I find that the word 'bet'appears on a majority of margin Finance topics/discussion. Goes to show it's still a kind of gambling mentality.

This is the kind of knowledge knowhow which is grossly wrong n teaching our youngsters the wrong way.

We Shld be using the word invest especially for your future. They shld learn the prudent man rule as well. This will teach them responsibility on their own future.

I am beginning to see why lots of ppl decided to refute desa in large groups.

cheers and good investing

Does it mean substantial shareholding held by bank nominees are all on margin finance? I seriously didn't know it.

KC i believe some of the shares held in nominees account are for pledging by the owners to the banks( act as collateral) in order for the owners to get cash out to buy things.

This is like tony of aax/airasia.

thats why tony can buy football clubs n go into F1 racing

so once their price drop to a certain level below the cash they took out. they to have to replendish the borrowed amount kinda like a margin call. anyone correct me if i am wrong cheers

I fully agree with kc on not using margin finance for the youngsters.

It will purely be a gambling mindset that they will definately set themselves into if they applied margin finance.

heck even i dun use it for fear of losing everything.

Its dangerous especially if they go all out with ignorant thinking of fast gains.

I believe that they should have years of inv experience first before even going for margin finance. This will teach them the ins and outs of the market before attempting margin finance. this is my opinion.

yes all businesses borrow money to do business. this is the norm. but margin finance and business loans are 2 different things. business loans u dun get margin calls.

I know this is because I am from a business related family involved in the manufacturing/construction industry in malaysia. we do borrow loans/get credit facility to do business. its normal. But of course as in all prudent businesses less debt is better for us simply because we dun have to service a big loan every month and conserve cash flow. There is an optimum level of debt for all businesses and of course again every business is different.

cheers

All uncles can we just stop all this ego bashing pls? This will never end Until the ends of the earth.

Fyi
Investing is a personal thing. Your risk tolerance n strategy are totally different from anyone else. That's we have an IPS investment policy statement for each person. No one is the same. Some wants low risk n lots of diversification others Dun.

Even for degrees n profession no one can say they are better. I am an engineer by profession still am but I still think differently from engineers.

So pls swallow all your ego n move on. For all your good IQ seems your eq is really low. You must understand u cannot expect everyone to like you. Even Mr. Otb no longer bothers. I can respect that.

I also Dun expect ppl to like me. As long deep down I know I have done at least the correct thing it's fine.

Now can we get back to discussing about inv n youngsters way of doing it. They wanna use margin or not we Dun care as its their own responsibilities..remember that they can be stubborn n not listen to your advice. As long u tried it's good enuf

Good day everyone

So many ppl ganging up on uncle desa. May i ask why?

I am a CFA graduate. However I was an engineer by profession. Took up CFA and passed levels 123 over a period of 5 years. Failed 2x hence need 5 years. Compound interest n modern portfolio theory are 2 different things.

Compound interest occurs when the interest that accrues to an amount of money in turn accrues interest itself.
Hence u start younger u gain better chances

Modern portfolio theory(MPT) is a theory on how risk-averse investors can construct portfolios to optimize or maximize expected return based on a given level of market risk, emphasizing that risk is an inherent part of higher reward. Also called "portfolio theory" or "portfolio managementtheory."

These are cut n pasted. No need to argue about this things. Unless u are a multi-billion fund u just do not have the resources to calculate proper variables needed n generated. We just make do with Wat we have

However day traders instill market liquidity like the market makers. Unfortunately they may get caught by Mr. Market lol.

Without these 2 our klse volume will be very very low. So we Shld be thankful to these naive traders..

Unfortunately due to either influenced or ignorance I see very little hope for the younger generation. They are just too rash n impatient.hence majority will go the contra n day trading way.

Even here in i3 I see almost 80% of forumers doing day trading. They rest is perhaps long term investors.

Due to this kind of influence n activity the younger ones tend to be influenced n lean towards day trading. Easy money n fast profits.

Tts why education plays an important part in their lives

Hope i didnt touch a raw nerve. Anyways sorry but am only interested in proper info like kc chong or icon.

From the way you present your awards blog already tells me you are not worth my salt. Sorry if this offends you.

Good luck n cheers

This has got to be the most pathetic blog that i have ever seen in my life. This joker has the time, the patience, the ideas, the design, the brains (maybe he borrow from others) to do this ...instead of at least contributing some inv ideas...sheesh.

Perhaps he is creating attention to get attention. He should get a poor forumer award...aduhai....

I really really rest my case. Thank you

Invest in yourself in investing knowledge

I particularly like this part. Young ppl must have the patience and drive to learn and not be rash in making investment decisions.

I notice majority are just looking for fast gain...and with the dangerous margin loans.

