, and their income. All this begins from the corruption. Anyway, most of the wealth is in the person who apply corruption all the way, they will sure do lot of things just to retain their position, protect their money, stand on their pride. There are too many and deep. Everyone scare get caught and punish. They want their power and authority to safe themselves. This may rise lot of bleeding fight, money transfer out of country, scarify lot of life, running out of resources. A country or company ruin by a corruption.

Healthy economy means compete each other for deal by quality and performance. Let the supply and demand move freely. Everyone have the same right and opportunity.

Thursday, September 4, 2008

Labours

Labours are the power of the development country. It is one of the resources in a company or a country, the human resource. The quality and the quantity of the human resources will directly give impact to the economy performance to the country.

Malaysia is a good place. It is out of the main natural disaster region and full of resources. Around Malaysia, lot of foreign legal and illegal migrant migrate to this place and work. What they want is to earn some living since their country is very poor. There are lot of people from Indonesia, Philippine, Bangladesh, Pakistan, Thailand, Vietnam, Myanmar, India, and China. Malaysia citizen also do migrate and go to Singapore working because of the better living and return. These people from different country come to Malaysia and substitute the cheap labour in agriculture, manufacturing, and mining. Anyway, Malaysia is governed by Malay from Indonesia, Chinese from China, and Indian from India. Just that after the independent from the conquering by the Great Britain, these 3 races becomes Malaysian in this place.

The development of Malaysia goes very fast and emerging since it has lot of natural resources such as tin, gold, petroleum, fishes, trees, stone, herbs, land and water. The land and good whether is suitable for lot of the agriculture activities such as coco, rubber, rice, vegetables, flowers, palm oil and so on. Therefore, Malaysia is once leading in coco, tin, lumber, rubber, palm oil, and good quality petroleum before. This brings the Malaysian lot of wealth and development.

The time Malaysian get wealthier, other country people migrate to Malaysia for better hope. Malaysian takes this opportunity to hire foreign worker. It is because it is cheap and a lot. Sooner or later, almost none of Malaysian work as a labour. No matter high education or low education Malaysian will be avoid to be a labour. All the labour consists of a foreigner, legal or illegal.

When times go by, resources will deplete, other country will improve. These foreign labours will have better choices in their own country, they starts to move back to their country with their earning in Malaysia. Do you agree that Malaysia will be paralyzing the economy and development due to this problem? Imagine that no person work in farm, construction site, house maid, factory worker, cleaner and so on. Does it sound like a death place?

Lot of money is moving out of Malaysia with the migrants, since other country improving. They go back their country. It also means investors and sales go to other country rather than Malaysia, that’s why other country economy is rising. From the resources deplete, paralyze labour work force, money moving out, and business change location, Malaysia will be in a very crucial and special situation.

Besides, corruption will also draw out the money to other country due to the reason it cannot be use in same country. It worsens the condition and hit heavily to the economy and development.

The only way to retain labour is higher pay. Since inflation, low profit, lot of business cannot afford to hire labour for their activities. It is a time to observe what will it happen next.

Silent Indicator

Recently market is extremely quiet. More attention go to Beijing Olympic. Lot of the report coming out showing the economy slow down. Besides, steel price drop since Beijing Olympic closing ceremony. Crude oil price drop to around USD110. Malaysia is under political pressure above the global economy slowdown. Therefore less volume are trade in the market. Everyone is waiting for a convincing factor come.

Thursday, July 3, 2008

2008.07.03 BURSA Announcement!

BURSA Announced that morning session trading is suspended. Not giving reason why.

Some of the people says is due to the record crude oil price at USD144. It may hit the market, but other regional market didn't has huge impact.

Some suspect BURSA system infected by virus or internal problem.

Friday, June 6, 2008

Initial Listing Requirement

Listing Requirements on KLSE
  1. Quantitative Requirements
  2. Qualitative Requirements
  3. Special Requirements

Quatitative Requirements

Quantitative Requirements
- listing based on Proforma Accounts can be considered provided companies within group:
o involved in same/complementary business*
o have common directors
o have common shareholders
* Bumiputra Company only needs to meet this criterion

Definition of Bumiputra Company:
  1. More than 50% of its equity is owned by Bumiputra shareholders; or
  2. At least 35% of its equity is owned by an identified Bumiputra shareholder together with certain conditions

Qualitative Requirements

  1. Business Dynamics
  2. Competition Dynamics
  3. Industry Dynamics

Special Requirements: Additional requirements for specific companies

  • Property-Development
  • Construction
  • Infrastructure Project Companies (IPC)
  • Plantation
  • Financial Services
  • Stockebroking
  • Trading/Retailing

Wednesday, June 4, 2008

Increase Fuel Price! Must or Revenge?

Government announce fix fuel price will increase RM0.78 from RM1.92 to RM2.70. It is 40.625% increment. Diesel price increase RM1. It will direct hit to lot of the businesses and influence the price of goods. First, the transports and utilities such as electric and water (which need fuel energy) price will be increase. Then this will lead other sector to increase their products prices as their cost increases.

