I think many who invested earlier will encounter this question. With the bull run wildly in May, its normal for any stock to increase more than 20%. Within my portfolio, out of the four stock- Cscstel, Panamy, Presbhd and Supermx, only left Supermx increase less than 1% because of my entry price which is quite high.
Another good new -the dividend coming soon as below:
(i) Presbhd RM0.025 ex date 5 June 2013,
(ii) Supermx RM 0.03 ex date 5 June 2013,
(iii) Cscstel RM0.07 ex date 26 June 2013,
(iv) Panamy RM1.72 ex date 9 September 2013.
To prevent regret on selling too early, I will wait and see whether some of my stocks can continue the run.
Friday, 31 May 2013
Wednesday, 22 May 2013
Party is over?
This two days we observed most of the stock start to consolidate especially those that run too fast after election. The feeling good moment of earning easily with any stock come to a halt all of the sudden. This for sure wake a lot of people especially for those newbie from their dream of earning easy money through stock market. Those who enter too late will probably grab a falling knife if the stock is of bad fundamental. This usually happen to those penny stocks and cheap enough to lure greedy newbie that wish to earn extraordinary return.
The return of an investment in stock market is always only two namely capital gain and dividend. Although the market is now in red, there are still some counters with low PE, high cash level, good dividend history and well performing company. Their price may be quite steady and slow moving but they are the gems in the stock market. Just remember cheap stock may not be good, expensive stock may not be bad. My brother always told me that there are definitely reasons for the stocks to be cheap or expensive. To say for an example, slipper nowadays have cheap and expensive too. Crocs can sell for hundreds and still got people wanna buy for their quality and confort while there are also market for those cheaper one like those from China that only last for shorter life span and less comfortable. Therefore, it's up to you to choose what you want? You want higher risk or steady return? Stock market is always risky for those who just follow what ever other mentioned. Remember to check by yourself since the money you invest is the hard earn money that you save for a better life tomorrow. Other people can always recommend but you should be one who make the call. In the end of the day, I wish everyone acquire good return and have a great experience in this bull.
The return of an investment in stock market is always only two namely capital gain and dividend. Although the market is now in red, there are still some counters with low PE, high cash level, good dividend history and well performing company. Their price may be quite steady and slow moving but they are the gems in the stock market. Just remember cheap stock may not be good, expensive stock may not be bad. My brother always told me that there are definitely reasons for the stocks to be cheap or expensive. To say for an example, slipper nowadays have cheap and expensive too. Crocs can sell for hundreds and still got people wanna buy for their quality and confort while there are also market for those cheaper one like those from China that only last for shorter life span and less comfortable. Therefore, it's up to you to choose what you want? You want higher risk or steady return? Stock market is always risky for those who just follow what ever other mentioned. Remember to check by yourself since the money you invest is the hard earn money that you save for a better life tomorrow. Other people can always recommend but you should be one who make the call. In the end of the day, I wish everyone acquire good return and have a great experience in this bull.
Start cashing out
After some time of considering, i think it's time to change a little bit on my portfolio. The first stock I sold away is Daya at 27 cents and gain around 18% after two years of holding. Although Daya is a well performing company, I think the supply of stock is simply much more than the demand that limit the stock price to continue in the up trend.
The second stock I sold is prestariang berhad and the reason is because there are quite a lot of insider selling recently. The stock had consolidated at RM1.8 for quite some time and sending signal that its waiting for the next quarter financial report to break through. Conincidence or not, the few major share holders choose to dispose at large amount which normally around 1.5 millions share each time. This definitely show some negative signal to the investor while the quarter financial report is still pending to the public. Therefore, I sold 75% of the stock leaving 25% that is free stock since I already achieved capital gain of 27%. This 25% will serve as souvenir to remember this stock since its indeed a good one with great dividend. However, I believe huge capital investment into new university will definitely reduce the company cash level and thus reduce the dividend unless the company is able to achieve higher revenue and profit through gaining large number of enrollment and contract with government or O&G sector. Lets wait and see what happen next.
