WONSIM

The Beginning of 2009

2009-01-05T14:52:00.002+08:00

Happy New Year for 2009. Last month lot of people is expecting the year end rally for Christmas and Window Dressing. But the whole market has no volume at all. Guess all the buyer has gone for holiday. They need a holiday to relieve their pressure?

Since first trading day of 2009, Kuala Lumpur stock exchange index and volume started increase. Is this a sign for the market recovery? Most of the market all over the world show spike up about 2%. The spike up is very fast. Some says it is for the welcoming of Obama, some says is the Chinese New Year rally. So what is after Obama officially become the president on 22 January? What will it happen after Chinese New Year on 26 January?

For this high speed rally, I will take opportunity to sell. The company restructure and retrenchment was started not long a go. There is still has some down side for the market. For big investor who wants to buy a huge amount of share, they might need to start accumulate, but not for short term trader to chase at this point.

Company: Chaoda

2008-12-02T11:00:00.003+08:00

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

2008-12-02T10:29:00.002+08:00

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.

Balance Sheet Statement

2008-11-09T18:52:00.004+08:00

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

Brokerage Charges

2008-10-31T11:04:00.008+08:00

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.

Update Current Financial Situation

2008-10-14T14:48:00.003+08:00

A picture can tells thousaand words.

Corruption

2008-09-05T09:40:00.003+08:00

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.

Labours

2008-09-04T10:28:00.003+08:00

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

2008-09-04T08:50:00.000+08:00

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.

2008.07.03 BURSA Announcement!

2008-07-03T09:13:00.002+08:00

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.

Initial Listing Requirement

2008-06-06T11:00:00.002+08:00

Listing Requirements on KLSE

Quantitative Requirements
Qualitative Requirements
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:

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

Qualitative Requirements

Business Dynamics
Competition Dynamics
Industry Dynamics

Special Requirements: Additional requirements for specific companies

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

Increase Fuel Price! Must or Revenge?

2008-06-04T22:09:00.012+08:00

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.

Another Side Of Capitalism Society

2008-06-02T14:49:00.006+08:00

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'.

Malaysia Post Election

2008-05-28T10:06:00.003+08:00

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.

What is the World Economy Future?

2008-05-22T10:15:00.007+08:00

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.

Remisier Trading versus Online Trading

2008-05-16T08:38:00.002+08:00

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.

Investor, Trader, Gambler

2008-05-12T12:11:00.003+08:00

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.

Learn Early

2008-05-09T09:49:00.003+08:00

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.

Fertilizer Related

2008-05-07T15:04:00.006+08:00

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

4758 - ANCOM - ANCOM BHD
2879 - CCM - CHEMICAL COMPANY OF MALAYSIA BHD

To be comfirm,

3298 - HEXZA - HEXZA CORPORATION BHD
7084 - QL - QL RESOURCES BHD

Insurance

2008-05-05T10:39:00.001+08:00

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.

Fundamental and Technical

2008-04-30T09:05:00.002+08:00

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.

Gold Related

2008-04-29T10:38:00.002+08:00

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

7119 - DEGEM - DEGEM BHD
5080 - POHKONG - POH KONG HOLDINGS BHD
7230 - TOMEI - TOMEI CONSOLIDATED BHD

Derivative: TA Warrant

2008-04-28T11:15:00.002+08:00

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

2008-04-28T10:57:00.004+08:00

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.

Company: TA Enterprise Bhd

2008-04-22T09:39:00.014+08:00

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:

Based: Malaysia
Company Type: Investment Holdings
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:

Stock broking and financial services: Malaysia stock market, Hong Kong stock market, Derivative Future market
Investment holdings: Unit trust and asset management
Credit and lending: Share financing business, ESOS
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.
Property development: Damansara Idaman, Idaman Villa, Idaman Residence, Seri Suria, Idaman Bintang, setup construction arm call TA Binaprestij Sdn Bhd.
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

Bank Related

2008-04-18T16:01:00.009+08:00

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

5185 - AFFIN - AFFIN HOLDINGS BHD
2488 - AFG - ALLIANCE FINANCE GROUP BHD
1015 - AMMB - AMMB HOLDINGS BHD
5258 - BIMB - BIMB HOLDINGS BHD
1023 - COMMERZ - BUMIPUTRA-COMMERCE HOLDINGS BHD
5266 - EONCAP - EON CAPITAL BHD
5819 - HLBANK - HONG LEONG BANK BHD
5819 - HLCAP - HLG CAPITAL BHD
1082 - HLFG - HONG LEONG FINANCIAL GROUP BHD
1066 - RHBCAP - RHB CAPITAL BHD
1155 - MAYBANK - MALAYAN BANKING BHD
1295 - PBBANK - PUBLIC BANK BHD

Stock Broking Related

2008-04-18T14:59:00.007+08:00

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

5088 - APEX - APEX EQUITY HOLDINGS BHD
2143 - ECM - ECM LIBRA FINANCE GRP BHD
6688 - HDBS - HWANG-DBS (M) BHD
3379 - INSAS - INSAS BHD
5096 - KAF - KAF-SEAGROATT & CAMPBELL BHD
6483 - KENANGA - K & N KENANGA HOLDINGS BHD
5053 - OSK - OSK HOLDINGS BHD
1287 - PMHLDG - PAN MALAYSIA HOLDINGS BHD
4898 - TA - TA ENTERPRISE BHD

Bank related companies also involve in stock broking.

Step by Step: Online Apply IPO

2008-04-17T16:13:00.003+08:00

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

2008-04-17T11:18:00.005+08:00

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.

Can we trust the Newspaper?

2008-04-15T16:43:00.009+08:00

This is the example I get to show the "information" we read. Let look at these news below. They are reporting the crowd of the gathering for the same event at the same place.

Bloomberg - 20,000 people

The Edge - 20,000 people

New Strait Time - 10,000 people

Malay Mail - 7,000 people

South China Morning Post - 40,000 people

CNN - 40,000 people

I ask my friend, "What can we fully trust on the thing post in the newspaper?"

He think for a while and answer me, "The gambling result! Result of TOTO, Magnum, 3+1D, Jackpot"

What do you think?

Calm before Storm, Get Ready!

2008-04-15T12:09:00.003+08:00

Do you have the experience that everyday is a good day? If your answer is no, that means it will be the same that no everyday is a bad day. There is no forever sunny and no forever rainy.

Recently market is quiet like dead water. This doesn’t happen for a long time. Everybody is looking each other and waiting. For those have share on hand, they are waiting the opportunity to sell. Those who have cash and they want to buy, waiting opportunity to buy. Third category of investor is they don’t know either buy or sell. They want to wait and see.

If there good news coming out, market will start to go up. It will trigger buyer willing to buy at the higher price. Same for the bad news will trigger the seller sell in the lower price. What will trigger the market?

When volume start coming back, that mean people know their direction. These people are the pioneer of the market. If you are the follower, let see what the possibilities is.

Market suddenly goes up, you go to chase buy at the high price. You think market will go up. If market goes up follow true, you will earn less than the pioneer or you may not get to buy because lot of buyer and seller gone. If market goes turn and go down, you are actually buying the stock from the previous batch of people. You lose more than others.

Market suddenly goes down, you scare and you sell the share which previously wants to sell higher price. There is no buyer and lot of seller. You may not success to sell and just watching the price go down. If let say you success to sell, that mean there is value of the share on your hand actually. The price may just dip for a while and recover. That mean you sell at the lowest price. You lost more money than others.