Recently food shortage, food price spike up at least 30%-50% within 6 months. Then it is nature disaster in few regions, cause the demand of building material increase. This will push up the price of building material. Conservative predict it will increase at least 20%. Government also plan to let the fuel price free float in the market on August which will be RM4 in the current crude oil price. It means almost 100% increase in 6 months.

Since government has also announce the tariff of the electric power will increase, mean almost everything will increase. There is one problem, which is I believe no company willing to increase their stuff salary by 50%-100% in 6 month right? So if salary not even increase at least constant grow while all the things out there increase by exponential grow, lot of the labours, worker, stuff and citizens will be in trouble.

Malaysia economy is previously in the close and protected environment. Government refuse to let them compete with other people because it knows their people lack of abilities to survive. It is similar to a plants in a green house. In the green house, there is not competitors, no parasite, no virus or bacteria, enough resources etc. Suddenly this plant move to the out site open environment, it's faith will be undetermined. It is now in the uncharted territory.

Looking at other country hitting by the high oil price and food price. The country will be in the disorder situation. The security of the society will fall due to the reason that lot of people is poor and starve. The society sentiment will be worry and unhappy. Political unstable is factor come out with these kind of decision which will hit to the economy, development, society and security.

Government action to increase everything with this speed is due to the must or revenge? Since they election result out and party Barisan National lost lot of the seat, there are lots of the unhappy decisions announce one by one. Look closely for this fuel price issue, Malaysia is a nett fuel exporter, this means when crude oil price increase, country will gain more then loss with the high oil price. No matter how the citizen in the country use the oil, it will not influence the profit or loss of the country. It will just reduce the profit country can get. Now the first question is, is this Party loss other income sources to earn money when they loss their power in lot of the places?

When prime minister said increase fuel price is a must, and he promise he will still look for a way to help those who really need for the fuel subsidy. The second question is why the public transport such as bus fare still increase? Does it means these buses are also use by rich?

The rumour say government is thinking to send the fuel rebate money to those needed by postal. If this is true, third question is how are they going to control? Those money will go to which kind of "needed criteria"? (supporter, income, expenses, races, religion, etc ... doubt)

I know long term is a need to increase, but is it really a must by using this speed and methods?

The market sentiment guess will be not good. The selling pressure due to the unclear of the country future.

Monday, June 2, 2008

Another Side Of Capitalism Society

I just received this forwarded story from my friend. I didn't verify how true is this story, but I wonder why I never see this in any news before. This story is from China, but I believe similar can happen almost in every Capitalism society. This is also the side effect of the Capitalism. Corruption, supreme money power and weakening ethic lead to the society disorder.

For example, government plan to use tax payer money to increase their citizen knowledge, but the person who hold the money may misuses the money for their own purposes rather than the original intention. Those who really need it, cannot get.

Capitalism help to speed up a developpment but it comes with side effect, corruption. When the corruption is out of order, it ruins the whole capitalism system too. When the money go to the person without working for it, the value of the money will decrease. Example in a country or company, when there is two group of people, group A and group B. Group A didn't work and not productive. Group B work hard and productive. When all the money go to group A easily and group B has no opporunity in whatsoever effort with it. End up group B will either extinct or migrate. When the main development engine of the country dissapear in the country, it will no longer competitive. The high consumption and low productivity group will lead to the running out of resources. The next of the limited resources is the communities will figh for the resources. I learn this from the secondary school science.

Following is the article I received.
殷彩霞 Xia die, she was a hooker, or she was a teacher. She is the most honorable teacher in China. She uses her dirty body, wash through children's heart. A hooker's death, all children cried and attend her funeral; a school drop the national flag for her.

On the funeral of this 21years pretty teacher, headmaster read Xia's diary sadly in front of all the students, she wrote: 'Each prostitution, can help one schooless child; become a mistress once, can rescue a hopeless primary school.'....

Xia lived in a small village of province of Gan Shu 甘肃省. All ladies in this small village, no matter she is pretty or not, went to Southern part of city to earn money. Every spring time, they will come back with money and beautiful cloths. Xia didn't follow after she finished her secondary school. A lot of people don't understand what is she thinking of as she has the pretty face and body. And because of this, her father always scolds her.
When she heard the only primary school in the village needs some teachers, she volunteers herself to become a free teacher. She was a very good student in her secondary school before. Because of this, she passes through all tests easily and became the teacher of the school.

When 1st time Xia walks into classroom, all children were shocked to see a pretty teacher. From then on, the classroom always fills with children's laughter. Classroom -- should call it a hut instead as the wall is made of sticks and cover with leaves as its ceiling. A big stone become their table and the most expensive should be the polished dark-green stone as their blackboard. With this condition, Xia taught thousands of Chinese words and knowledge to her students.