The second stock I sold is prestariang berhad and the reason is because there are quite a lot of insider selling recently. The stock had consolidated at RM1.8 for quite some time and sending signal that its waiting for the next quarter financial report to break through. Conincidence or not, the few major share holders choose to dispose at large amount which normally around 1.5 millions share each time. This definitely show some negative signal to the investor while the quarter financial report is still pending to the public. Therefore, I sold 75% of the stock leaving 25% that is free stock since I already achieved capital gain of 27%. This 25% will serve as souvenir to remember this stock since its indeed a good one with great dividend. However, I believe huge capital investment into new university will definitely reduce the company cash level and thus reduce the dividend unless the company is able to achieve higher revenue and profit through gaining large number of enrollment and contract with government or O&G sector. Lets wait and see what happen next.
Sunday, 19 May 2013
The bull in KLSE
Today's early trading still show bullish with a lot of counters showing uptrend. This is definitely exciting for those who already in the market. I wonder if more newbie will be lure to join into the stock market. It's always wise to be alert when more novice who usually didn't talk about stock suddenly change to be discussing about this topic. Although invested in klse for more than 2 years, this is also the biggest up trend I ever saw in just few weeks. At the same time of being happy with my return, it's time to get alert and see when the bear will turn up. Always remember Warren Buffet's famous quote "to be fear when everyone is greedy and be greedy when everyone is fear."
MBA finally
Today will be a memorable day after I finish my final exam and presentation for my mba course. Along the two years, I have used most of the weekends attending classes, doing assignment and preparing for examinations. Now only left my thesis project that need some more time to improve before submit by early of next month. What a relief!
Along the two years, I was exposed to economy, finance and management. Although everything just touch a little bit, I am more confident on these issues compare to the past. After my studies, I will focus more on my investment to increase its return and save some money to start up my own business. I believe working is just to accumulate some capital and definitely not the way to spend the rest of our life.
Along the two years, I was exposed to economy, finance and management. Although everything just touch a little bit, I am more confident on these issues compare to the past. After my studies, I will focus more on my investment to increase its return and save some money to start up my own business. I believe working is just to accumulate some capital and definitely not the way to spend the rest of our life.
Thursday, 16 May 2013
Mistake shall not be repeated
As a Maths teacher, I always advised student to try on the exercise and should not fear of making mistakes. What one should do is to avoid such mistakes again. Same goes to my investment, along the two years since I have entered stock market, I did make plenty of mistakes. The worst mistakes I made was to exit the stocks too fast. Out of the record, most of my stocks were sold too early before they develop into larger return. Some of mistakes I made are below:
Stock. price purchased Price sold
Mahsing 1.82. 2.52
Tambun. 0.58. 0.68
Ytl 1.52. 1.58
Panamy. 20.80. 21.50
Cck 0.88. 0.94
Harta. 4.62. 4.89
Frequent in and out just made me lose even more and fell so bad when these stocks shoot super high. So I wanna change strategy that only sell my stock when their fundamental is no longer worthy to keep. Currently, the stocks in my portfolio are Panamy, prestariang, cscstel, Supermax and daya. Hope the bull will continue to run and let's ride the wave.
Stock. price purchased Price sold
Mahsing 1.82. 2.52
Tambun. 0.58. 0.68
Ytl 1.52. 1.58
Panamy. 20.80. 21.50
Cck 0.88. 0.94
Harta. 4.62. 4.89
Frequent in and out just made me lose even more and fell so bad when these stocks shoot super high. So I wanna change strategy that only sell my stock when their fundamental is no longer worthy to keep. Currently, the stocks in my portfolio are Panamy, prestariang, cscstel, Supermax and daya. Hope the bull will continue to run and let's ride the wave.