If you collect the good share during the market quiet, the chances to loss will be lower. The margin of loss also lowers than other people. The good company share may drop, but the difference will be not much. It will go back to the value after sell off.

Always be ready before the storm comes. Lull before the storm.

Analyze the Information

2008-04-11T15:25:00.006+08:00

Nowadays people will not hesitate to give themselves top priority.It is not easy to survive when a person do not take care of himself or herself. Therefore, when a person tells you something, think before you respond or react.

Recently the Tibet issue comes to the newspaper everyday. It looks like the whole world is supporting the independence of the Tibet. There are protests here and there to show their support to the Tibet and emphasize the human right.

In fact, I contact a friend who permanently stays in Lhasa, Tibet, she told me actually the safety there is in good condition. Government there not allow any foreign visitors because they worry this protestor may hurt or use the visitors to create news.

In some business, the introducer shows lots of their achievement. They stay in bungalow, drive luxurious car. Their superior stays in mansion, have a private jet, own an island and so on. Seldom see them in the news.

In some case, people who advice not to simply spend the money, use it wisely and don’t buy unnecessary. Always see in the news. Who is the person should listen to?

What is the purpose of the news and information given? What is the reason behind all the information shows? All the information actually tells some answer but have to analyze before any judgment and action. Let say there is a company “ABC” earning lot of money every year. Now the share of this company is $10. In fact, the real value is far more than that, what will you do? You definitely want to buy it and if possible privatize it so that the whole company and the money belongs to you one person.

What if company “ABC” worth only $5 and now the shares traded at around $10? In this case, if you own lot of the share of this company, you will start nervous what if there is no buyer willing to buy from you. Just imagine you have 1 million shares on your hand and there is no buyer willing to buy. What can you do?

“Hey friend, tell you a secret. Don’t tell other people. Company “ABC” worth $30. Better grab more in the market! I have bought million”

Company “ABC” now traded around $10. For you this price is cheap or expensive?

Don’t know what to do? Better do more home work before make judgment.

Compare

2008-04-11T11:21:00.005+08:00

Can you tell what is the size of this thing? When analyze a company, one of the methods is compare. That’s why there is benchmark selected to be a references. For example our market there is a composite index. This index is consisting of 100 largest companies in Kuala Lumpur Stock Exchange (KLSE). When look at the index, Kuala Lumpur Composite Index (KLCI) is at around 1250 points. What does it means? What is the purpose of the index such as Dow Jones Industrial Average close at 12582 points, Hong Kong Hang Seng Index is at 24187 points, and Singapore Straits Time Index at 3064 points?

Refer to the formula for the KLCI, it compare the market 100 biggest companies capitalization and the 100 biggest companies capitalization now. If the KLCI go back to 100 points, it means Malaysia economy is same with the year on 1977.

Besides, there is average Price Earning Ratio (PE) of the index. When you buy a stock, you can compare the company PE with the index, or with the particular industry average PE, or else which relevant.

If don’t compare, it is hard to judge it. Look at the picture above, can you tell me how big is the machine excavator?

Philosophy In Stock Market!

2008-04-09T10:21:00.005+08:00

Stock market involve lots of different kinds and categories of people. Some of them create an illusion to trap the greed. I received a forwarded email some times ago, it is a good story I want to share. I don't know who is the writer, appreciate his or her article.

Once upon a time in a village, a man appeared who announced to the villagers that he would buy monkeys for $10.00 . The villagers, seeing that there were many monkeys in the forest, went out and started catching them.

The man bought thousands at $10.00. As supply started to diminish and villagers started to stop their efforts, he announced that now he would buy them at $20.00.

This renewed the efforts of the villagers and they started catching monkeys again. Soon, the supply diminished even further and people started going back to their farms.

The offer rate was increased to $25.00 and the supply of monkeys became so scarce that it was an effort to even see a monkey, let alone catch it.

The man now announced that he would buy monkeys at $50.00. However, since he had to go to the city on some business, his assistant would now buy on behalf of the man.

In the absence of the man, the assistant told the villagers, "Look at all the monkeys in the big cage that the man has collected. I will sell them to you at $35.00 and when the man comes back, you can sell them to him for $50.00 each."

The villagers queued up with all their savings to buy the monkeys.

After that, neither the assistant nor the businessman could be found anywhere but the monkeys were everywhere!

Apply to Initial Public Offering (IPO)

2008-04-09T08:41:00.005+08:00

Initial Public Offering (IPO), is the first sale of the share of the company in primary market. This offer of the particular company share has not yet traded in the stock market before. Therefore, the data of the company can be obtain is limited. Since this stock never trade in the stock market before, the future performance of the company become a risk. The only source of the data is their prospectus come together with their IPO.

There are 3 methods to apply IPO for the company to be list in the Kuala Lumpur Stock Exchange (KLSE). First recommend is the fastest and easiest way, "Online e Share Application". Second method is "Apply via Bank ATM machine". The last is the traditional method which you have to get "IPO Application Form" from the securities firm to fill in and post.

Online e Share Application:

Available at : Maybank2u e-IPO, CIMB e-IPO, and RHB e-IPO.

ATM Machine:

Available at: Maybank, CIMB, RHB, (other no sure)

IPO Application Form:

Available at: Any securities firm.

The thing you have to prepare is your Central Depository System (CDS) account number. Total 15 numbers. You have to use this number when you apply IPO.

Government Link Company

2008-04-08T14:16:00.011+08:00

Since our market in Malaysia is unstable recently, why not watch closely the Government Linked Company (GLC) which under Barisan National (BN). These are some of the companies listed by TA Research house and some of it are from my memory. These are the United Malays National Organisation (UMNO) linked companies, Malaysian Chinese Association (MCA), Selangor State Government, and others related.

No. - Stock Code - Short Name - Company Name

UMNO

7078 - AZRB - AHMAD ZAKI RESOURCES BHD
8125 - DAIMAN - DAIMAN DEVELOPMENT BHD
1619 - DRBHCOM - DRB-HICOM BHD
2143 - ECM - ECM LIBRA FINANCIAL GRP BHD
1368 - FABER - FABER GROUP BHD
6874 - KUB - KUB MALAYSIA BHD
3174 - L&G - LAND & GENERAL BHD
9628 - LDAUN - LEBAR DAUN BHD
1651 - MRCB - MALAYSIAN RESOURCES CORPORATION BHD
4502 - MEDIA - MEDIA PRIMA BHD
2194 - MMCCORP - MMC CORPORATION BHD
9032 - MTD - CAPITAL BHD
3999 - NSTP - NEW STRAITS TIMES PRESS (M) BHD
5093 - PECD - PECD BHD
7081 - PHARMA - PHARMANIAGA BHD
2895 - PUTERA - PUTERA CAPITAL BHD
5030 - RANHILL - RANHILL BHD
5050 - RUBHD - RANHILL UTILITIES BHD
7158 - SCOMI - SCOMI GROUP BHD
7366 - SCOMIEN - SCOMI ENGINEERING BHD
7045 - SCOMIMR - SCOMI MARINE BHD
4421 - TWS - TRADEWINDS (M) BHD
4804 - TWSCORP - TRADEWINDS CORPORATION BHD
6327 - TWSPLNT - TRADEWINDS PLANTATION BHD
5054 - TRC - TRC SYNERGY BHD
5042 - TSRCAP - TSR CAPITAL BHD
4855 - UEMBLDR - UEM BUILDERS BHD
1775 - UEMWRLD - UEM WORLD BHD
5754 - UTUSAN - UTUSAN MELAYU (M) BHD
8958 - WELLI - WELLI MULTI CORPORATION BHD

MCA

6084 - STAR - STAR PUBLICATIONS (M) BHD

Selangor State Government

6246 - KHSB - KUMPULAN HARTANAH SELANGOR BHD
5843 - KPS - KUMPULAN PERANGSANG SELANGOR BHD

Others

1147 - EQUINE - EQUINE CAPITAL BHD
1023 - COMMERZ - BUMIPUTRA-COMMERCE HOLDINGS BHD

Suspect

5070 - PRTASCO - PROTASCO BHD

Dividend Stocks

2008-04-07T15:55:00.006+08:00

Since our market sentiment low. Everybody sitting at the side line. Looking at the 1150 support, 1100 support and 1000 support. Here are some stocks which give out devidend quite regulary.