There was wild rain destroyed the classroom of the school and all students become schoolless. The headmaster visits the province's education minister for some money to repair the classroom; he comes back with nothing. Headmaster told Xia that the minister said only will give money if Xia asks for it. Xia never meets any minister before and afraid that she will make the things worst and decided to visit the minister. She walked more than 10km to the province ministry office and sit in a beautiful office in front of the minister. Minister's eyes look hungry and point to a room and said to Xia. Your money is in the room, if you want, follow me. Xia saw a big bed in the room and is the bed that she lost her virgin. Minister raped her.

Her virgin blood drops on the bed sheet and is more reddish than the color of the national flag in the room.

Xia didn't cry, all in her mind are the eyes of all the disappointed students that have no classroom.

She didn't tell anyone about the rape case after she went home.

The next day, with the money that brought back by Xia, all villagers bought some woods and repair the classroom. But whenever there was a heavy rain, the classroom still cannot be used. Xia always tells the students that province ministry department will built a good school for them. In the past half year, headmaster had visited the ministers more than 100 times and never ever gets any money from them. He is the only 1 knows what did Xia did and he can do nothing about it. New semester comes, a lot of student s cannot pay their fees and become schoolless and follow their parents to work. Xia feels sad about that.

When Xia feels that her hope of all students can go to school become hopeless, she drops all her cloths and swears to her naked body that she will use this body to exchange for the children to be able to go to school. She knows that all ladies in the village are working as a prostitute to earn the living and she knows this is a shortcut for her to earn money. She washed herself and say goodbye to headmaster, father, and school. She tights her hair as 2 ponytails and walk to the city. When she leaves, her father smile and headmaster cry....

In the colorful city, Xia is not happy at all, in her mind, there are only broken classroom and sadness and disappointed eyes of students. She walked into a Hair-Saloon, lie down on a dirty bed, and accept her 2nd dirty business. In that night, in her diary, she wrote: 'Minister can't even compare to her 1st customer. At least they pay.'

She sends all her earnings except those for her to live on to headmaster. Headmaster follows her instruction to use the money on the school. People ask about the source of the money and headmaster only answer that it was from some donation of society.
After a while, people knows about the source of money is from the teacher and many reporters would like to interview her and she just refused and the reason is that she is just a prostitute.

With the money, the school changed. First month, there is a new blackboard. Second month, there is wooden table and chair. Third month, all children has their own books. Fourth month, all children has a red tie. Fifth month, no children go to school bare leg.
On the sixth month, Xia comes back. All students welcome her happily and say 'Teacher is so beautiful'... With all student's smiling face, Xia cries... how many tear drops and how many sadness in the past 6 months... she feels worthy when she see all these.
After few days at home, she goes back to city.

Seventh month, they built a ball park. Eighth month, there is basketball. Ninth month, all students has their new pencils. Tenth month, the school has their own national flag; and students raise the national flags daily. At the eleventh month, a land-developer refuses to use condom and Xi pregnant. After abortion, she becomes the developer's mistress. After a few months, the developers dump her because he faced problem on land-value drop in Shenzhen, he didn't pay her any cent.

Xia feels tired, she thinks to go home and go back to the school, but she has yet to fulfill student's dream which are building a concrete classroom and 2 PCs for the students. Because of these, she went back to beg the developer and the developer just refuse to pay anything but only introduce a foreigner to her. Said the foreigner will pay her RMB3000 for 1 night. Think of the wild rain happen few days ago, she tiredly goes to the foreigner's hotel. She swears that she will go back to her home and school after this.

She was killed by the 3 foreigner because of raping. That time she just turned 21years old.

Xia died without fulfill her final wish, which build a concrete classroom and 2 PCs.

A hooker dies, silently, the sky of Shenzhen is still as blue as before, ministers still happily sitting in their office, many expensive cars still running on street, people happily discussing share market, house market value, car value, and movies, music and love story. Youngster try to suicide because of small matters happen between themselves.
At this time, students, teachers and few hundreds of villagers attending the funeral in this small village 'GanShu'

In the funeral, people see a black and white photo of Xia. In the photo, she has 2 pony tails and happily smiles. Headmaster open the diary of Xia and read in front of all students, she wrote: 'Each prostitution can help one schooless child; become a mistress once, can rescue a hopeless primary school...' The national flag drop to its half... Maybe, this is the ONLY national flag drop half because of a GREAT hooker in China’s history.

After I read this, I cried for 2 hours. From now on, I won't discriminate any hooker, because among them there is a Xia. Hope you will forward this mail to all forum, friends, web spaces, to let all our governments to understand when they are saying and empty-promising, when they are drinking in the pub, when they are doing dirty politics, Someone using her own power to change the world. Xia is using her sadly eye to look at all of us. Although she is just a hooker, she is cleaner and saint than any of us. In this cold and dirty society, what she gave to the students is human's 'Great Love'.

Wednesday, May 28, 2008

Malaysia Post Election



Let me tell a story of what I see and listen before I link it to the economy and finance.

I pass by a street call Desa Setapak. It was a crowded street at the time I study around that area. I go back and walk along the street, there are eight main corner of the shop were previously famous with delicious food now demolish seven of them and left one corner. These places are the food supply for most of the people and students who stay and study around.

