Posted by duitkwspkita > 2015-01-10 21:45 | Report Abuse

Icon8888,

no stress....relax bro.... jz drop by and put simple discussion if you dont mind my kindergarten standard comments there...

no worries much.... for TargetPrice I will take care, but I need to double confirm something first...... no force no force Icon888 bro, know you concerns lo... I respect you always... I have a dream to do write up with you together if we have mutual stock pick one day. I like to seek for synergy to drive...... hahahah... ignore my super childish dream

Posted by duitkwspkita > 2015-01-10 21:54 | Report Abuse

stockraider...

lu ada flag saya kah??? kenapa semua comments saya kena flag saja....di rumah awak orang pun berani buat kacau??? main flag sampai ketagih liao

Posted by Icon8888 > 2015-01-10 21:57 | Report Abuse

You no need to JV with me, you can write so well on your own...

When is your next article ? I wait until neck long

Posted by duitkwspkita > 2015-01-10 22:04 | Report Abuse

aiyo..... u tease me la icon... me really no confident in writing... still very new thing for me to explore....

hahaha.....long neck like my giraffe...???

I treat trading like ART like music....always seek JV for better satisfaction.... hey, you mind or not if I write on some general thing about stock investment but not specific on particular counter.... I have long plan to publish all my Top 7 long term(5 yrs) good FA stocks.... after I kena so many flags... I feel very shameful think of become ur silent reader only.... anyway, I will away from here until I managed to paste picture... I dunwan to do half way thing to disapoint you...


can ON or not? we JV one write up..... since so many complain me write rubbish and useless thing...I almost wanna give up liao

Posted by Hitman > 2015-01-10 22:11 | Report Abuse

Duit, just ignored them, your TP on KTB is hit accurately 0.37...goodjob.

Posted by duitkwspkita > 2015-01-10 22:12 | Report Abuse

Hitman....aiyo..... all lucky saja la...

I luckily trust myself some time...... I know and I terdengar sesuatu ma.. I believe all must be projected to trap newbie like me lo....

so I share share lo.... I know many many counters' projection ma.... but no point to tell also... after I tell they reshape again... we in bright they in dark ma....

Posted by Icon8888 > 2015-01-10 22:14 | Report Abuse

Ha ha no JV lah. I come and go free man lone ranger orang minyak

Posted by duitkwspkita > 2015-01-10 22:16 | Report Abuse

ok la.......sorry for my beh paiseh request lo...

I will continue to learn from your and others writing style... hope can improve mine.....

fight fight fight......

Posted by duitkwspkita > 2015-01-10 22:20 | Report Abuse

Hey Mr Flag... I m not my close fren Mr Optimuss... I am duit, why flag me all my posts???

Laugh die me!!!!!!!!!!!!!!!!!

Posted by stockraider > 2015-01-11 01:20 | Report Abuse

RAIDER FORSEE DEFENSIVE HIGH YIELD SUPERLON WILL BE TRANSFORMED INTO A GROWTH STOCK OVER THE NEXT 1 TO 2 YR MAH....!! DUE TO STRONG EARNINGS GROWTH MAH.....!

IF THAT HAPPEN SUPERLON MY TRADE AT PE 2O TO 24X....RESULTING AN UPGRADE OF SUPERLON VALUATION TO RM 1.90 COMMENSURATE TO ITS GROWTH STOCK STATUS.

EVEN AT THIS LEVEL....SUPERLN IS STILL YIELDING DIVIDEND ABOVE 3% PA MAH.......!!

Posted by stockraider > 2015-01-11 01:23 |

Post removed.Why?

Posted by stockraider > 2015-01-11 12:31 | Report Abuse

KLSE Stock Championship Balance SCORECARD

CAVEAT #1 , DOW must well behave.

KLSE had a bad time which ended at mid DEC 2014.
Stock investment is all about
i. Stock selection at
ii. Right Timing n
iii. Perfect execution.

In stock mkt, Everybody has the same good opportunity but not everyone takes it.
Good Luck = Opportunity + Action Taken

The best time to do a good job in stock selection is during the bad times, invariably hoping that good times shall follow thereafter.
Experience taught me that stocks that can take the heavy selling impact during bad times will ultimately be the next greatest winning stocks when mkt sentiment improves or turns for the better. This in itself is the real mkt 'timing device'.

Good experience = make money in short time frame.

The winning stock exploration will result in what I call the
'strongest n smartest' stocks in the country.
Why must they be strongest stocks ?
Because stocks must be 'cornered' then only they will break out n fly high to the HIGH blue skies n everything is nice...
What is 'cornered' securities or stocks ?
A single party or group has taken complete control of the stock. The only way out is to fly high.
Or they plan to kill themselves, which is a very unlikely outcome.

The running for the championship has begun.
I list below my scan result of great prospective stocks which I believe will outperform the entire mkt going forward...
MYEG SOLID KAREX WPRTS LATITUD POHUAT VS IFCA
TEKSENG LIIHEN CIMBX50 UNISEM MISC UMS ABRIC
SWSCAP TALIWRK PESONA TENAGA BJAUTO YGL SCICOM
MMSV DIGI ULICORP GDEX YOKO PMHLDG

Some have gone up alot n be careful to buy on meaningful weakness.
Some dark horses might appear n Some might fall out.
So continuous due diligence is required at all times.

Know your stocks vital statistics well.
Remember to Protect the downside, upside will take care of itself.
Good Luck & best in trading.

RAIDER COMMENT,

NOTICE TO WIN IN A CHAMPIONSHIP STOCK SELECTION TO MAXIMISE GAIN....IT IS NOT INVESTMENT MAH....!!

RAIDER WILL RANKED THE RISK INVOLVE BASED ON HIGHEST TO THE LOWEST WHEN U PLAY THE STOCKMARKET;

1) GAMBLING
2) SPECULATION
3) TRADING
4) INVESTMENT

U WILL NOTICE THE ACTIVITY OF GAMBLING GIVE U THE HIGHEST RISK AND HIGHEST RETURN IN SHORT RUN LOH...!!
THE NATURAL STRATEGY TO WIN THE CHAMPIONSHIP IS TO GAMBLE VERY INTELLIGENTLY.....AS HIGHLIGHTED ABOVE ONE OF THE STRATEGY IS TO SELECT STOCK THAT HAS BEEN HIT WITH BIG SELLOFF, ALSO TO SELECT STOCK THAT IS REALLY CHEAP OR PENNY, HIGH CHANCE IT CAN ATTRACT CORPORATE ACTIVITY LOH.....!!

IF USE THIS STRATEGY TO REAL LIFE STOCK MARKET OF MAKING MONIES.....CAN BE SUCCESSFUL TOO...USING THE SAME CHAMPIONSHIP SELECTION METHOD & CHOSE A FEW STOCKS....BUT MUST SET CUTLOFF LOSS FOR RISK MANAGEMENT LOH....!!
THOSE THAT COME DOWN CHOPPED TO MANAGE THE RISK...THOSE GO UP HOLD & RIDE THE WAVE TO MAXIMISE THE GAIN MAH!!

RAIDER HAS EXPERIMENT THIS FORMULA UNDER THE RCWPROVES SYSTEM & IT IS QUITE SUCCESSFUL MAH....!!
BUT IT IS QUITE STRESSFUL & TAXING......SO RAIDER HAD STOPPED USING THIS METHOD LOH...!!

RAIDER STILL PREFER MARGIN OF SAFETY AS THIS IS A SUCCESSFUL UNIVERSAL INVESTMENT METHOD LOH...!

