Saturday, July 31, 2010

Ride the Bull


Ride the bull for high returns. This is easier said than done. The picture above shows that unless you have the skill to handle the jump, twist and turn, you will be thrown off within a minute.


In rodeo, a cowboy tries to stay on the back of a bull for as long as he can, to score points. In the stock market, an investor should stay long as long as possible, in a bull run, to maximize profits.


Many people make the mistake of cashing out too early. Instead of letting their profits run and their losses cut short, they do it the other way round. Hence, when they make money, they make little, but when they lose, they lose much.


Anyone who trades on thin margin is heading to the slaughter house. You can never win big by only taking small gains. The trick is to go after strength. When you buy a stock, you should average up when the price rises.This is not easy to do unless you have the experience and the financial muscle. In this respect, technical analysis may help, but this is not a foolproof. At best, it is only odds in favor. However with much experience, you should be able to perform better than the average.


Even at a times when you are greatly satisfied with a good profit, don't sell everything. Take some profits and fight with the balance. Use a trailing stop. This is a good way which may serve you well.


Good luck and happy investing.



Thursday, July 29, 2010

Paramount Corp

Paramount Corp has a 20% stake in Jerneh that is now the subject of a takeover. The price rise of Jerneh is a booster for Paramount Corp. The stock has breached its overhead resistance. It is now set to move higher.

Tuesday, July 27, 2010

Bullet Train- Speed is Money

Speed is money. Forget about the tortoise that beats the hare. That's only a fable.

Speed is money. Japan knows it. China knows it. You know it and I know it. China is working overtime to complete its bullet train by 2012. A bullet train can travel up to a speed of not less than 1300 km per hour.


There is a Chinese saying that if you get close to cinnabar (zhusha) you turn vermilion; if you are close to ink, you become black. This simply means that if you want to be successful, you should associate with successful people, and if you want to be rich, get close to rich people.


Singapore, our wealthy & prosperous neighbor is presently the fastest growing country in the world. Since we are close to it, how is that we are so far behind it. And despite our country having abundance of land, rubber estates, oil palm plantations, tin mines, clean water, sand, etc., we are nowhere near Singapore as far as prosperity is concerned.

Why is this so? I guess you already have the answer. It's corruption!


The YTL group once proposed to our government to built a bullet train that can travel straight to Singapore. Unfortunately, this was turned down. Stupid! Isn't it?


Imagine what would happen to the price of our land if we could travel from KL to Singapore in an hour.

The financial crises of 2008 in America did much damage to Singapore. That was alarming. Singapore quickly made changes, and in a short time it has become prosperous again.


Since we are close to Singapore, the spillover effect of Singapore's wealth can be huge if only we know how to make use of the situation.


The Iskandar region is actually in an envious location. If a bullet train that goes from Malaya to Singapore is in place, the value of our land, especially those in the Inskandar region, will multiply many folds.


We talk of increasing our wealth and our income. If we don't quickly make changes that are intelligent, these talks will merely remain in our dreams for years to come.


Malaysia boleh! Please buck up.


Saturday, July 24, 2010

MBMR

A car is no longer a luxury. In our modern world, the hustle and bustle of city life has caused a car to be a necessity. A young graduate needs a car more than anything else when he or she starts work. Just look at the increasing number of cars on the road, and at once you realize how important a car is. The demand for cars will definitely keep on rising over the years. So it goes to reason that any company in this field will have a bright future provided its management is competent.

MBMR is in the marketing and distribution of motor vehicles. It is also in the production of automotive parts and other related products.

In the financial crisis of 2008/9 , the demand of cars was greatly affected. In the first quarter of 2009, the earnings per share (EPS) of MBMR was 3.87 sen. In the first quarter of 2010, the EPS ballooned to 16.5 sen. This is an improvement of 326%! It would be too much to expect such growth to be maintained. However, for the 2nd quarter ended June 30, 2010, EPS should at least be equal to that of the first quarter. Last year MBMR announced the result on August 06. This year, they may do it on the same date. An interim of about 5 sen will probability be announced as well. This is a prediction.