I chat with some of the hawkers around there what happen to the other hawker stall and the food courts? They say government send town board (DBKL) to demolish and army to guard the protestors without giving any notices to them. Their prompt action ruins the income source for most of the families and laborers.

I ask them whether they have any permit or license to open stall and do business there. They said all of them have permit and license. They get the approval from the previous party who win that area. This election result the previous party of that area loss to the opposition. What is interesting is, all the people and folks say they never see government work so hard that never rest and work so complete. Those demolishing worker can ruin all the structure one by one and before they leave, they make sure everything is fully damage and scrap. All the cement, walls, fences, floor, and stalls were break and damage by heavy machinery. The only left is the dust and rubbish they didn’t clean it up. Next day, these under mission worker can come back to continue break and confirm all the structure are collapse and break. One of the farmers tells a similar story that last time his area loss to opposition in the election, the government sends people some and cut all the vegetables and every single vegetable were split at least four pieces. This is to make sure the farmer cannot sell the vegetables anymore.

Well what make the folk there angry is the newspaper wrote and publish that these hawker didn’t have any losses because the authorize person let them move out the things that belongs to them. Besides, all these news were reported not clear, not detail, and bias to government.

What I see and curious are, why some of the stall and are didn’t demolish and damage by the government? These stall is just beside and some of them are in the middle of these demolish structure. The only differences I can observe for a long time are, those remain are not good business compare to those demolish. Those remain are Malay while demolish are all Chinese.

After the long story, now is time to share what is in my mind. Country economy is depend on the productivity and how well the business in the country. This phenomenon let me fell that government is revenge on the result they loss in the election. They don’t care economy and development but they only care their power in hand. They can give reasons to stop the development structure in the opposition area. They can demolish buildings or structures by no reasons or discussion given.
Here is an interesting phrase I read in the newspaper today, Domestic Trade and Consumer Affairs Ministers Datuk Shahrir Abdul Samad says “Don’t think only of profit”. Does it mean in government mindset, they don’t want “profit” but other things?

When those people who suffering from no income, they don’t have things to eat, what they can do? The next is social problem will rise. The security of the country is now another concern.

If government can do this kind of action on the small business, I cannot get other reason that government will not do this to bigger business in the country. That’s why the economy future of the country is now a doubt and worry.

Thursday, May 22, 2008

What is the World Economy Future?

Myanmar cyclone on 2008.05.04 ruins the country and wipe out lot of crops, China earthquake on 2008.05.12 collapse most of the building in Sichuan and they need lot of raw material to rebuild, and the crude oil price hit USD135 on 2008.05.22. There is an inflation worry.

All these will bring inflation fear and lot of things is under pressure to raise the price. When the prices rise, it will hit the sales volume. Everybody may start to reduce spending. The sales drop will pull down the company result. This chain effect will hit the economy world wide.

The rise of food price is also due to the fighting resources of crops and the biofuel plants. The commodity price of the biofuel related plants sustain high and it can cover the high fertilizer price while if the price of food crops don’t rise, farmer will switch to grow commodity rather than grow crops.

China earthquake will need lot of energy and raw material to rebuild their home. The building material and energy such as steel, cement, timber, and fuel will have great demand and it will bring up the price of these raw material if the supply cannot fulfill the demand. The rise of these prices will hit construction, properties, and other manufacturing sector and their cost will increase dramatically. Their profit will be thin down and giving them forces to increase the price too.

In Malaysia, the political tsunami seems still haven’t over yet. The unstable of the government and worry behind the scene will keep the investors side line. Most of the investor is looking each other’s reaction, watching what will happen then, and waiting for the economy report and company result.

Economy slow down and advice only invest in selective sector and buy as low as when it dips. Remember to take profit once it goes high.

Friday, May 16, 2008

Remisier Trading versus Online Trading

Some body wrote this article and pass to me recently. It clearly describes the differences between trade via Remisier or Online. Below is the full article.

In this article, we will look into whether we should buy shares Online or use our existing Remisier’s services to execute trade

COMMISSION rates for Internet trading and cash upfront transactions will be fully negotiable next year.

Although the full details on the actual implementation are not available yet, if the commission on internet trading drops to a low of 0.15% (it may be even lower for some stock broking firms), retailers may be tempted to execute the online transactions themselves without going through their Remisiers.

Based on the existing structure, most retailers are paying a brokerage fee of about 0.6% per transaction. Assuming some stock broking companies are willing to offer commission rates of 0.15% for Internet trading, there will be savings of 0.45% for retailers who trade online.

Nevertheless, we need to understand that transaction costs have two main components: “Explicit Cost” and “Implicit Cost”.

Explicit cost is the direct cost of trading, such as brokerage commission, stamp duties and clearing fees. Implicit costs are indirect trading costs like opportunity cost, market impact and missed trade costs.