Posted by stockraider > 2015-01-11 13:11 | Report Abuse

The Hidden Force that Won Me Financial Freedom - safalniveshak

Author: Tan KW | Publish date: Wed, 7 Jan 09:43

Posted on January 6, 2015
Imagine that you get up late one day and make it to the bus stop 15 minutes later than normal. But while waiting for the bus, you meet your future spouse with whom you are going to live a beautiful life. This happened just because you woke up late one day. An event that seemed insignificant at that time had a significant impact on your life.
Now imagine another situation. You work in a small company where you are mistreated by your boss. After months of being disrespected, you start to hate your job and decide to quit.

Before you quit, you speak about your experience with other employees and the result is that three other people decide to quit too. When these people find themselves unemployed, they decide to start their own business. After some time and a lot of hard work, their business becomes successful to the extent that they start competing with the company they used to work for. Under pressure of fierce competition, the old company declares bankruptcy. In a way, it all started with you quitting your job.
These two situations seem exceptional but that is what happens to a lot of people a lot of times – a small, hidden force causes a big effect in their lives.
This hidden force that causes small, insignificant events to cause big, significant outcomes is called the “butterfly effect”.

The Butterfly Effect
The butterfly effect is an idea from science that describes how small events can end up creating huge impacts. It comes from the idea that the flapping of a butterfly’s wings in a continent could theoretically alter the path of a hurricane several weeks later, and in another continent.
Now, why am I talking about the butterfly effect, and insignificant events causing big outcomes on a website dedicated to money and investing?

You see, the butterfly effect is a tremendous force that can alter the course of your financial life too, like it did with my personal financial life starting 10 years back.

How did it happen?
Well, to most people, a thousand rupees spent is just that – a thousand rupees they don’t have anymore. Spend one thousand rupees at a restaurant or a mall, and you’re less wealthy by one thousand rupees.
But this is not how I’ve looked at spending over the past 10+ years.

I’ve looked at spent money with the butterfly effect in mind. The more I spend, especially on things I can live without, the more I surrender my ability to compound my wealth for the next 15-20 years. This can cause ripple effects over the course of my life.

So, I understand that an insignificant event of spending Rs 1,000 now can cost me a significant Rs 16,000 that I can make of that Rs 1,000 by earning 15% annual return on it over the next 20 years. A simple math but a startling fact, isn’t it?

If I can comfortably do with a car costing Rs 6 lac instead of giving in to the temptation of buying a car worth Rs 12 lac (just because my neighbour has it!), and I compound this Rs 6 lac of saving at 15% for the next 20 years, I would end up with almost Rs 1 crore of extra savings.
So, the decision to buy the lower-priced car means I would end up with 16 times more money than I saved. A massive impact of a relatively much smaller cause!

Consider another example. Opting for a mobile handset worth Rs 15,000 instead of one priced at Rs 50,000, you save Rs 35,000. This, when invested at 15% annually compounded return for 20 years would amount to about Rs 5.7 lac!
A few seemingly small saving decisions can produce huge difference in your level of wealth over the long-term.

Now, imagine making hundreds of decisions – big and small – to save and compound instead of to spend and consume over the course of your life. Choosing to save Rs 500 here, Rs 5,000 there, and Rs 50,000 there can have a huge impact on your future life.
Choosing not to spend such amounts – small and big – at several occasions has helped me add an extra Rs 25 lac to my wealth over the last few years.

Compounding is a Snowball
Look at compounding small sums of money like rolling a snowball down a hill. As the snowball gets larger, it’s able to gather more snow, which enables it to get larger, which enables it to gather more snow, which enables it to get larger…and so on.

Compounding is the ultimate way to turn a little money into a lot of money. It’s the greatest secret of wealth creation.
Especially when you’re young, compounding is an important concept for you to learn and implement because you have the power of time on your side.

Time, is in fact, the most important part of the compounding equation, even more important than your rate of return. The longer you can compound, say even a 10% rate of return, the more extraordinary would be the results.

Please don’t get me wrong here. I’m not saying don’t spend any money. Instead, I suggest you spend money on experiences – to enjoy a nice dinner with your family

Posted by stockraider > 2015-01-11 13:13 | Report Abuse

The ultimate idea is to enjoy life till it exists.
What I’m simply saying is that if you want to become wealthy, don’t go into frenzy with your spending. Stop spending on things you can live without.

The next time you’re thinking about spending a few thousand on something you don’t really need, remember the butterfly effect of spent money. You won’t be letting go of just a few thousand rupees, but missing out on the huge wealth that compounding can produce for you over the long-term.

Starting 2015, if you can keep this in mind and practice diligently, you’ll thank me in 2025. :-)
The butterfly effect has helped me earn my financial freedom. I see no reason it won’t help you achieve yours.

RAIDER COMMENT
THE BUTTERFLY EFFECT CAN BE APPLY IN YOUR INVESTMENT MANAGEMENT TOO.

BUTTERFLY INVESTMENT TECH
U HAVE SELECTED 30 DIFFERENT STOCK THAT SATISFY YOUR CONSERVATIVE ASSESSMENT & UHAVE BOUGHT A SMALL POSITION ON EACH OF THE 30 STOCK.

U DARE NOT.....BUY MORE BCOS U R AFRAID U MAY GET STUCKED....& U R NOT SURE WHICH OF THE STOCKS WILL OUTPERFORMED GOING FWD.

THE SOLUTION IS TO USE BUTTERFLY EFFECT.....BUY MORE OR SALE THOSE STOCKS WHICH HAS A BIG INCREASE OR DECREASE OF 10% IN YOUR PORTFOLIO WHEN TRIGGER ....!!

AS THE DECISION TO BUY MORE OR SELL IS TRIGGER BY MARKET ACTION AUTOMATIC EVENT....THAT MARKET ASK U TO TAKE ACTION.....THIS WOULD REDUCE THE RISK U GET STUCKED WITH THE INVESTMENT THAT UNDERPERMORED MAH....!!

THE COMBINATION OF MARGIN OF SAFETY INVESTMENT & BUTTERFLY EFFECT TECH IS VERY POTENT LOH....!!
THIS ALSO HELP U CONCENTRATE & FOCUS QUALITY RESOURCES & ALSO REDUCE RESOURCES WITH THE HELP OF THE MARKET DIRECTION MAH.....!!

Posted by yongyou > 2015-01-12 09:52 | Report Abuse

i just came to know about stockraider. Me outdated liao. must have missed out many good things.

Posted by stockraider > 2015-01-12 10:50 | Report Abuse

RAIDER COMMENT
THIS MARGIN......RAIDER HAS BEEN USING FOR A LONG TIME.........IMAGINE....U CAN GET RETURN OF 10% TO 20%.....AND U BORROW FROM THE BANK 5% TO 6% PA.....THIS MEAN U R ENHANCING YOUR BUT IN A BEAR MARKET...WHERE ALMOST ANYTHING SELL OFF....IT QUITE RISKY LOH.....!!

RAIDER ADVISE MARGIN HOLDERS TO REDUCE EXPOSURE TO MAX 20% LEVERAGE LOH....!!
SET CUT OFF POSITION....WHENEVER YOUR SHARE FALL BY 10% SELL IT DOWN BY 30%.....UNTIL U REACH A COMFORTABLE POSITION.

U CAN ALSO REBALANCE YOUR PORTFOLIO GO FOR;

1) STRONG BALANCE SHEET COMPANIES
2) PROFITABLE,CASH RICH & DIVIDEND PAYING
3) HUGE DISCOUNT OF INTRINSIC VALUE
4) STRONG RECURRING CASHFLOW BUSINESS
5) STRONG CONSUMER STAPLE
6) MARKET LEADER BUSINESS LOH
7) ARBITRAGE WHERE YOUR CASH RETURN IS LOCK IN AT A FIXED RETURN

ALTHOUGH REBALANCING DOES NOT GUARANTEE U COMPLETE LOST OF PAIN FROM THE MARKET....BUT IT DO REDUCES THE IMPACT...& HELP U WITHSTAND THE TSUNAMI.......IF U R HIT...!!