No. - Stock Code - Short Name - Company Name

6351 - AMWAY - AMWAY (M) HOLDINGS BHD
4162 - BAT - BRITISH AMERICAN TOBACCO (M) BHD
1562 - BJTOTO - BERJAYA SPORTS TOTO BHD
2836 - CARLSBG - CARLSBERG BREWERY MALAYSIA BHD
7148 - CCMDBIO - CCM DUOPHARMA BIOTECH BHD
3689 - F&N - FRASER & NEAVE HOLDINGS BHD
5398 - GAMUDA - GAMUDA BHD
3255 - GUINESS - GUINESS ANCHOR BHD
2615 - JTINTER - JT INTERNATIONAL BHD
1295 - PBBANK - PUBLIC BANK BHD
7100 - UCHITEC - UCHI TECHNOLOGIES BHD
6742 - YTLPOWR - YTL POWER INTERNATIONAL BHD

I am here because ...

2008-04-07T15:34:00.000+08:00

Lots of friends wonder why I become a Remisier. Why I am in this position of the finance sector. I am here because I see the gap of investment between elder investors and new generation investors. Those who has the experience during the 1997 financial crisis, they scared of stock market. They don’t even want to talk or mention about the stock and share. They were loss a lots of money at that time. For them stock and share is gambling. Instead, they never know why they loss money. They never figure out the reasons and they never tell the next generation about stock and share.

I am here to be Remisier because I want to let the new generation know better about the stock market and what is share. They must know investment because in this capitalism society, money is one of the important tools to live. New generation have lot of curious of the stock market. Since stock market is the largest market, why not let them understand the reality of it?

There are lots of investment tools and methods in the world. Besides properties, the major investment tools are equities, which were traded in the stock market. For example lots of new generations invest in mutual fund or call unit trust in Asia, but there is another new derivative call Exchange Traded Fund (ETF). ETF have lower fees than unit trust. The problem is less people know that and invest with it. Those who invest in unit trust may not know how it works too. This phenomenon shows a serious indication.

When I browse through the book stores, I can get lots of book talking about how to earn money in stock market. There are too many until I cannot finish even the content pages. What I found out, there are lots of them teach how they earn fast money. I personally feel that if investment can always make fast money easily, this world have no person willing to work anymore. If no worker, company performance will be drop; if the company performance drop, the value of the company will also drop. End up those earn fast money will loss back to the market and go back to work.

I am here to start a blog is because majority of my client is new generation and they are totally fresh in the stock market. Since they know how to use internet, I am here to write down the information for those who are new in stock market. Besides, I can also meet with expert in the internet, to learn and improve myself. Correct me if I am wrong please.

From Seeds to Fruits

2008-04-06T18:53:00.003+08:00

I was grown up in farm. My family is doing business in agricultural sector, planting vegetables, flowers, and fruits. I grow up together with lots of plants. Plants are my friends too.

Do you ever know that how a tree grows? If you given a seed, how are you going to grow it until you get the fruit? Investment is similar to growing a tree. The different is you grow your seed capital. There are lots of knowledge involved, lots of patients needed, and lots of cares have to take in.

First, before we plant a tree, we have to prepare this not we plant today, we can get the fruits tomorrow. Therefore, choose the seeds carefully. If want to get Orange why I start with an Apple seeds? I don’t talk about the quantity here because if you want to get more, what you have to do is start with more seed and bigger land area.

When we choose a suitable seed, we have to let it germinate. Then sprout out from the ground. For investment, we choose a right company, and then we invest our capital. For those involve in the management, they have to go through lot of challenging to grow their tree or company. We as an investor, if we don’t know how to grow a tree or company, we need a good farmer or good management team.

Bear in mind, when a tree grow, there are lots of uncertainties that may influence the growth of the tree. There are climate changes, soil, intruders, resources scarcity, infection, and so on. A good partner or management team is definitely important for any kind of business.

Looking at seeds growth bigger and bigger, it starts to bloom. After flower is the fruit we get. Whether the fruit tasty or not, fruitful or not it depend on all the effort of the management.

Investment is not gambling. We don’t expect we invest today, can harvest tomorrow. If our investments suddenly shoot up so much, we can take profit because it might probably drops again due to the psychological effect. We can buy back at lower price instead of looking at our investment ups and downs.

What is Stock and Share?

2008-04-06T09:37:00.001+08:00

Share (also referred to as equity shares) of stock represents a share of ownership in a corporation.

Here is a company call ABC, “ABC Holdings Bhd.”. For example is company listed in Kuala Lumpur Stock Exchange (KLSE), and its total properties and cash worth $100. If this company issue 100 shares, that means every share of this ABC company worth $1 per share. When you buy 1 share, you are one of the shareholders of the company ABC. In other words you own 1% (1 share out of total 100 shares) of this company.

This ownership of the company, or call “share” is trade in the stock and share market (stock exchange). When you don’t want to involve in this company, you can sell out your share to other people or you can buy the share from other people. Of course, to trade the share, you need to Remisier do it for you.

From the previous example, you own 1 share of company ABC. You bought it last year. This year they announce their company result and they total earn another $200. This means company ABC now worth $100 + $200 = $300. Divided the value to its total share issue, which is 100 shares, each of the shares REAL VALUE is $3. Bear in mind your starting investment capital is $1 and now this company earn money and worth $3. You are shareholder and you earn $2. Your investment value increase 300%. BUT, the TRADE VALUE may not same as the REAL VALUE. This share can be trades in any price in the stock market depend on the share holder (seller) and share buyer.

The CEO of the company ABC gives his speech during the company result announcement. He says company performance will be better than this year for the coming result. He forecast the company earning can increase and earn total $300 in coming year. If his forecast is correct, company ABC will total worth $300 + $300 = $600. Each share will worth $6. Some of the investor believe, some of don’t believe. Now the share traded at price $4. You want to buy? Or you want to sell? With this price.

If you are confused with your situation, let me give you a summary here. From the latest result announce, company ABC profit improve and worth $3 each share, now buyer in the market offer $4 to buy from you. You want to sell at $4 or you hold your share or you buy more from stock market? If you think next year this company will lose money, why not sell now? If you are not sure the performance yet, you can hold. If you think the performance result will increase as the CEO told, why not buy more?

In stock market, there are different types of people. These people buy or sell has their own reason. Most of the time, they play the psychological games with you, little bit similar to the TV show call “Deal or No Deal”. You have a share on hand (the brief case), buyer offer a price you buy your share (the brief case). Deal or No Deal?

