Posted by supersaiyan3 > Apr 19, 2020 4:59 PM | Report Abuse Hi, Mr. Chong. 1. The margin finance given normally ranged between 2 - 2.5 times. If you adjust that (from 50%), at RM2.95 Jack would have 40m shares or so worth 120m, with 85m or so debt. Multiplier magnifies. 2. I am not going to go on because I don't like Dayang. You can see the problem already, the largest chunk of shares (17m or so) with highest margin limit (50m or so) is bought at highest price. 3. By the way, margin call actually saves Jack. 4. He is lucky with 10% left.
supersaiyan3, thanks for your correction. I learn something here. As I have never used any MF, I did not know you can get that for 2-2.5 times the money one has in the share. My assumption of 50% of increased in value of shares used for additional MF was certainly way understated if Jack is the type of player who "use MF to the max".
Hence the scenario on the dark side in the story could be much worse. I tend to agree with your point 4 now.
don't be fooled by apek story la..he just exaggerated the figure to run away from LHDN la..bought below 70cents and already making tons of money when the share price hit above 2.50. Sold most of the stock and perhaps left with 10%.
Posted by Ron90 > Apr 20, 2020 2:34 AM | Report Abuse
don't be fooled by apek story la..he just exaggerated the figure to run away from LHDN la..bought below 70cents and already making tons of money when the share price hit above 2.50. Sold most of the stock and perhaps left with 10%.
than its true..he lost 90% of that 10 % only.
Lol..this is possible also..he made more than 100% of his 90% stock holdings n lost 90% of his 10% balance
My wife and I have a total of 8.8 million + 27.07 million = 35.87 million Dayang shares.
Based on the last traded price of Rm 2.46, the open market value of our holdings is Rm 88.25 million on 13 Dec and on 29 March the open market value of our holdings was Rm 30.25.
We have made 88.25 million – 30.25 million = Rm 58.00 million within 9 months.
whether he n his wife owns 30m plus dayang with cost below rm1.00 as per his post on 13 dec 2019..or whether he lost 90% of his wealth in dayang as per his post last week..
Haha, The question is can you lose 90% in Dayang? The answer YES. I even lose 100% in Xingquan. The next question can Koon lose 90% of his wealth in Dayang? The answer you ask charlesT he know Koon like the back of his hand.
Assuming old man kyy lost 90% of the "profit" of $60mil.. he still has $6mil profit.. But he cld have cash out the $60mil and donated to charity or give a lot of scholarships.... Its a case of miss opportunity, greed and bad timing (covid+oil price drop)..
Kyy profit was reduced to $6mil.. well, thats still ok, no need to feel sad for his 'reduced' profit.. :) Those on his scholarship will feel sad as now he may give out less i assume..
Some people r fond of telling half the truth. To them, it's not a lie. Also, they think that we r moron n dungu people who will swallow wholeheartly what was said. Businessman, politicians r all alike. 90 percent loss of wealth bcos of dayang's price fall?. Get real..
Posted by supersaiyan3 > Apr 20, 2020 7:41 AM | Report Abuse Mr. Chong, we were talking about Jack and Jill right? Simple question of "can you lose 90%", I think we found the answer "yes". Then there are people with good imaginative ability say actually Jack could make 10% instead. Eager to see their maths.
Yes, we are talking about an issue here. It has nothing to do with any one. Ordinary investors Jack and Jill were used to illustrate the bright and dark side of margin finance. The assumptions were clearly spelt out. It provide some useful information for any one who thinks that using OPM is such a wonderful thing in investing.
If anyone deviates from the assumptions, of course the speculative outcomes are all different.
30 million shares @ $3 = $ 90 million, borrowed $ 45 million, equity $ 45 million 30 million shares @ $ 1.60 = $ 48 million, equity $ 3 million
if every thing is sold at $ 1.60, u lost 90% of your wealth ( equity) at $ 3. ........this assumes u have borrowed to the limit ( $ 45 million ) at $ 3 ..................
30 million shares @ $3 = $ 90 million, borrowed $ 45 million, equity $ 45 million 30 million shares @ $ 1.60 = $ 48 million, equity $ 3 million
if every thing is sold at $ 1.60, u lost 90% of your wealth ( equity) at $ 3. ........this assumes u have borrowed to the limit ( $ 45 million ) at $ 3 ..................
this is you lost 90% of your wealth at $ 3............not 90% of capital at beginning of operation...........
a spider whips up a web for other things to be caught. But if you are that kind of a spider who builds a web in which you yourself is caught are you not a stupid spider? KYY is not a stupid spider.
lex. .................... KYY will take that as a compliment...........even the fact u call him a liar, is in a diabolical way a compliment..........and a vote of confidence in KYY...........
I believe that using OPM is a wonderful thing in investing, especially since I have the results to prove it.
KCCHONGNZ storytelling on the other hand, is like your mother telling you not to cross the road because it is dangerous.
Having never gone to the other side, she never knew about the ice cream and the wonderful park on the other side.
>>>>>>>>>
Yes, we are talking about an issue here. It has nothing to do with any one. Ordinary investors Jack and Jill were used to illustrate the bright and dark side of margin finance. The assumptions were clearly spelt out. It provide some useful information for any one who thinks that using OPM is such a wonderful thing in investing.
If anyone deviates from the assumptions, of course the speculative outcomes are all different. 20/04/2020 9:28 AM
The concept of a common stock is based on the idea of OPM, using common resources to fund a company that goes on to generate superior results and achieve growth over a period of time.
KCCHONGNZ does not realize this, because he is too intent on grabbing cigar butts of the ground for its last puff, not realizing the wonderful companies out there for the taking.
But we should not blame those who don't dare to cross the road, thinking it is too dangerous.
But it is far far more dangerous to not know what you own. Right? Mr Jobstreet, Padini, Latitude tree?
by Philip ( Random Walk Theorist) > Apr 21, 2020 11:38 AM | Report Abuse
KCCHONGNZ does not realize this, because he is too intent on grabbing cigar butts of the ground for its last puff, not realizing the wonderful companies out there for the taking. ===========
jackpot!...................needed you to show reality.
It’s stupid, waste of time and irrelevant to question if uncle lose 90%. The relevant question is whether one should stay with Dayang... and what prospect lies ahead...
@chtan33 what's the point staying inside Dayang now? You all buy Dayang is bcos of KYY right? Not bcos of the comnpany itself. The biggest operator also lost hope and cabut liao.
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Posted by Alex™ > 2020-04-19 19:36 | Report Abuse
Probability bro... Can buy what ah... I trust ur analysis... U help me huat I forever remember and thankful