WHAT....IS A REAL MARKET FALL??...........RAIDER THINK.....IT SHOULD FALL.....AT LEAST......30%.!!.....THE CURRENT CORRECTION ABOUT 15%....This HAS NOT FELT THE FULL IMPACT OF THE SELLOFF LOH........!!

BUT U SHOULD..NOT too fear!!....DESPITE BEAR!!....Bcos MARKET MAY.....RECOVER & REBOUND...VERY QUICKLY.WITHOUT U.....KNOWING........LEAVING U BEHIND........!!

SO U MUST NOt BE TOTALLY OUT OF STOCK.........ALWAYS have SOME MARGIN OF SAFETY STOCK..........THAT CAN WITHSTAND........!!

Posted by stockraider > 2015-01-12 21:39 | Report Abuse

SO WHAT R THE SAFEGUARDS ?
SINCE IT IS IMPORTANT.....RAIDER DON MIND REPEATING LOH.....!!


GENERALLY RULE OF THUMB IS TO AVOID USING MARGIN TO INVEST IN STOCK AT ALL COST. THIS MEAN AVOID SHARE MARGIN LIKE A PLAGUE LOH....!!

HOWEVER RAIDER SIFU SENIOR ANALYST....FELT DIFFERENTLY & IT MAKE SENSE TOO.....!!
HIS ANALYSIS IF U TREAT INVESTMENT IN STOCK LIKE A BUSINESS & YOUR BUSINESS MODEL HAD SHOWN U HAD OUTPERFORMED THE STOCKMARKET.....IN MID TERM AND U HAD EXPERIENCE WITH BEAR RAIDS & LIVE THRU IT...U SHOULD STICK TO YOUR MARGIN LOH....!!

STOCKMARKET IS JUST LIKE ANY BUSINESS LIKE PROPERTY DEVELOPMENT BUYING LAND, PLANTATION COMPANY BUYING MORE PLANTATION, MANUFACTURING BUYING MORE MACHINERY & EXPANDING USING BORROWED MONIES MAH....!!

THE MAIN DIFFERENT OF MARGIN IS THAT....IT IS MARKED TO MARKET MORE INTENSIVELY & IT FALL TOO MUCH....THERE WILL BE MARGIN CALL LOH.....!!

THE KEY TO MARGIN FINANCING AS WITH OTHER BUSINESS....U MUST NOT OVER LEVERAGE LOH...!!
U MUST BE READY WITH SAFEGUARD & DEFENSE LIKE WHAT RAIDER HAS HIGHLIGHTED MAH.....!!

BUT IN A BEAR MARKET...WHERE ALMOST ANYTHING SELL OFF....IT QUITE RISKY LOH.....!!
U NEED TO MANAGE THE RISK LOH....!!

"RAIDER ADVISE MARGIN HOLDERS TO REDUCE EXPOSURE TO MAX 20% LEVERAGE LOH....!!
SET CUT OFF POSITION....WHENEVER YOUR SHARE FALL BY 10% SELL IT DOWN BY 30%.....UNTIL U REACH A COMFORTABLE POSITION.
U CAN ALSO REBALANCE YOUR PORTFOLIO GO FOR;

1) STRONG BALANCE SHEET COMPANIES
2) PROFITABLE,CASH RICH & DIVIDEND PAYING
3) HUGE DISCOUNT OF INTRINSIC VALUE
4) STRONG RECURRING CASHFLOW BUSINESS
5) STRONG CONSUMER STAPLE
6) MARKET LEADER BUSINESS LOH
7) ARBITRAGE WHERE YOUR CASH RETURN IS LOCK IN AT A FIXED RETURN

ALTHOUGH REBALANCING DOES NOT GUARANTEE U COMPLETE LOST OF PAIN FROM THE MARKET....BUT IT DO REDUCES THE IMPACT...& HELP U WITHSTAND THE TSUNAMI.......IF U R HIT...!!

WHAT...........IS A REAL MARKET FALL...........RAIDER THINK ...........IT SHOULD FALL.........AT LEAST..........30%........THE CURRENT CORRECTION ABOUT 15%.........HAS NOT FELT THE FULL IMPACT OF THE SELLOFF LOH........!!

BUT U SHOULD.......NOT FEAR....DESPITE....BEAR MARKET...BCOS IT MAY....RECOVER & REBOUN VERY QUICKLY....WITHOUT U.....KNOWING.....LEAVING U BEHIND........!!

SO U MUST NOT BE TOTALLY OUT OF STOCK.........ALWAYS HAVE SOME MARGIN OF SAFETY STOCK..........THAT CAN WITHSTAND TSUNAMI........!!

ALTHOUGH MARKET SELLOFF MAY OVERSHOOT....BUT IF YOUR BUSINESS MODEL U RELY MUST BE SOUND & HAVE SAFEGUARDS MAH . U MAY ACT LIKE A PON...DAN.....BUT U SHOULD NOT FEAR THE STOCKMARKET MAH...!! IF OPPORTUNITY COMES...U MAY USE LEVERAGE TO BUY IF THE RISK REWARDS FAVOURS !!"

Posted by stockraider > 2015-01-17 11:27 | Report Abuse

Quote from: paperplane on Today at 12:44:47 AM

RAIDER FORSEE DEFENSIVE HIGH YIELD SUPERLON WILL BE TRANSFORMED INTO A GROWTH STOCK OVER THE NEXT 1 TO 2 YR MAH....!! DUE TO STRONG EARNINGS GROWTH MAH.....!

IF THAT HAPPEN SUPERLON MY TRADE AT PE 2O TO 24X....RESULTING AN UPGRADE OF SUPERLON VALUATION TO RM 1.90 COMMENSURATE TO ITS GROWTH STOCK STA


RAIDER REPLY:

Ok raider understand your question loh.....!!
Yes raider is not actually giving PE 20x on superlon only loh......actually Raider is giving PE 20x & above for all Malaysian growth stock....that strictly passed raider's selection criteria on growth stock mah...!!

Raider seldom select growth stock.....if raider chose one....it is usually a napshot loh.....!!
One good example of raider's past selection of growth stock is Eforce.....which when up a few fold after raider's call within a year loh.......!!

Posted by stockraider > 2015-01-17 11:29 | Report Abuse

Tuesday, January 13, 2015

Supermx: A cheap Robber Glove stock

Background

In December last year, the major shareholder of Supermx, Stanley Thai was charged for insider trading relating to the counter, APLI. As a result, the share price of Supermx took a dive from RM2.00 to RM1.60.

Supermx is one of the top 4 rubber glove manufacturers in Malaysia. At the current price (about RM1.84 at the time of writing this post), it is very attractively priced.

Table 1: Rubber Glove Manufacturers' valuation summarized

Table 2: Rubber Glove Manufacturers' key statistics (Source: ShareInvestorscom)

Recent Financial Performance

The company has a track record of financial performance, with steady growth in revenue & profits. The growth track record has slowed tremendously in the past 3 years due to fierce competition & relentless capacity expansion in the sector.

Diagram: Supermx's last 10-year P&L & 6-year CF (Source: ShareInvestorscom)

Financial Position

The company's financial positions are as follows:
1. Liquidity & leverage position is healthy
2. Management efficiency stagnated in the past 2 years due to over-capacity in the sector
3. Valuation multiples have eased off; thus making the stock more attractive
4. Revenue growth slowed while profit margin slid back

Chart 1: Supermx's Financial Ratios (Source: ShareInvestorscom)

Technical Outlook
Supermx has broken its long-term uptrend line. The stock could potentially test its next horizontal support at RM1.20.

