马 到 功 成. Success is when the horses come. Success goes only to those who dare and act, it seldom goes to the timid. The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.
Monday, February 22, 2010
Resort World Sentosa (RWS)
Will RWS be a roaring success? It's casino commenced business in the lunar year of the tiger on the 14 Feb 2010.
The Income Statement
When we do business, income is the first thing we look at. A company cannot survive without income. An Income Statement is a financial statement that covers a specific period. It is normally for 3 months or for a year. I have often heard someone said that the company made a lot of money. But when I asked him what was the earnings per share (EPS), he was not able to tell me that. This means that the person did not know about earnings. Earnings must always be looked at as EPS which is net earnings divided by the number of shares issued.
An Income Statement (IS) is also known as a Profit & Loss Statement or a Statement of Revenue or Expense. They are all the same.
An IS is divided into 2 parts, namely the operating and non-operating activities. The operating activities discloses information about revenues and expenses that are a direct result of the regular business operations.
The non-operating activities disclose revenue and expense information about activities that are not tied directly to a company's regular operations. For example, if a textile company sold a factory or some old plant equipment, then this information would be in the non-operating items section.
Ideally, revenue and EPS must go up in tandem. So when you look at EPS, don't forget to look at revenue as well.
An Income Statement (IS) is also known as a Profit & Loss Statement or a Statement of Revenue or Expense. They are all the same.
An IS is divided into 2 parts, namely the operating and non-operating activities. The operating activities discloses information about revenues and expenses that are a direct result of the regular business operations.
The non-operating activities disclose revenue and expense information about activities that are not tied directly to a company's regular operations. For example, if a textile company sold a factory or some old plant equipment, then this information would be in the non-operating items section.
Ideally, revenue and EPS must go up in tandem. So when you look at EPS, don't forget to look at revenue as well.
Sunday, February 21, 2010
Genting
If you own shares of Genting or Genting Singapore, or intend to buy shares of these two companies, you own yourself the responsibility of finding out what is happening in the casino at Sentosa, Singapore. Here is the link: Teething problems at casino Don't forget to read the comments. They give you plenty of information of what is happening there. All feedbacks are welcome. Thanks.
Saturday, February 20, 2010
Know what you buy
What is a Balance Sheet (BS)? If you don't know this, you need more help than you think.
Simply put, in the annual report of a company, the BS shows you what a company has and what it owes others on a specific date, usually the last day of December or June of a year. When you read the BS, make sure you note this, the date.
Before you buy any share of a company, you should take a look at the BS. This is actually "a must" if you want to invest intelligently. Yet how many people do this. I believe as much as 90% of the people don't do this. This is because, most people are interested in the price than the value of a stock. Because these people are traders, they normally do not bother to look into the fundamental aspects of the company they are buying.
"Why bother about the company? What matters is that the prize must be moving up." That's probably what they are saying.Yes, that's what really matters. But they forget to ask what's moving up the price or why the price is moving up.
Warren Buffett once said, "Only when the water has receded, would one know who's swimming naked." What did he mean by this simple statement? I take it to mean that when the market is at the top, everyone is happy and there are no losers; it is only when the market has turned down, then only we know who's who.
Do not count your winnings when the market is near or at the top. Count your winnings when the market is at the bottom. And if you have won when the market is at the bottom, then only you can say you have won.
Simply put, in the annual report of a company, the BS shows you what a company has and what it owes others on a specific date, usually the last day of December or June of a year. When you read the BS, make sure you note this, the date.
Before you buy any share of a company, you should take a look at the BS. This is actually "a must" if you want to invest intelligently. Yet how many people do this. I believe as much as 90% of the people don't do this. This is because, most people are interested in the price than the value of a stock. Because these people are traders, they normally do not bother to look into the fundamental aspects of the company they are buying.
"Why bother about the company? What matters is that the prize must be moving up." That's probably what they are saying.Yes, that's what really matters. But they forget to ask what's moving up the price or why the price is moving up.
Warren Buffett once said, "Only when the water has receded, would one know who's swimming naked." What did he mean by this simple statement? I take it to mean that when the market is at the top, everyone is happy and there are no losers; it is only when the market has turned down, then only we know who's who.
Do not count your winnings when the market is near or at the top. Count your winnings when the market is at the bottom. And if you have won when the market is at the bottom, then only you can say you have won.
Friday, February 19, 2010
Acid-test Ratio
Gold does not corrode in acid. To confirm that their gold nuggets are indeed gold, gold miners submerge them into acid for the test. If the nuggets do not get dissolved or destroyed, they have passed the test.
To determine how solvent a company is, you can use the acid-test ratio to find out. The acid-test ratio means: Cash + A/cs Receivable + Short Term Investment divided by Current Liabilities. If the result is less than one, view it with extreme caution.
To determine how solvent a company is, you can use the acid-test ratio to find out. The acid-test ratio means: Cash + A/cs Receivable + Short Term Investment divided by Current Liabilities. If the result is less than one, view it with extreme caution.
