Tuesday, 25 August 2015

Money Games!

Monday, 24 August 2015

Have you taken your profit ?

When Major market like China, US, Europe etc drop more around 3-5% within a trading day, it is never a good sign! just imagine Dow Jones drop for more than 1000 points in the opening market today! which subsequently narrowed to 400 points ++. Luckily, managed to took profit earlier today for most of my portfolios. Let's increase cash position now till the FALLING KNIFE cease!

Friday, 21 August 2015

Don't forget to take PROFIT on the slump market!

Fears of a China-led global economic slowdown drove Wall Street to its steepest one-day drop in nearly four years on Friday and left the Dow industrials more than 10 percent below a May record.
Wall Street's selloff this week suggested investors are growing nervous about paying high prices for stocks at a time of minimal earnings growth, tumbling energy prices and an expected rate hike by the U.S. Federal Reserve that could gradually usher the end of almost a decade of easy money.
Stocks have seen few large moves this year, staying in a narrow range throughout 2015, but volatility spiked this month once China surprisingly devalued its currency. Weak Chinese manufacturing data on Friday, and another drop in China's stock market, rattled investors' nerves and led to Friday's tumble.
While this month's selloff has been swift, many analysts feel the declines may be close to being exhausted, with a turnaround possibly starting as soon as next week.
"If you're buying a stock, you're dipping a toe in here."
The Dow Jones industrial average closed down 530.94 points, or 3.12 percent, to 16,459.75, the S&P 500 lost 64.84 points, or 3.19 percent, to 1,970.89 and the Nasdaq Composite dropped 171.45 points, or 3.52 percent, to 4,706.04.
Next week, investors will focus on housing data, which has been strong of late, and the preliminary reading of second-quarter GDP, which could lead investors back towards riskier assets if they point to an improving U.S. economy.
The Russell 2000 index of small-cap stocks also confirmed a move into correction territory, marking a 10-percent decline from its most recent closing high on June 23.
The CBOE Volatility index, Wall Street's so-called fear gauge, touched its highest since October and notched its biggest-ever weekly percentage gain.
The S&P slumped 5.8 percent for the week, its biggest weekly decline since September 2011. The index lost more than $1 trillion of its value this week, according to S&P Dow Jones Indexes. Only 10 S&P 500 components advanced on Friday.
The selloff was broad, with all 10 major sectors in the red. The energy index dropped 2.6 percent as U.S. crude oil dipped below $40 a barrel for the first time since the 2009 financial crisis.
Many investors still anticipate the U.S. central bank will begin raising interest rates by the end of the year, but fewer of them expect a September hike after reading minutes from the Fed's July meeting on Wednesday.
Apple, still by far the most valuable U.S. company, fell 4.6 percent to $107.44, the biggest drag on the S&P and the Nasdaq.
For the week, the Dow dropped 5.8 percent and the Nasdaq tumbled 6.8 percent.
So, be smart when we invest! Do lock in the profit while you stock rise in a volatile market like this! There will be always chance to buy at lower price later on! 

Thursday, 20 August 2015

GO ! Go ! Go! Export based stocks!! Hevea , Hevea - wb ~20 % gain in a week, same go to SAM ~10% gain in a week despite the FALLING market!

Export stocks will do well in this bearish KLSE market

Author: Ooi Teik Bee   |   Publish date: Thu, 20 Aug 2015, 08:46 AM 

Dear valued readers,
Ringgit is > 4.00 to 1 USD now, we should continue to focus on export stocks. The strengthening of USD will help to improve the EPS or EBIT of the export stock. 
I will enclose the chart of the following stocks to show you the trend.
Export stocks
KLSE component stocks
Please decide yourself which sectors will you choose. We want to buy up trending stocks only, but not down trending stocks like most of FBMKLCI component stocks.
Final decision is yours.
Thank you.

Above are the comments from Mr Ooi Teik Bee! the veteran of the KLSE! 
He really sharp with his stocks selections! 
This actually apply to the stocks I have picked for myself, e.g :
3. SAM 

Seem likes our Hevea, Hevea Wb and SAM doing excellent this week!
Hevea RM 0.84 to RM 0.955 ( almost 20 % gain)
Hevea wb RM 0.65 to RM 0.72 ( almost 20 % gain)
SAM RM 4.45 to RM 4.85(~10%gain) 
can they go higher?
Don't forget to lock in some profit in the meantime. All the best folks!