Chart 2; Supermx's monthly chart as at Jan 13, 2015_11.00am (Powered by ~.com)

Conclusion

Based on good financial performance & position, attractive valuation, Supermx could be a good stock for long-term investment. However, its bearish technical outlook could signal further downside to the stock ahead.

RAIDER COMMENT: THIS IS THE KIND OF STOCK WHICH U CAN MAKE GOOD MONIES MAH....!!

WITH MALAYSIAN PROBLEM SUCH AS WEAK OIL PRICE AND DEVALUATION.....SUPERMAX IS TYPE OF COMPANY WHICH WILL BENEFIT.....BCOS EXPORT ORIENTATED MAH.....!!

IT USED RUBBER & CRUDE OIL BASED MATERIAL THAT MAKE GLOVES MAH.....!!
THIS RAW MATERIAL PRICE IS AT LOW BASE LOH......!!

SINCE IT EXPORT & SELL IN USD THAT MEAN BIG IMPROVEMENT IN MARGIN LOH....!!

WHY RAIDER CHOSE SUPERMX INSTEAD OF TOPGLOVES AND HARTA ?
THIS IS BCOS THE SELLDOWN & BEARISHNESS OF THIS STOCK IS UNCALLED FOR.....BCOS OF THE INSIDER TRADING CHARGE..."SOMETHING RAIDER THINK MAYBE POLITICAL"!!

AS A PHILIP FISHER SAYS " A GOOD COMPANY SELLOFF DUE TO TEMPORARY PROBLEM....IT IS A GOOD OPPORTUNITY TO ACCUMULATE MAH"!!

Posted by stockraider > 2015-01-17 11:30 | Report Abuse

ARE U A SPECULATOR OR AN INVESTOR ? INVESTOR HAS MORE RISK, yes or YES = Protect Your Downside.

Author: PureBULL . | Publish date: Sat, 17 Jan 01:02

ARE U A SPECULATOR OR AN INVESTOR ?
INVESTOR HAS MORE RISK , yes or YES?

This is an extract from William O'Neil :-

"" There are two often-misunderstood words that are used to describe the
kinds of people who participate in the stock market: speculator and investor.
When you think of the word speculator, you might think of someone who
takes big risks, gambling on the future success of a stock. Conversely, when
you think of the word investor, you might think of someone who approaches
the stock market in a sensible and rational manner. According to these conventional
definitions, you may think it’s smarter to be an investor.

Bernard Baruch, however, defined speculator as follows:
“The word speculator comes from the Latin ‘speculari,’ which means to spy and observe.
A speculator, therefore, is a person who observes and acts before [the future]
occurs.” This is precisely what you should be doing: watching the market
and individual stocks to determine what they’re doing now, and then acting
on that information.

Jesse Livermore, the greatest stock market legend, defined investor this way:
“Investors are the big gamblers. They make a bet, stay with it, and if it goes
wrong, they lose it all.”

After reading this far, you should already know this is
not the proper way to invest. There’s no such thing as a long-term investment
once a stock drops into the loss column and you’re down 8% below your cost.
These definitions are a bit different from those you’ll read in Webster’s
Dictionary, but they are far more accurate. Keep in mind that Baruch and
Livermore at many times made millions of dollars in the stock market. I’m
not sure about lexicographers. ""

In real life many started to speculate but ended up as reluctant investors. Worse still the
stocks held r not investment grade or its fundamental is fast decaying...

We put in so much hard work n homework n finally decided to buy. So after a buy is executed,
please take note that serious work begins because risk starts.
From 1st 4 hrs to 2 days, that stock must, must not disappoint in terms of price.
If it fails to move up, rush in n 'berlanja' to the buyer ! This is o/h of investing biz.

I like these Fine words, Protect the downside, upside will take care of itself.
Because in down trending stocks, 1st loss is always the best loss.

RAIDER DO NOT AGREE WITH THE AUTHOR'S CONCLUSION ON INVESTOR LOH.....!!
HE SAYS AN INVESTOR WILL BUY N HOLD THE SHARE FOREVER WITHOUT DOING ANYTHING LOH....!!

RAIDER SAYS THIS TYPE ARE "DUNGU INVESTOR" LOH.....WHO GIVE A BAD NAME TO "THE INVESTOR MAH"

AN INVESTOR, AFTER HE HAS CAREFULLY SELECTED THE STOCK HE INVESTED....HE MUST CAREFULLY & REGULARLY REVIEW HIS INVESTMENT TO GUARD AGAINST NEGATIVE PERMANENT CHANGE IN ECONOMICS OF THE STOCK OR BUSINESS, BAD CORPORATE GOVERNANCE ETC......LIKE WHAT W BUFFET HAD RECOMMENDED.

THE MORE ADVANCE INVESTOR.....WILL ALSO MATCH THE INTRINSIC VALUATION OF THE STOCK AGAINST MR MARKET PRICE SETTING LOH....!! LOOKING FOR OPPORTUNITY AGST MR MARKET....LIKE WHAT SIFU B GRAHAM RECOMMENDED LOH!!

THEN THERE IS AN ISSUE.....OF HOLDING OF STOCKS NOT MORE THAN 3 YRS LOH.....WHEN COME 3 YRS, NEED TO JUSTIFY WITH GOOD REASONS.....WHY WE STILL WANT TO HOLD THE STOCKS AS RECOMMENDED BY B GRAHAM.

THEN THIS WILLIAM ONIEL RECOMMEND....AFTER WE BOUGHT....IF THE SHARE FALL BY 10% BETTER CHOPPED OFF LOH...!!

THEREFORE U SEE INVESTOR....ARE NOT DUNGU THAT HOLD FOREVER.....THERE ARE SAFEGUARDS IN PLACE LOH...!!

Posted by leno > 2015-01-17 11:57 | Report Abuse

hahahaha ... lesson no. 1 ... dun let your success go into your head ... tis is wat happen when u start to brag brag brag and get involve with useless people mar. See ... leno veli veli humble wan ... always see thing veli-veli clear ... now rilek rilek shake legs watching desperado promoting stock and even share margin. BOOOOOOOH CHOWWWWWWWWWWW CCCCCCCCCCCCCCC AAAAAAAAAAAAAAAAA !!! 3rd WAVE will be here sooooooooOOOOOOON !!!

Posted by F22Raptor > 2015-01-17 12:01 | Report Abuse

Leno is far far better than stockraider.

Posted by stockraider > 2015-01-17 12:10 | Report Abuse

Friday, January 16, 2015

We define a bargain issue as one which, on the basis of facts established by analysis, appears to be worth considerably more than it is selling for.

The genus includes bonds and preferred stocks selling well under par, as well as common stocks.
To be concrete as possible, let us suggest that an issue is not a true "bargain" unless the indicated value is at least 50% more than the price.
What kind of facts would warrant the conclusion that so great a discrepancy exists?
How do bargains come into existence, and how does the investor profit from them?

There are two tests by which a bargain common stock is detected.

The first is by our method of appraisal. This relies largely on estimating future earnings and then multiplying these by a factor appropriate to the particular issue.

The second test is the value of the business to a private owner. This value also is often determined chiefly by expected future earnings - in which case the result may be identical with the first. But in the second test more attention is likely to be paid to the realizable value of the assets, with particular emphasis on the net current assets or working capital.


Courage in depressed markets

At low point in the general market a large proportion of common stocks are bargain issues, as measured by these standards.
It is true that current earnings and the immediate prospects may both be poor, but a level-headed appraisal of average future conditions would indicate values far above ruling prices.

Thus the wisdom of having courage in depressed markets is vindicated not only by the voice of experience but also by application of plausible techniques of value analysis.