IPO: Dayang Enterprise Holdings Bhd

2008-04-03T11:52:00.009+08:00

Company Name: DAYANG ENTERPRISE HOLDINGS BERHAD

My Action: apply

Issue Price: RM1.45
Listing: Main Board
Industry: Oil & Gas

Total share issue: 352,000,000
Total public issue: 85,874,000
From public issue, Malaysia public issue: 17,600,000 new ordinary
From public issue, Private placement: 59,774,000 new ordinary
From public issue, Employee: 8,500,000 new ordinary
Par Value: 0.50

Prospectus Date: 2008.03.31
Closing Date: 2008.04.11 5pm
Application Balloting: 2008.04.15
Allotment date: 2008.04.23
Listing Date: 2008.04.28

Issuing House: Malaysia Issuing House (258345-X)
Issuing House Account: MIH Share Issue Account No.459
Underwriter: AmInvestment

Financial Year End: September (going to change to December)

Income Statement:
Profit after Taxation by year
2005: RM 22,188,000
2006: RM 22,697,000
2007: RM 28,852,000

Balance Sheet:
Total Assets: RM 347,782,000
Total Liabilities: RM 84,659,000

Cash Flow Statement
Operating Cash Flow: RM 33,255,000
Investing Cash Flow: - RM 18,744,000
Financing Cash Flow: RM 141,604,000

NTA per share: RM0.75

Based: Malaysia
Company Type: investment holding company.
Company Description:
The Company is engaged in providing maintenance services, fabrication operations, hook-up and commissioning and chartering of marine vessels. The wholly owned subsidiaries of the Company are Dayang Enterprise Sdn Bhd (DESB), DESB Marine Services Sdn Bhd (DMSSB) and Fortune Triumph Sdn Bhd (FTSB). DESB is involved in providing maintenance services for topside structures, pipes and valves, electrical and instrumentation, fabrication operations, and hook-up and commissioning services for the oil and gas industry. DMSSB is involved in the chartering of marine vessels, including floating accommodation and catering. FTSB provides rental equipment and machinery to the various players in the oil and gas industry.

From Dayang Enterprise Holdings Bhd:

Dayang Enterprise Sdn Bhd (DESB)

A wholly owned subsidiary of Dayang and licensed by Petronas, DESB commenced operations in October 1980 and is principally involved in the provision of maintenance services for Topside structures, pipes and valves, electrical and instrumentation, fabrication operations, and hook-up and commissioning services for the oil and gas industry.

DESB Marine Services Sdn Bhd (DMSSB)

DMSSB, a subsidiary of Dayang, began operations in May 2005 and is involved in the chartering of marine vessels, including floating accommodation and catering.

DMSSB possesses its own marine vessels, the first being "Dayang Pertama", a 189-personnel maintenance and accommodation workboat, which was completed in the second quarter of 2005. The vessel is currently used to provide offshore accommodation for the company’s workforce.

DMSSB also has a straight supply vessel known as "Dayang Maju" that was commissioned in February 2006.

Construction is already underway for a sister vessel of Dayang Pertama named "Dayang Berlian", which is due to be completed by February 2007.

Fortune Triumph Sdn Bhd (FTSB)

FTSB, which commenced operations in 1999, provides rental equipment and machinery to the various players in the oil and gas industry.

1. Petronas Approved License & Registration Dayang’s wholly owned subsidiary, DESB is registered with Ministry of Finance and has a Petronas approved license that enables it to provide supporting products and services for the oil and gas industry.

2. Established Track Record With over 25 years of oil and gas experience, Dayang has successfully established a track record that is associated with quality, reliability, technical expertise as well as service excellence.

3. Experience in Supporting Diverse Types of Offshore Structures Dayang provides supporting products and services, especially maintenance services for a wide range of exploration and production platforms, and other offshore structures. Dayang’s experience plus its track record serve as a distinct competitive advantage when bidding for offshore contracts.

4. Economies of Scale Dayang enjoys significant economies of scale, which serves as a competitive advantage when bidding for new contracts, but at the same time able to maintain a high margin. This is achieved through providing a wide range of supporting products and services, and servicing a large number of offshore structures.

5. Comprehensive In-House Skills & Expertise Dayang has in-house expertise and skills to maintain most types of offshore structures and platforms and thus does not rely on outsourcing and / or third party expertise.

6. High Quality Standards Significant emphasis is placed on quality and this is reflected in Dayang’s accreditation of MS ISO 9001:2000 Quality Management System certified by SIRIM QAS International Sdn Bhd.

7. Own New Marine Vessel Dayang is a proud owner of a maintenance and accommodation vessel whose construction was completed in the second quarter of 2005. Plans are already underway for the construction of a similar second marine vessel with an expected completion date of February 2007. It also owns a straight supply vessel known as “Dayang Maju” that was commissioned in February 2006. By having its own vessels, Dayang is able to reduce its reliance on the supply of charter services from external parties and allow the company to be more competitive in terms of pricing and costing when bidding for contracts.

8. Full Range of In-House Equipments & Tools Dayang has a full range of in-house equipments and tools that allows it to provide a prompt and consistent product and service quality, high efficiency and the ability to undertake high volume work.

Risk:

Related to operating industry:

Fluctuation in the market price of hydrocarbon
Activity in Malaysia Oil and Gas industry
Depletion of hydrocarbon resources
Regulatory compliance / dependence on licenses / permits
Political, economic and regulatory considerations
Competitive industry

Related to operations and business:

Business risk
Operational, health and safety risk
Dependent on major customers
Future business performance depends on the award of new contracts
Dependent on its key personnel and skilled workforce
Delay in the completion of work orders
Operating in a strict environmental regime
Environmental concerns
Investmental concerns
Investment activities risk and new ventures

Related to investing in the IPO shares

No prior public market for its share
Price volatility
Capital market risks
Profit forecast may vary from actual results
Future dividends are dependent on future performance
Controlled by its promoters
Failure / delay in the listing
Delay between admission and trading of the IPO shares
Disclosure regarding forward-looking statement

Competitor:

Petra Perdana Bhd
Petra Energy Bhd

PE Ratio: Lower than KLCI, higher than competitors.

2008.03.28

2008-03-29T11:58:00.002+08:00

I buy

Ramunia 1.38 or below
Ramunia-wa below 1.05 or below
Sunway below 1.38 or below
Sunway-wb below 0.23 or below
Kinstel 1.17 or below
Jaks 0.66 or below
Gamuda 3.20 or below
Parkson 6.20 or below

Oil Palm Related

2008-03-28T15:50:00.007+08:00

Oil Palm related companies.