This is not the way to do it. Learn the knowledge first.

thx kc chong for the info. good read for me too

Actually if u think about it. If there are no speculators in the market then liquidity n volume will be low. So thx to all speculators, margin ,contra,day traders etc for generating the volume.

Cheers

Credit suisse n pacific bought sona mothershares around 44 44.5 sen. Sona has been hovering around 44sen for god knows how long.

They collectively hold about 20% of sona shares.

Here comes the logical question. Would they vote against the QA just to earn 2 - 3sens ? Furthermore our rm has depreciated against foreign currency by so much. Wouldnt they want to earn at least 20% 30% 40% 50%?

Rm/usd since last year from 3.8 to about 4.2 now...our rm depreciated by around 10%

Unless they have lots of so called fake experts (like in this website) who only talk big n not put the cash where their mouth is as their analysts n advisers...i am prettty sure they will vote in favour of the QA.

Btw this is not a buy call or sell call. trade on your own risk thx.
Disclosure : i have shares n warrants n sona cheers

There is no simple formula to buy low n sell high. Sounds to me u are looking at market timing. If u are looking at this then u shld learn up on market timing from contra kaki here. I am not into market timing. Thank you

Net income is net profit

PE ratio is just a term to check if this asset/stock is relatively cheap or expensive against others

Eps is a term known as earnings per share

Perhaps this website is more informative to u too learn more.
http://www.investopedia.com/terms/e/eps.asp
Lots of knowledge.

For the Eps normally they calculate for all 4 quarters. But u can check for 1q to see if price is to your liking. Of course got other ways to Chk for intrinsic value of stock. U will then need to read kcchong blogs. Very good practical detail

Just remember net income if net profit n subtract all dividends

Cheers

This is simple n general PE ratio

Eps = earnings per share
Assuming PE ratio is 10x

Price per share/eps = 10x
Hence price = 10 x eps
Eg if Eps is 10sen price = 10x 0.1 = rm1
Always divide by 100 if Eps in sen

Hahaha it's really spectacular ppl can still joke like this

Hmm what's the point of comparing? Peter Lim of sg would even be better. So is Bill Gates. Lol

Warrants are normally issued to existing shareholders as a bonus free money or to rights holders as an incentive. Plus it's normally an additional way to trade on the company.

Becoz it's normally way cheaper than the mothershare, it's normally speculated heavily by traders. Bear in mind becoz it's cheap like penny stocks the potential to gain more in profits are greater compared to buying the mothershare.

Unless it's expiring on the same year u will see heavy betting just becoz it's cheap.
Hence normally ppl will trade it becoz it's cheap to make a good profit and not to buy to convert to mothershare. This is because u will need to fork out cash to convert, here 35c per warrant.

The only reason why u will want to convert is becoz u wanna increase your shareholding in the company n to take control?

Not many ppl understands this. Any other uses for warrants?

Investing is an art form not an exact science. U need to juggle between a lot of variables. Of course science n formulas can help but there is still the art which is buying selling speculating on a whim.

Nevertheless it does help when u hanger spare cash lying around when 2008 1998 repeats itself. Just be ready when it comes but do not wait until it comes..it will be difficult like icap biz

Vs has dropped quite far now and the price is getting attractive to buy. Like someone mentioned they normally hedge their USD use for a few months in advance becoz of buying raw materials in other currencies instead of ringgit. They have been doing this way before our rm dropped against USD or vice versa. This is the way to conduct business. Even ioi does palm oil hedging. This is normal.

Again just because USD rise a bit panic. Drop a bit happy. I guess it's only the contra ppl n day traders who are easily influenced.

Everybody thinks they know a bit then proudly proclaim they are a sifu. Well done brainless sifus..

Vs industry is getting attractive with this price. They are expanding. Even tho they may not make a profit now it's fine too. Becoz the price is really at the lowest. U may miss getting fire sale prices if u Dun buy.

However I am interested in the warrants still too pricey so I will wait. If miss chance so be it.

BTW this is not an advice to buy or sell. And I am not a sifu. Just trying to follow the great investors.

Good informative writeup. I agree with you.

Yes ktsk me too. I am holding boyh the mothershare n warrants. Warrants will expire in 2018 when QA officially ok by shareholders. But i think sure ok. So many ppl buying

Vote against QA probably get back about 47sen per share
Vote for QA will definately get higher than that.

Unless there are really brainless investors who prefers not to have money.....

