Investment Idea - Aug 2012

Time running fast, it's August again. Currently, I am using Thailand's link to online and checking stock on US Market. (quite surprise, the free wifi is very fast) I am thinking it would be good for me to send you message just to share my opinion, while having a holiday so that you all can plan ahead on the weekend. Similar to past few months, US stock market still stay at almost all time high level. We should appreciate this environment, not too hot and not too cold either. I don't like if the environment become too hot, as the burble easily get burst if too hot!

Back to local stock market, last month is very exciting, as we have seen how Felda and IHH IPO flying high. Both stock gave investors a handsome profit, especially those strike the IPO. We can expect the next IPO, Astro and Mid Valley will be the same, so be prepared!

Trading in stock market is not easy, many investors has burnt due to lack of experience. The most common one is they cut the profit (sell the uptrend stock too soon) and let the loses run (hold the down trend stock hoping it will recover). There's why I always suggest investors should learn the basis first before buy and sell stocks, instead of just simple buy any shares.

Back to basic, investor should buy the investment grade stock. If you do a mistake with investment grade stock (buy too high the price), you can still hold the stock as it will recover. (because of their business is growing year after year, so no need to afraid) This is the reason I always urge investors to buy only good stocks.

One more example, if I ask, how much dividend do you receive from your stocks? If the answer is “No” or “not much”, then maybe you are not buying the good stocks. Many times, when stocks give good dividends, investors will rush to buy, hence, the price will increase year after year and no need to worry about it.

There is all for now, I just reach Thailand few hours ago and will stay here for this week end. For those serious investors, you can drop me an email, we have the latest iTrade version where you can view the 5 years financial report with technical chart. I may not able to reply you email on week end, but will let you know by next week for the details.

Investment Idea - Jul 2012

Good Day! We are in the month of Jul 2012, overall, all major stock exchange perform very good! Noise from Europe did not give any impact, from US to Hong Kong, all managed to perform well and record almost all time high level, Dow Index closed at 12,944 points yesterday!

What happen in Malaysia last month?

June was a very exciting month for Malaysian, many of those stocks that I managed to buy were making handsome profit, especially GCB, MISC, Harta and MBM, except for Genting. Genting will follow the uptrend sooner or later. I am not recommend any stock for this month, as those uptrend stocks are enough for investors to perform the trading.

Also, I want to congras those who strike the Felda IPO (FGVH), as per major news paper, it delivered very handsome profit of 20%. If you missed the boat, doesn't matter, we have another one coming soon, IHH. (Integrated Healthcare Holdings)

Who is IHH?

In Malaysia and Singapore, most people know Gleneagles, Pantai and Parkway, but seldom people know they are part of IHH, the International Hospital chain. IHH have plan to build another 17 new hospitals by 2015, this will make it the largest listed hospital group in the world! You know how hospital relate to population, the fact is our life start with Hospital, along the way and till the end. Another selling point, IHH will list at Bursa and Singapore Stock Exchange at the same time, added point for foreign investors, as the shares are fungible. Ok, no more advertisement, for more details, just visit their web: http://ihh-healthcare.com

My opinion,  go ahead and apply this IPO, this is Boleh Land, don't worry, be happy!  

Why Rich like to Invest?

IHH will allocate portion of fund for those patients who required financial assistance to access the benefit from IHH world class doctor and medical facilities. Investors feel proud, especially the rich one, even if they don't make money from this investment. This is the opportunity for those who want to participate in the potential growth and wait for the handsome reward! If you want to get rich, focus on making, keeping and investing your money! Happy Investing!

Investment Idea - June 2012

Here come mid of 2012, the past few weeks, US market experience minor correction. This has created some panic selling especially Hong Kong and Singapore stock market. However, in “Boleh Land”, if you know how to invest, in fact, you can make money, I will share with you later.

What Happen in Malaysia 

Since the FaceBook IPO, many countries already stop or delay the large IPO. However, here Malaysia, we are still planing for Asia's biggest IPO this year, Felda. Many want to find out if Felda can make money or not.   My advise, go ahead and apply this IPO, this is Boleh Land owner's IPO , don't worry, be happy!   The closing date for this IPO is 12 Jun 2012 before 5:00pm. (Felda may not be the best plantation stock, but you can consider sell it and switch to some other better stock if you strike the IPO)

Last week, one of my friend told me he want to sell Maybank stock. Then i ask him for the reason. You know what, he told me, because General Election is coming. So, he want to sell first and buy later when the share price fall. How can one so sure that Maybank stock will fall in next few weeks? I can confidently tell you, if Maybank stock price go down, I will buy some more to keep. (don't forget, here is Boleh Land, you need to know which stock they want to control) The other reasons, you can read from my blog: http://bursastory.blogspot.com/

How Investor can maintain consistent income? 

As usual, i always invest in the stocks that give consistent dividend income. I have been sharing with all my clients my investment portfolio. In fact, every down turn in the market, my portfolio still keep on growing. You may ask, how can this be possible? Well, because good company is very difficult to find, since many people want it, for sure the price will keep on growing.