No. - Stock Code - Short Name - Company Name

2291 - ASIATIC - ASIATIC DEVELOPMENT BHD
1899 - BKAWAN - BATU KAWAN BHD
5069 - BLDPLNT - BLD PLANTATION BHD
2771 - BSTEAD - BOUSTEAD HOLDINGS BHD
8982 - CEPAT - CEPATWAWASAN GROUP BHD
1929 - CHINTEK - CHIN TECK PLANTATIONS BHD
5029 - FAREAST - FAR EAST HOLDINGS BHD
2372 - GNEALY - GLENEALY PLANTATIONS (M) BHD
7501 - HARNLEN - HARNLEN CORPORATION BHD
5138 - HSPLANT - HAP SENG PLANTATIONS HOLDINGS BHD
2216 - IJMPLANT - IJM PLANTATIONS BHD
2607 - INCKEN - INCH KENNETH KAJANG RUBBER PLC
1961 - IOICORP - IOI CORPORATION BHD
2445 - KLK - KUALA LUMPUR KEPONG BHD
2453 - KLUANG - KLUANG RUBBER CO (M) BHD
5027 - KMLOONG - KIM LOONG RESOURCES BHD
1996 - KRETAM - KRETAM HOLDINGS BHD
2003 - KULIM - KULIM (M) BHD
5193 - KURNIA - KURNIA SETIA BHD
6572 - KWANTAS - KWANTAS CORPORATION BHD
5851 - LPF - LADANG PERBADANAN - FIMA BHD
5026 - MHC - MHC PLANTATIONS BHD
1902 - MVEST - MULTI VEST RESOURCES BHD
5047 - NPC - NPC RESOURCES BHD
2038 - NSOP - NEGRI SEMBILAN OIL PALMS BHD
9695 - PLS - PEMBINAAN LIMBONGAN SETIA BHD
4065 - PPB - PPB GROUP BHD
5113 - RSAWIT - RIMBUNAN SAWIT BHD
2542 - RVIEW - RIVERVIEW RUBBER ESTATES BHD
2569 - SBAGAN - SUNGEI BAGAN RUBBER CO (M) BHD
4197 - SIME - SIME DARBY BHD
5126 - SOP - SARAWAK OIL PALMS BHD
5135 - SWKPLNT - SARAWAK PLANTATION BHD
5012 - TAANN - TA ANN HOLDINGS BHD
7382 - TANAMAS - TANAH EMAS CORPORATION BHD
2054 - TDM - TDM BHD
8109 - THGROUP - TH GROUP BHD
5112 - THPLANT - TH PLANTATIONS BHD
9059 - TSH - TSH RESOURCES BHD
6327 - TWSPLNT - TRADEWINDS PLANTATION BHD
2593 - UMCCA - UNITED MALACCA BHD
5019 - UNICO - UNICO-DESA PLANTATIONS BHD
2089 - UTDPLT - UNITED PLANTATION BHD

O&G Related

2008-03-28T09:38:00.005+08:00

These are the oil and gas (O&G) related companies list:

No. - Stock Code - Short Name - Company Name

5132 - DELEUM - DELEUM BHD
7277 - DIALOG - DIALOG GROUP BHD
8265 - EPIC - EASTERN PACIFIC INDUSTRIAL CORP. BHD
5122 - KENCANA - KENCANA PETROLEUM BHD
7164 - KNM - KNM GROUP BHD
8559 - M3NERGY - M3NERGY BHD
5011 - MSNIAGA - MESINIAGA BHD
5703 - MUHIBAH - MUHIBBAH ENGINEERING (M) BHD
5125 - PANTECH - PANTECH GROUP HOLDINGS BHD
5133 - PENERGY - PETRA ENERGY BHD
0047 - PERISAI - PERISAI PETROLEUM TEKNOLOGI BHD
5681 - PETDAG - PETRONAS DAGANGAN BHD
6033 - PETGAS - PETRONAS GAS BHD
7108 - PETRA - PETRA PERDANA BHD
7206 - RAMUNIA - RAMUNIA HOLDINGS BHD
5030 - RANHILL - RANHILL BHD
7185 - SAMUDRA - KEJURUTERAAN SAMUDRA TIMUR BHD
8575 - SAPCRES - SAPURACREST PETROLEUM BHD
7158 - SCOMI - SCOMI GROUP BHD
4324 - SHELL - SHELL REFINING CO (F.O.M.) BHD
4197 - SIME - SIME DARBY BHD
1201 - SUMATEC - SUMATEC RESOURCES BHD
7228 - TGOFFS - TANJUNG OFFSHORE BHD
4588 - UMW - UMW HOLDINGS BHD
5142 - WASEONG - WAH SEONG CORPORATION BHD

KLSE Composite Index Component (Index Linked)

2008-03-27T15:44:00.010+08:00

Kuala Lumpur Stock Exchange (KLSE) index is consists of 100 biggest capitalization companies. Company capitalization is company number of listed share × it's closing price.

Index is count by following formula which I get it from the KLSE, Bursa Malaysia.

KLSE Index Components Stock On 2008.03.27

No. - Stock Code - Short Name - Company Name

5185 - AFFIN - AFFIN HOLDINGS BHD
5099 - AIRASIA - AIRASIA BHD
2488 - AFG - ALLIANCE FINANCIAL GROP BHD
1015 - AMMB - AMMB HOLDINGS BHD
6556 - ANNJOO - ANN JOO RESOURCES BHD
5076 - ASTRO - ASTRO ALL ASIA NETWORKS PLC
1473 - BRDB - BANDAR RAYA DEVELOPMENTS BHD
1562 - BJTOTO - BERJAYA SPORTS TOTO BHD
2771 - BSTEAD - BOUSTEAD HOLDINGS BHD
4162 - BAT - BRITISH AMERICAN TOBACCO (M) BHD
1023 - COMMERZ - BUMIPUTRA-COMMERCE HOLDINGS BHD
1818 - BURSA - BURSA MALAYSIA
2836 - CARLSBG - CARLSBERG BREWERY MALAYSIA BHD
7277 - DIALOG - DIALOG GROUP BHD
6947 - DIGI - DIGI.COM BHD
1619 - DRBHCOM - DRB-HICOM BHD
3468 - E&OPROP - E&O PROPERTY DEVELOPMENT BHD
5266 - EONCAP - EON CAPITAL BHD
5398 - GAMUDA - GAMUDA BHD
3182 - GENTING - GENTING BHD
1503 - GUOCO - GUOCOLAND (MALAYSIA) BHD
3034 - HAPSENG - HAP SENG CONSOLIDATED BHD
5819 - HLBANK - HONG LEONG BANK BHD
1597 - IGB - IGB CORPORATION BHD
3336 - IJM - IJM CORPORATION BHD
1961 - IOICORP - IOI CORPORATION BHD
5122 - KENCANA - KENCANA PETROLEUM BHD
3492 - KFC - KFC HOLDINGS (M) BHD
5060 - KINSTEL - KINSTEL BHD
5089 - KLCCP - KLCC PROPERTY HOLDINGS BHD
7164 - KNM - KNM GROUP BHD
2445 - KLK - KUALA LUMPUR KEPONG BHD
2003 - KULIM KULIM (M) BHD
5843 - KPS - KUMPULAN PERANGSANG SELANGOR BHD
5097 - KURASIA - KURNIA ASIA BHD
3794 - LMCEMNT - LAFARGE MALAYAN CEMENT BHD
1642 - LANDMRK - LANDMARKS BHD
6645 - LITRAK - LINGKARAN TRANS KOTA HOLDINGS BHD
2011 - LINGUI - LINGUI DEVELOPMENT BHD
2887 - LIONDIV - LION DIVERSIFIED HOLDINGS BHD
4235 - LIONIND - LION INDUSTRIES CORPORATION BHD
3735 - MAGNUM - MAGNUM CORPORATION BHD
8583 - MAHSING - MAH SING GROUP BHD
1155 - MAYBANK - MALAYAN BANKING BHD
5014 - AIRPORT - MALAYSIA AIRPORT HOLDINGS BHD
3786 - MAS - MALAYSIAN AIRLINE SYSTEM BHD
5077 - MAYBULK - MALAYSIAN BULK CARRIERS BHD
3867 - MPI - MALAYSIAN PACIFIC INDUSTRIES BHD
1651 - MRCB - MALAYSIAN RESOURCES COPORATION BHD
4502 - MEDIA - MEDIA PRIMA BHD
3816 - MISC - MISC BHD
8893 - MKLAND - MK LAND HOLDINGS BHD
2194 - MMCCORP - MMC CORPORATION BHD
9768 - MTDINFR - MTD INFRAPERDANA BHD
5703 - MUHIBAH - MUHIBBAH ENGINEERING (M) BHD
3905 - MULPHA - MULPHA INTERNATIONAL BHD
4006 - ORIENT - ORIENTAL HOLDINGS BHD
5053 - OSK - OSK HOLDINGS BHD
6866 - BERNAS - PADIBERAS NASIONAL BHD
5231 - PELIKAN - PELIKAN INT. CORPORATION BHD
7108 - PETRA - PETRA PERDANA BHD
5681 - PETDAG - PETRONAS DAGANGAN BHD
6033 - PETGAS - PETRONAS GAS BHD
5052 - PLUS - PLUS EXPRESSWAYS BHD
4634 - POS - POS MALAYSIA BHD
4065 - PPB - PBB GROUP BHD
5304 - PROTON - PROTON HOLDINGS BHD
1295 - PBBANK - PUBLIC BANK BHD
6807 - PUNCAK - PUNCAK NIAGA HOLDINGS BHD
1066 - RHBCAP - RHB CAPITAL BHD
8575 - SAPCRES - SAPURACREST PETROLEUM BHD
2356 - SARAWAK - SARAWAK ENERGY BERHAD
7158 - SCOMI - SCOMI GROUP BHD
1783 - SPB - SELANGOR PROPERTIES BHD
4324 - SHELL - SHELL REFINING CO (F.O.M.) BHD
4197 - SIME - SIME DARBY BHD
8664 - SPSETIA - SP SETIA BHD
6084 - STAR - STAR PUBLICATIONS (M) BHD
6165 - SUNRISE - SUNRISE BHD
6289 - SUNCITY - SUNWAY CITY BHD
6521 - SURIA - SURIA CAPITAL HOLDINGS BHD
5012 - TAANN - TA ANN HOLDINGS BHD
4898 - TA - TA ENTERPRISE BHD
4405 - TCHONG - TAN CHONG MOTOR HOLDINGS BHD
2267 - TANJONG - TANJONG PUBLIC LIMITED COMPANY
4863 - TM - TELEKOM MALAYSIA BHD
5347 - TENAGA - TENAGA NASIONAL BHD
5103 - TITAN - TITAN CHEMICALS CORP. BHD
7113 - TOPGLOV - TOP GLOVE CORPORATION BHD
6327 - TWSPLNT - TRADEWINDS PLANTATION BHD
7100 - UCHITEC - UCHI TECHNOLOGIES BHD
1775 - UEMWRLD - UEM WORLD BHD
4588 - UMW - UMW HOLDINGS BHD
5005 - UNISEM - UNISEM (M) BHD
5142 - WASEONG - WAH SEONG CORPORATION BHD
9679 - WCT - WCT ENGINEERING BHD
4243 - WTK - WTK HOLDINGS BHD
3158 - YNHPROP - YNH PROPERTY BHD
4677 - YTL - YTL CORPORATION BHD
2283 - ZELAN - ZELAN BHD

