Investing Experience -
Risk Profile -
Followers
0
Following
0
Blog Posts
0
Threads
374
Blogs
Threads
Portfolio
Follower
Following
Summary
Total comments
374
Past 30 days
0
Past 7 days
0
Today
0
User Comments
News & Blogs
Stock
2018-12-31 12:44 | Report Abuse
Thank you VenFx! Please do share some of your thoughts here! Hope everyone have a great new year!
Stock
Stock
2018-12-30 05:23 | Report Abuse
Stock
2018-12-30 05:22 | Report Abuse
Stock
2018-12-28 22:23 | Report Abuse
@supersaiyan3, agree! In addition, the reasonably low oil price will have another additional catalyst!
Stock
2018-12-28 19:58 | Report Abuse
If you look at the last 3 years, Jan month is a good month for AirAsia!
Stock
2018-12-28 15:38 | Report Abuse
Dividend is something you cannot manipulate! Without reasonable profits, you cannot pay dividend for sure!
Companies that pay dividends to shareholders are normally the better ones!
Stock
2018-12-28 05:37 | Report Abuse
Why dividends matter
Buy low, sell high is the most commonly heard philosophy in investing. Of course, it is the most obvious way to make money. But to be honest, how many can really time the market accurately every time?
How many can predict the share price accurately by buying at the lowest and selling at the highest consistently?
There are so many investors who thought that the stock they bought was at the lowest price but it went down even lower.
Well, there is no doubt that buying low and selling high will make you money but it is not the only way; you can make money from dividends as well.
In the previous issue, we discussed the five simple steps before you invest in dividend companies. Now, we will share with you the power of dividends.
How do you take advantage of dividends?
The company you own pays you dividends for being patient. In other words, dividends allow you to generate cash flow even without the need to sell the stock.
However, to make superior profits through dividends, you have to understand compounding.
“Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it.” – Albert Einstein
That’s the power of compounding.
When you receive dividends, you have the option to either spend them or reinvest them. If you choose to reinvest the dividends, you will then have more stocks which in turn pay you more dividends.
By consistently reinvesting these dividends, you will then experience the compounding effect on your net worth.But this is easier said than done. It takes time to achieve and requires tremendous patience.
That is why most investors are unable to generate profits consistently because they sell too early to have compounding on their side.
Dividends can help you eliminate risks
To demonstrate this, let’s quickly examine a well-known local company called Hup Seng Industries. It has a simple business model in manufacturing and selling biscuits, beverages and confectionery in Malaysia.
Imagine you invested in Hup Seng 10 years ago, in December 2008, at about 14 sen a share and you have held it until today. The shows the dividends you would have enjoyed every year.
Just by collecting dividends alone, you would have received a total of 38.1 sen for every share.
Meaning, by investing RM140,000 10 years ago, you would now have got back RM381,000 of dividends, passive income! Your return on investment (ROI) on dividend alone will be 272%.
And how does dividend eliminate risks? Remember that the maximum risk an investor is facing is the capital put into the stock.
If you have invested RM140,000 and gotten RM381,000 in dividends, what is your risk now?
None because you have collected all your capital back from the dividends.
Dividends set you free
Today, many among us are looking for a way to be financially free. We start a business, start direct selling or even do odd jobs just to increase our income.
However, what many do not pay attention to is that dividends are the easiest and purest way for anyone to attain financial freedom and build their stream of passive income.
All you need to do is buy some shares of dividend companies and the passive income starts immediately with no additional work.
But some would lament that the amount is not enough. If you had bought Hup Seng at 14 sen a share back then in 2008, you would only be getting 0.06 sen in dividends for the entire year or a 4.3% dividend yield on your investment.
Let’s be honest; a 4.3% yield is not excellent, because you will get about 4% by putting your money in fixed deposit. But, this is only the beginning.
Is it possible for a company to prosper over the years and reward shareholders better? Definitely!
If you have held on to Hup Seng from that time until today, instead of getting 0.06 sen in dividends, you would be getting 4 sen in dividends for the entire year.
Compared with your initial investment of 14 sen, that is a 43% dividend yield per year! Meaning, if you had invested RM140,000 10 years ago, right now you will be receiving a passive income of RM60,000 every year.
Great companies will pay you more dividend over time when they make more profits. Your only job is to invest in these companies and do nothing.
You do not need to actively monitor the share price. Patience is a virtue, precisely, in investing.
What if you have even reinvested those dividends you have collected? And the best part – these dividends are tax-free!