Opportunity cost is the loss of opportunities due to the time retailers are required to spend on executing stock transactions instead of focusing on their main business or their work. If you are working and have limited time to monitor the stock market, you may still need the Remisier’s services to execute stock transactions.

I personally feel that it is really not productive to stay in front of the computer just to execute a few stock transactions. Sometimes, it can be quite time consuming getting the best price.

Any retailer who wants to trade online needs the necessary skills to be able to read market movements. He needs to know whether the current price is the best price to buy, or wait for a while because he may get a cheaper price later.

Market impact is the realized profit or loss reflecting the price movement of a share from the price decided on to the execution price.

Since Remisiers follow market movements throughout the day, they should be able to read those movements better than we do. They may not be able to get the best price in every trade but if they are able to save one or two bids lower than your intended purchase price, the cost saving can be quite substantial.

For example, your Remisier is able to get one bid lower for you when you want to purchase a stock priced at RM1.50. You will save 1 sen over RM1.50, which is 0.67%.

Assuming your Remisier is able to do that in eight out of 10 trades, the average cost saving will be 0.53% (8/10 x 0.67%).

This saving will still be greater than the commission of 0.45% that you would have saved through online trading.

Besides, you have not taken into consideration the time you could have saved and the opportunity loss on your current business if you spend too much time on share trading. The extra 0.45% that you pay is for your Remisier’s skills.

As mentioned earlier, besides opportunity costs and market impact, there are other implicit trading costs, like missed trade costs.

Missed trade costs arise from the failure to execute a trade in a timely manner.

Monday, May 12, 2008

Investor, Trader, Gambler

Nowadays there are lots of investment tools in our society. Stock and share is one of it. In every investment, some times it is not easy to differentiate invest, trade, or gamble. But different of it will have different result and risk. Before you make your decision to step into the field, you must evaluate the risk you are able to take for the result as a return. Similar to those drive in the highway, if you cannot take the risk to drive with speed of 400km/h, drive with the speed you can handle although 400km/h can reach to the destination faster. In investment, it is not how fast your investment capital appreciates; it is how sustainable your investment is.

Investor is those people who think on their investment from business point of view. They put in the money after doing lot of research and analysis that they are confidence that they can earn back the money with lower risk. Some times, investor has to analyze their investment top down or bottom up. They have to understand macroeconomic and microeconomic as well.

Trader is people have the characters of investor but some time they take higher risk. They can buy today and sell tomorrow once there is profit margin. They take opportunity in the company share that they familiar. They may use technical chart, or possibilities, insider information, psychology and so on to buy and sell in very short time. Similar, if they sense the problem, they will also sell immediately to lower their losses.

Gambler is easy to define and get in the market. They are greedy and take high risk. They might not know what is the company doing of their investment or just heard from other people that this company price will go up.

Just similar to lots of cases in the history in almost every stock market, lot of people loss huge amount of money because they misuse margin facility, borrow money, or so on. Always invest within the capability and take into the consideration of risk.

Friday, May 9, 2008

Learn Early

Before I study finance and stock market, I heard lot of people say trade on stock and share is only for those retire man who have lot of free time and retire money. No doubt, it is suitable for retire person because investment need time and money. When I get expose deeper in the stock financial sector, I realize it is not true.

Investment is a skill and technique which involve some financial knowledge and psychology. Investment skill actually involve in every decision we make. For example when we make a decision, we will analyze the allocation of time, energy, or capital before the decision final. We don’t realize the existence of the investment skill is already involved in our daily life.

Why the statement “invest in stock market is for retire person” is not suitable? Let say a person never learn and expose to any financial investment especially stock market, he or she will have to learn from the beginning. The risk to learn is there because they are lacking of experiences. Once they loss money, since they are retire, they may unable to recover their losses easily. Besides, most of the retire person hold a lump sum of money and the amount can be big and there investment will automatically bigger compare to new person who just finish study and start works. Let say retire person have lot of time and they have plenty of time to study and learn investment before they start invest, the problem I see is, their learning ability drops. Their eye cannot sustain long time to reading; brain cannot remember lot of things in one time, and so on.

The reason why Warren Buffet encourage start investment as early as you can are, the value of the market will be keep on improving, younger person start with smaller capital which is lower risk, can still recover losses once make a mistake, gain more experience from the investment decision, able to learn fast at the younger stage, and learn how to manage the money on your hands.

Wednesday, May 7, 2008

Fertilizer Related

Inflation hit the entire world from the energy resources and food supply. Technology breakthrough which use plant to extract biofuel compete with food crops for fertilizer and nutrients.

No. - Stock Code - Short Name - Company Name

  1. 4758 - ANCOM - ANCOM BHD
  2. 2879 - CCM - CHEMICAL COMPANY OF MALAYSIA BHD

To be comfirm,

  1. 3298 - HEXZA - HEXZA CORPORATION BHD
  2. 7084 - QL - QL RESOURCES BHD

Monday, May 5, 2008

Insurance

Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. It is either a financial tool or an expenses is depend on how you define it. Formally, it is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium.