I also wish to share with you something really important! 
why does people chase for wealth? It is not really the money itself... if you chase after money, at the end of the day, even you get millions, billions of dollar, you will still feel the emptiness if the money does not fulfill your need!
so what is the need that human tend to fulfill with their wealth?

Need 1: Certainty/Comfort

The first human need is the need for Certainty. It’s our need to feel in control and to know what’s coming next so we can feel secure. It’s the need for basic comfort, the need to avoid pain and stress, and also to create pleasure. Our need for certainty is a survival mechanism. It affects how much risk we’re willing to take in life—in our jobs, in our investments, and in our relationships. The higher the need for certainty, the less risk you’ll be willing to take or emotionally bear. By the way, this is where your real “risk tolerance” comes from.

Need 2: Uncertainty/Variety

Let me ask you a question: Do you like surprises? If you answered “yes,” you’re kidding yourself! You like the surprises you want. The ones you don’t want, you call problems! But you still need them to put some muscle in your life. You can’t grow muscle—or character—unless you have something to push back against.

Need 3: Significance

We all need to feel important, special, unique, or needed. So how do some of us get significance? You can get it by earning billions of dollars, or collecting academic degrees—distinguishing yourself with a master’s or a PhD. You can build a giant Twitter following. Or you can go on The Bachelor or become the next Real Housewife of Orange County. Some do it by putting tattoos and piercings all over themselves and in places we don’twant to know about. You can get significance by having more or bigger problems than anybody else. “You think your husband’s a dirt bag, take mine for a day!” Of course, you can also get it by being more spiritual (or pretending to be).
Spending a lot of money can make you feel significant, and so can spending very little. We all know people who constantly brag about their bargains, or who feel special because they heat their homes with cow manure and sunlight. Some very wealthy people gain significance by hiding their wealth. Like the late Sam Walton, the founder of Wal-Mart and for a time the richest man in America, who drove around Bentonville, Arkansas, in his old pickup, demonstrating he didn’t need a Bentley—but of course, he did have his own private fleet of jets standing by.
Significance is also a money maker—that’s where my dear friend Steve Wynn has made his fortune. The man who made Las Vegas what it is today knows people will pay for anything they believe is “the best,” anything that makes them feel special, unique or important, anything that makes them stand out from the crowd. He provides the most exclusive, luxurious experiences imaginable in his casinos and hotels—they are truly magnificent and unmatched in the world.

Need 4: Love & Connection

The fourth basic need is Love and Connection. Love is the oxygen of life; it’s what we all want and need most. When we love completely we feel alive, but when we lose love, the pain is so great that most people settle on connection, the crumbs of love. You can get that sense of connection or love through intimacy, or friendship, or prayer, or walking in nature. If nothing else works, you can get a dog.
These first four needs are what I call the needs of the personality. We all find ways to meet these—whether by working harder, coming up with a big problem, or creating stories to rationalize them. The last two are the needs of the spirit. These are more rare—not everyone meets these. When these needs are met, we truly feel fulfilled.

Need 5: Growth

If you’re not growing, you’re dying. If a relationship is not growing, if a business is not growing, if you’re not growing, it doesn’t matter how much money you have in the bank, how many friends you have, how many people love you—you’re not going to experience real fulfillment. And the reason we grow, I believe, is so we have something of value to give.

Need 6: Contribution

Corny as it may sound, the secret to living is giving. Life’s not about me; it’sabout we. Think about it, what’s the first thing you do when you get good or exciting news? You call somebody you love and share it. Sharing enhances everything you experience.
Life is really about creating meaning. And meaning does not come from what you get, it comes from what you give. Ultimately it’s not what you get that will make you happy long term, but rather who you become and what you contribute will.
Now think about how money can fulfill the six human needs. Can money give us certainty? You bet. Variety? Check. Obviously it can make us feel important or significant. But what about connection and love? In the immortal words of the Beatles, money can’t buy you love. But it can buy you that dog! And it can, unfortunately, give you a false sense of connection because it attracts relationships, although not always the most fulfilling kind. How about growth? Money can fuel growth in business and in learning. And the more money you have, the more you can contribute financially.