Conclusion
Still, most investors lose money in the stock market. The biggest reason lies in their emotional stability.
Remember, the skillset to identify and invest in great companies is only a small piece of the puzzle. The biggest piece lies in your own emotional stability.
Investing is not a destination but a journey. To generate massive wealth is to invest in great companies and most importantly, to have the patience, giving time for them to grow.
Now, imagine you own a cow, a cow that will generate you passive in
Stock
2018-12-28 05:36 | Report Abuse
Why dividends matter
Buy low, sell high is the most commonly heard philosophy in investing. Of course, it is the most obvious way to make money. But to be honest, how many can really time the market accurately every time?
How many can predict the share price accurately by buying at the lowest and selling at the highest consistently?
There are so many investors who thought that the stock they bought was at the lowest price but it went down even lower.
Well, there is no doubt that buying low and selling high will make you money but it is not the only way; you can make money from dividends as well.
In the previous issue, we discussed the five simple steps before you invest in dividend companies. Now, we will share with you the power of dividends.
How do you take advantage of dividends?
The company you own pays you dividends for being patient. In other words, dividends allow you to generate cash flow even without the need to sell the stock.
However, to make superior profits through dividends, you have to understand compounding.
“Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it.” – Albert Einstein
That’s the power of compounding.
When you receive dividends, you have the option to either spend them or reinvest them. If you choose to reinvest the dividends, you will then have more stocks which in turn pay you more dividends.
By consistently reinvesting these dividends, you will then experience the compounding effect on your net worth.But this is easier said than done. It takes time to achieve and requires tremendous patience.
That is why most investors are unable to generate profits consistently because they sell too early to have compounding on their side.
Dividends can help you eliminate risks
To demonstrate this, let’s quickly examine a well-known local company called Hup Seng Industries. It has a simple business model in manufacturing and selling biscuits, beverages and confectionery in Malaysia.
Imagine you invested in Hup Seng 10 years ago, in December 2008, at about 14 sen a share and you have held it until today. The shows the dividends you would have enjoyed every year.
Just by collecting dividends alone, you would have received a total of 38.1 sen for every share.
Meaning, by investing RM140,000 10 years ago, you would now have got back RM381,000 of dividends, passive income! Your return on investment (ROI) on dividend alone will be 272%.
And how does dividend eliminate risks? Remember that the maximum risk an investor is facing is the capital put into the stock.
If you have invested RM140,000 and gotten RM381,000 in dividends, what is your risk now?
None because you have collected all your capital back from the dividends.
Dividends set you free
Today, many among us are looking for a way to be financially free. We start a business, start direct selling or even do odd jobs just to increase our income.
However, what many do not pay attention to is that dividends are the easiest and purest way for anyone to attain financial freedom and build their stream of passive income.
All you need to do is buy some shares of dividend companies and the passive income starts immediately with no additional work.
But some would lament that the amount is not enough. If you had bought Hup Seng at 14 sen a share back then in 2008, you would only be getting 0.06 sen in dividends for the entire year or a 4.3% dividend yield on your investment.
Let’s be honest; a 4.3% yield is not excellent, because you will get about 4% by putting your money in fixed deposit. But, this is only the beginning.
Is it possible for a company to prosper over the years and reward shareholders better? Definitely!
If you have held on to Hup Seng from that time until today, instead of getting 0.06 sen in dividends, you would be getting 4 sen in dividends for the entire year.
Compared with your initial investment of 14 sen, that is a 43% dividend yield per year! Meaning, if you had invested RM140,000 10 years ago, right now you will be receiving a passive income of RM60,000 every year.
Great companies will pay you more dividend over time when they make more profits. Your only job is to invest in these companies and do nothing.
You do not need to actively monitor the share price. Patience is a virtue, precisely, in investing.
What if you have even reinvested those dividends you have collected? And the best part – these dividends are tax-free!
Conclusion
Still, most investors lose money in the stock market. The biggest reason lies in their emotional stability.
Remember, the skillset to identify and invest in great companies is only a small piece of the puzzle. The biggest piece lies in your own emotional stability.
Investing is not a destination but a journey. To generate massive wealth is to invest in great companies and most importantly, to have the patience, giving time for them to grow.
Now, imagine you own a cow, a cow that will generate you passive in
Stock
2018-12-28 04:39 | Report Abuse
Raymond's last report on AirAsia dated Nov30,2018
Target price: RM2.12
Stock
2018-12-28 04:30 | Report Abuse
CIMB analyst Raymond Yap's contact:
raymond.yap@cimb.com
(60) 3 2261 9072
Stock
2018-12-28 04:24 | Report Abuse
Above link a good read on oil price and trend by Lance Roberts.