Let me share with you what are my part time income on April 2012:

Axreit: cash dividend RM972

Dlady: cash dividend RM2,600

Sime: cash dividend RM1.90

NCB: cash dividend RM100

Yesterday, I just got my Maybank cash dividend of RM1,139 and free share 1,136. I have sold 1,000 shares of Maybank, not because Maybank turn bad, but I want to free up some cash to apply for Felda IPO.

Last, I want to share with you the purpose of investing.   The purpose of investment should be growing our asset and have a happy life.   Many people thought that investment is making fast money, so they trade and trade every day. They want to make fast money and fear of stock price falling, as this will make them sleepless. In fact, I want the stock price to go down, so that I can have an opportunity to buy the value of $1 for the price of 50 cents only.

I wish you all have a Happy Life through investment in stock market, that's why I always end with the word,   Happy Investing!

Investment Idea - May 2012

Greeting! We are now almost at the half of 2012! US stock market continue the up trend, the Dow Index back to 13,000 points again. However, it show slightly weaker over the last few week. When I review my record, in fact, 2007 Dow Index already break the 13,000, seem today it's back to square one! There's one popular quote, “sell in May and go away”, hence, be watch out for this month!

 

 

Build Investment Strategy - for Long Term Investor

If you don't have proper investment strategy, after few years, some may realize that their investment is back to square one. Some even make a negative return! The very first rules in any investment is protect your capital, once you know the way, making money is not a problem anymore.

Let me share my experience for Investment Strategy on Maybank.

1. Purpose – write down the purpose, for example, mine is to find the good company that consistently distribute the profit to share holders with at least 2 times better than FD and at the same time the company is growing.
2. Measure – now I know bank's FD rate is 3.5%, so 2 times mean 7%. When I screen through all the blue chips, Maybank is one of the best company to fit the purpose. With this way, we can know if the stock is under or over value. For instant, Maybank gave 60 cents of dividend, if current market price is RM8.60, then it's equal to DY of 6.97%. If Maybank at RM8.20, the DY is 7.31%, (very attractive price!)
3. Review – after measured, we can review or change the plan accordingly if require. For example, if the market price up till too high, or when the DY become very close to FD rate, then I may consider to sell some of the shares. Similarly, I will plan for buy order if the price become very attractive.
4. Weaknesses - we need to know, when economy look promising, bank's profit will double. However, if economy turn bad, it's profit will badly hit. That's why we need to look for something very big like Maybank in order to sail through the bad time.
5. Strength – Maybank having clear dividend policy of distribute 40 to 60% of profit as dividend. Also, it's one of the only 3 company in Malaysia that provide the Dividend Reinvestment plan, where share holders can opt to buy Maybank's share at 10% discount from the market price!

Investment Idea - April 2012

Greeting! We have another good month, US stock market is making high record. Malaysia Market, KLCI also record all time high of 1600 point! While there are many who believe “global economic collapse”, we might need to think “the sky really is falling” or “the sky is in danger of falling”.

I always like to say, “Do Not Predict the Market”. Predict the market is wasting your time, as nobody can actually predict it. What we need to do is find out the trend and ride on it. The trend could be stock price trend or company's profit trend. I like the profit trend of the company, especially the earning trend which keep on increasing every year.

While most people like to save Money or buy property, I prefer to save the “Investment Grade Stock” and I suggest you to do so. In the long run, if you “save” the right stock, you can see the money double in few years. One stock that I have ask you to buy two years ago already double in price and other few stocks also grow about 60% in last 2 years.

Now, you may ask, what's the stock you recommend to buy? My answer is simple, look for plantation stock. The logic is, on last December, CPO price was about RM3,000/ton, currently CPO is around RM3,500/ton. Hence, plantation stock will doing very good in next three months. (however, plantation stock is cyclical stocks, once the CPO price start to go down, you know will need to decide what to do!)

Market is created for you to make money! If you like to play short term with speculate stock, remember to use trading plan, you should never try to “save” the speculate stock if the price fall below your buying price. Cut lose with small amount (usually 7 to8%) is a wise move to protect the capital. If you lose the capital, it's very hard to trade anymore. Also, only trade the stock with trend in the move. Once the trade is moving down, cut lose, take a rest and wait for the trend to move up again.

Let your winning trades run and limit your losses. 

Remember, never let your loses grow bigger, but let your winner grow bigger if possible.

Investment Idea - Mar 2012

Time is running fast! Here come March 2012. How's the market doing?

Very good.... this is the only answer when you see NYSE, Hong Kong, Singapore stock market, almost all maintain at their historical high level.

While many investors still worry about the high oil price and Europe problem, there seem to be no impact to many of the stock markets. This is the indicator that the market almost discounted all the bad news and there are ample of hot money flying around.

Local stock market, right now all the funds are waiting for the Felda to be listed. This is the must have stock to many fund managers as this is the largest plantation stock in the world. Hence, you will see many GLC stocks moving high now and in the next few weeks the rotation play will going to happen.

While waiting for all these thing going to happen, we have one breaking news from Taiwan. "Bird Flu" is coming to town again, so you know, if history going to repeat, the glove sector will move. So, we expect Harta, Supermx, TopGlove and Kossan  and few others going to move in this cycle, don't miss the party.

That's all for now. Happy Investing!