Wednesday, 19 August 2015

Market Trend.... Awaiting FED minutes on 19th August 2015!

What will the Fed Minutes on 19th August 2015 be? 

A long waited interest hike?

U.S. stocks fell for a second day as a selloff in emerging markets fueled concern global growth is slowing at the same time the Federal Reserve considers the path for higher interest rates.
Caterpillar Inc., DuPont Co. and Freeport-McMoRan Inc. paced declines as raw-material and industrial shares slumped more than 1.2 percent as a group. Chevron Corp. slid 2.3 percent and Marathon Oil Corp. lost 4.1 percent after a government report showed U.S. crude stockpiles increased.

The Standard & Poor’s 500 Index fell 1 percent to 2,075.34 at 10:54 a.m. in New York, falling below its average price for the past 200 days for the third time this month. The Dow Jones Industrial Average lost 197.39 points, or 1.1 percent, to 17,313.95, with all 30 components retreating. Trading in S&P 500 companies was 9 percent below the 30-day average for this time of the day.
“There’s a lot of uncertainty around the outlook for the market here,” said Walter Todd, who oversees about $1.1 billion as chief investment officer for Greenwood Capital Associates. “You’ve got the Fed meeting coming up. There’s still a lot of uncertainty around China. Earnings have been OK, but not great. You’ve seen the market bouncing around in the range lately. There’s a lack of clarity here.”
Emerging-market equities sank to a four-year low on concern investors will withdraw money faster as the Chinese economy slows. European stocks also followed suit.
Concerns about global growth are increasing as the Fed considers the timing of its first interest rate increase since 2006. Minutes from the central bank’s July meeting are due at 2 p.m. in Washington. Traders are pricing in a 48 percent probability of a rate move at the September meeting.

When its last meeting ended July 29, the Federal Reserve hinted that its first interest rate hike in nearly a decade was nearing. All it wanted to see was “some further improvement in the labor market” and more confidence that inflation will move back up to its 2% objective.
That got Wall Street thinking that the Fed would move at its September 15-16 meeting. Today’s release of the minutes of the Fed’s July meeting could offer more clues related to its rate hike “liftoff” timetable.

“At the time of the July meeting, there was a higher expectation that they would move in September,” says Kate Warne, investment strategist at Edward Jones.

Warne added that it would not surprise her if the minutes “reaffirmed the view” of a September hike “unless we see weak employment growth” in the August jobs report set for release Sept. 4.
But there’s a catch, she says: “Since the July meeting there’s been a lot more international turbulence.” Warne, of course, is referring to the market angst sparked last week by China’s decision to devalue its currency and the continued selloff in oil prices.
“The question will be: Does weakness in China and international disruptions make it more likely the Fed stays on hold, as in the past the Fed has commented on international conditions as weighing” on its deliberations, Warne says.

However, she still believes the Fed is more focused on domestic issues, such as the strengthening labor market and better growth numbers in the U.S.

Warren Buffet Speech during 2008 Financial CRISIS

A little history here: During the Depression, the Dow hit its low, 41, on July 8, 1932. Economic conditions, though, kept deteriorating until Franklin D. Roosevelt took office in March 1933. By that time, the market had already advanced 30 percent. Or think back to the early days of World War II, when things were going badly for the United States in Europe and the Pacific. The market hit bottom in April 1942, well before Allied f...ortunes turned. Again, in the early 1980s, the time to buy stocks was when inflation raged and the economy was in the tank. In short, bad news is an investor’s best friend. It lets you buy a slice of America’s future at a marked-down price.
Over the long term, the stock market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.
You might think it would have been impossible for an investor to lose money during a century marked by such an extraordinary gain. But some investors did. The hapless ones bought stocks only when they felt comfort in doing so and then proceeded to sell when the headlines made them queasy.
Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value. Indeed, the policies that government will follow in its efforts to alleviate the current crisis will probably prove inflationary and therefore accelerate declines in the real value of cash accounts.
Equities will almost certainly outperform cash over the next decade, probably by a substantial degree. Those investors who cling now to cash are betting they can efficiently time their move away from it later. In waiting for the comfort of good news, they are ignoring Wayne Gretzky’s advice: “I skate to where the puck is going to be, not to where it has been.”
I don’t like to opine on the stock market, and again I emphasize that I have no idea what the market will do in the short term. Nevertheless, I’ll follow the lead of a restaurant that opened in an empty bank building and then advertised: “Put your mouth where your money was.” Today my money and my mouth both say equities.