MBMR is financially strong. It has a solid balance sheet with no cash flow problem.

Looking at the 5-year weekly chart, it is easy to see that support of the stock will likely be at 3 ringgit. In the stock market, we go after strength, not weakness. The stock has been in an uptrend since Oct 30, 2008 when it hit a low of RM1.90.

A trend in motion is likely to continue. Thus I expect that MBMR will continue to trend upward.

Nothing in the stock market is certain. In fact the only thing certain is uncertainty.

As usual, you buy, sell or hold at your own risk absolutely.

Good luck.


Wednesday, July 21, 2010

Swiftlet Farming (SF)

Edible bird nest is expensive, something like RM5000 to RM7000 per kg. Demand from China, Hong Kong, Macau, Taiwan, Singapore and North America is overwhelming. Therefore SF must be lucrative. Our government know this; they are now promoting the industry and encouraging people to go into SF. What intrigues me is why the big boys are not coming in yet. As far as I know none of the listed companies in Bursa is involved in SF.

Planation companies have plenty of land. They can easily go into SF and reap handsome profits in one to two years time. Why are they not doing it? It seems to me, these swiftlets known as Aerodramus Fuciphagus (AF), prefer to live in the town. They like to keep close to people or perhaps they are attracted by the lights.

Indonesia is the world number one in the production of edible bird nests. Malaysia is now ranked second, followed probably by Thailand, Vietnam and the Philippines.

Bird houses (BH) have mushroomed in the smaller towns in many parts of Malaysia over the last few years. Abandoned shop houses that have no revenues are the ones first used. Many have succeeded and many have failed.

Are BHs in agricultural land successful? At Taman Makmur, Bentong, many shop houses have been converted to BHs. They appear to be doing well. There is a stand-alone BH a small distance away from these shophouse BHs built on farm land. The owner said that the BH had not birds. This again raises the question: Are BH viable in plantation land?

Along the road from Bentong to Raub, there are at least ten BHs built on farm land. These BHs are all bungalows built specially for swift let farming. Before you venture into this type of business, you should do a due diligence, otherwise your money may not go the way of the swiftlets but those of the dodo birds, gone forever.

If you are convinced that BHs are viable in farm land and wish to go into this lucrative business, please contact me (Tel.016-9321849) as I have a small piece of land measuring 2 3/4 acres that is between two swiftlet farms.

This land is most ideal for the set up a swiftlet farm. Details can be worked out. The land is not for sale; it is only available on a joint venture basis.

Tuesday, July 20, 2010

KPJ to benefit

In the fight for control of Parkway between Khazanah and Fortis, KPJ is likely to benefit in the furure. In a moment. I shall tell you why.

Initially, Khazanah came out with a partial offer to buy Parkway at S$3.78 per share. Fortis who has a 25% stake in Parkway is said to be offering a full offer at S$3.80 per share. In the battle for supremacy, Khazanah is likely enhance its partial offer to a full offer and also to raise the bid price to S$4.00.

Parkway is in the healthcare business. They have hospitals in Singapore, Malaysia, China and India. KPJ is also in the healthcare business, having hospitals in Malaysia and Indonesia.

Khazanah is the investment arm of the Malaysian government. The majority shareholder of KPJ is the Johore state government. EPF also has a good stake in KPJ.

Should Khazanah eventually control Parkway, it is logical to assume that in the foreseeable future, there will be a merger between Parkway and KPJ. This likely scenario will keep KPJ in demand and therefore its price will not drop.

From a fundamental point of view, if Parkway is worth S$4per share, KPJ should be valued at RM3.70. And should there be a merger between Parkway and KPJ, then KPJ will be worth much more.


Monday, July 19, 2010

What you do not see, touch or smell does not mean they do not exist

Subject: [kalaivani] This a real story of our senior.,


An atheist professor of philosophy speaks to his class on the problem science has with God, The Almighty.

He asks one of his new students to stand and.....