I rest my case

I am actually quite interested in acquiring the warrants as well. however with the exercise price at 1.65 and warrants at 0.33 meaning 0.33 + 1.65 = 1.98 to convert to mother share i feel that its too pricey at the moment. perhaps below 0.3

mr. bighead these are the ppl that have unfortunately infested i3 like a virus. we cant do much about it. so just ignore them and give our proper info with research n study.

no point to reply and argue dy. enuf said.

nevertheless. I do implore serious investors/contra players to take everything with a pinch of salt and be careful listening to rumors and nonsense with out logic. Just use your brain to think about it. logic and reasoning is important. not rumor mongering.

Good luck and happy cny

Interesting blog n topic. I for one do not think that for his 5%(shareholding I assume) of any particular company he is able to manipulate the price. At the end of the day there are other major shareholders too. Plus some of his shares are pledged for collateral hence u cant sell em. It's wishful thinking to think that he can easily manipulate prices at will. I am guessing u need brokers, other major shareholders, fake news, reporters, inv bankers to collude n shake the price. Correct me if I am wrong. I am merely thinking logically.

Plus I think u need some serious money to push up the price. How many i3investors have major cash to do it? N how much to do it? Few Mill? I am not familiar on this. Wat i do know is we are only a small river in a big ocean. We can't simply push the price. Referring to my example of gpacket, there was a day when the rumors went so strong that telekom will buy packet one at a very high price n on that day the stock went crazy with lots of volume ...shoot up to 0.65 then next day went down to 0.45. This is blatant dumping on us. Simple day in day out volume is peanuts compare to this.

Just sharing cheers

Judging from the historical 5 years prices chart. I believe going in at 40sen sounds very good. This is an interesting long term recurring revenue for bjcorp. Thx icon for the article

I am merely stating the insights and things i saw before and reading from news and the internet. I believe in being neutral and objective and learning from ppl regardless of whom thry are. Knowledge is power.

Only those idiotic uneducated imbecilic fools who does not know how to be resourceful nor collect good info to learn n refine from may doom themselves to a lifetime of failure and emotional blame games.

I rest my case. Happy cny all!

I belive rm will hover around 4.10 n below due to these 2 problems. Investor lose confidence in our gov...means our bonds may get rerated to lower inv grade..causing even more ppl to cabut. Its hard to say. Continually monitor the news

Looking back the previous year when ringgit falls. There are so far 2 main reasons i noticed that caused the ringgit to fall. Ringgit depreciating is a boon to exporters yes but this is only on the outside. A little ringgit rise will not simply cause the exporters to die...this is simple logic and some exporters have been doing business well even before the ringgit was dropping from 3.80

2 reasons i believe why rm is still down.
1. Political uncertainty. ..with 1mdb n the funny news on it this will cause investors to lose confidence in doing business in msia. Even bank negara zeti said it. This is a no brainer. If investors lose confidence in msia what do they do? They sell their holdings n cabut. Hence rm drops. Foreign holdings in klse has drop a lot especially from stocks n bonds. I believe last year up to rm1bil has left the klse..correct me if i am wrong. Thats why i belive rm will not go up but down. It may just get stuck now. We dun know. But to regain 3.80 i dun think so...until confidence comes back

2. Oil price.
Didnt anyone noticed that last year oil price goes down our rm start to wobble n then topple over? Unfortunately outside investors know our oil is our main revenue n budget 22%
http://www.eog-asia.com/malaysian-oil-and-gas-sector-to-account-for-22-of-government-revenue/
Hence its a perception problem. Noticed that our rm shoot up when oil up last 2 weeks.

Cheers

Kc thank you for this insightful article. Happy CNY!

Right. I see still a lot of jealousy n blame games here. A lot of vengeful ppl too. Lol

This forum turning into a circus...

From personal experience and some tips from friends on when to sell at peak. Unfortunately there is no fool proof way to know this. At best u can only sell almost before the peak or after the peak. Even for an investor without emotions this is difficult.

1. Overbought territory ftom a technical chart perspective. You can see that if the rsi is overbought at high volume it may be time to go. This works but again it is not an absolute value. But at least u sold around the highest price.

2. Profits of company declining. Once u notice a trend of profits coming down. Time to go lo. Be careful for one off exceptional gains items.

3. Macro economic changes or micro changes. Eg oil price drops. I made a mistake of not noticing this n bought thheavy becoz of the price is cheap. Kena caught big time. So have to cut loss. This is known as macro change. Micro change is specific to the company u buy. One of the big shareholder tan sri quek left in a hurry from thheavy...he cut loss. Again i didnt sell...stupid decision. Moral of the story must always read news n monitor for both changes. U have to learn to be info savvy as well. Now oil is cheap oil companies are cheap. Logic says time to go in. But of course again dun put all your eggs in one basket. Btw i have sona and am keeping it until i see no hope.