Friday, 14 August 2015

Further details about SAM ( Why SAM is a SURE WIN stock to invest? )

My golden rules are always: FUTURE GROWTH!

Reasons for SAM:

1. "Our huge aerospace order backlog stands at RM3.1 billion and it provides the thrust to grow our business to reach the RM 1 billion revenue." This is the order book for SAM, base on the annual report 2015! Main contributors is the CROSSOVER PROJECT! The Crossover project will continue to drive growth in thier aerospace business, which contribute to 80 % of SAM's Revenue.

2.  Sound really like Tony Robbins! Do you know what is the motto of the company?
"Our motto of “We are always above and not beneath, the top and not the bottom, the head and not the tail” is the stimulus for us to march ahead and stay ahead of the game in whatever we do. This is our “Driver”. Believing in it and making it happen. All things are possible to one who believes, as with Adidas “Impossible Is Nothing” and Nike “Just Do It”."

3. Increasing EPS especially recent quarters as boost by Stronger USD ( as for today 1 USD= RM 4.05 )

4. NTA RM 4.42. Float shares 0.69 % only. ( any increase in EPS or good news will propel the stock price to the sky! )

5. What is the company about?
The Group has three reportable segments, as described below, which are the Group’s strategic business units. The strategic business units offer different products and services, and are managed separately because they require different technology and marketing strategies. For each of the strategic business units, the Group’s Chief Executive Officer (the chief operating decision maker) reviews internal management reports at least on a quarterly basis. The following summary describes the operations in each of the Group’s reportable segments :

I. Aerospace           Provides a dedicated end-to-end manufacturing solutions on critical engine parts and other related equipment parts 

II. Equipment manufacturing     Provide an array of equipment engineering and solutions for commercial, semiconductor and other industries 

III. Precision engineering        Provides a dedicated end-to-end precision manufacturing solutions on engineering and high precision tooling including large format CNC machining parts 

OUTLOOK for year 2015

The Group’s aerospace business has grown, making up 69% of the Group’s total revenue. The equipment business has seen cycles of volatility and this segment of our business has remained weak last year. The demand for the aero-engine cases has stretched the utilization of our production machines to their maximum capacity. The aerospace business is expected to continue in its current momentum for the next few years barring any significant global economic event. 

SAM Engineering & Equipment is now a global brand and competing against established companies in the United States, Europe and other parts of Asia. With manufacturing facilities in Singapore and Malaysia, it has the capacity and capability to address the needs of the market. The significant order backlog for aerospace products reinforces our growth plans. For our equipment business, the strategy of expanding into the front-end semiconductor equipment arena has taken off quite successfully, winning projects that have high-entrybarriers. The Group is making significant progress as a specialty player in this segment of the industry. Although the demand for the data storage test equipment was still weak, the Group was able to register a revenue of RM452 million and profit after tax of RM34.6 million in the financial year under review. The profit after tax is an increase of 22% over the preceding year. 

The United States is registering strong growth while the European economies have significant downside risks at the moment. In the Asia-Pacific region, the growth rates of China and India are expected to converge to 5.5 percent growth on average from 2015-2019. Southeast Asia is evolving and will have the potential to become a global production hub. The IATA (International Air Transport Association) survey in April 2015 shows that airline profitability continues to improve. The positive outlook is supported by stronger growth in traffic volumes as well as lower fuel costs. Aircraft manufacturers are delivering new aircraft to airlines at increasing rates to meet demand especially for new aircraft models such as Boeing 787 and Airbus 350XWB. New launches of Airbus 320neo and Boeing 737Max are expected from 2017 onwards. This augurs well for the Group which has long term contracts to supply products for these new aircraft models. According to the industry analysts, the outlook for the semiconductor industry in 2015 is positive and the equipment market is expected to grow this year. 

The data storage devices are entering into a transition phase. For years, the hard disk drives (HDDs) held a commanding position simply because the solid-state drives (SSDs) were far more expensive. This is changing rapidly as the price differential between the two disk technologies has narrowed. The Group has been keeping abreast with this changing environment and positioning itself for the next wave. The public shareholding of the Group is at 27.05% as at the end of the financial year.

