First up, the Sept quarter has one month above RM4/US$. The December quarter has all 3 months RM above 4.
During the Sept quarter, a lot of the extra income would have come from forex gains, being the difference between the rates in which debtors were booked and the actual sums received.
During the Dec quarter, who will disappoint and who will shine is principally a question of........
- who has pricing power?
-who has less import content?
and who will disappoint will be those
- with a high import content
- who has less pricing power
- those who sets selling price based on cost plus
-those who has to share the good fortune with their customers because it is a very competitive industry.
Think about these issues. And don't just extrapolate from the Sept results. Get it right, you will be rewarded. Get it wrong, you will be punished
Examine your portfolio and share your ideas.
Wow, if all the oil producers are closing shop or going for default. Banks that lend money to them will have a big trouble. If that happens, financial world really gonna collapse.
Looking back at history, it was OPEC cutting production and China run saved the oil crisis back in 1998. Seem like oil will probably hover around 40$ for a long term.
nothing can replace oil. there is no alternative to oil. oil is not only use to run your car engine. now that u have electric car.
oil is being used in almost 6400 various product. incl the carpet you step on, the sheet bowl u sit on, the plastic bag u use, and the fake leather in your car.
the reason of oil correlation to stock mkt only emerge when oil is in crisis.
it started to show very strong correlation with oil when oil drop to 60.
and when oil drop to 30. the global mkt is practically looking at nothing else but Oil price as it lead. what non farm payroll and what GDP or what stimulus is rendered meaningless.
WHY? bcos at this level of oil below 60, 30, or whatever lower. oil and gas industry and the financier is just lining up to get their head chop.
before they got their head chops, they chop their employees head first. which u r seeing now.
and being the No. 1 single most important industry in the world (beside sex) or is it the other way round?
you tell me would the world become more prosperous or else??
u mean oil has bottom. ? did u not think so when oil drop from 120 to 60? only to see it 40. did u not think oil has bottom at 40? only to see it 30. did u not think oil has bottom, only to see it at 26.
now at 32. it has confirmed bottom? i donno.
Posted by speeedyboy > Jan 23, 2016 05:43 PM | Report Abuse
Posted by gray > Jan 23, 2016 05:37 PM | Report Abuse
the reason of oil correlation to stock mkt only emerge when oil is in crisis.
it started to show very strong correlation with oil when oil drop to 60.
and when oil drop to 30. the global mkt is practically looking at nothing else but Oil price as it lead.
Anwer : Exactly! Now you know why I am so confident bursa has bottom!
When oil touch zero the rebound will be so strong that it instantly shoot to 100 in one second and Djia turn into bull market just within few seconds later
Once oil price is lower than cost the company will stop the production and if they group together then we will be great touble as there cannot have any substitutes in short to mid term.We have to park our cars in our houses and many industries will stop production. Then they will suspense the oil markets and use their own daily qoatation in their respective nations.We can forego speculative oil markets but not oil production so players will keep their senses in balance.
If the cost of oil is higher than the price of oil,then it will be losses for the oil production companies to produce oil.Then they will stop production,we have no oil at the kiosks so cannot get oil to run our cars.The end result is park our cars at home,lol.
B4 that day comes, I'd get myself an electric car or sell my car n take to walking lol ! Why park a white elephant in our house. Hehee honestly, I look forward to alternative energy source. Solar car would be cool. Driveless car will be the next cool thing! Love the future!
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....
Posted by Desa20201956 > 2016-01-23 10:56 | Report Abuse
First up, the Sept quarter has one month above RM4/US$. The December quarter has all 3 months RM above 4. During the Sept quarter, a lot of the extra income would have come from forex gains, being the difference between the rates in which debtors were booked and the actual sums received. During the Dec quarter, who will disappoint and who will shine is principally a question of........ - who has pricing power? -who has less import content? and who will disappoint will be those - with a high import content - who has less pricing power - those who sets selling price based on cost plus -those who has to share the good fortune with their customers because it is a very competitive industry. Think about these issues. And don't just extrapolate from the Sept results. Get it right, you will be rewarded. Get it wrong, you will be punished Examine your portfolio and share your ideas.