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Saturday, September 27, 2014

WHY DID NOT LOSE MONEY ON ANY STOCK?

Someone left a comment in my blog, asking what stock did I lose money now. Currently is only one, A&M which I have bought recently. The price is RM1.30 and now is RM1.28 or RM1.29.

Previously I was losing money on Fitters. After I have bought, the stock drop about 30% within two weeks. I have sold gradually on the stock and now no longer holding it. If I am not mistaken, I did not make any loss on it, and the last batch that I sold in 2014 is about 100% gain on my purchase price. Overall is a nice gain and dividend.


SKP Resources stock. I cut loss a bit, sold at breakeven and 2014 sold at about 30% gain. Overall I think is a gain, although not that much. But SKPRES paid good dividend.


SBCCorp stock. Bought this year and sold. Gain a bit.


Why is it so difficult for me to lose money in any stock?

Answer:
1) Is the way I invest
2) Timing
3) Random


The way that I invest, in overall will make profit in the long run. Buy good stock and consistently.


Timing? Stock market was good from 2009 to 2014 !!!! KLCI hit all time high.
Mr A also made profit. Mr B also. Mr Tom also. Mr Dick also. Mr Harry also. Abu, Ali, Chong and Muthu also made money.

If anyone lose money, have to really think think and think why. Seek adviser help.

I have gone through the bad years in 2007 and 2008. So if market drop now, I will be able to buy more good stocks at cheap price.


Random? I realised almost all my stocks made profit. This is because it is just by chance that no bad stock was selected. I am not worry if just a few of my stocks make losses. Analyst make mistake. The company management make mistake. Situation change. I make mistake. More important is the overall fund performance.

The conclusion is, I will make losses in some stocks. If I continue to invest in good quality stock and consistently, I will continue to enjoy good profit in my overall portfolio in the long run.



Happy Harvest.



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Wednesday, September 24, 2014

Dear IBHD-LR



I saw some people think that IBHD Loan Rights is having huge discount. But one thing I would like to highlight is, based on the announcement, IBHD will ex for Bonus issue of 1 for every 5 on 10 October 2014. Meaning if IBHD share price is RM1.11 then the theoretical ex price will be RM0.925.
 
The listing date of ICULS is 14 October 2014.

You need to check what is the impact of the IBHD bonus issue on the IBHD-LR Renounceable rights issue irredeemable convertible unsecured loan stock.

Please check with your broker, remisier, IBHD and/or adviser.

Thanks

Saturday, September 20, 2014

How young people make money from stock market?

Recently while we were having lunch, one of them mentioned that she heard of one insurance savings plan.

Brief features:
Pay X amount for 6 years. That’s all.
2nd year onwards every year will get Y amount and end of 20th year will get one big lump sum.


I have a family member who is interested to start investing in stock market, but his interest is at boarder line. I can see that after a while he may stop.

Stock market is a patience game, we need to be patient. Depending on the timing also, the first two years may be losing money.

Especially young people, the fund invested is small so the profit also small. Sooner may stop investing.

If he starts to lose money after few months, he may stop.
Because of his age and lack of money, even if he make profit the profit will be small and he may lose interest.


So I got an idea. Rather than tell him to start investing long term, we start a saving plan. Just like what I heard from the insurance plan.

His savings plan:
RM1000 per month for the next 3 years.

He managed to get minimum RM8 brokerage.

Buy every month based on fundamental stock, RM1000 per trade (Dollar Cost Averaging) 


After 3 years he would have saved RM36,000. If the timing is right, then may worth much more, but if the timing is wrong then may worth less. No worry, because sooner the stock will start to go up.


Forget about the profit or loss, treat this as a savings plan. With RM36,000 after 3 years, then 10% will see some RM3600 profit. 20% will be RM7,200 profit. After another 3 years, total is 6 years of profit and if with additional savings, quite a big sum for him to manage. Then it will be very excited because he will be managing a big fund.



Of course, those who from rich family can just ask their father to give them RM500,000 to start with. But I’m talking about an average working class family.