There are lot of different type of insurances can be found in our society. What I want to say here is the life and medical insurance. Life and medical insurance is a personal financial tool that it is quite useful to every person. Why say so? It is because lot of things nowadays, they have factored in the insurance element into their price. If you do not have insurance coverage especially in medical line, you are more risky and costly than those who under life and medical insurance coverage.

I do not know what the condition in other country is, but in Malaysia, when a person has committed in an accident and sent to the hospital, hospital will need to get a deposit to start their action. They want to be sure they can receive the payment. Let imagine what if the person unconscious and hospital people cannot get a medical card in the person wallet? This happen to my friend experience before, luckily he is unconscious but at least he has medical card in his wallet.

Recently one of my friends has some sickness and she needs to have a surgery. Hospital needs to get the full payment before they conduct the surgery operation. It is an emergency surgical operation but hospital refuses any negotiation on the payment date. In this case, they have to collect the huge amount of money in a very short time for the operation. What will happen if they cannot get the huge amount of money in a short time? End up they borrow the cash from all the relatives and friends for emergency use.

Sometimes, you are rich, you have lot of properties or own huge company or have high pay, but accident come suddenly without notice and emergency means every second count can be different result, you cannot take out the cash means that time you are poor. You are poor of the ability to safe your life. Insurance can lower the exposure of the personal risk for the emergency use, just like the fire extinguisher in the kitchen. It is useless for cooking, but it is useful when accidentally caught fire. This is an example of risk management in financial world.

I admit there are lots of fraud cases in the society. Before you sign and agree to the policy, read and understand carefully or you get a good insurance agent who you can trust him or her on. Some times insurance also provide investment trust, insurer use your money you deposit for investing in the equity market. Insurance policy is almost same; the different is the person you choose to be your insurance agent.

How to choose and buy insurance? It is similar to invest in a stock market, do research and understand well before you act. When you buy, don’t have to put all eggs into the same basket. When you invest in profitable mutual fund or unit trust, you choose a right fund manager, to buy a good insurance; you also need to choose a good agent. This is why insurance is one of a personal financial tool.

Wednesday, April 30, 2008

Fundamental and Technical

Why the world richest investor, Warren Buffet invest without looking at chart? Investment is buying a share of a company. If the company doing well and the chart don’t look pretty, it is still worth to buy. This is same to the company which not doing well and the price chart looks attractive to buy. No matter how, fundamental of the company must be first thing to consider before invest your hard earn money to that company.

In stock and share analysis, there are two common types which are fundamental and technical. Fundamental is looking at the company base performance and knowing what the company doing. Technical is basically study the psychology of the people who trade on the share.

Some people only depend on technical to trade in the market. The risk is what if the trend of the share is manipulated by the syndicate behind the stock? Of course the fundamental report can be false some timewhen the company report a misleading report. Anyway to reduce the risk of the investment portfolio, it is safer to understand the fundamental background of the company and then buy with the assist by the technical tools.

Tuesday, April 29, 2008

Gold Related

When gold price fluctuate, those company who deal with gold will be affected. These are the companies selling gold related products. Besides, some of the electronics companies also need gold for their electronic circuit production.

No. - Short Code - Short Name - Company Name
  1. 7119 - DEGEM - DEGEM BHD
  2. 5080 - POHKONG - POH KONG HOLDINGS BHD
  3. 7230 - TOMEI - TOMEI CONSOLIDATED BHD

Monday, April 28, 2008

Derivative: TA Warrant

TA Warrant is the derivative from the mother company TA Entreprise Bhd. This warrant is now traded at the price RM0.335 in the market. 4898X - TA-WB

Exercise price: RM1.00
Ratio: 1:1
Expiry: 2009.06.24

The value of this derivative is now exercise price + traded price. RM1.00 + RM0.335 = RM1.335. Since TA mother share is now traded at the price of RM1.17, if you buy TA-WB at RM0.335, that means you are paying premium RM0.165.

Technical: TA Enterprise Bhd

This is daily chart for TA Enterprise Bhd from 2007.01.05 to 2008.04.25. It ia obvious there is down trend channel from the high RM2.29 on 2007.02.21.

The trend start to retest the 200 days moving average (pink line) and the MACD start to cross over and prepare to go into positive territory. It needs more volume to continue support the up trend. If it can build a base above the 200 days moving average, it means some accumulation behind.

The RSI in between 50 to 70 indicate the stock is ready to continue uptrend. Anyway it needs more volume to continue the up trend of the stock price.

At this price, the stock was traded at PE 7.22. This company is in the list of the composite. Compare this company with the index, this company is under perform.

