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Wednesday, February 10, 2010

The Market hits back

It's all green at Wall Street as the market closes this morning. The Dow closes at 10,058.64 up 150.25. S & P is up 13.78 at 1,070.52 and gold is now 1,076.70 per ounce, up 11 dollars.
Debt problems in Portugal, Italy, Ireland, Greece and Spain (PIIGS) will probably be solved. The White Knight is the European Union. It has come to the rescue.
So, perhaps we are going to have a Chinese New Year rally as we come closer to THE TIGER. Let's pray and hope for the best.

Tuesday, February 09, 2010

Market poised to drop further

The Dow lost 103.84 points and broke the 10,000 psychology level early this morning on concern of debt problems in Portugal, Ireland, Greece and Spain (PIGS). Other concerns are the unemployment rate rise in the US and Obama's move to restrict the activities of big banks in America. Of concern also is that China may suddenly cool down. The Dow closed at 9,908.39. This means that it has dropped 817 points or 7.6% since Jan 19, 2010.
Today, here in Malaysia, we are likely to have another down day. Be prepared for another beating!

Monday, February 08, 2010

Quotable Quotes

Wide diversification is only required when investors do not understand what they are doing.
Warren Buffett

Sunday, February 07, 2010

mYprice

In a race, the winner shot into prominence, while the losers faded away even though fractions of a second separated them.

In life, man against time, speed is what really matters. That's what 4G is all about.

A wonderful idea needs a great company to make things happen.

Comrades, put on your thinking cap, the prize money is there for the taking.

The USD1million challenge is on. Go to mYprice to know more.
Best wishes.

Quotable Quotes

When considering a potential investment, the first step is to look for sectors that are experiencing growth.

SmallCapInvestor

Saturday, February 06, 2010

Quotable Quotes

Stay away from leverage. Nobody ever goes broke that doesn't owe money.
Warren Buffett.
Avoid companies whose debt to equity ratio exceeds 1. The higher the debt, the more risky the company is.

Friday, February 05, 2010

Bear Trap or Bull Trap

What's the difference between a Bear Trap and a Bull Trap?

A Bear Trap is a false signal that a rising trend of a stock or index has changed when actually it has not. Those who short will lose money when the market resumes its uptrend.

A Bull Trap is a false signal that a downtrend in a stock or index has reversed when actually it has not. Those who buy lose money when the downtrend continues.

Simply put, a BearTrap is a trap to trap the bears, whereas a Bull Trap is a trap to trap the bulls. So you see, whether you are a bull or a bear, you can be trapped.

Knights

In the corporate world, we have many kinds of knights.

White Knight, Black Knight, Gray Knight and Yellow Knight

Do you know what they are?

A White Knight is a company that makes a friendly offer to a target company that faces a hostile bid. It is best remembered by the phrase: A White Knight to the rescue!

A Black Knight is the opposite of a White Knight. It is a company that makes a hostile bid to takeover a target company. A Black Knight is usually thought of as someone having unpleasant personalities and is normally associated with kidnapping nubile girls, burning villages and slaying peasants.

A Gray Knight or Grey Knight is best thought of as a waiting vulture waiting to scoop up any leftovers. It is actually an unsolicited second bidder in a corporate takeover.

A Yellow Knight is a company that attempts a hostile bid to a takeover but chickens out at the eleven hour and ends up with a friendly merger discussion instead.

Thursday, February 04, 2010

A Sleeping Beauty

A Sleeping Beauty is a stock that is undervalued and is ripe for a takeover. Such a stock has a strong balance sheet with plenty of cash in the bank. It is ill-liquid and normally not covered by stock analysts.