Prof: So you believe in God?

Student: Absolutely, sir.

Prof : Is God good?

Student: Sure.

Prof: Is God all-powerful?

Student : Yes.

Prof: My brother died of cancer even though he prayed to God to heal him.
Most of us would attempt to help others who are ill. But God didn't. How is this God good then? Hmm?

(Student is silent.)

Prof: You can't answer, can you? Let's start again, young fella. Is God good?

Student: Yes.

Prof: Is Satan good?

Student : No.

Prof: Where does Satan come from?

Student: From...God.. .

Prof: That's right. Tell me son, is there evil in this world?

Student: Yes.

Prof: Evil is everywhere, isn't it? And God did make everything. Correct?

Student: Yes.

Prof: So who created evil?

(Student does not answer.)

Prof: Is there sickness? Immorality? Hatred? Ugliness? All these terrible things exist in the world, don't they?

Student: Yes, sir.

Prof: So, who created them?

(Student has no answer.)

Prof: Science says you have 6 senses you use to identify and observe the world around you.
Tell me, son...Have you ever seen God?

Student: No, sir.

Prof: Tell us if you have ever heard your God?

Student: No, sir.

Prof: Have you ever felt your God, tasted your God, smelt your God?
Have you ever had any sensory perception of God for that matter?

Student: No, sir. I'm afraid I haven't.

Prof: Yet you still believe in Him?

Student: Yes.

Prof: According to empirical, testable, demonstrable protocol, science says your GOD doesn't exist.
What do you say to that, son?

Student: Nothing. I only have my faith.

Prof: Yes. Faith. And that is the problem science has.

Student: Professor, is there such a thing as heat?

Prof: Yes.

Student: And is there such a thing as cold?

Prof: Yes.

Student: No sir. There isn't.

(The lecture theatre becomes very quiet with this turn of events.)

Student : Sir, you can have lots of heat, even more heat, superheat, mega heat, white heat, a little heat or no heat.
But we don't have anything called cold. We can hit 458 degrees below zero which is no heat, but we can't go
any further after that. There is no such thing as cold . Cold is only a word we use to describe the absence of
heat . We cannot measure cold. Heat is energy . Cold is not the opposite of heat, sir, just the absence of it .

(There is pin-drop silence in the lecture theatre.)

Student: What about darkness, Professor? Is there such a thing as darkness?

Prof: Yes. What is night if there isn't darkness?

Student : You're wrong again, sir. Darkness is the absence of something. You can have low light, normal light, bright
light, flashing light....But if you have no light constantly, you have nothing and it's called darkness, isn't it? In
reality, darkness isn't. If it were you would be able to make darkness darker, wouldn't you?

Prof: So what is the point you are making, young man?

Student: Sir, my point is your philosophical premise is flawed.

Prof: Flawed? Can you explain how?

Student: Sir, you are working on the premise of duality. You argue there is life and then there is death, a good God and a bad God. You are viewing the concept of God as something finite, something we can measure. Sir, science can't even explain a thought. It uses electricity and magnetism, but has never seen, much less fully understood either one.To view death as the opposite of life is to be ignorant of the fact that death cannot exist as a substantive thing. Death is not the opposite of life: just the absence of it.

Now tell me, Professor.Do you teach your students that they evolved from a monkey?

Prof: If you are referring to the natural evolutionary process, yes, of course, I do.

Student: Have you ever observed evolution with your own eyes, sir?

(The Professor shakes his head with a smile, beginning to realize where the argument is going.)

Student: Since no one has ever observed the process of evolution at work and cannot even prove that this process is an on-going endeavor, are you not teaching your opinion, sir? Are you not a scientist but a preacher? (The class is in uproar.)

Student: Is there anyone in the class who has ever seen the Professor's brain?

(The class breaks out into laughter.)

Student : Is there anyone here who has ever heard the Professor's brain, felt it, touched or smelt it? No one appears to have done so. So, according to the established rules of empirical, stable, demonstrable protocol, science says that you have no brain,sir.