Friday, 10 May 2013
Timing the market
Haha....Again I think many had made a wrong prediction toward the KLSE last week. While many had thought that election will slump down the stock market like 308 last time since BN had the worse record ever, it turn out to be totally the other way round. Not only the index shoot up high, most of the stock especially government link counter achieved superb gains as well.
I myself had made the wrong call to sell off harta and prestariang at much lower price before the election compare to today's closing price. This wrong decision had cost me to lose 2k that should have gone into my pocket if I just let them be in my portfolio. Today, I bought back Prestariang at much high price.
Although this is the not the first mistake I made, I keep on repeating the same mistake where I always fail to control my emotion. Before this, I was very firmed about impact of election that normally just temporary. However, my confidence start to reduce after keep on reading about the high probability of changing government. I finally realise that its hard for us to time the market and fear normally play a huge role in our judgement. Therefore, I made a conclusion here that we should always buy when we fear the most while sell when we are happiest with our portfolio. This is much easier compare to making prediction on stock fluctuation.
I myself had made the wrong call to sell off harta and prestariang at much lower price before the election compare to today's closing price. This wrong decision had cost me to lose 2k that should have gone into my pocket if I just let them be in my portfolio. Today, I bought back Prestariang at much high price.
Although this is the not the first mistake I made, I keep on repeating the same mistake where I always fail to control my emotion. Before this, I was very firmed about impact of election that normally just temporary. However, my confidence start to reduce after keep on reading about the high probability of changing government. I finally realise that its hard for us to time the market and fear normally play a huge role in our judgement. Therefore, I made a conclusion here that we should always buy when we fear the most while sell when we are happiest with our portfolio. This is much easier compare to making prediction on stock fluctuation.
Tuesday, 7 May 2013
Another 5 years to wait.....
Well, what to do but to admit that we have to wait for another 5 years. Although many claimed especially Utusan that Chinese tsunami are the one to be blamed for such terrible result for BN. Why no one actually look at the result, the number suggest differently. According to the statistic, it clearly showed more than half of the voters voted for opposition. Therefore, what they said is again a lie to everyone.
Sunday, 5 May 2013
Casting the vote....
Well, this is my second time casting the vote. Still remember during the childhood time where election result was nothing to be excited about since normally its all ended up with the blue colour. Since I have casted my vote, I am really excited with what it will be tonight.
Its really simple to think and choose which one I really want. As a Malaysia Chinese, we have been long neglected. The Chinese party in previous ruling government simply cannot understand and plan for what we want. We simply want social justice. Although I am the third generation after my grandpa moved to Malaysia in the 1910s, I still wonder why we cannot be given the equal chance to perform ourselves.
To say for an example, I got 9As for my SPM in 2002 and I applied for matriculation. Why didn't I got it although its 10% quota for Chinese? In that year, only 3000 students from around half millions of students got straight As. Isn't it suppose to be the best who should be chose for the program? Why?
I continued my study to STPM and I got 2A2B or CGPA of 3.67, I knew I would be lack of choice since I already failed to get 4 flat. So I chose teaching and I got it. After graduated with fully English educated in teaching Maths and Biology. The PPSMI program which supposed to be a very well planned program to build a future generation with adequate knowledge of Maths and Science in English was abolished and replaced with MBMMBI. Why the government want to promote use in English but terminate such a good program? And come PBS in a rush that even from top to down don't know the proper way to carry out. So far, everyone just do what ever think was proper and this simply cannot help the education system to become better.
Have anyone wonder why some 20 years ago where straight As was so rare that usually if a school with any straight As, it would be considered as a miracles? All of sudden which I not sure started when, every year we witness thousand of straight As flooding the local universities. At one point, there were even straight 20+ As, news about Malaysian genius went across countries. But do you still remember who this people? Is this genius still famous today? The answer is simply not at all. Public examination standard had decline year from year as questions can be spotted and traced easily from past year as it simply just almost the same. How can students be tested on their thinking if question remained the same? And how can students with all Es in PMR still continue study to Form 4? With Education standard being so lose, its not something weird when we have a lot of unemployed graduates or graduates with low quality. How Malaysia going to compete with other nations that put so much effort on improving rather than keep on changing backward. I wonder why so I cast my vote hoping that there will be a better answer in next five years. I hope it will!