Thursday, 13 August 2015

What to expect in current Market?

How fast bank reserve had drop and Dr.Zeti intention not to peg and capital flow control. How to define market reaction on bank reserve drop below 100bil ? Monday gapping down forming daily weekly gapping down candlestick and continuious plundge down to first day bounding today. 

US Fed will hike rate in thie year which hints bank reserve will continuous to go further downward direction; this is why Dr.Zeti can't peg and capital flow control. They have to let them continuous fall down further without defending any ringgit currency. As a fund manager perspective, we are waiting ringgit to 4.10~4.30 this is safety margin entry point to invest in Malaysia market; entering now may exposr our unit trust fund to foreign exchange rate losses, equities losses, bond losses 3 side losses. Weekly update foreign fund flow chart by Yp indicate they are keep on selling to reduce 3 side losses. 

This is current situation. We foresee bank reserve and ringgit will continuous drop further onwards until Fed first time hike rate. From now onwards to Fed first time hike rate, Malaysia Currency, equities, bond will more volatile than usual. Liquidity of USDollar are able sustain in this year mentioned by Dr.Zeti today translate into no big crash happen this year support at PER10x 1500 support.

As for the Edge Market : 

The ringgit weakened to a new level against the US and Singapore dollar today after crude oil prices fell below US$42 (RM171) a barrel in overnight trades.
Today, the ringgit depreciated to a fresh level against the US dollar at 4.1270 and 2.9346 versus the Singapore dollar. Earlier, the ringgit opened at 4.0201 and 2.8697 against the US dollar and Singapore currency respectively.
The ringgit's strength correlates with crude oil prices as the commodity forms a crucial component of the Malaysian economy.
Reuters reported that US crude oil prices remained close to their lowest in over six years early on Friday, as rising US stockpiles stoked oversupply and on worries over demand from slowing economies in Asia.
US oil prices tumbled more than 3% to a 6½-year low under US$42 a barrel on Thursday as data showing a big rise in key US stockpiles intensified concerns over a growing global glut.
In Malaysia, AmBank (M) Bhd wrote in a note it remained unclear how far the ringgit would likely depreciate against the US dollar given Malaysia's plunging external reserves, looming US interest rate hikes, ongoing decline in crude oil prices and the devaluation of China's currency.
AmBank argued that the ringgit was not fundamentally flawed but suffering from bad sentiment.
"Concerns are resurfacing if Bank Negara may reintroduce currency peg to curb speculative pressure.
"Our macro and market analysis detects no major stress signs to suggest for ringgit peg possibility. Compared to the 1997 and 1998 Asian financial crisis, the depletion of foreign exchange reserves is more severe this time but we take comfort from stability in industrial production and M1 (money supply) growth," AmBank said.

Wednesday, 12 August 2015

Invest in SAM RM 4.6 ( Congratulation for those bought hevea yesterday! > 10 % gain in 24 hours!!!!)

Invest in SaM!
FUTURE growth!!!!
1) Strong order books of RM3billions keep thecompany busy until 2026
2) Management determination - Become globalplayer with annual revenue more thanRM1billions
3) Strong balance sheet -RM103millions cashwith zero borrowing, dividend yield of 4.14%
4) Reputable customers, GE Aviation. subsidiaryof General Electric, which is listed companyin Dow Jones index
With Months Low at 4.6, its definitely a burgin buy!!!
Just analyse and annualise its eps 18 cent x 4= 72 cents, giving a PE almost 6 ONLY!!!!
Why not?

Why SAM? Order book of RM3Billions and pure cash company (RM103Millions)- (TP:RM10.95)

Author: itjustabouttheprofit  

1) Strong order books of RM3billions keep the

company busy until 2026

From the Star report as at 8 September 2014, the company already have RM2billions orderbook on September 2014

Refer to the link above, Avitron Pte Ltd, wholly-owned subsidiaries of the company have received RM450millions contracts from GE Aviation on 26 May 2015 and RM900millions contracts from GE Aviation on 17 June 2015. These brought the company currently stood at RM3billions order book.
Calculations are as follows:
Total order book as per Sep 14           2,000,000
Revenue as per 30/09/2014             (112,328)
Revenue as per 31/12/2014             (113,542)
Revenue as per 31/03/2015             (132,493)
New contracts on 26/05/2015               450,000
New contracts on 17/06/2015               900,000
Total order book as per 17/06/2015           2,991,637
The order book of RM3billions will keep the company busy until 2026.