Buy n sell at your own risks. Cheers

Again attacking n finding old man's faults instead of trying to understand n learn about smart, objective n detachment from emotions investing..sigh
Even Warren Buffet can made a mistake n it really takes guts to admit wrong n move on better

Good info too. In this case it will be nice to enter around the price of 1.20. But warrants are way too expensive for me. 0.40! Crazy

Make love not war gentlemen. Peace! N happy cny

This is really getting to be sort of an ego fight..aduh

Why jealous of mr. Kyy earnings? I am curious.

The ways of investing which I believe is logical and will make profits. However all assets prices are subject to a special risk called market risk. U will not be able to diversify this away no matter what you do. This is a true fact.

1. Knowledge is power. Learn n understand info. Always read info and articles with an open mind. If u Dun believe ask why. Go find out if true or false. Trouble is..ppl either blindly follow or blind condemn..why? Shame of losing? Fear?cannot admit mistakes? U only got yourself to blame for not listening or blindly following ....
It's your money. .Hence your responsibility if u cannot understand that than u really have no brains to invest.

2. Market timing. I notice there's a lot of uneducated ppl looking for ways to make a quick profit by going for market timing. Unless by are a hedge fund with lots of resources..tough luck. U just can't do it. All proper sifu here will even advise on it. Even if u manage to go in properly.can u go out properly as well?
Hence just find an average price to go in. Eg 1 year average price or low point. If u still ask ppl for easy way in. Dun blame if u lose money

3.nerves of steel. Markets are always volatile. U think Klee is bad? Look at China and especially the fx markets. Those are volatile. Can't stomach it? Then u have no business to be in it the first place. Idiots.
If your stock u have is good u will even buy more when it goes down!


4.believe in yourself n confidence.that's why u must research properly and be confident. If u are u will hold on n not sell over simple volatility like the exchange rate. Lol. This is a damn good opportunity!!

5. Hold a portfolio. Do not put all your eggs in one basket. Buy at least 5. Remember market risk this will never ever go away. Can anyone honestly say they can predict that the oil price drop 2 years ago like shit? Never. Even if 2 stocks go down..at least 3 makes money is ok

6. Emotions n pride. This is the downfall of all ppl. U can lunci say u make money..true but the stock market is merciless. It doesn't care about your emotions or feelings..so if u get caught it's only your fault.
Detach n cut loss if the company loses money. Do not hold on to it. I make a mistake on this in Gpacket. I lost a lot of money. Buck up n move on. Cut loss. If u can't then u may even lose all.

Even if u are a super investor u may still lose some money nobody is super lucky all the time. That's why u have to be prudent n careful n aalways monitor. The world's economy changes all the time. Hence we also need to Chg. There's no foolproof strategy in investing .only constant learning n detachment from emotions.

Good luck.
PS. Know of John paulsen in the US? He made billions betting against sub prime in the US. Now he's losing money. I guess he got overconfident n greedy.

Just for curiosity sake. How come it's fCf is negative while it's cash balance is 300+ mil? Any ideas? Cheers

actually i believe its the mentality of the chinese owners in china itself.

1) dun give shit about enhancing shareholders return...becoz majority of xinquan owned by only 1 fella.
2) maybe the huge cash reserves are for ease of siphoning out anytime for own use....
3) they are in china u cant do anything about it in msia..sue them? how?
4) just dun care about the share price....why care? got loads of cash to use ma...who cares my stock price in some far away land drop like hell

I believe china ppl's mentality is like this. almost all of china listed companies in msia stock prices drop like mad...no logic

I would stay away from china companies. buy at your own risk

good luck

Desa some ppl just can't accept that other ppl are better n makes good sound moves. Jealousy n refusal to acknowledge ones own mistakes will result in an incapability to learn new things. I have lost 500k in the stock market before. Buck up n relearn. Simple

That's why u must diversify in your own portfolio. Plus do not blindly follow other ppl. Do your own research n chk.

Even if u were to short the market. U shldnt put all your eggs in. Especially with margin. Big risk big gain but big loss too.

As long as out of 5 stocks u buy 3 make money is OK dy. But of course dun simply buy becoz ppl tell u too or follow the trend..sure die one day. Be logical, Chk why it's good, use common sense. With Google Now it's so easy to search for info

Even Mr kyy may have made a mistake in xinquan we Dun know. But as long as his overall portfolio is gaining n not in dreamy penny stocks that's fine.

Nobody is perfect n no point condemning other ppl. It's a free world n nobody's forcing u to buy

Good luck

Hmm seems like some ppl wanna sound sophisticated without the proper knowledge. Even I am a CFA graduate...i never knew that free flotation of shares are sophisticated words. U Shld also mention closely held shares/company now this is a better word to describe jcy