Appreciation

2008-03-26T14:50:00.004+08:00

How to appreciate your wealth in share market? It is not gambling but investing. I summarize the example of this counter, PBBANK listed in Kuala Lumpur Stock Exchange. It hits the lowest record price of 0.85 on 17th, August 1998. We don’t count from that moment. We count from the 2nd, January 2001. It is the first trading day of 2001. That time if you buy 1000 share at price RM2.90 with par value of RM0.50, you need to invest about RM2,900.

After that look at the entitlement announce from year 2001 to year 2007 by the company. There is a table above of the announcement. From here, can see total dividend you get is RM2129.19. It is already near to the starting capital you invest. Besides, look at the price on the last trading day of 2007, 31st, December 2007. The price is close at RM11.00. If you sell all your share (1015 share) of this company, you get back RM11,165.00.

Sum up all together the money you get back from the sale of the share and the dividend you get, it is total you get back RM13,294.19.

From seed capital of RM2,900 become RM13,294.19 is 458.42% increment. It is about 25% increase of the seed capital each year. This is the reward or fruits you get from the basic fundamental investment. This is why rich people invest their money rather than put their money in bank account.

TA Securities Holdings Bhd. Bank Information

2008-03-21T09:58:00.004+08:00

Recipient: TA SECURITIES HOLDINGS BERHAD

Local bank transfer:
1. Maybank Bhd A/C No. 514-011-387-097
2. Affin Bank Bhd A/C No. 100-2600-15201
3. Alliance Bank (M) Bhd A/C No. 14055-001-0074620
4. CIMB Bank A/C No. 1414-0035792-055
5. Citibank Bhd A/C No. 0115738038
6. Hong Leong Bank Bhd A/C No. 001-003-09979
7. HSBC Bank Malaysia Bhd A/C No. 201-308731-101
8. OCBC Bank Malaysia Bhd A/C No. 701-124426-4
9. Public Bank Bhd A/C No. 312-779-7929
10. RHB Bank Bhd A/C No. 2-14183-0002612-0
11. Standard Chartered Bank Malaysia Bhd A/C No. 312-143588026
12. UOB Malaysia Bhd A/C No. 248-3-028967-9

Foreign Transfer:

Recipient:
TA SECURITIES HOLDINGS BERHAD

Address:
Menara TA One,
22 Jalan P. Ramlee,
50250 Kuala Lumpur,
Malaysia.

Recipient Bank:
Citibank Berhad

Account number:
011 573 8038

Recipient Bank Address:
165, Jalan Ampang,
Menara Citibank,
50450 Kuala Lumpur,
Malaysia.

If Telegraphic Transfer by:
USD: SWIFT CODE = CITIUS33

Yen : SWIFT CODE = CITIJPJT

Procedure to Open Trading Account

2008-03-19T12:57:00.004+08:00

Yesterday I have a foreign client open account with me. He faces lot of problems when come to the procedure. The procedure to invest in Kuala Lumpur Stock Exchange of a retail foreign investor is different with local investor. The application form is same but the documents and the money transfer is different. Here is the procedure to open an account in my securities firm.

For local investor, the documents need to be ready to submit are:

3 photocopy identity card (I/C),
fill in 1 copy of “Application for Opening of Trading Account” form (3 signatures),
fill in 1 copy of three ply yellow form, from Bursa Malaysia Depository Sdn. Bhd. “Application for Opening Account” (1 signature)
fill in 2 small white card from, from Bursa Malaysia Depository Sdn. Bhd. to get sample signature (total 2 cards × 1 signature)
fill in 1 online trading application form (1 signature)
RM10 for Bursa Malaysia Account Opening fee

For foreign investor, the documents need to be ready to submit are:

3 photocopy passport particular,
fill in 1 copy of “Application for Opening of Trading Account” form (3 signatures),
fill in 1 copy of three ply yellow form, from Bursa Malaysia Depository Sdn. Bhd. “Application for Opening Account” (1 signature)
fill in 2 small white card from, from Bursa Malaysia Depository Sdn. Bhd. to get sample signature (total 2 cards × 1 signature)
fill in 1 online trading application form (1 signature)
RM10 for Bursa Malaysia Account Opening fee

Submit these documents to Remisier to get witness and continue the remaining procedure.