Thursday, February 18, 2010
Emotion
Joy, sorrow, fear, hate, love, greed and hope are all parts and parcels of emotion. Emotion can make you laugh, cry, perspire, tremble with joy or excitement, or shake with sorrow and even irrationalize your action.
In the stock market and in live, it is important that you control your emotion or else, others will control it. Invest wisely and you will live comfortably by retirement age. Trade unwisely or gamble, and chances are that you will have to work until you can work no more. Choose your own destiny.
In the stock market and in live, it is important that you control your emotion or else, others will control it. Invest wisely and you will live comfortably by retirement age. Trade unwisely or gamble, and chances are that you will have to work until you can work no more. Choose your own destiny.
Sunday, February 14, 2010
Saturday, February 13, 2010
Ajinomoto
Though Ajinomoto is a safe stock to invest, it is not suitable for those looking for quick money. The stock is normally thinly traded and lacks volatility. Traders should avoid this counter. For investors with a long term horizon and looking for a good dividend yield, this stock is recommended.
China is concerned about their overheating economy. It's intention to raise bank reserve by another another 50 basis points come Feb 25,2010 has caused jitters in the US stock markets. After opening down 116 points, it eventually closed at 10,099 this morning, down 45.05 from it previous level.
China is doing the right thing. Speculation in its property market is excessive presently. If it doesn't take preventive measures to cool down its economy, it may follow the US market that has a severe downturn in 2008. If this happens, many people will get hurt not only in China but in other countries as well.
China is concerned about their overheating economy. It's intention to raise bank reserve by another another 50 basis points come Feb 25,2010 has caused jitters in the US stock markets. After opening down 116 points, it eventually closed at 10,099 this morning, down 45.05 from it previous level.
China is doing the right thing. Speculation in its property market is excessive presently. If it doesn't take preventive measures to cool down its economy, it may follow the US market that has a severe downturn in 2008. If this happens, many people will get hurt not only in China but in other countries as well.
Friday, February 12, 2010
A Sleeping Beauty
Ajinomoto ( Aji - Stock Code 2658 )
For the year ended 31.03.2009, Aji has a paid-up capital of RM60,798,534. The par value of its share is RM1 each. EPS is 31.19 sen and total dividend paid out is 17 sen
Aji has just announced a set of commendable result for the three months ended 31.12.2009. Its EPS at 15.67 sen compares well with the earnings of its previous corresponding period of 9.17 per share. For the 9 months ended 31.12.2009, the EPS is 36.94.
On a conservative estimate, the full year's EPS should not be less than 52.61 sen, assuming that the 4th quarter result is somewhat similar to that of the 3rd quarter. At yesterday's closing price of 3.38, the forward PE ratio is 6.4246.
This stock has a clean balance. As at 31.12.2009, it has reserve of RM141,836,000. Its total current asset is RM135,137,000 while its total current liabilities is only RM21,294,000. Cash & bank balances stand at RM50,574,000. NTA per share is RM3.33. It has zero debt.
The Ajinomoto brand needs no introduction. They are very well known and used by every household in more than 100 countries. At less than RM3.40 per share, this stock is a Sleeping Beauty.
For a more understanding of Ajinomoto, click here to learn more
Disclaimer: The writer is not responsible for any action you take after you have read this article.You buy or sell at your own risk absolutely.
For the year ended 31.03.2009, Aji has a paid-up capital of RM60,798,534. The par value of its share is RM1 each. EPS is 31.19 sen and total dividend paid out is 17 sen
Aji has just announced a set of commendable result for the three months ended 31.12.2009. Its EPS at 15.67 sen compares well with the earnings of its previous corresponding period of 9.17 per share. For the 9 months ended 31.12.2009, the EPS is 36.94.
On a conservative estimate, the full year's EPS should not be less than 52.61 sen, assuming that the 4th quarter result is somewhat similar to that of the 3rd quarter. At yesterday's closing price of 3.38, the forward PE ratio is 6.4246.
This stock has a clean balance. As at 31.12.2009, it has reserve of RM141,836,000. Its total current asset is RM135,137,000 while its total current liabilities is only RM21,294,000. Cash & bank balances stand at RM50,574,000. NTA per share is RM3.33. It has zero debt.
The Ajinomoto brand needs no introduction. They are very well known and used by every household in more than 100 countries. At less than RM3.40 per share, this stock is a Sleeping Beauty.
For a more understanding of Ajinomoto, click here to learn more
Disclaimer: The writer is not responsible for any action you take after you have read this article.You buy or sell at your own risk absolutely.
Wednesday, February 10, 2010
The bulls hit 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.
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!
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
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.
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
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.
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.
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.
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.
Tuesday, February 02, 2010
Value Trap
What is a Value Trap?
A trap is a trap no matter from what angle you look at it.
When the price of a stock drops substantially, many people look at it as undervalued and buy. When the stock eventually declines further, it means that they have walked into a trap. This is called a Value Trap.
A trap is a trap no matter from what angle you look at it.
When the price of a stock drops substantially, many people look at it as undervalued and buy. When the stock eventually declines further, it means that they have walked into a trap. This is called a Value Trap.
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