Investment Idea - Nov 2012

Greeting! We are in the second last month of 2012. Today is another Malaysia Holiday, hence in the midst of enjoying the holiday, I am thinking it would be good to give a brief update on what's happening in current market. Last month, US Dow index went as high as 13,610 point but today, the index is around 12,571. It's clearly this is a minor correction. However, my view is this create a opportunity for us to invest into “Great” company, if you plan to invest for long term.

Inflation or deflation better?

Some people blame the government that causing the inflation. For example, few years ago, with RM3, I can have a good breakfast. Today, I need to spend about RM6, to have a breakfast at McDonald. Many start to think, how nice if the price start to decrease... things just get cheaper, sound great? If this happen, the problem is your house value will go down, and your salary will go down as well. Assume you borrow $400k to buy new house, then 3 years later, the value become $300k but you still need to repay loan of $400k with the lower salary now, would you happy with it? This is what happened in Japan few years ago – deflation, which causing the changing of government. Since then, all the government in the world learn the lesson, try to print more money (to cheat people in a way), make everything goes up in price, so the houses value rise, people's salary increase, they feel more happy with inflation!

Why 90% of people lose money in stock market?

About 90% of people make a lot of money by investing in property, thanks to the inflation. However, it's less than 10% of people making money in stock market, if you are not in the 10%, then something could be wrong with your investment strategy.

For long term, only “Great” company will benefit from the inflation, remember, not simply choose any company for long term. You need to choose the company to invest, seriously and carefully.Few years ago, I recommended people to invest in Nestle and 2 years back in Dlady, these companies are great example for long term investment, the share price just go higher every year. You may email me if want to find out next company in this category.

The great company can be invest anytime, their price is hardly fall (because of inflation and growing population), hence any price correction is the best time to invest. Not long ago, I meat with a fried who bought Dlady's share 2 years ago and I thought he make a lot of money. However, he told me, no, he only make small money even Dlady's share price up by 300%. Why? Because he already sold the shares when the price up by 50%... The reason is he fear of choppy market especially follow by the news about Europe problem! This is another mistake, sell the great company too fast, great company need time to grow! Since the purpose of this investment is for long term, don't border about short term noise or news, you should use the bad news as your advantage to buy (if the price go down) but not as a reason to sell.

Long term means never sell, similar to holding the property asset!

Then another question come, should you sell Dlady if the price hit RM50 or Nestle hit RM70? My answer is NO. You should try to hold the great company as long as you can if the business continue to grow and the dividend continue to increase every year! I will consider to buy more if the price really fall! (never think of you try to sell Dlady at RM50 and buy it back at RM45, the tactic for short term is correct but for long term strategy is wrong!)

Short term investor can trade CIMBC25

The above is mean for long term, if you would like to trade for short term, then I recommend CIMBC25. You can refer to my previous email for details of CIMBC25. The price movement is slow and steady, currently is making the down trend movement, I am just waiting for the suitable time to buy. (CIMBC25 is for short term, hence, don't mix up with strategy for Dlady or Nestle)

Happy Investing!

Investment Idea - Oct 2012

US is printing the money, but no impact to the stock market?

 US government plan to print money again, another QE3, market observer expect Dow Index continue to climb higher. However, Dow Index did not make high record after the announcement as what we had seen when QE2 announcement. Seem the market is waiting for next indicator to spark the movement. My thought is, the Bull now a bit tired (after 3 years and 7 months), it could due for correction anytime soon. What would be the investment strategy for last quarter of 2012?

Sales strategy for Astro IPO

For Bursa Malaysia, Astro IPO will list on 19 Oct 2012. Everyone is talking about it now, I suggest those who strike the shares, use the strategy similar to Felda IPO. The idea is sell on 1^st or 2^nd day after listing. (just check on the price of Felda on 1^st day of listing and compare with the price today, you will understand why) This is the strategy we use when anticipate market at the high level.

Try to avoid Malaysia Stock for next few months

The next 6 months, something BIG may happen in Malaysia, in view of currently high level, my advise is try not to buy any Malaysia stock for the time being. If something happen, there are a lot of opportunity for you to buy at low level. However, high dividend stock is not a problem for you to hold on.

China Stock market + an opportunity
 

While Malaysia and US stock market are near the high level, China stock market was actually on the down trend for the past 2 years. Recently, we noticed that China stock market seem to stable and did not break lower low anymore. It may be a good idea if you can invest into China stock market and I do believe if US market crash, China will benefit from it.

If you want to invest into China market, I recommend CIMBC25 (ETF, stock code 0823EA, list on Bursa). Technically, invest in CIMBC25, you actually own 25 China blue chip stocks list on HK Exchange. (I have been trading on CIMBC25 for the past one years) If you know how to make use of 5 to 10% monthly movement (depend on your skill) combine with creative trading, then making money with this single stock is not a problem. I just sold some unit last week, you may refer to my trading record as below:

https://docs.google.com/spreadsheet/ccc?key=0AoGWjHCeLl9rdFU2TzZvbVV1OXBsUi1ZSnRRNVVKRGc

Again, I want to remind, one man's meat is another man's poison. If you have NO idea how trade CIMBC25, please observe first, if you just want to buy and hold, then should not buy this stock, for details, you may refer to my blog as below:

http://bursastory.blogspot.com/p/cimbc25.html

Do write me an email if there's any query. Good luck and Happy Investing!

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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.