Today Hong Kong billionaire 67-year-old Thomas Kwok said outside Stanley Prison after serving just over three years of his five-year sentence. He was granted an early release for good behavior. 

Thomas Kwok, the former co-chairman of Hong Kong’s largest developer, Sun Hung Kai Properties Ltd. and Sun Hung Kai Securities Ltd. was found guilty in 2014 of conspiring to bribe the city’s former No. 2 official Rafael Hui in exchange for favorable treatment for the company.

In 1989 I had a margin account with Sun Hung Kai Securities Ltd and my major holding was Henderson Land which was the largest land owner in Hong Kong at that time. Henderson Land was selling at HK$7.60 per share.

During the Tiananmen protest the Chinese military shot dead about 1,000 protestors. As a result, the Hong Kong stock market crashed and the price of Henderson Land dropped by 50%. Sun Hung Kai Securities tried to contact me to regularise my account. But I was travelling with my wife in Morocco and I was not contactable. Immediately after 3 days, Sun Hung Kai Securities completely sold all my shares at HK $ 3.80 each to their own investment company and I had nothing left.

 

This is an expensive lesson for me in dealing with dishonest people.

 

Margin Finance:

I am not afraid to use margin finance because I want to take advantage of the margin finance to buy more shares when it  was selling at lower prices. For example, I use margin finance to buy Dayang at 60 sen per share. As the price goes higher, I could use more margin loan to buy more shares.

As you know, Dayang has been dropping in the last couple of days. If Dayang continues to drop, I will soon have margin call. The best way to treat margin call is to sell a small amount to meet margin call. If the share price continues to drop, I will continue to sell. Even if the price dropped by 50 %, I will still have something left because my average cost is about 80 sen per share.  

 

The Tiananmen Square protests of 1989.

The Tiananmen Square protests of 1989, also known as the June Fourth Incident in Chinese, were student-led popular demonstrations in Beijing which took place in the spring of 1989 and received broad support from city residents, exposing deep splits within China's political leadership. The protests were forcibly suppressed by hard-line leaders who ordered the military to enforce martial law in the country's capital.

The crackdown that initiated on June 3--4 became known as the Tiananmen Square Massacre or the June 4 Massacre as troops with assault rifles and tanks inflicted thousands of casualties on unarmed civilians trying to block the military's advance on Tiananmen Square in the heart of Beijing, which student demonstrators had occupied for seven weeks.

The scale of military mobilization and the resulting bloodshed were unprecedented in the history of Beijing, a city with a rich tradition of popular protests in the 20th century. The Chinese government condemned the protests as a "counter revolutionary riot", and has prohibited all forms of discussion or remembrance of the events since. Estimates of the death toll range from several hundred to the thousands.

 

Calvin comments:

Just arrived back in Singapore and saw Uncle posted this 


HK security firm forced sold Uncle Koon's shares offer some lessons 

1) When you buy share on margin you are open to the Uncertain & the Unknown' 

2) Uncle Koon should not have travelled for so many days without calling about the status of his shares (again in 1989 Internet was not so advanced nor whataspp like today 

3) Security Firm will force sell shares to meet margin. If not any short fall security firm will be exposed to losses themselves. So they are not entirely wrong 

4) This one example is a good lesson for us not to put all eggs into one basket. 
Always diversify investments 

5) Also don't play margin if you cannot give full 100% attention to the margin accounts 

6) Better invest in undervalue shares with cash only. In this way you are not forced to sell at the wrong time and at the wrong price

7) For most of this year Calvin has been very bullish on Oil & Gas stocks.

But Calvin only buy when prices are reasonable and with margin of safety as opposed to trading on margin account (Calvin never trade with margin account)

This oil bull is only officially few months old so there is more upside after things are more settled down

 

8) Today we see Serba & other Oil entities given fresh job awards. Yesterday Uzma got onshore HWUs jobs. So we will witness more and more OnG jobs unfold.

Calvin thinks this OnG bull run still got more upside. Buy and hold is still the best strategy

 

9) Now many are unsure how far or how high the Oil & Gas Bull Stocks will still go up.

And many are looking forward to the May quarter earnings to confirm the bull trend

 

10) While waiting Calvin thinks the Next Event On The Investing Calendar will be the upcoming Meeting on ECRL (East Coastal Rail Link) by Tun Daim Zainuddin in China this April which is only less than 2 weeks from now

And these are the Stocks Calvin think might get a booster if ECRL is on

 

1) AZRB (it is building the TOK Bali Oil Hub which might one day rival Bintulu Port)

2) T7 Global (This one already secured 2 Oil & Gas Jobs recently) Might also get ECRL Jobs

3) Lafarge Cement (The previous cancelled Rm270 millions contract with China Contractors might restart)

4) Masteel (Its Kapar factory is part of the ECRL Route)

5) PRESTAR (This One has factory in Rawang and also near to ECRL Route) Lots of Wheel barrows & Guardrails needed

6) TALAM. Talam has 2 Gold mines along ECRL Routes (Its prime Commercial/Industrial Lands in Serendah & Its 100 Acres lands in Gombak. Gombak is a Major Hub/Inter Change of the ECRL)

 

Just buy some shares of the 6 above companies & wait till April. And today due to selling in Dayang these shares are also affected by selling and therefore cheaper to buy.