With the RM3billions order book, the company will able to maintain revenue for the latest quarter, which is RM132million for 5 and a half year!!! (5.5 x 4 x 132 = RM2.904billions)

2) Management determination - Become global
player with annual revenue more than

Refer to the annual report 2014, the company management planned to target annual revenue of RM1billions in the next 2 to 3 years. For year 2015 (up to 17/06/2015),the company have received order book of RM1.35billion (as stated above). These marked the management determination to archieve the target annual revenue of RM1billion, which is 121% inceased in total revenuefrom rolling revenue for the past 4 quarters!! From The Star news above, the management also stated that they are targetting to become the leading player in Asia Pacific in aerospace industry.
3) Strong balance sheet -RM103millions cash
with zero borrowing, dividend yield of 4.14%

As per latest quarterly report, the company held RM103millions of cash and cash equivalents, which is RM1.23 per share!! Other than that, the company have zero bank borrowing and RM79million of trade and other payables. Net assets for the company stood at RM4.46 per share.
Also, the company have declared RM0.1725 per shares of final and special dividends during 2014, which translated to 4.14% of dividend yield. For financial year 2015, the company expected to declare the dividend during July 2015, which is one month from now. As the company's profit grew for current financial year, hence we expected a better dividend payout for this year.

4) Reputable customers, GE Aviation, subsidiary
of General Electric, which is listed company
in Dow Jones index

The main customer of the company, GE Aviation, which is among the top aircraft engine suppliers and offers engines for the majority of commercia aircraft in the world.
GE Aviation is one of the subsidiaries for General Electric Company which is listed in the Dow Jones Index (top 30 largest company in term of market value in US).
According to the quarterly report for General Electric Company. GE Aviation have contributed USD24billions revenue during financial year 2014 for General Electric Company. 

5) Strong currency exchange against ringgit lead
to increase in total revenue

As most the contract signed in US dollar (refer to the attachment for the latest contract on 17 June 2015 and 26 May 2015), we expected the total order book will increased (in term of ringgit) as ringgit have been depreciation about 10% to 20% during 2015.

Trade at your own risk!!! Do research before any investment decision!! Happy trading :-)

Invest in Hevea RM 0.83

Invest in Hevea again! RM 0.83
When everyone is fearful, it is time to invest!
Why the market drop?
- The FBM KLCI fell 26.78 points as the ringgit weakened above 4.0000 versus the US dollar on continued foreign selling after China devalued its currency. China's move had routed Asian share markets and currencies.
-For now, it is still uncertain how much the ringgit will weaken further against world currencies as prospect of US interest rate hikes this year led to demand for US dollar-denominated assets.
-China's move to devalue its currency may also prompt Asian central banks to do the same to ensure export competitiveness.
- Political instability in Malaysia??
- Foreign investors Running Like Hell in last 3 days!
Nevertheless, fundamentally for Hevea
1. last EPS 4.5 cents ( base on 1:4 split), if we annualise its eps 4.5 x4 (18 cents ) , giving its latest PE <<< 10!!
2. not to forget the rise of us dollar is actually a boost for its EPS!
well, when is the best time to enter current market in view of huge in volatility? I don't know... but, you can buy in stages any stocks with good prospect according to your own judgement.

sharing from Mr Koon Yew Yin:

