Let suppose you have 1m cash asset (Share, FD, Bonds, Treasury bills, SA etc excluding EPF). How much risk you you can take?
Some people can stand up to 50% loses (if they are still young <35 yr old) Some people can only stand up to 20% loses. (may be for 40 -50 yr old) Some may be 10%, or 5%. (Retired or near to retirement >50 yr old) It is really depends on your degree of tolerance.
Some may be young, but they have low degree of tolerance. Their temper will fluctuate with market performance. Market good, they got excited. Market down, they will not be able to sleep. This will affect their job performance.
My advice is, if you invest up to 500k, you find that your temper already being jeopardized, reduce to 400k. If still find hard to sleep, reduce further to 300k, 200k,100k etc. There should come to a level whether market up or down doesn't affect performance of your main career anymore. That is your tolerance level.
Some may have 1m cash asset, but not able to stand a 5k loses. These people are not risk taker, share market is definitely not suitable for them. REITs may be most suitable for them as it is low risk with medium gain. Otherwise will be FD or MGS.
Well said. Buying and selling shares is an art perfected through time n money and the most important principle is to be patient and not being greedy. Stocks are mostly cyclical in nature due to multiple factors such as weather havoc, political decisions, economic variables and man-made and natural disasters etc...
Bank Manager, Accountant, Doctor or Lawyer don't necessary know about the world of stock investments. Many got their fingers burnt too. I warned one Public Banker Manager about SumaTrap.
As to Reits, they are not recession proof. Before Lehman Brothers' Debacle I owned AlaQar Reit, Tower Reit & Hektar Reit.
All Reits also Crashed with the Crashing Market! I was right to sell them just in time.
I Sold Hektar Reit at above RM1.40 & bought it back later at 70 over cents 50% Discount. At its peak Hektar Reit was at RM1.80
In a True Collapse - Nothing can escape except to sell and keep cash.
From Technical point of view - Monthly, Weekly and Daily, Penny & Small Cap index stocks likely game over liao.
US Market continue to break new high (but with weak momentum). KLCI may have year end window dressing but concern on breaking R61.8% - 1845 level before forming double top at 1896 if any possibility ? Many resistant to break through. Yes, Very Cautious on KLSE but also please don't under estimated their capability. Malaysia always BOLEH....I am referring to those Index counters only.
Monday, December 16, 2013 MP Corp - intention to divest Wisma MPL
Debt laden MP Corp had revealed its intention to divest its core revenue generating asset … Wisma MPL.
Should it manage to find a buyer at the price of rm320 million cash, it would instantly be on a net cash position.
In March 2013, the company had a declaration of default in the repayment of principal sums and interest in its revolving credit and bank overdraft facilities amounting to rm25.7 million and rm61.4 million respectively. It also owes its creditor Amanah Raya Development Sdn Bhd rm119.4 million as at end of its reporting period.
Sale proceeds of over rm300 million would be more than enough to settle the company’s debts of about rm206.5 million. However, the reality may be different for MP Corp. Property valuers did not value the commercial property at such a high price. It is estimated that the property to be worth rm300 million to rm310 million at most. At most conservatively, it is slightly more than rm200 million.
It is worth noting that MP Corp wholly owns the 19 level office tower and three levels of car park, but it only partially owns 75372 sq ft of the building’s retail podium at level 4, with the remaining 66045 sq ft owned by private individuals.
Taking into this account of complications and need refurbishment, prospective buyers may demand a lower price. Furthermore, the commercial block does not offer good rental yields based on an investment of rm320 million.
For its financial year ended June 30 2013, 89% of the group’s revenue was derived from rental income from Wisma MPL and property management services.
Based on rental income calculation of rm12.8 million minus expenses of rm6.6 million, its net rental income is estimated to be rm6.2 million which translates into a net yield of barely 2% - a return that us much lower than the fixed deposit rates in the banks.
Wisma MPL is the main income generator asset, but it is not the company’s only asset. MP Corp owns a parcel of land in southern Johor, near Iskandar Malaysia.
However, its creditor Amanah Raya Development filed a writ summons for an injunction against the company, prohibiting the company from selling certain parcel of land in Johor or entering into any transaction resulting in the disposal or transfer of ownership of certain parcels of land in Johor.
As at June 30 2013, MP Corp’s current liabilities exceeded its current assets by rm224.01 million. These conditions indicate the existence of material uncertainties, which may cast significant doubt about the ability of the company to continue as going concerns.
MP Corp currently (Nov 2013) is solely dependent on the rental income derived on the rental income derived from Wisma MPL and by selling the property it would have lost its recurring income source, although it is able to make profit even after paying off its debts.
that is the reason why we should take care our downside first before investing lah. pay bills first, gamble later. by the way, dont cry - we all are meant to lose one way or another .. either way, that's how the world works, boy .
I told people about SBC Corp & Perak Corp then. My words fell on deft ears. I even called my good friend Mr. Lee of Public Auto from Sitiawan. He asked his Sri Manjung Remisier about Perak Corp. They saw nothing good in Perak Corp even though they were 30 minutes' drive away.
sometimes you have to pay some fees to learn something.....my 2 sen!
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
Report Abuse
Please Sign In to report this post as abuse.
Market Buzz
No result.
Featured Posts
MQ Trader
Introducing MY's First IPO Fund for Sophisticated Investors!
MQ Chat
New Update. Discover investment communities that resonate with your ideas
MQ Trader
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
MQ Trader 98 views | 8 h ago
0:17
New IPO: An enterprise IT solutions provider that provides implementation services, maintenance, support and professional services, Vetece Holdings Bhd aims to list on the Ace Market!
MQ Trader 373 views | 4 d ago
0:17
New IPO: A manufacturing and trading of biomass fuel products, particularly PKS and wood pellets company, Elridge Energy Holdings Bhd aims to list on the Ace Market!
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....
Wong Chie Kiong
665 posts
Posted by Wong Chie Kiong > 2014-11-22 17:06 | Report Abuse
WHy never make money?