Tuesday, April 22, 2008

Company: TA Enterprise Bhd

Company Name: TA ENTERPRISE BHD
Short Name: TA
Stock Code: 4898
Listed Market: KLSE
Board: Main
Sector: Finance
Industry: Stock Broking, Properties,
Par Value: 1
Listed Share: 1,426,971,000
Website: http://www.ta.com.my/


Brief Description:

  1. Based: Malaysia
  2. Company Type: Investment Holdings
  3. Corporate Structure:
  • Stock broking and financial services: include stock broking, fund management, unit trust and derivatives trading.
  • Investment holding: includes provision of funding and investment related services.
  • Credit and lending: engaged in the provision of finance and related services.
  • Property investment: includes investment in residential and commercial properties.
  • Property development: engaged in the development of residential and commercial properties.
  • Hotel operations: is engaged in the operation of hotel and related services.

Businesses:

  1. Stock broking and financial services: Malaysia stock market, Hong Kong stock market, Derivative Future market
  2. Investment holdings: Unit trust and asset management
  3. Credit and lending: Share financing business, ESOS
  4. Property investment: Residential and commercial properties reatal, Menara TA One, shop office at USJ Taipan, Subang Business Centre, Canada Teresen Centre, South Africa Jan Smuts Avenue, in Johannesburg.
  5. Property development: Damansara Idaman, Idaman Villa, Idaman Residence, Seri Suria, Idaman Bintang, setup construction arm call TA Binaprestij Sdn Bhd.
  6. Hotel operations: Australia SydneyRadisson Plaza Hotel

Highlight:
Strengthening of Hong Kong Market, Malaysia properties tax exempted, CPO future price and demand, plan to list TA properties into REITs

Clients: Retail shares investor and properties buyer, CPO seller and buyer

Properties: Manara TA One, USJ Taipan offices, Subang Business Centre,

Dividend Record:
2007.07.02 Final Dividend of 7% less 26% taxation
2006.07.24 Final Dividend of 3.00% less 28% taxation
2005.08.01 Final Dividend of 5.00 % less 28% taxation
2004.11.01 Interim Dividend of 1% less 28% taxation
2004.07.19 Final Dividend of 2.5% less 28% taxation
2003.10.14 Interim Dividend of 5% less 28% taxation
2003.08.11 Final Dividend 1% less 28% taxation
2002.08.15 Final Dividend 1% less 28% taxation
2001.08.10 Final Dividend 1% less 28% taxation
2000.08.08 Final Dividend 1% less 28% taxation
1999.08.06 Final Dividend 1% less 28% taxation

Speculation: Hong Kong market performance, Malaysia market preformance, CPO market performance, REITs, Sales of the South Africa properties, 2010 Winter Olympic in Canada.

Risk:
Operating Industry:
Operating Country Policy:
Operating Cost:
Operating Debtors:
Investing:

Competitors:
Stock broking companies and property developers

Directors and Interest:
1. Datuk Tiah Thee Kian: 459,478,200 (34.2144%)
2. Datin Tan Kuay Fong: 3,061,000 (0.22793%)
3. Dato’ Mohamed Bin Abid: 274,900 (0.02047%)
4. Christopher Koh Swee Kiat: 16,000 (0.00119%)

Major Shareholders:
1. Fleet Investments Management Limited: 65,091,000 (4.8469%)
2. TA Securities (HK) Ltd for Delroy Investment Holdings Limited: 55,275,000 (4.1160%)
3. State Street Australia Fund UAJB for Unifund (HISG as Trustee): 48,000,000 (3.5742%)
4. TA Securities (HK) Ltd for Globalbase Enterprise Ltd: 44,714,600 (3.3296%)
5. TA Securities (HK) Ltd for Goldcape International Limited: 40,068,800 (2.9837%)
6. Permodalan Nasional Berhad: 33,000,000 (2.4573%)
7. UBS AG for Prism Offshore Fund Ltd: 31,669,292 (2.3582%)
8. Exempt AN for JPMorgan Chase Bank, National Association (U.A.E.): 16,831,092 (1.2533%)
9. BNY Brussels for Melchior Greater China Opportunities Fund: 16,696,000 (1.2432%)
10.Fortis Private Banking Singapore Limited For Savern Finance Limited: 15,421,200 (1.1483%)
11.BNY Brussels for Queensland Investment Corporation: 14,483,100 (1.0785%)
12.Exempt AN for Morgan Stanley & Co. Incorporated: 11,245,200 (0.8374%)
13.UBS AG for Prism Partners QP LP: 10,510,242 (0.7826%)
14.Exempt AN for JPMorgan Chase Bank, National Association (Netherlands): 10,180,500 (0.7581%)
15.CBNY for DFA Emerging Markets Fund: 10,119,100 (0.7535%)
16.Investors Bank and Trust Company for Ishares, Inc.: 8,942,500 (0.6659%)
17.TA Securities (HK) Ltd for Jeffrey Smith: 8,294,100 (0.6176%)
18.TNTC for Government of Singapore Investment Corporation Pte Ltd: 7,454,900 (0.5551%)
19.UBS AG for Prism Partners LP: 6,876,883 (0.5121%)
20.Great Eastern Life Assurance (Malaysia) Berhad (Par 1): 6,500,000 (0.4840%)
21.HSBC-FS for Legg Mason Southeast Asia Special Situations Trust (201061): 5,813,500 (0.4329%)
22.State Street London Fund JY74 for The Pacific Basin Equity Fund (RIC PLC): 5,048,900 (0.3760%)
23.PB Trustee Services Berhad for HLG Growth Fund: 4,820,000 (0.3589%)
24.CBNY for DFA Emerging Markets Small Cap Series: 3,938,200 (0.2932%)
25.CB LDN for Banco Popolare Di Bergamo Prumerica SGR: 3,800,000 (0.2830%)
26.UBS AG for EB Asia Absolute Return Master Fund Limited: 3,500,000 (0.2606%)
27.BBH And Co. Boston for Vanguard Emerging Markets Stock Indexfund: 3,481,000 (0.2592%)
28.Public Index Fund: 3,418,400 (0.2545%)