Lesson for the failures in Share Investment - Koon Yew Yin

Author: Koon Yew Yin   |   Publish date: Tue, 11 Aug 2015, 08:45 AM  

First of all, you must truthfully examine your own track record to see your performance in share investment. If have not been successful, you must change your method of selecting shares. If your selected shares continually cannot go up in price, it means that you do not even know the basic fundamentals in share selection. You must read all my articles I posted in i3investors.com, bearing in mind that there are a few failures whose commentaries are abusive and senseless. They cannot even write without some grammatical errors. They must seriously examine their own track record.
Most important share selection criteria:
There are many stock selection criteria such as NTA, dividend yield, cash flow etc. The most important is profit growth prospect. Earning per share, EPS growth is the most powerful catalyst to move share price. The reason why Latitude Tree went up from Rm 1.00 to above Rm 7.00 in the last 26 months is because its quarterly profit as announced in Bursa has been increasing continuously. It went up yesterday when KLCI drop 28 points.
Now you must check all your current holdings. You must make sure that they can make more profit this year than last year, otherwise the price will drop when they announce reduced profit for the year. If you are not sure that some of your holdings will make more profit this year than last year, you must not be afraid to sell and cut loss.   
Emotion overtakes logical thinking: 
If you have been selecting shares with good fundamental qualities and yet you could not make money, you have to examine your behavior when the market is up or when the market is down. Do you dare to buy now when the market is plunging? Yesterday, 10th Aug 2015, the KLCI dropped 28 points. Are you selling your shares even they are really good shares?
Did you sell to make profit when the market was euphoric, people were buying like crazy? If you did not, you have to seriously control your emotion. You must make sure that your emotion will not control your logical thinking.
With most major decisions in life, emotion overtakes logical thinking. As a result, most investors including professionals cannot perform. They are called “irrational investors”.
To be a successful investor, you must overcome your emotion and be able to think logically. You must have the guts to go against the crowd and be a contrarian investor. You must dare to buy while others are selling desperately and you must dare to sell when others are eager to buy aggressively.
Share prices move up and down like a yoyo: 
Finally, the most important and rarest quality of all, is the ability to live through volatility without changing your investment thought process. This is almost impossible for most people to do. When the chips are down they find it hard to sell their stocks at a loss. They find it difficult to average down or to even put any money into stocks at all when the market is going down.
People don’t like short term pain even if it would result in better long-term gain. Very few investors can handle the volatility required for high portfolio returns. They equate short-term volatility with risk. This is irrational. Risk means that if you are wrong about a bet you make, you lose money.
A swing up or down over a relatively short time period is not a loss and therefore not risk, unless you are prone to panicking at the bottom and locking in the loss. But most people just can’t see it that way. Their brains won’t let them. Their panic instinct steps in and shuts down the normal brain function. Their emotion controls their logical thinking process.
My advice: You should not invest in shares
  1. if you cannot control your emotion and sell desperately now as if the market cannot rebound.  
  2. If you cannot understand the quarterly report announcement in Bursa.
  3. If you cannot understand the company annual balance sheet.
  4. If you cannot afford to lose some money because share investment is risky.
  5. If you are always too busy and have no time to review your share holdings.
  6. If you cannot understand what is P/E ratio, NTA, Cash flow, dividend yield etc.
  7. If you could not appreciate all my articles I posted in i3investor.com.

Friday, 7 August 2015

Hevea Wb : slowly but SURELY WIN!

Invest in Hevea wb!
When everyone is fearful, it is time to invest!
Today when there was a panic selling in KLSE, Hevea wb drop lowest to RM 0.71. It is a great opportunity to collect! Why?

Why did I select this share?
In view of our Ringgit at its 16 year low, I focus on companies which export their product for US$. Hevea and Pohuat ( Last entry at RM 2.00) are the 2 leading furniture companies which export almost all their products in US$. If you frequently check from Bursa the quarterly results of companies those you have an interest in. As soon as you see a company reporting a sudden jump in profit, it is time to study its business more carefully and check its future profit growth prospect.
Golden Rule: I will not buy if I am not sure it can make more profit this year than last year because when the annual result shows reduced profit, the price will not go up. You must increase buying when you see the profit is improving from quarter to quarter. Especially so when market selling you at a discount when market pull back! Always look at the future profit growth prospect. 
Then what you need to do is WAIT! 
just like what happened to my darling Pohuat! 












On behalf of the Board of Directors of POHUAT ("Board"), RHB Investment Bank Berhad wishes to announce that the Company proposes to undertake the following proposals:-
  1. a share split involving the subdivision of every one (1) existing ordinary share of RM1.00 each in POHUAT into two (2) ordinary shares of RM0.50 each in POHUAT ("POHUAT Share(s)" or "Share(s)") held on an entitlement date to be determined later ("Proposed Share Split");
  2. a bonus issue of up to 56,693,552 new warrants in POHUAT ("Warrant(s)") on the basis of one (1) free Warrant for every four (4) POHUAT Shares held on the same entitlement date as the Proposed Share Split to be determined later ("Proposed Bonus Issue of Warrants"); and
  3. amendments to the Memorandum and Articles of Association of POHUAT ("Proposed Amendments"). 
Further details on the abovementioned Proposals are set in the attachment

This announcement is dated 7 August 2015.  