The same vagaries of the marketplace which recurrently establish a bargain condition in the general list account for the existence of many individual bargains at almost all market levels.

The market is always making mountains out of molehills and exaggerating ordinary vicissitudes into major setbacks. Even a mere lack of interest or enthusiasm may impel a price decline to absurdly low levels.

Thus we have two major sources of undervaluation: (a) currently disappointing results, and (b) protracted neglect or unpopularity.


The private-owner test

The private-owner test would ordinarily start with the net worth as shown in the balance sheet. The question then arises as to whether the indicated earning power is sufficient to validate the net worth as a measure of what a private buyer would be justified in paying for the business as a whole.

If the answer is definitely yes, we suggest that an ordinary investor should find the common stock attractive at a price one-third or more below such a figure.

If instead of using all the net worth as a starting point the investor considered only the working capital and applied his test to that, he would have a more convincing demonstration of the existence of a bargain opportunity.

For it is something of an axiom that a business is worth to any private owner at least the amount of its working capital, since it could ordinarily be sold or liquidated for more than this figure.

Hence, if a common stock can be bought at no more than two-thirds of the working -capital value alone- disregarding all the other assets - and if the earnings record and prospects are reasonably satisfactory, there is strong reason to believe that the investor is getting substantially more than his money's worth.

Benjamin Graham
The Intelligent Investor

RAIDER COMMENT : RAIDER IS A TRUE PRACTIONER OF BGRAHAM PRINCIPLE......THATS WHY MARKET AT THE HEIGHT OF BULL IN 2014......RAIDER CLOSE SHOP ON ITS NAPSHOT SELECTION......LOH....!!
THE MAIN REASON IS THAT STOCK VALUATION AT THE TIME IS TOO HIGH MAH.....!!

Posted by stockraider > 2015-01-17 12:36 | Report Abuse

Friday, January 16, 2015

Bargain-issue pattern in Secondary Companies

We have defined a secondary company as one which is not a leader in a fairly important industry.

Thus, it is usually one of the smaller concerns in its field, but it may equally well be the chief unit in an unimportant line.

By way of exception, any company that has established itself as a growth stock is not ordinarily considered as "secondary."

In the 1920's relatively little distinction was drawn between industry leaders and other listed issues, provided the latter were of respectable size.

The public felt that a middle-sized company was strong enough to weather storms and that it had a better chance for really spectacular expansion than one which was already of major dimensions.


The 1931-33 depression

The 1931-33 depression, however, had a particularly devastating impact on companies below the first rank either in size or in inherent stability.

As a result of that experience investors have since developed a pronounced preference for industry leaders and a corresponding lack of interest in the ordinary company of secondary importance.

This has meant that the latter group has usually sold at much lower prices in relation to earnings and assets than have the former.

It has also meant further that in many instances the price has fallen so low as to establish the issue in the bargain class.

When investors rejected the stocks of secondary companies, even though these sold at relatively low prices, they were expressing a belief or fear that such companies faced a dismal future.

In fact, at least subconsciously, they calculated that any price was too high for them because they were heading for extinction - just as in 1929 the companion theory for the "blue chips" was that no price was too high for them because their future possibilities were limitless.

Both of these views were exaggerations and were productive of serious investment errors.

Actually, the typical middle-sized listed company is a large one when compared with the average privately-owned business.

There is no sound reason why such companies should not continue indefinitely in operation, undergoing the vicissitudes characteristic of our economy but earnings on the whole a fair return on their invested capital.

This brief review indicates that the stock market's attitude toward secondary companies tends to be unrealistic and consequently to create in normal times innumerable instances of major undervaluation.

Benjamin Graham
The Intelligent Investor

THATS WHY RAIDER SAY BASED ON CURRENT ENVIRONMENT U CAN FIND MORE UNDERVALUE IN PENNY AND SECONDARY STOCK COMPARE WITH BLUECHIPS.

U SHOULD ALWAYS TAKE ADVANTAGE OF THE SITUATION BASING ON THE VARIOUS SCENARIO....GO FOR STOCKS THAT GIVE BIGGER BARGAINS LOH......!!

Posted by leno > 2015-01-17 13:13 | Report Abuse

try ask the jokers to list down 40 napshot again ... see can or not ? wat ? cannot ? why last time can .. tis time cannot ? Because last time everi thing also cheap mar ... put any donkeys pick also can win one. Now how leh ? Still can list ? NO right ? SO, wat does tis tell us ? Isit because everi thing are cheap ... or everi thing are NOT veri cheap ? HAHAHAHAH ... dun come out with bullsheet about teaching how to fish but not wat to fish hor ... tis one we hear mani times alredi. SO .. the clue is veli clear lor ... times to go rilek rilek again, after 2 year of full of excitement and profit .. leno will take one long big stretch of holiday ... till october ... dun worri ... times fly veli fast one .... u no see aaa ... since last october leno chow .. alredi more than 3 months fly by liaw ... HAHAHAHAHAHAHAH ... NICE ! CANTEEEEEEEEEEEKKKK !!

Posted by stockraider > 2015-01-19 15:04 | Report Abuse

18 points guide to Successfully compounding your money in Stocks
1.Be a good stock picker.
2.Think as a business owner.
3.Always look at value rather than the price. Do the homework.
4.Buy and hold is alright for selected stocks.
5.Compounding is your friend, get this to work its magic.
6.Mr. Market is there to be taken advantage of. Do not be the * instead. BFS;STS.
7.Always buy a lot when the price is low.
8.Never buy when the stock is overpriced.
9.It is alright to buy when the selected stock is at a fair price.
10.Phasing in or dollar cost averaging is safe for such stocks during a downtrend, unless the price is still obviously too high.
11.Do not time the market for such or any stocks.
12.By keeping to the above strategy, the returns will be delivered through the growth of the company's business.
13.So, when do you sell the stock? Almost never, as long as the fundamentals remain sound and the future prospects intact.
14.The downside risk is protected through only buying when the price is low or fairly priced.
15.Tactical dynamic asset allocation or rebalancing based on valuation can be employed but this sounds easier than is practical, except in extreme market situations.
16.Sell urgently when the company business fundamental has deteriorated irreversibly.
17.You may also wish to sell should the growth of the company has obviously slowed and you can reinvest into another company with greater growth potential of similar quality. However, unlike point 16, you can do so leisurely.
18.In conclusion, a critical key to successful investing is in your stock picking ability.

Posted by firehawk > 2015-01-19 15:13 | Report Abuse

should quit investlah earlier .... i've seen many not willing to post there, due to the lcly moderator, he makes no afford to attract more people ..... but keen to ban this ban that + delete the postings of the person he doesn't like!

Posted by duitKWSPkita > 2015-01-19 15:16 |

Post removed.Why?

Posted by stockraider > 2015-01-20 10:29 |

Post removed.Why?

Posted by stockraider > 2015-01-21 13:18 | Report Abuse

Quote from: iiinvestsmart on January 18, 2015, 07:51:29 AM
### Attractive Buying Opportunities arise through a Variety of Causes
Attractive buying opportunities for the enterprising investor arise through a variety of causes.

The standard or recurrent reasons are
(a) a low level of the general market and
(b) the carrying to an extreme of popular disfavor toward individual issues.

Sometimes, but much more rarely, we have the failure of the market to respond to an important improvement in the company's affairs and in the value of its stock.

Frequently, we find a discrepancy between price and value which arises from the public's failure to realise the true situation of a company - this in turn being due to some complicated aspects of accounting or corporate relationships.


It is the function of competent security analysis to unravel such complexities and to bring the true facts and values to light.