Stock
Stock
2018-12-27 19:27 | Report Abuse
CIMB investment bank analyst Raymond Yap is the guy that value and set target price on Airasia! You guys may want to ask him to explain on AirAsia.
Stock
2018-12-26 21:13 | Report Abuse
I am looking forward to the next AGM.
Stock
2018-12-25 21:00 | Report Abuse
The following was i wrote in respond to Bursa999 at the AirAsia forum lately!
Thank you for pointing out on the startup valuation! Not sure about snapchat case though as i did not follow in this case! If you are referring to GDB case, a counter which i like, i can talk a bit on this!
One of the main thing i like about GDB is the 30% dividend policy! A small start up company committing to pay dividend right at the start! This is rare!
As an investor, i like the idea of getting paid via dividends while waiting for the company to grow! Most companies don't normally pay dividends at the start up phase, including AirAsia!
If you read GDB IPO prospectus, my view is that their growth strategy plan is just a very natural progression to grow in a construction business, nothing fancy or overstated there! Of course the jury is still out there if they can successful or not in their growth plan. In the high rise segment, which is their current experty, they are doing quite well. You can compare GDB with some of the other construction counters especially on their profit margin! Having a reputation of always completing projects ahead is not an easy task! It gave me a hint on their management strength! This i hope to follow up in later AGMs.
An interesting metric i noted on GDB is their high ROE! It will be great if they can maintain it! GDB is like AirAsia, a high ROE company!
The IPO price was 35sen! At current depressed market, the weak ones are being shakened out! Since IPO listing in April, some buyings by GDB directors offer some idea of what the insiders think on what it is worth! You can do some homework to check out!
GDB have enough orders in hand to last them at least in the next two years! As an investors i am willing to sit out with them but with a reasonable dividend, this is supported by their 30% dividend policy! They have paid 1.0sen interim in first half, indicating there is a 2nd dividend in second half!
GDB is an ACE counter, which i hope they can be in the main board in 3 to 5 years!
Stock
Stock
2018-12-25 07:24 | Report Abuse
Oil rough!
https://oilprice.com/oil-price-charts/46
Stock
2018-12-25 06:29 | Report Abuse
@limtsuey9
Below is a link to see some of Ryanair's important metrics! Are you on AirAsia as well?
https://www.macrotrends.net/stocks/charts/RYAAY/ryanair-holdings/roe
Stock
2018-12-24 08:08 | Report Abuse
Interesting info.you can read from GDB's website!
http://www.gdbhb.com.my/
Stock
Stock
2018-12-23 21:43 | Report Abuse
@limtsuey9
It will be good to compare GDB's balance sheet and cash flow report to that of INTA BINA.
Stock
2018-12-23 21:02 | Report Abuse
13 times PE! How you get that? It definitely would not interest me if it is so high!
Stock
2018-12-23 20:04 | Report Abuse
The top two of the company still hold more than 70% of the shares! I take it as indicator that they are confident in their business!
Stock
Stock
2018-12-23 12:45 | Report Abuse
Agree! Maybe a better valuation comparison should be with Ryanair!
Stock
2018-12-23 10:44 | Report Abuse
@Bursa999: Thank you for pointing out on the startup valuation! Not sure about snapchat case though as i did not follow in this case! If you are referring to GDB case, a counter which i like, i can talk a bit on this!
One of the main thing i like about GDB is the 30% dividend policy! A small start up company committing to pay dividend right at the start! This is rare!
As an investor, i like the idea of getting paid via dividends while waiting for the company to grow! Most companies don't normally pay dividends at the start up phase, including AirAsia!
If you read GDB IPO prospectus, my view is that their growth strategy plan is just a very natural progression to grow in a construction business, nothing fancy or overstated there! Of course the jury is still out there if they can successful or not in their growth plan. In the high rise segment, which is their current experty, they are doing quite well. You can compare GDB with some of the other construction counters especially on their profit margin! Having a reputation of always completing projects ahead is not an easy task! It gave me a hint on their management strength! This i hope to follow up in later AGMs.
An interesting metric i noted on GDB is their high ROE! It will be great if they can maintain it! GDB is like AirAsia, a high ROE company!