Its really simple to think and choose which one I really want. As a Malaysia Chinese, we have been long neglected. The Chinese party in previous ruling government simply cannot understand and plan for what we want. We simply want social justice. Although I am the third generation after my grandpa moved to Malaysia in the 1910s, I still wonder why we cannot be given the equal chance to perform ourselves.
To say for an example, I got 9As for my SPM in 2002 and I applied for matriculation. Why didn't I got it although its 10% quota for Chinese? In that year, only 3000 students from around half millions of students got straight As. Isn't it suppose to be the best who should be chose for the program? Why?
I continued my study to STPM and I got 2A2B or CGPA of 3.67, I knew I would be lack of choice since I already failed to get 4 flat. So I chose teaching and I got it. After graduated with fully English educated in teaching Maths and Biology. The PPSMI program which supposed to be a very well planned program to build a future generation with adequate knowledge of Maths and Science in English was abolished and replaced with MBMMBI. Why the government want to promote use in English but terminate such a good program? And come PBS in a rush that even from top to down don't know the proper way to carry out. So far, everyone just do what ever think was proper and this simply cannot help the education system to become better.
Have anyone wonder why some 20 years ago where straight As was so rare that usually if a school with any straight As, it would be considered as a miracles? All of sudden which I not sure started when, every year we witness thousand of straight As flooding the local universities. At one point, there were even straight 20+ As, news about Malaysian genius went across countries. But do you still remember who this people? Is this genius still famous today? The answer is simply not at all. Public examination standard had decline year from year as questions can be spotted and traced easily from past year as it simply just almost the same. How can students be tested on their thinking if question remained the same? And how can students with all Es in PMR still continue study to Form 4? With Education standard being so lose, its not something weird when we have a lot of unemployed graduates or graduates with low quality. How Malaysia going to compete with other nations that put so much effort on improving rather than keep on changing backward. I wonder why so I cast my vote hoping that there will be a better answer in next five years. I hope it will!
Thursday, 2 May 2013
Set up business or continue working?
As my mba study going to finish soon, I have always consider whether to change career or not. Although working life currently is very steady, life seem to be lack of something. To be honest to all, I am currently a maths teacher. I likes mathematics and teaching maths is not a trouble at all.
However, I hate the fact that salary is relatively low that whenever I heard some friends back from overseas, I always hesitate to share how much I earn. We used to be at the same level when we studied in the secondary and a choice I made in university lead me to a whole different world.
Teaching can be fun and interesting till you meet some stubborn students and a lot of paper work where it started to become a torturing career rather than enjoyment. Sharing of knowledge and experience become shouting and screaming at naughty students that just defeat the purpose of teaching.
Then I decide to explore whether there is any chance for me to operate my own business. The first I look into is franchising of some simple food and beverage with setting up fee less than 50K. Among those are Hot Roll, Daily Fresh and Soya Shop. However, I didn't see much competitive advantage of these franchise opportunity. Branded franchise with more recognition seem to be much more expensive to be invested in and this is much more risky as I have to take loans. This make me think twice and its still too early to decide anything. Will write some more over here next time, till then remember to go vote on this 5 May 2013.
However, I hate the fact that salary is relatively low that whenever I heard some friends back from overseas, I always hesitate to share how much I earn. We used to be at the same level when we studied in the secondary and a choice I made in university lead me to a whole different world.
Teaching can be fun and interesting till you meet some stubborn students and a lot of paper work where it started to become a torturing career rather than enjoyment. Sharing of knowledge and experience become shouting and screaming at naughty students that just defeat the purpose of teaching.