With all due respect, sir, how do we then trust your lectures, sir?

(The room is silent. The professor stares at the student, his face unfathomable. )

Prof: I guess you'll have to take them on faith, son.

Student: That is it sir... The link between man & god is FAITH . That is all that keeps things moving & alive.

NB: I believe you have enjoyed the conversation. ..and if so...you'll probably want your friends/colleagues to enjoy the same...won't you?....
this is a true story, and the student was none other than........ .APJ Abdul Kalam , the present president of India .


HAVE A NICE DAY

Saturday, July 17, 2010

Changes to listing rules.

It is heartening to note that changes to listing rules will be made in the not too distant future. Unless we have transparency and integrity, investors will shun us. While Bursa should take care of the major shareholders, they should not forget to protect the minority shareholders as well.

CEOs who are paid exorbitant salaries and other perks must be made to explain why they are worth so much. They should not be allowed to fatten their own accounts while that of the company is shrinking.

If you are about to invest in any company, you will do well to take a look at how the CEO and the other directors of that company are paid. The data is in the annual report.

Is LKT the highest paid CEO in the world?

The pay and remuneration for top executives and directors have always been subjects of intense debate. Some cry foul claiming that the top guys continue to receive staggering remuneration packages while the investors have to suffer the consequences of the dwindling company share price.

A study conducted recently by the Malaysian Business magazine found Genting to be the company that rewards its directors with the highest pay of all. In total, they were paid well in excess of RM80 million in 2008, well ahead of other corporations.

It wasn’t mentioned where the big chunk of the money went to, but judging from the company’s history, it is quite clear that the current CEO and Chairman, Tan Sri Lim Kok Thay, to be the principal beneficiary.

Lim is the second son of the Genting founder, the late Tan Sri Lim Goh Tong, and has taken over the helm of the company even before the latter’s demise. He is regarded as one of the key persons who has successfully steered the company his father founded into multitude of other diversified businesses.

Lim is said to be paid RM77.7 million, the highest amount paid to a single director in the country.

By comparison, the RM77.7 million amount will make Nazir Razak, the CEO of CIMB Bank, to look like a little hobbit standing next to an elf. Nazir is the highest paid CEO among the government companies, with earnings of about RM10 million.

Apart from Genting, other companies which reward its directors with good money include IOI Corporation (RM45 million), Genting Malaysia (formerly Resorts World, a Genting subsidiary. RM37.25 million), SP Setia (RM11 million) and Public Bank (RM7 million).

The magazine also found that more than 600 companies in the country paid its directors more than RM300,000 for the 2008 financial year.

The above article is from: http://skorcareer.com.my/blog/genting-directors-the-highest-paid-bunch/2009/10/02/

Friday, July 16, 2010

Bullshit may propel you to the top, but it will not keep you up there.

Once there was a young cock that was trying to fly high like the eagle. After many attempts, it was only able to reach the lower branches of a big tree.
A bull happened to come by. It saw what the cock was trying to do. " Hey! Cock, since you do not have the strength to fly high, why don't you eat some of my shit? There are very nutritious. I am sure that after taking them you can fly high."
The cock thought for a while and agreed to give it a try. So the bull pooped out some shit whereupon the cock ate them. After some time, the cock felt very strong. With its first attempt it was able to reach the top of the tree. It felt very proud and gave out a long and loud crow.
A hunter who was nearby got attracted by the loud crow of the cock. He quickly took aim and shot the cock down.
That's how bullshit can propel you to the top, but it will not keep you up there.

Wednesday, July 14, 2010

The battle has just began

The battle between Integrated Healthcare (IH) and RHC Healthcare (RH) means a windfall is awaiting for Keck Seng.

Five years ago Keck Seng invested in Parkway, and to date they have 35,583,218 shares in the company bought at an average price of S$0.82 per share. IH has a partial offer to buy Parkway at S$3.78 per share. Fortis is said to be giving a a full offer of S$3.80 per share.