The IPO price was 35sen! At current depressed market, the weak ones are being shakened out! Since IPO listing in April, some buyings by GDB directors offer some idea of what the insiders think on what it is worth! You can do some homework to check out!
GDB have enough orders in hand to last them at least in the next two years! As an investors i am willing to sit out with them but with a reasonable dividend, this is supported by their 30% dividend policy! They have paid 1.0sen interim in first half, indicating there is a 2nd dividend in second half!
GDB is an ACE counter, which i hope they can be in the main board in 3 to 5 years!
Stock
2018-12-22 13:09 | Report Abuse
https://www.thestar.com.my/business/business-news/2017/07/29/would-grab-command-billions-if-it-goes-public/
https://www.forbes.com/sites/susancunningham/2018/03/07/grabs-valuation-hits-6-billion-anthony-tan-joins-rich-list-as-southeast-asia-ride-hailing-race-drags-on/#cae51016ede4
AirAsia only value at about USD2.2 billion!
Tony better take AirAsia private or list in another stock exchange!
Stock
2018-12-21 20:18 | Report Abuse
A rising ROE suggests that a company is increasing its ability to generate profit without needing as much capital. ... Likewise, a high level of debt can artificially boost ROE; after all, the more debt a company has, the less shareholders' equity it has (as a percentage of total assets), and the higher its ROE is.
GDB is a high ROE company! The surprise thing is achieving it without much borrowings!
Stock
2018-12-20 23:17 | Report Abuse
Every one USD drop in jet fuel price will add about USD10mil to the bottom line for the year!
Stock
2018-12-20 23:11 | Report Abuse
Read the 3 important metrics on GDB(PE,ROE and DY)
Stock
Stock
2018-12-19 08:58 | Report Abuse
Take at least a one year view on your bet as jet fuel can be hedged one to two years ahead!
Stock
Stock
2018-12-18 19:16 | Report Abuse
Stock
2018-12-18 19:05 | Report Abuse
Stock
2018-12-18 15:31 | Report Abuse
Stock
2018-12-16 21:46 | Report Abuse
Just wait to see if they are some pullbacks for entry!
Stock
2018-12-16 19:59 | Report Abuse
Just wait to see if there is any pullbacks for entry! Read and understand the issues especially on oil related matters!
Stock
2018-12-16 16:51 | Report Abuse
There is a good chance that 2019 will be a good year for AirAsia if oil price remain low! If the Castlelake deal go through, it will be a double bonus year for AirAsia next year!
By 28th of this month, the total dividend given to me is 83sen(that is since 2015). I am happy I have invested in AirAsia as one of my pick!
There should be other counters that maybe good! Keep looking! You will find your pot of gold!
Stock
2018-12-16 08:50 | Report Abuse
New battery technology:
https://tiresandparts.net/news/parts/honda-makes-breakthrough-in-new-battery-technology/
Stock
2018-12-15 19:11 | Report Abuse
https://klse.i3investor.com/m/blog/www.eaglevisioninvest.com/96620.jsp
Read what Calvin Tan wrote in 2016!
Stock
2018-12-15 12:05 | Report Abuse
You can do a simple calculation! 40sen multiply by 3.342bil shares! Even a small % of this can buy up many millions of share of AirAsia at current price!
Stock
2018-12-15 11:44 | Report Abuse
Many will get plenty of cash by Dec 28. Expect some of these cash to flow back to buy up more AirAsia shares!
Stock
2018-12-15 11:35 | Report Abuse
As of 30Sep 2018, GDB book order stands at slightly more than 600mil, so next two years revenue is secured!
Stock
2018-12-15 11:29 | Report Abuse
GDB is a nett cash company! So, I don't see any problem in paying dividend. They should consider some share buy back to support share price instead!
Stock
2018-12-15 11:25 | Report Abuse
I project next year nett profit of about 25mil. 25mil divided by 625mil shares, it is about 4sen in EPS! With 30% dividend policy, you get 1.2sen in dividend.
1.2 divided by 24sen, you 5% in dividend yield!
At 4sen EPS and PE of 8 times, you get target price of 32sen!
Stock
2018-12-15 11:16 | Report Abuse
At 24sen, it is 11sen discount over IPO PRICE of 35sen! At this price, it is about 30% discount over IPO PRICE!
Stock: [CAPITALA]: CAPITAL A BERHAD
2019-01-02 21:16 | Report Abuse
AirAsia and Hibiscus are top picks for 2019!
https://klse.i3investor.com/m/blog/stock_pick_2019/188576.jsp