Quote from: iiinvestsmart on January 18, 2015, 08:01:14 AM

Summary:
Attractive buying opportunities (discrepancy between price and value) due to various causes:
1. low level of the general market
(examples: 1997-2000, 2005, 2008 to 2013)
2. extreme of popular disfavour towards individual stocks
(examples: Maybank when it was acquiring BII and Pakistan bank, recently Tesco)
3. failure of market to respond to improvement in the company
(examples: when HaiO turned around few years ago from loss to profitability, Latexx turnaround, GCB showing improving revenues and profits in 2009)
4. failure to realise hidden value in the company due to some complicated aspects of accounting or corporate relationships
(examples: Parkson in 2005, APM in 2005)


Quote from: iiinvestsmart on Yesterday at 01:01:43 PM

"Be Greedy When Others Are Fearful"

Remember that famous Warren Buffet's quote?

"We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful."

Right now fear has seized the stock market and to many investors it seems like it is the end of the world now. However, it is not. The economy and the market will recover even if it takes longer than expected. Thus, what you can do in times of crisis like the current one is take advantage of the attractive prices and fearful environment.

Of course, this does not mean that you should invest in companies with bad outlook.

Before you make a major, long-term investment, do your homework and find companies with strong and experienced management teams, good track records of profitability and growth, and innovative R&D.

Yes, the QMV approach - Quality and Management (first), and

RAIDER COMMENT; THE ABOVE ARTICLE POSTED BY 3I LOOK LIKE VERY EASY....!!
BUT IF U TAKE A WALK IN "PASAR PUDU" AND TALK TO AUNTIES & UNCLES....U WILL FIND OUT HOW SO MANY LOSE MONIES DOING THE ABOVE LOH ESPECIALLY THE 1ST ARTICLE ON CONTRAIAN INVESTMENT......!!
IT JUST THAT.....THE SUCCESSFUL ONE WILL BROADCAST TO LET THE WHOLE WORLD KNOWS....!!
BUT THE FAILURE, WILL HIDE IN THE CORNER AND CRY SILENTLY MAH.....!!

FOR EVERY 2 SUCCESS.....U NORMALLY CAN FIND 10 FAILURES LOH.....!!

Posted by stockraider > 2015-01-21 13:25 | Report Abuse

Prime Minister Datuk Seri Najib Razak delivers his speech on current developments and the nation's financial position at Putrajaya International Convention Centre in Putrajaya. – The Malaysian Insider pic by Nazir Sufari, January 20, 2015.
A postponement in the electricity tariff hike and a halt to the National Service Training Programme (PLKN) this year are two highlights in Putrajaya's revised budget that will bring some cheer to Malaysian consumers.

The scheduled gas price hike for the industrial sector has also been postponed, Prime Minister Datuk Seri Najib Razak announced today in revisions to the national budget for 2015.

Deferring the national service training programme for one year will save some RM400 million as government tries to trim expenditure and stimulate investment and consumption.

Overall, the government's operating expenditure is expected to be reduced by RM5.5 billion through reprioritising spending, Najib said.
Spending on development will be maintained at RM48.5 billion, as originally tabled in October last year.

Najib said this would include people-centric projects such as public housing, flood mitigation, water supply, electricity and public transport infrastructure such as the Pan-Borneo Highway.

His revisions are in view of falling oil prices which are now around US$50 per barrel.

Budget 2015, when tabled in October last year, had a projected expenditure of RM273.9 billion in expenditure and RM235.2 billion in revenue. It was pegged to oil prices of around US$100 per barrel.

The slide in prices, which has drastically affected the ringgit's value as Malaysia is an oil exporter, has seen calls by economists for Putrajaya to revise the budget.

The following are the main points of Najib's announcement at a special session at the Putrajaya International Convention Centre today.

To boost exports of goods and services, as well as domestic consumption:

* Promote import-substitution services, such as shipping, port, education and professional services.

* Improve logistics and trade infrastructure.

* Reviewing the levy on foreign workers.

* Free entry visas for visitors, including those from China.

* Priority in project tenders to local contractors registered with the Construction Industry Development Board (CIDB).

* Local contractors to repair and rebuild in flood-hit areas. (Contractors in the G1, G2 and G3 categories.)

* More promotion of Malaysian-made goods.

* Extending the frequency and period of Mega-sales nationwide.

* Encourage domestic tourism through competitive pricing of domestic flights.

Posted by stockraider > 2015-01-21 13:26 |

Post removed.Why?

Posted by stockraider > 2015-01-21 13:33 | Report Abuse

RAIDER IS DISAPPOINTED WITH THESE HALF HEARTED MEASURES LOH....!!

WITH CRISIS AFFECTING MSIA ;

1) CRASH OIL PRICE (30% OF MSIA REVENUE)
2) CRASH OF RINGGIT
3) CRASH OF COMMODITY PRICE LIKE PALM OIL & RUBBER
4) LOSS OF 3 COMMERCIAL AIRCRAFT
5) MAJOR FLOOD HITTING MSIA
6) TERRORISM BEARING ITS UGLY HEAD
7) POOR EDUCATION SYSTEM DESPITE SPENDING HUGE MONIES

U CALL THE ABOVE NOT CRISIS FOR MSIA ?

THATS WHY AFTER NAJIB ANNOUNCEMENT RINGGIT STRAIGHTAWAY FALL ABOVE RM 3.60 AGST USD LOH.....!!

RAIDER SAY START CUTTING EXPENSES LOH....!!
START CUTTING THE NOT SO EFFECTIVE EDUCATION BUDGET...AND TRY TO BE EFFICIENT & EFFECTIVE AND WITH LESS DO MORE MENTALITY MAH....!!

Posted by calvintaneng > 2015-01-21 14:01 | Report Abuse

Yes,

Also cut interest rate to zero like Usa and Singapore

Encourage more Fdi with 10 year tax free incentive

Give Pr status to any investor with USD 1 Million

Trim size of bloated million over Govt servants. Many are inefficient and redundant

Sell All Glc assets overseas all bring all Cash back to Malaysia

Posted by stockraider > 2015-01-21 14:07 | Report Abuse

No exodus of funds from Malaysia, says Zeti
Publish date: Tue, 20 Jan 16:43

--------------------------------------------------------------------------------
KUALA LUMPUR: There will not be any exodus of funds from Malaysia, says Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz.

Despite the ringgit's fall, Malaysia's current account surplus was healthy while foreign direct investments continued to flow into the economy.

Zeti said this phenomenon included fluctuations in the foreign exchange market which was not unique to Malaysia.

Developed financial markets such as Malaysia would be subject to volatile capital flows and Malaysia had experienced all this before, she said.

"In fact, the more developed your financial markets, the more susceptible you will be to the volatile inflows and we have progressively liberalised our markets.

"Therefore, financial markets are highly open and vulnerable to external developments," she told reporters on the sidelines after Prime Minister Datuk Seri Najib Tun Razak unveiled proactive measures to keep the economy on track.

Zeti said Malaysia's overnight policy rate of 3.25 per cent was highly accommodative and that there was no need to further lower interest rates.

Najib, who is also Finance Minister, announced a number of measures to ensure Malaysia's growth, development and deficit ambitions remained intact in response to changes in the global economic landscape.

In his special address, the Prime Minister said fluctuations in the ringgit were influenced by developments in the global economy.

He said the ringgit was not the only currency to have weakened against the US dollar but almost all currencies in the region had softened against the greenback since September 2014.

The Governor also said Malaysia's reserves had declined by about US$19 billion since 2014.

Nonetheless, Zeti said the Goods and Services Tax was a pre-emptive measure that would strengthen Malaysia's finances and economic fundamentals.

Malaysia will implement the new tax regime on April 1.

Zeti also reaffirmed that Malaysia's economic growth was on a steady growth path and that the country would be able to achieve a Gross Domestic Product of between 4.5 per cent and 5.5 per cent in 2015 as announced by the Prime Minister.