Therefore, for him to get involve in stock market, to prevent half way stop investing due to loss of interest, then start think of savings rather than profit and loss. With that in mind, he will stop think of profit and loss for the first 3 years, just save and invest. That will make him overcome the patience problem for the first few years. After few years, as he will be managing a big portfolio, that will not be so boring and by that time he would have experience of managing his portfolio years and seeing result.


This year has been a good year for me also.
Thong Guan, MKH, Scientex, Matrix up.


I think my Thong Guan made more than 100% already. The current price is after Rights Issue,


Think savings.





Friday, September 5, 2014

Buying A&M

Yesterday closing RM1.24.
Current price RM1.30.

Their cost of land which was bought many years ago at very cheap price and now is developing.

A&M fair value RM2.12 by JF Apex.


Thursday, August 28, 2014

MKLAND by Kenanga and Public Bank

Kenanga recommend to buy MKLand on 28/08/2014, closing price RM0.48. Fair value RM0.60. For info, Public Bank gives fair value of RM0.80.


Monday, August 18, 2014

PJDev-WA

PJDev-WA 1.08
PJDev 2.09
Trading at a discount? Will the exercise price be adjusted periodically?
Can PJDev price up or stable? If yes, will PJdev

Thursday, July 10, 2014

Tanah Makmur Target Price Fair Value and SASBADI IPO

According to TA Securities, they have applied Sum-of-Parts valuation methodology and derived at the fair value of RM1.48 for TMAKMUR. They assigned a blended average of 10x PER for the plantation and property segments. That is some 33% discount to market-cap weighted average PER of plantation industry peers.
The discount is to reflect TMAKMUR’s relatively smaller market cap and the fact that small-cap property companies are trading at a relatively lower PER (7x average).
As for bauxite, they use cash value (DCF method) as this is a non-core business and will only generate profit for 2 – 3 years. Hence, PER is not a suitable method to value the bauxite assets, in their view.

According to Kenanga, they value TMB at RM1.60 based on Fwd. PE of 9.1x to FY15E EPS of 17.7 sen. Their Fwd. PE of 9.1x is derived from 40% discount to avg. mid-cap Fwd. PE of 15.2x. The 40%
discount is used to reflect TMB smaller market cap of RM0.5b (peers avg. RM2.7b).

================




SASBADI HOLDINGS BERHAD

Opening of application    07/07/2014
Closing of application    14/07/2014
Balloting of applications    16/07/2014
Allotment of IPO shares to successful applicants     21/07/2014
Tentative listing date    23/07/2014

INITIAL PUBLIC OFFERING IN CONJUNCTION WITH OUR LISTING ON THE MAIN MARKET OF BURSA MALAYSIA SECURITIES BERHAD COMPRISING:

(I) PUBLIC ISSUE OF 21,200,000 NEW ORDINARY SHARES OF RM0.50 EACH (“SHARES”) IN THE FOLLOWING MANNER:

• 6,350,000 NEW SHARES AVAILABLE FOR APPLICATION BY THE PUBLIC;

• 5,700,000 NEW SHARES AVAILABLE FOR APPLICATION BY OUR ELIGIBLE DIRECTORS, EMPLOYEES AND PERSONS WHO HAVE CONTRIBUTED TO THE SUCCESS OF OUR GROUP;

• 9,150,000 NEW SHARES BY WAY OF PLACEMENT TO SELECTED INVESTORS;
AND

(II) OFFER FOR SALE OF UP TO 35,950,000 EXISTING SHARES IN THE FOLLOWING MANNER:

• 12,700,000 EXISTING SHARES BY WAY OF PLACEMENT TO BUMIPUTERA INVESTORS APPROVED BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY;

• 23,250,000 EXISTING SHARES BY WAY OF PLACEMENT TO SELECTED INVESTORS;

AT AN ISSUE/OFFER PRICE OF RM1.19 PER SHARE, PAYABLE IN FULL UPON APPLICATION










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