Yes you have the point, it gives good return first to tempt the victims. That's big time fraud, it needs large capital to fish, hope it won't happen here. Anyway, if the scheme sounds too good to be true it's NOT true. But in stock the fraudulent acc. more or less is used to cover the loss and it's not necessary for the comp. to give the div. to convince the share holders, besides it's hard for the company to come up with the cash as it already suffers a loss.
I pity 8k, he was conned by the unscrupulous Megan's 'buayas'. We may be conned too. Never put all the eggs in 1 basket. I spread my investment out in about 20 companies. Aunloke is absolutely right. Beware of company like Sam E n E, good results but not a single sen of dividend. Avoid that type of company. I learn a beautiful quote today, 'Nobody cheats to give you money'. Always remember, we rear chicken for the eggs, we rear cow for the milk. We buy share for the dividend.
Warren buffet keeps saying that he pays less tax relatively than people earning less than him. He also keeps saying that the tax structures in USA favour the rich people like him. He's 1 of the smartest guy on earth who understands tax structures thro' and thro'. By not declaring dividend, he actually save taxes for his investors. I invested in bond fund before when shares were flat from Jan to Dec. Prudential bond fund didn't declare any dividend at all so that investors wouldn't have to pay any tax. If an investor needed money, he or she could just sell some units.
what I'm pointing out here is to use dividend especially the payout ratio as an acid test to the accuracy of the company account and not as the reason we buy share. In fact I would prefer capital gain to dividend which is a useful tool but too small as a reward .
When Transmile earned 66 sen/share in 06, no dividend was proposed. A smart and serious investor should question as to why there was no dividend being proposed to the shareholders. Avoid this type of company.
Megan made an aggregate about RM1 in 03 and 04 but no dividend. Haiya. Orang Kelete ini tak kenal gua. Kalo dia kenal gua, dia tak akan kena Meganlah. Haha only kiddinglah.
He's a bit stubborn. Despite advice from friends to be careful of Megan. He called up Megan's head office to talk to a manager only to be told that Megan was doing alright. Please tell me where on earth is there a company which says that it's not doing well in the annual report. Please tell me where on earth is there an MD who tells you to sell the shares because the company is not doing well or it's in deep financial difficulties. An illiterate relative of mine who bought tonnes of Omega shares asked me to call up the head office to inquire about its financial position only to be told that it was doing very very fine. It was already too late despite my advice. Needless to say he lost a fortune.
but why there are many people praising and talking about his good, especially in cari.com.my, plus many articles written by him.. just today i know got ppl give him bad comments...so his articles can be read? tq for ur view.
Overall he's good at investment and is not selfish in sharing his thoughts and experience. The cunning directors of Megan should be locked up till they die in prison and their bodies eaten up by maggots. The prison's keys should be thrown into South China Sea. His misstep is Megan and that costs him dearly. He was conned big time. And because of his good nature, he believed in a Megan's senior manager assurance that the shares were sold because of force selling.
i think 8k is having a good personality despite being conned by MEGAN. He is very dedicated and meticulous in his investment. Perhaps a little stubborn as he choose to ignore the advices from the friends (perhaps from GOD):-) Other than choosing the wrong counter, he is well respected being an investor. Those losing money because of MEGAN shouldn't blame him as every purchase is at your own risk. That's the risk if you press the buy button by believing someone rather than do your home work. 8K's articles are still worth of reading nowadays.....
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
foomeiling
43 posts
Posted by foomeiling > 2012-05-23 10:23 | Report Abuse
who is 8k, he is in Kota Bharu now right