When the account ready, you will get a Client Code and a CDS account number. Client Code is for trading purposes while CDS account is for share transfer purposes. When you want to buy or sell shares or securities through the securities firm, you need the client code. If you want to apply Initial Public Offering (IPO) share, you need the CDS account number.

Once the account ready, you can invest any amount into your trading account and start to buy share or securities according to the money you invested. You can easily top up the trading account money or withdraw the excess money from the trading account.

Optional for open trading account, buy a drink for your Remisier. High budget can go to Starbucks, low budget can go to Mamak stall. Thanks. ☺

Power of Compounding (Rule of 72 & Rule of 70)

2008-03-13T16:29:00.000+08:00

In finance, these rules are methods to estimate the time of an investment’s doubling (exponential growth) or halving (decay).

Let’s try, you use initial capital with $1,000 and increase the value by 20% annually see how many year it takes to double the initial value.

Year 1: $1,000 × 20% = $200
Year 2: ($1,000 + $200) × 20% = $240
Year 3: ($1,200 + $240) × 20% = $288
Year 4: ($1,440 + $288) × 20% = $345.60

End of year 4, the value has double from $1,000 to $2073.60. This means it takes between 3 to 4 years to double the value by 20% increment.

Rule of 72:
This is to estimate the number of periods required to double an original investment, divide the most convenient "rule-quantity" by the expected growth rate, expressed as a percentage.

72 ÷ (Annual Percentage return) = number of years your investment would double

For instance, if you were to invest $1,000 with compounding interest at a rate of 20% per annum, the rule of 72 gives 72 ÷ 20 = 3.6 years required for the investment to be worth $2,000.

Rule of 70:
Similarly, to determine the time it takes for the value of money to half at a given rate, divide the rule quantity by that rate.

70 ÷ (Rate) = Time period of the value become half

Example, if the inflation rate is 3.5%, the value of the money we have will be half in 20 years. Use the rule of 70, 70 ÷ 3.5 = 20. It can be use to estimate the impact of the additional fees on financial policies such as unit trust, mutual fund, load, insurance, expenses etc.

Malaysia KLCI History

2008-03-10T15:37:00.006+08:00

2008.03.10 Malaysia stock exchange first time triggered the circuit breaker, which deline of the KLCI by 10%. Trading halt for one hour and reopened at 3.58pm.

Seed Capital

2008-03-10T11:00:00.003+08:00

Money saves in the bank or under the pillow which is not using urgently, can be a seed capital and potentially to grow. In business, seed capital is the initial equity capital used to start a new business or venture. The starting capital of a business is a seed being plant.

Give you an example. If the seed capital is $100, the business grows by 10% annually, after one year the capital grow from $100 to $110. In simple words, it is similar to your money put in the bank with the interest rate. If the initial saving is $100, the interest rate is 4% annually, after one year the saving grow from $100 to $104.

Global inflation is about 7.5% for the latest record. If the saving in bank is 4% for the fix deposit, this year the net capital is shrinking by 3.5%. This is why investors or company seldom put their money in bank. They do investment.

Besides putting money in the bank to get interest rate, investment of the capital can be either properties or equities. Properties can be free hold or lease hold land, house, apartment, condominium, office, factory, and warehouse etc. Equities can be mutual fund or unit trust, share, debenture, bonds, loan and derivative etc. Both of them have their similarities and differences. Before choosing the investment tools, better study and understand their advantages and disadvantages of each of them. This is because knowing little of knowledge can be kill by the market.

Where is Center Point?

2008-03-05T09:02:00.006+08:00

Most of the time, things happen not according to your will. Sometimes have to open the mind and heart to accept the truth and plan the next. Sometimes "heart" is very hard to control. This phrase give me a thought.

Every people have the thing they want, or say, they want the thing happen according to their will. We tend to control the things happen. We want the world spin for us. In logic, if every people want to be the world center, spin for them, which mean no body will be the one spin for others. If every one become the center, who is going to be the peripheral?

One of my friends told me, he argues with a person about where is the middle of the world map. The second person says Middle East is the center of the world because their God born at there. My friend says not really because he explains China can be the center too because in Mandarin, it means The Middle Country.

I don’t know what your reaction is. If the things happen against me, sometimes I feel sad and frustrated. Blame others? It is useless because it doesn’t seem will be changing the result. Let’s come to a river, the water flows from north to south, don’t like it? You want to water flow from south to north. What you can do? Scold the water or river? Beat the water? I suggest use a damage compass will be easier.

If you find changing own mindset is difficult, what do you expect for others? If you get the truth, keep going and never give up. Although is difficult, still possible to success.

Finally give you an example. In the stock market, it goes up and down. When you invest, you want the price to go up. When you sold, you hope the price come down and you can buy again. You hope the market follow your will? Why not understand the market movement and then when it goes down, invest the good company; when the prices increase till over value, sell it? Buy on dip and sell on high!

Interest Rates 2008-03-03

2008-03-04T11:57:00.002+08:00

United States Federal Reserve : 3%
Bank of Japan : 0.5%
European Central Bank : 4%
Bank of England : 5.25%
Swiss National Bank : 2.75%
The Reserve Bank of Australia : 7.25%
China : 7.47%
Hong Kong SAR : 5%
India : 7.75%
New Zealand : 8.25%

Hong Kong Finet

2008-03-04T10:25:00.005+08:00

Finet.hk is one of the good website that I recommend for those invest in Hong Kong market or have interest for the Hong Kong companies.

To access to finet.hk, you can click the “Hong Kong Finet” at the side column of my blog site under “Information”

Election 2008

2008-03-04T10:07:00.003+08:00

This election in Malaysia, fear of the unpredictable result causes investors more cautious for their investment. Malaysia market drop from the highest KLCI at 1524.69 points on 14th, January 2008.

Investors worry for the future after election which the controlled commodities price may be hiking up. Inflation may hit Malaysia after election.

Who will lead for the next five years of Malaysia? This is another important factor that investors cannot predict the future performance and potential of the Malaysia economy.

Future Value (Simple Interest)

2008-03-04T09:36:00.005+08:00

If you borrow $100 at 10% interest rate today, how much would you need to pay the lender 1 year later?

Next year you have to return $110.

Principal borrowed = $100
Interest rate = 10% or 0.10
Interest charge here = $100 + ($100 x 0.10) = $10

In the future, the future value (FV) = amount borrowed + interest to be received

FV = $100 [1 + (0.10 x 1)]
= $110

P = Principal Sum = Starting Capital = $100
i = interest rate = 10%
n = number of period = 1 year
FV = future Value = $110

Money Value

2008-03-03T19:52:00.003+08:00

I look at my pay slip. Deduct the ordinary expenses, there is not much left. Compare to last month wages, this month I get increment. I should have more for saving, but why the amount left is still same with previous month? I go back to check my expenses, it is fuel price increase. Sooner or later, other things increase price one by one due to the oil price increase. It is inflation. The money value I get from the salary, reduce! I spend same thing for same amount with more money. The value of the money is decreasing.

Life must have improvement and development. I have to buy house, car, medical fees, tour, entertainment, and luxury, etc. There are a lot of expenses. Price of everything is increasing. If increment same as inflation, that means I cannot improve anything and I have to remain as now forever? What if lost job or accident?

If the salary increment faster than inflation, life will be easier and better. This is assuming there is no interruption to this income sources. If my increment all spend to improve lifestyle, how to pass my remaining life after retire? There is no saving.