Then I decide to explore whether there is any chance for me to operate my own business. The first I look into is franchising of some simple food and beverage with setting up fee less than 50K. Among those are Hot Roll, Daily Fresh and Soya Shop. However, I didn't see much competitive advantage of these franchise opportunity. Branded franchise with more recognition seem to be much more expensive to be invested in and this is much more risky as I have to take loans. This make me think twice and its still too early to decide anything. Will write some more over here next time, till then remember to go vote on this 5 May 2013.
Wednesday, 1 May 2013
Supermax
Malaysian businessman Stanley Thai says he’s joining thousands of fellow
ethnic Chinese citizens in abandoning support for Prime Minister Najib Razak and
voting for the opposition for the first time in elections next month.
http://www.bloomberg.com/news/2013-04-25/malaysian-chinese-may-abandon-najib-as-fear-of-riots-repeat-ebbs.html
Hmm, I solute the Chinese tauke who dare to speak openly against BN for all Chinese in Malaysia. I myself were also unhappy with the system that treat Malaysian Chinese as if we were second class citizen. Therefore, to show a little respect, I bought in some Supermax yesterday.
Although still losing money now, I believe this year glove stock will outperform since H7N9 still around and it's just a matter of time before it spread to further part since the China authority still no idea of how exactly it's being spread and where is the source even though after one month. Reducing rubber price compare to previously and US dollar appreciate will definitely benefit Supermax that export a lot to US market.
http://www.malaysiastock.biz/Corporate-Infomation.aspx?type=A&value=S&securityCode=7106
EPS shows continuous good progressing while Supermax had reward well to its share holder. It will be not far from now before it declare their next dividend. Some more about Supermax can be found from klse.i3investor.com/servlets/stk/7106.jsp which provide detail disclosure on this firms.
“Why are the Chinese against the
government -- it’s simple,” Thai, 53, owner of medical glove-maker Supermax Corp.
(SUCB), said in an interview last month. “We don’t want our children to
suffer what we suffered, deprived from education, from career opportunities,
from business opportunities.”
Hmm, I solute the Chinese tauke who dare to speak openly against BN for all Chinese in Malaysia. I myself were also unhappy with the system that treat Malaysian Chinese as if we were second class citizen. Therefore, to show a little respect, I bought in some Supermax yesterday.
Although still losing money now, I believe this year glove stock will outperform since H7N9 still around and it's just a matter of time before it spread to further part since the China authority still no idea of how exactly it's being spread and where is the source even though after one month. Reducing rubber price compare to previously and US dollar appreciate will definitely benefit Supermax that export a lot to US market.
http://www.malaysiastock.biz/Corporate-Infomation.aspx?type=A&value=S&securityCode=7106
EPS shows continuous good progressing while Supermax had reward well to its share holder. It will be not far from now before it declare their next dividend. Some more about Supermax can be found from klse.i3investor.com/servlets/stk/7106.jsp which provide detail disclosure on this firms.
Share buy back long run impact
Like what I previously mentioned, I did a research on long run impact which is 3 years of tracking impact of share buyback to share price.
To my surprise, I found many of these share buyback company actually perform much lower than the benchmark which is the Kuala Lumpur Composite Index.
Out of the 270 companies found initiated share buyback program from 1999 until 2008, only 94 are found to outperform the market. Many of these companies eventually go privatisation after initiated share buyback.
Hmm, seem like its different from what I previously thought that the company are giving signal and possible for abnormal returns. Therefore, I need to research some more what can be real indicator of a company that going to outperform the market.
To my surprise, I found many of these share buyback company actually perform much lower than the benchmark which is the Kuala Lumpur Composite Index.
Out of the 270 companies found initiated share buyback program from 1999 until 2008, only 94 are found to outperform the market. Many of these companies eventually go privatisation after initiated share buyback.
Hmm, seem like its different from what I previously thought that the company are giving signal and possible for abnormal returns. Therefore, I need to research some more what can be real indicator of a company that going to outperform the market.
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