She also stressed that Malaysia had never relied on the exchange rate to gain competitiveness.

"Our advice especially to exporters is never to rely on the current level of the exchange rate because this, we believe, only reflects temporary conditions that are prevailing.

"The ringgit should strengthen to reflect our underlying fundamentals which remains solid and strong," she added. -- BERNAMA

RAIDER COMMENT : ZETI COMMENT LOOKS REASSURING, BUT WHAT CAN A BANK GOVERNOR DO BESIDE REASSURING THE MARKET ??
IT WILL BE SUICIDAL....FOR HER TO SAY....MSIA IS IN TROUBLE.....THE FOREIGN FUND IS LEAVING....OUR BORROWING IS TOO HIGH....WE ARE GOING TO BE HIT BY A FINANCIAL TSUNAMI LOH.....!!

AFTER NAJIB'S BUDGET AMENDMENT....OUR RINGGIT DEPRECIATE ABOVE RM 3.60 V USD LOH.....!!

RAIDER ADVISE U ALL....TO QUICKLY SWITCH TO EXPORT ORIENTATED, LOW GEARING, DIVIDEND PAYING AND PROFITABLE COUNTERS LOH...!!
B4 THE TSUNAMI STRIKE LOH....!!

Posted by calvintaneng > 2015-01-21 14:28 | Report Abuse

Raider is correct. Switch to export stocks, Logistic and Inbound Tourism Stocks

Posted by stockraider > 2015-01-21 14:49 | Report Abuse

Fitch says it may downgrade Malaysia's rating in upcoming review

KUALA LUMPUR (Jan 20): Fitch Ratings said it is "more likely than not" to downgrade Malaysia's sovereign rating in its upcoming review in the first half of the year on the back of the country's negative outlook.

In a statement today, the credit ratings agency's associate director Sagarika Chandra said the government's revision of its fiscal deficit target from 3% to 3.2% of the gross domestic product (GDP) and the reduction of GDP growth forecast for 2015 to 4.5%-5.5% from 5%-6%, was a "reinforcement of the fact that dependence on commodities remains a key credit weakness for Malaysia".

The revisions also showed that the credit profile of the nation remains vulnerable to sharp movements in commodity prices, it said.

"While the Prime Minister has stated that fiscal reform and consolidation will continue, the upward revision of the fiscal deficit target, on account of the high share of revenues linked to petroleum, which remains a structural weakness, highlights that further measures might be required to meet the fiscal consolidation target of achieving a balanced budget by 2020," it said.

These factors, it said, are reflected in its 'negative' outlook on the rating of the country.

"The negative outlook indicates that Fitch is more likely than not to downgrade the rating of the sovereign. Fitch expects to review Malaysia's rating during the first half of 2015," he added.

RAIDER say don wait for the downgrade to happen loh......!!
Get ready b4 it happens loh.....!!

Posted by leno > 2015-01-21 14:51 |

Post removed.Why?

Posted by regit > 2015-01-21 16:50 | Report Abuse

Do you have a daily blog that you write? Just curious :)

Posted by leno > 2015-01-21 17:44 | Report Abuse

no.

Posted by stockraider > 2015-01-23 18:06 | Report Abuse

World’s Wildest Stocks Show Chinese Booms and Busts Getting Bigger on Debt


China Stocks Bull Market Has Further to Go, Oliver Says
`Underlying Strength' in China Stocks: BNY Mellon's Cox

The one thing China’s bulls and bears can agree on is that swings in the world’s most-volatile major stock market are only going to get bigger after equity traders took on record amounts of debt.

Both Bank of America Corp. strategist David Cui, who predicts Chinese shares will fall, and JPMorgan Chase & Co.’s Adrian Mowat, who has an overweight rating, say the surge in margin lending to all-time highs is amplifying price fluctuations in the $4.9 trillion market. Volatility in the benchmark Shanghai Composite Index reached the highest level since 2009 this week after rising more than fourfold since July.

While the flood of borrowed money into Chinese stocks added fuel to a 59 percent rally in the Shanghai Composite during the past 12 months through yesterday, the gauge’s 7.7 percent tumble on Monday illustrates how leverage can also accelerate declines. Margin traders unloaded shares at the fastest pace in 19 months during the rout, which was sparked by regulatory efforts to cool the growth of margin debt in a market where individuals drive 80 percent of equity volumes.

“Margin trading will add more up-and-down to the market and increase volatility,” Xie Weiyu, a strategist at Shenyin & Wanguo Securities Co. in Shanghai, said in a Jan. 12 e-mail. “If a correction starts, the magnitude will be bigger than the past few years.”

CSRC Curbs

In a margin trade, investors use their own money for just a portion of their stock purchase, borrowing the rest from a brokerage. The loans are backed by the investors’ equity holdings, meaning they may be forced to sell when prices fall to repay their debt.

The Shanghai Composite sank the most in six years on Monday after the China (SHCOMP)Securities Regulatory Commission suspended the nation’s two biggest brokerages from lending money to new equity-trading clients and said securities firms shouldn’t lend to investors with assets below 500,000 yuan ($80,467).

Outstanding margin loans on both the Shanghai and Shenzhen exchanges surged more than tenfold in the past two years to a record 1.1 trillion yuan as of Jan. 16, or about 3.5 percent of the nation’s market value. On the New York Stock Exchange, margin debt amounts to about 2.1 percent of market cap on the NYSE Composite Index.

Margin lending is a “new phenomenon in China,” said Cui, who anticipates the Shanghai Composite will fall about 5 percent by year-end. “When the tide turns, it’s going to be very ugly, because you will have a forced exit from the market.”

Posted by stockraider > 2015-01-23 18:06 |

Post removed.Why?

Posted by stockraider > 2015-02-03 10:38 | Report Abuse

Re: RAIDER IS THE BIGGEST BULL IN INVESTLAH LOH!

« Reply #8908 on: Today at 10:31:28 AM »
Reply with quoteQuote




3i Investing Whispers - 3 legs of Margin of Safety of 3i (Dedicated to Raider)
« Reply #8000 on: Today at 09:58:16 AM »
Reply with quoteQuote

Yes, this is the single most important thing you should know in investing.
ALWAYS buy with a margin of safety. Margin of safety issues are both qualitative and quantitative.
Let me show where I look for these margin of safety factors in my stock selection. There are 3 areas where one should look for margin of safety. Let's call these the 3 legs of Margin of Safety of 3i. Smiley Here they are.

1. QUALITY (Good to great quality growth stocks, with durable competitive advantage)

2. MANAGEMENT (Managers with integrity, intelligence and hardworking. Operational efficiency: Profit margin trends, ROE trends, and D/E trends that are good/great, maintained or improving)

3. VALUATION (Fair to bargain prices for Great companies, Big bargain prices for good companies.)

Well, choose your picks.

Yes, you can get great bargains too in foraging in gruesome companies that are selling at big bargain prices. Often, many of these remain gruesome and the prices may even continue to go down more due to fundamental deterioration in their businesses.

You have a build in margin of safety, IF you have the ability to pick good or great stocks that are selling at bargain or fair prices, especially when your investing horizon in holding these stocks are for the long term (>5 years). Warren Buffett teaches another margin of safety criteria of his own - that it is better to buy a great stock at fair price, than a fair stock at great price. Surely, he did not preach this without a basis.
If you dwell deeper into this statement, although many may look at this from the superior returns that the great stock offer over the good stock, though bought at perceived fair price (instead of bargain prices for a good stock), it is just another way of saying that the margin of safety for great stocks is better than for a good stock. you are more certain of the growth and earnings power of the great companies. This high probability of being right in projecting the earning power of the great companies is where the margin of safety lies.