Assuming that Keck Seng sell all their shares of Parkway to Fortis, they will make a capital gain of RM245 million at the exchange rate of one Singapore dollar to RM2.31.

The paid-up capital of Keck Seng is RM241,393,000. In view of this, the capital gain made is a big sum.

Keck Seng have lots of land in the Iskandar Region which have appreciated greatly and together with their investments in Wilmar, the stock is worth very much more than the last transacted price of RM5.20.

The problem with Keck Seng is that their major shareholders are very stingy. They give out very little to their minority shareholders. Nevertheless, at RM5.20 a share, Keck Seng is an excellent buy for the long term.

Tuesday, July 13, 2010

XingQuan

XingQuan was not well received when it made its debut in July 2009. From a high of 1.82, the stock was in a downward drift. It hit bottom in Feb 2010 at 1.05. The share price is a good reflection of the mentality of investors that China stocks listed in Bursa and not in Hong Kong or the New York Stock Exchange are inferior ones. Since its bottom, the stock has been quietly moving up. Yesterday it hit 1.52. The stock is now in an uptrend. It is set to move higher.
Fundamentally, XingQuan is a sound stock with a strong balance sheet. It is doing very well presently.

Key statistics as at 31.3.10 are as follows:
Paid-up Cap: 211,715
NTA per share: 2.25
Current Assets: 791,602 (This includes cash and bank balances)
Cash and bank balances: 599,143
Current Liabilities: 233,003
Par value: 0.10
EPS for the quarter ended 31.3.10: 0.10
Core business: Shoes and shoe related products
For a more understanding of the company, click here.

As usual, you buy, sell or hold at your own risk absolutely.
Cheers and good luck.

You need wisdom more than anything else to be successful in the stock market. Knowledge without wisdom is like an excellent business without good management.

Monday, July 12, 2010

Spain won the cup

It's amazing! The psychic octopus got eight consecutive rights in eight predictions. That's odds of 1 to 6561.
In a not too exciting final, Spain beat Holland in extra time. Those who placed bets on Spain to win by giving away half a ball lost money.
While Spain is able to win the World Cup in their first final. Holland is not so lucky. They lost in 1974 and 1978. They were hoping for a third time lucky. Unfortunately, god was not willing. Now they have to wait until 2014 for their next attempt.

Sunday, July 11, 2010

Paul is right again

The psychic octopus is right again. Germany has beaten Uruguay in the fight for 3rd placing. The result: 3 to 2 in favor of the Germans.
Paul has predicted that Spain would beat Holland in the final. Even if you believe that Paul is likely to be right yet again, please note that the Octopus did not not say that Spain would be victorious in the normal playing time. It may do it (win the match) in extra time or even in penalties. So, do be cautious. Bet only what you can afford to lose. Remember, the ball is round.
Good luck!

Saturday, July 10, 2010

FIFA World Cup 2010 - Predictions

Paul, the psychic octopus has predicted Spain to win the World Cup, and Germany to prevail over Uruguay.
Mani, a parakeet, has chosen Holland.
Pauline, a female octopus, has also chosen Holland. Who's right and who's wrong? Only time will tell. In the meantime, remember the saying, "Never trust an animal." Make your own choice. Don't blame anyone if you bet wrongly.
Cheers and good luck!

Thursday, July 08, 2010

Paul, the psychic Octopus

Paul, the Octopus, is right again! Spain have beaten Germany in the FIFA World Cup 2010. It has now 6 correct predictions out of 6 predicted. It has correctly predicted Germany's win over Argentina, England, Australia and Ghana and also Germany's loss to Serbia. This is 100% accuracy! Amazing, isn't it?
In the final 2008 European Championship, Paul predicted Germany to beat Spain. That was the only time it was wrong so far. Spain won the match.
All eyes will now be on its prediction on the impending match between Germany V Uruguay this coming Saturday (11.7.2010 at 2.30 a.m.).
Paul lives in an aquarium in West Germany. Its keeper is Oliver Walenciak

Wednesday, July 07, 2010