What happened next? it shoot up to the sky RM 2.93 when all other shares are in red!
So, overcome your FEAR and take action! 

What is Fear?

NO ARMS, NO LEGS, NO FEAR ( a small story from Nick Vujicic )

You may have a strong sense of purpose, great hope for the possibilities in your life, faith in your future, an appreciation for your own value, and even a great attitude, but fear can hold you back from achieving your dreams. There are many handicaps worse than having no arms and no legs—fear can be especially debilitating. You cannot live a fulfilling life that fully expresses your blessings if fear controls your every decision.
Fear will hold you back and keep you from being who you want to be. But fear is just a mood, a feeling —it's not real! How often have you feared something —a trip to the dentist, a job interview, an operation, or a test in school—only to discover that the actual experience was not nearly as bad as you had imagined?
I thought I would get creamed in my first-grade fight with Chucky-boy, but look how that turned out! All too often adults revert back to childish fears. They go back to acting like kids frightened at night because they imagine that the tree limb scraping the bedroom window is actually a monster trying to eat them up.
I've seen fear absolutely paralyze otherwise normal people. I'm not referring to scary movie fears or childhood tears of bumps in the night. So many people are handicapped by fear of failure, fear of making mistakes, fear of making a commitment, even fear of success. It's inevitable that fears will come knocking on your door. You don't have to let them in. You send them on their way, and then go on yours. You have that choice.
Psychologists say most fears are learned. We are born with only two instinctive fears: fear of loud noises and fear of being dropped. I had a fear of being mauled by Chucky back in the first grade, but I got over it. I decided that I wasn't going to wait until I felt brave—I just acted brave, and in the end I was brave!
Even as adults we create fearful fantasies that simply don't match up to reality. This explains why fear is often described as "False Evidence Appearing Real." We become so focused on our fears that they become real to us—and as a result, we let them control us.
It's hard to imagine someone as big and successful as Michael Jordan being afraid. Yet during his induction into the NBA Hall of Fame, Jordan talked openly about how he often used his fears to drive himself to be a better athlete. At the conclusion of his speech, he said, "One day you might look up and see me playing the game at fifty. Oh, don't laugh, don't laugh.
Never say never. Because limits, like fears, are often just an illusion."
Jordan may have been a better basketball player than life coach, but he had a point. Follow the Jordan rules; recognize that fears are not real and soar past them, or put them to use. The key to dealing with your worst fears, whether it is fear of flying, fear of failing, or fear of relationships, is to recognize that the fear is not real. It is an emotion, and you can control your response to your emotions.
I had to learn this lesson early in my speaking career. I was very fearful and nervous. I did not know how people would respond to what I had to say. I wasn't sure they'd even listen to me. Fortunately, my first speaking engagements were to my fellow students. They knew me, and we were comfortable with each other. Over time I began speaking to larger youth groups and churches with only a few friends sprinkled into the crowd. Gradually I overcame my nervousness and fears.
I still experience fear when I am called to speak to many thousands of people, sometimes tens and hundreds of thousands. I go into remote areas of China, South America, Africa, and other parts of the world where I have no idea how people will receive me. I'm afraid I'll tell a joke that means something entirely different in their culture and they'll take offense. I use that fear to remind myself to always run my speeches by my interpreters and hosts before
I risk embarrassment.
I've learned to welcome my fear as a source of energy and as a tool to focus my preparations. If I'm afraid of forgetting my speech or messing something up, it helps me concentrate on reviewing and practicing my presentation.
Many fears are useful in that way. For example, it is a good fear that motivates you to snap on the seat belt because you don't want to be injured in a car accident. If your fear of catching a cold or a flu inspires you to wash your hands and take vitamins, that's good too.
Too often, though, we allow our learned fears to run amok. Instead of simply taking precautions to avoid catching a flu or cold, some people take it to an extreme by locking themselves in their homes and refusing to go outdoors. When our fears keep us from doing all we can do or from being all we can be, they are not reasonable.