In the gruesome company, they are termed gruesome because their earning power were non-existent, deteriorating or even un-predictable over the short or the long term.

I advise that if the companies you study fail in the QUALITY AND MANAGEMENT ISSUES, don't bother with the valuation. Keep the study and proceed no further with its valuation since we are only seeking to invest in stocks for the long term. There are so many other stocks to study for your LONG TERM portfolio. Your long term portfolio should only include the best quality stocks that are projected to deliver returns of > 15% or more per year (with reinvestment of the dividends).

When would you buy these stocks that have satisfied the quality and management issues (the first and second legs of the margin of safety) and that you have in your "to invest" list? Yes, you then look for a good price to buy, the third and last leg of margin of safety. This is when the price offered promises safety of capital (upside reward: downside risk of > 3:1) and a projected annualised return of > 15% per year.

Putting the 3 legs of margin of safety issues of 3i into perspective.

1. I am looking to populate or invite a company to join my esteem group of great companies in my portfolio for the LONG TERM.
2. I stress on 3 legs of margin of safety issues.

3. The first and second legs of my Margin of Safety issues of 3i look at QUALITY AND MANAGEMENT

4. Why are they important? These qualities will allow me to predict their earning power, the most important thing that is going to deliver great returns to my portfolio.

5. The third or last leg of my Margin of Safety issues of 3i is also important. By buying at low prices, my upside: downside ratio is in my favour (I want at least >3:1, needs a lot of patience), thereby protecting my downside. A lower price gives me an additional return when the stock is revalued at its fair price.

6. One is investing for the long term, and often if the stock is a great stock with great earning power, you virtually need not have to sell. The total return after many years is mainly contributed by its earnings power, the great bargain price you bought into offer you an additional short term gain, which contributes a little only to the overall return over the long term, (though it was a big return over the short term.)

7. Stay focus on the long term.

Best wishes to Raider in his investing.

Posted by stockraider > 2015-02-03 10:38 | Report Abuse

RAIDER COMMENT : IN FACT RAIDER IS PRACTISING THE SAME THING 3I PREACHES.....!!
BUT U MUST UNDERSTAND THE CENTRAL CORE OF INVESTMENT IS " MARGIN OF SAFETY MAH!!".....WITH UNDERSTANDING MARGIN OF SAFETY U CAN BUY ANYTHING.....INCLUDING GRUSOME COMPANY LOH....!!!

A GOOD EXAMPLE IF U HAD BOUGHT LCTH, PMCORP AND EFORCE 3 YRS BACK AND HOLD UNTIL NOW....YOUR RETURN WOULD NOT BE LESS THAN HOLDING ONTO NESTLE, DLADY, PET DAG FOR THE SAME PERIOD MAH...!!

WHY IS THAT SO ?
THE CONCEPT OF HUGE MARGIN OF SAFETY DISCOUNT AT WORK LOH....!!
THE 3 GRUESOME COMPANIES 3I DISLIKE HAVE HUGE MARGIN OF SAFETY LOH....!!

IF U STICK TO 3 PILLAR, OF INVESTMENT 3I DESCRIBE U STILL CAN MAKE MONIES.....BUT U NEED TO WAIT VERY MUCH LONGER FOR U TO SWING LOH....!!
WHY ??
BCOS ALL THESE COMPANIES WOULD NOT HAVE MUCH MARGIN OF SAFETY AT THE TIME OF "NORMAL PURCHASE"...BCOS ALOT OF FUNDS ARE MONITORING IT TOO....!!

RAIDER U CAN BUY THESE TYPE STOCK WITH MARGIN OF SAFETY IN THE SITUATION!!

1) WHEN THERE IS BLOOD IN THE STREET, DURING PANIC & MARKET SELLOFF
2) WHEN THE SPECIFIC STOCK IS IN TEMPORARY TROUBLE LIKE IN THE CASE OF F&N WHEN THEY LOST THE " COCA-COLA FRANCHISE LOH"

THE ABOVE 2 CONDITION IS ONLY CONDUCIVE FOR BLUECHIPS STOCK PICKING BUT TRICKY LOH, THE INDIVIDUAL INVESTOR NEED TO HAVE THE SKILL & LUCK TO PICK DISCOUNT ON MARGIN OF SAFETY FOR THIS TYPE OF 3I STOCK WHICH IS NOT VERY COMMON & DURING COMPLICATED SITUATION.

IT IS BETTER FOR ORDINARY INVESTOR TO BUY MARGIN OF SAFETY STOCK WITHOUT ANY DISCRIMATION MAH BUT ON CONDITION IT HAS STRONG BALANCE SHEET LOH....!!

Posted by calvintaneng > 2015-02-03 10:48 | Report Abuse

RAIDER GOT IT CORRECT

This 3i fella only read a few books by Ben Graham, Warren & Charlie Munger. He never read about Phil Fisher or Peter Lynch's method of paying site visits to companies.

Arm chair analysis cannot uncover the "gem" of PM Corp and others.

Posted by 0bucks > 2015-04-21 20:10 | Report Abuse

raider san, so what stock else can consider to great margin of safety / at a discount now ?

Posted by stockraider > 2015-04-22 13:59 | Report Abuse

Obucks,

U can have a look at FACB .

Posted by stockraider > 2015-07-24 21:35 | Report Abuse

1) WTK

Bought 1.6.2015. RM 0.995 adjust for dividend Rm 0.975. Cost RM 20k
dividend rec rm 0.02
2) FGV
Bought 1.6.2015 RM 2.00. Cost RM 40k
Sold 9.6.2015. RM 1.89
(Sold all loss Rm 4500.)

3) PADINI

Bought 1.6.2015. RM 1.355 Cost RM 20k
DIVIDEND received RM 0.025. Received cash RM


4) GUH
Bought 1.6.2015. Rm 1.01. Cost RM 20k

5) YSP
Bought 1.6.2015. Rm 2.135 adjust for div . Cost RM 20k
div rec Rm 0.065

6) Hong Leong Ind
buy 24.6.2015 Rm 4.44. Cost Rm 20k.

7) Superlon
buy 25.6.2015 Rm 1.33 adj for div. Cost Rm 20k
div rm 0.02 received

8) Media-c
buy 26.6-2015 Rm 0.60 adj for div. Cost Rm 20k
div received rm 0.015

9) Facb
buy 2.7.2015 Rm 1.07..Cost Rm 20k

10) hWANG
BUY 3.7.2015 Rm 2.01..Cost Rm 20k

11) CIMB 25
Buy 7.7.2015 Rm 1.25...Cost Rm 20k
Buy 14.7.2015 Rm 1.35...Cost Rm 40k

12) Puncak
Buy 13.7.2015 Rm 2.74...Cost Rm 20k

13) Osk
Buy 20.7.2015 Rm 1.86....Cost Rm 20k

PLEASE NOTE....RAIDER'S DIVIDEND ADJ ONCE ONLY....DURING THE YR OF PURCHASE.
SUBSEQUENTLY THE PERIOD AFTER.....THE DIV IS TREATED AS OPERATING INCOME LOH....!!

As per raider portfolio.....raider's napshot top performer is YSP loh....!!

Thums up for growth stock play loh.....!!

Raider is making another purchase;

14) Ahealth
Buy 24.7.2015 Rm 4.27......cost Rm 20k

Why Ahealth ?
Another Growth Stock similar to YSP mah......!!

Report to moderator 123.136.106.204

Posted by Icon8888 > 2015-07-24 21:48 | Report Abuse

Raider should visit us more often

Posted by Wikiileaks > 2015-07-27 21:52 | Report Abuse

Raider, don't mid asking. Guh going to stop concession soon! And they don't have any replacement yet for tht. Don't you think profit will drop near futures? Why still you expect it growing?