Annual Report Performance:
Balance Sheet:
Asset: 2,932,810,000
Liabilities: 1,061,694,000

Income Statement:
Profit After Tax: 133,735,000

Cash Flows Statement:
Operating: -14,371,000
Investing: -210,702,000
Financing: -41,251,000

Friday, April 18, 2008

Bank Related

Bank related companies involve in some of these activites, commeercial banking, retail wealth management, investment banking, money lending, card business, stock broking, islamic banking, etc.

No. - Stock Code - Short Name - Company Name
  1. 5185 - AFFIN - AFFIN HOLDINGS BHD
  2. 2488 - AFG - ALLIANCE FINANCE GROUP BHD
  3. 1015 - AMMB - AMMB HOLDINGS BHD
  4. 5258 - BIMB - BIMB HOLDINGS BHD
  5. 1023 - COMMERZ - BUMIPUTRA-COMMERCE HOLDINGS BHD
  6. 5266 - EONCAP - EON CAPITAL BHD
  7. 5819 - HLBANK - HONG LEONG BANK BHD
  8. 5819 - HLCAP - HLG CAPITAL BHD
  9. 1082 - HLFG - HONG LEONG FINANCIAL GROUP BHD
  10. 1066 - RHBCAP - RHB CAPITAL BHD
  11. 1155 - MAYBANK - MALAYAN BANKING BHD
  12. 1295 - PBBANK - PUBLIC BANK BHD

Stock Broking Related

When market volume increase, that means more business for broker firm. These few days market volume is low, see what can these companies do in the quiet market.

No. - Stock Code - Short Name - Company Name
  1. 5088 - APEX - APEX EQUITY HOLDINGS BHD
  2. 2143 - ECM - ECM LIBRA FINANCE GRP BHD
  3. 6688 - HDBS - HWANG-DBS (M) BHD
  4. 3379 - INSAS - INSAS BHD
  5. 5096 - KAF - KAF-SEAGROATT & CAMPBELL BHD
  6. 6483 - KENANGA - K & N KENANGA HOLDINGS BHD
  7. 5053 - OSK - OSK HOLDINGS BHD
  8. 1287 - PMHLDG - PAN MALAYSIA HOLDINGS BHD
  9. 4898 - TA - TA ENTERPRISE BHD

Bank related companies also involve in stock broking.

Thursday, April 17, 2008

Step by Step: Online Apply IPO

There are only few banks have the online Initial Public Offering (IPO) application services. This is the example for the Maybank.
First log in your Maybank2u account. There is a pane at the left hand side as show below. Select "eShareApplication", follow step 1.
Step 2: Choose "IPO Application"
Step 3: Choose which IPO you want to apply. Example shown Dayang Enterprise Holdings Bhd.
Step 4: Click "Apply" to proceed.

Step 5: Click the check box.

Step 6: Click "I Agree" to proceed.

Step 7: Choose your race (there are quota for bumiputra and non-bumiputra)

Step 8: Key in your CDS account number. (15 numbers)

Step 9: Key in how many LOTS you want to apply.

Step 10: Click "Apply" to proceed.

Step 11: The final step, click "Comfirm" to complete the application.


After that you can print your application slip for your record. The money will automatic deduct from your account. This money will come back to the same account IF your application not choosen in the balloting.

The day after balloting date, if the amount go back to the account means the application not been choosen. If the money didn't come back, high possibility been choose. Partial amount come back, means partially given for the IPO share.

Strategy to Apply IPO

The result of the Initial Public Offering (IPO) of Dayang Enterprise Holdings Bhd has release on its balloting day.

These is the summary of the result. There are 2 goups of the share appliacation, the first table below is the result for the bumiputra and the second table is for non-bumiputra.
Study the tables and you will realize there are different of categories for the balloting. Please look at the third table, I highligh with red box and arrow.


The categories sort by the shares apply. Let say you apply 10, 000 shares, you are in the category of number 7 row (6,000 - 10,900). The chances to get the share is 11.35%. If let say you increase your share application to 11,000 shares, you are in the category 8th. The chances increase to 12.57%. That's why before apply the IPO, check the category and plan for the application to increase the chances to strike a good share.