If I use the increment for saving and don’t improve my spending for my interest, I save money in bank. My saving will increase constantly but lifestyle must remain. It is for future. If I am discipline, my saving amount is increasing, but the value in the future is decreasing!

Although bank give interest rate, now it is about 3.05% for 1 month fix deposit, but the inflation is about 3.5%. This rate is for Malaysia and not taking consideration of the fuel price, toll price, rice price, cooking oil price, steel price, and cement price after election. The saving value in the back is decrease.

If my saving can grow faster than inflation, only then in the future I can get back the same value or better value of the money. For those under employment and no other income, increment is depending on employer. The saving is depending on their discipline and wisdom. For those doing businesses or sales, their income is depending on their sales and revenue. The saving of profits is depending on their discipline and wisdom too. It is because high earning with high spending or high costing is still end up low profits.

Saving is money; money is capital. Save now and spend in the future. What is the value of the money when you spend?

Description of Topics

2008-03-03T18:43:00.005+08:00

I sort out my journal according to topic. I will make a description of my topics so that it is easy for you to understand and easy for you to search the journal you want.

Topic - Description

Introduction - It is to introduce new things
Investment - Related to investment
Information - Information to refer
Market talk - Story or issue that spread in the market
Story - Story I found interesting
Recommendation - I feel like recommending
Reference - I think I have to refer back this in the future
Glossary - Terms that new to you
Formula - Formulation and calculation
My Opinion - Only my personal opinion
Discovery - Something I discover
Nonsense - No categories can fit

Products of Goods and Services

2008-03-03T16:08:00.001+08:00

Nowadays our society structure is Capitalism. Everything involves capital, or money. The capital drives the country development, technology research, and human behavior. Everybody is urging for money. It is because it can buy lot of goods and services. How to get more money? Besides the special methods, money gain from goods sold and services provided. No matter how, special methods also involve goods and services.

Where is the source of your income come from? Those doing business is either selling their goods or services. For those under employment is selling their service to the company. It means, once you get involve in the capitalism system, you have to stay with money.

Products consist of either goods or services; it can be bought or sold.

Money! Female?

2008-03-01T09:24:00.007+08:00

Lot of people say, easy to earn girls money but difficult earn money from guys. Traditionally, guys earn money and lady spends money to buy things either for home or for herself. That means guy always chase for the money and girl spend out the money to change back the products or services. Normally opposite sex will attract; similar sex will repel. Anyway, I admit there are lots of special case nowadays.

What does money use for? It invented to change the things we want. It exists between buyer and seller. It is uses to fulfill the demand and supply. Buyer use money to get the things they want. The things are either products or services. Seller uses products or services to get the money. Seller can become buyer; buyer can become seller. This process will not going to end. Where is demand, there will come supply.

Last time, I always heard guy is responsible to earn money back. Study shows difficult to get money from guy. It sounds like guy chase girl. If you says girls also like money, is true, just like their friends, they still love to buy clothes, shoes, skin care, and for the person they care!

This phenomenon shows me the similarity.

Rich or Poor?

2008-02-29T20:34:00.004+08:00

I have promised to define my view of rich and poor previously. Actually I discuss this issue before. It begins with one of my friend always say other people is rich and he is poor. In fact, what I see is he is rich too. I asked him, “Why are you so humble? No body asks you to on host here!” He says it is because he doesn’t have enough money to buy the things he wants! I am wondering if he want the whole world, that means he will be forever poor?

I started to think how to define rich and poor. There are lot of different scales and guidelines from each person. Anyway this complicated measurement is mostly measure by the money under of wealth topic.

For me, rich or poor, let’s find a rough border between them. I imagine have an income. After deduct the minimum spending for food and beverages, house, bills, cloths, fuel or transportation, insurance, and all the needs, I still have about 20% - 30% for the saving. I consider this is the critical turning point. It is because once there is saving, there is seed capital. Either this seed can grow become grass or tree, it depend on the person himself or herself.

For those stay at the border, they have to choose their way either want to step forward or not. They are like rowing boat in the counter flow water, if they stop rowing, they drift backward. Why not spend some time and energy find the way to step on to the shore?

Remisier

2008-02-29T19:22:00.010+08:00

Yesterday I post my first blog. Some of my friend suggest better further explain what does it means because last time they don't understand what is that when I told them I become a Remisier. They are totally no idea what does it mean.

Remisier, formally known as Dealer's Representative in Malaysia. In USA, they call it broker. Since nowadays Remisier mostly deal with the trading of stock and share, they are stock broker.

There is a history of the word "Remisier" come from. This word origin from French which means an intermediary. It was first appeared region during the colonial period in Malaya, where they dealt primarily in rubber and tin-related company that were listed on the London Stock Exchange.

Now Remisier is a license intermediary person who help clients to buy or sell their stock and share which trade in the stock market. Besides help the clients to buy ans sell, their additional value is to monitor the counter, economy trend, news from the market, and help client to look for the information. Not every client is free to full time monitor their own stock everyday and have nothing else to do. They have their own job, the investment counter let the Remisier to monitor for them. If client have to monitor their own counter themselves, their working performance may affected.

Another explanation for the Remisier according to my senior colleague is this term also come from those people simply buy, simple sell the share. For those understand cantonese, "乱买 Share". This is how Remisier come from. ☺

Special Day!

2008-02-29T08:40:00.008+08:00

Today is a special day! Why say so? Today is 29th day in February. It takes four years to have this day. Since it is special, I have to make the day nice. Then it will become a special nice day. Don’t let it become a “special bad” day, right?

I remember last time I make a lousy poem, but it is use to warm myself during college time.

Before 21, studying life, I have energy; I have time; but don’t have money.

21 to 55, working life, I have energy; I earn money, but don’t have time.

After 55, retiring life, I have time, I may have money, but don’t have energy.

What ever I want to do, do it as soon as possible; what ever place I want to go, go there at once.

No money? Work harder. No time? Arrange the time. No energy? Maintain the health since young.

Life takes time, consume energy, and spend money!
Life pursuits happiness, need health, and spend money!

Wish you have a special nice day!

Who Am I?

2008-02-28T10:49:00.003+08:00

First, let me give a introduction to myself. I am a Remisier, formally known as Dealer's Representative for the Malaysia stock market.

I am graduated Bachelor's from Chemistry and Biology Degree. After few years of working experience, I realise my increment speed cannot beat the inflation rate. When my salary increase, it doesn't mean I will have more money to save because either fuel or food price also increase.

I chat with my friends, senior in same field, and colleague. I found out most of them also face the same problem. I try to project all the saving and the Employees Provident Fund (EPF) until the time I retire, the value is actually decrease and actually not enough to support the life after retire. I know I have to look for other way to overcome this problem. Everyday spend out equal or near to the income means it is a hidden problem in the future.

After that start to read finance and marketing books. I want to look for a solution to be rich. How to define rich and poor? I will share my opinion in the coming articles. I see lot of people suffering from sickness and homeless. They have to work hard even they are at very old age. If they stop working, their will lost ability to survive. Everything has to prepare from the time you still have abilities to do it. Prepare for the time when you have to face it. For example, health must maintain from time to time, when health drops till serious problem, it is too late to do anythings.

I learn and discover some solutions and share it to my friends. When I tell the same story to every friend I meet, I know I have to start write down the story and share it here. It is because we have to fully utilise the technology and save the time and energy to repeat the same thing.

What ever I share, is my personal opinion. I welcoming all the feedback and discussion to improve the knowledge and idea. Why am I here?

Welcome my friends. Cheers for the success life!