Ringgit opens lower versus US$

KUALA LUMPUR: The ringgit opened lower against the US dollar on Thursday as the greenback firmed after the Federal Reserve open market committee's statement  raised expectations of an interest hike in December this year, dealers said.

At 9.06am, the local unit was quoted at 4.2920/3010 against the dollar from Wednesday's 4.2670/2770.

The ringgit was also lower against other major currencies except for the British pound.

It was down versus the yen to 3.5550/5640 from 3.5437/5535 on Wednesday, slid against the Singapore dollar to 3.0589/0671 from 3.0537/0631 and declined vis-a-vis the pound sterling to 6.5505/5668 from 6.5272/5442 yesterday.

The local note appreciated against the euro to 4.6813/6928 from 4.7125/7239  on Tuesday. - Bernama

Perhaps buying into property counter would benefit in the long run?

While the property market still pose no optimistic, perhaps buying into property counter would benefit in the long run as some of it has dropped below the fair value of the company(buy when others are fearful?). Somehow, take a look at these posted few days back L&G & GOB. Both have significantly increased for the pass few days(less than a month). 

Even fund manager are started to looking into this sector currently... Top fund buys property stocks at ‘bargain’ prices

Look's like is time to do some research in property counters :)

Fisher's 15 Points In Fundamental Analysis

All good principles are timeless, and Fisher's famous "Fifteen Points to Look for in a Common Stock" from Common Stocks and Uncommon Profits remain as relevant today as when they were first published. The 15 points are a qualitative guide to finding superbly managed companies with excellent growth prospects. According to Fisher, a company must qualify on most of these 15 points to be considered a worthwhile investment:

1. Does the company have products or services with sufficient market potential to make possible a sizable increase in sales for at least several years? A company seeking a sustained period of spectacular growth must have products that address large and expanding markets.

2. Does the management have a determination to continue to develop products or processes that will still further increase total sales potentials when the growth potentials of currently attractive product lines have largely been exploited? All markets eventually mature, and to maintain above-average growth over a period of decades, a company must continually develop new products to either expand existing markets or enter new ones.

3. How effective are the company's research-and-development efforts in relation to its size? To develop new products, a company's research-and-development (R&D) effort must be both efficient and effective.

4. Does the company have an above-average sales organization? Fisher wrote that in a competitive environment, few products or services are so compelling that they will sell to their maximum potential without expert merchandising.

5. Does the company have a worthwhile profit margin? Berkshire Hathaway's BRK.B vice-chairman Charlie Munger is fond of saying that if something is not worth doing, it is not worth doing well. Similarly, a company can show tremendous growth, but the growth must bring worthwhile profits to reward investors.

6. What is the company doing to maintain or improve profit margins? Fisher stated, "It is not the profit margin of the past but those of the future that are basically important to the investor." Because inflation increases a company's expenses and competitors will pressure profit margins, you should pay attention to a company's strategy for reducing costs and improving profit margins over the long haul. This is where the moat framework we've spoken about throughout the Investing Classroom series can be a big help.

7. Does the company have outstanding labor and personnel relations? According to Fisher, a company with good labor relations tends to be more profitable than one with mediocre relations because happy employees are likely to be more productive. There is no single yardstick to measure the state of a company's labor relations, but there are a few items investors should investigate. First, companies with good labor relations usually make every effort to settle employee grievances quickly. In addition, a company that makes above-average profits, even while paying above-average wages to its employees is likely to have good labor relations. Finally, investors should pay attention to the attitude of top management toward employees.

8. Does the company have outstanding executive relations? Just as having good employee relations is important, a company must also cultivate the right atmosphere in its executive suite. Fisher noted that in companies where the founding family retains control, family members should not be promoted ahead of more able executives. In addition, executive salaries should be at least in line with industry norms. Salaries should also be reviewed regularly so that merited pay increases are given without having to be demanded.

9. Does the company have depth to its management? As a company continues to grow over a span of decades, it is vital that a deep pool of management talent be properly developed. Fisher warned investors to avoid companies where top management is reluctant to delegate significant authority to lower-level managers.

10. How good are the company's cost analysis and accounting controls? A company cannot deliver outstanding results over the long term if it is unable to closely track costs in each step of its operations. Fisher stated that getting a precise handle on a company's cost analysis is difficult, but an investor can discern which companies are exceptionally deficient--these are the companies to avoid.

11. Are there other aspects of the business, somewhat peculiar to the industry involved, which will give the investor important clues as to how outstanding the company may be in relation to its competition? Fisher described this point as a catch-all because the "important clues" will vary widely among industries. The skill with which a retailer, like Wal-Mart WMT or Costco COST, handles its merchandising and inventory is of paramount importance. However, in an industry such as insurance, a completely different set of business factors is important. It is critical for an investor to understand which industry factors determine the success of a company and how that company stacks up in relation to its rivals.

12. Does the company have a short-range or long-range outlook in regard to profits? Fisher argued that investors should take a long-range view, and thus should favor companies that take a long-range view on profits. In addition, companies focused on meeting Wall Street's quarterly earnings estimates may forgo beneficial long-term actions if they cause a short-term hit to earnings. Even worse, management may be tempted to make aggressive accounting assumptions in order to report an acceptable quarterly profit number.

13. In the foreseeable future will the growth of the company require sufficient equity financing so that the larger number of shares then outstanding will largely cancel the existing stockholders' benefit from this anticipated growth? As an investor, you should seek companies with sufficient cash or borrowing capacity to fund growth without diluting the interests of its current owners with follow-on equity offerings.

14. Does management talk freely to investors about its affairs when things are going well but "clam up" when troubles and disappointments occur? Every business, no matter how wonderful, will occasionally face disappointments. Investors should seek out management that reports candidly to shareholders all aspects of the business, good or bad.

15. Does the company have a management of unquestionable integrity? The accounting scandals that led to the bankruptcies of Enron and WorldCom should highlight the importance of investing only with management teams of unquestionable integrity. Investors will be well-served by following Fisher's warning that regardless of how highly a company rates on the other 14 points, "If there is a serious question of the lack of a strong management sense of trusteeship for shareholders, the investor should never seriously consider participating in such an enterprise.

Source

Invest in GOLD?

I'm still remember 3 years back, I'd invested into Gold(paper terms) when the price was about RM165/g. Back then, fuyoh... many banks were offering gold account for you to hedge against inflation(they said). However, my thought that time was just to keep some of my saving in other types of portfolio rather than property as many seniors were still not encouraging me in stock trading yet. Soon, I'd began to buy into gold and have waited for it to hit another height(RM180/g - 2012). Unfortunately, gold price later was not as how beautiful it's looks and the spread(buy/sell rate) was not that good(RM7 of spread) to an ordinary man like me. Why not good? For example, Banks selling at RM10 to you but you can only sell to them at RM3(take a look at below screenshot taken just now)...

Well, the charges is quite expensive as every transactions(buy and sell) imposed a 4.24%... Meaning I need to earn more than 4.24% only can considered as profit. Somehow, things has not gone as good as it was expected,  and sadly the gold price kept dropping after I'd bought in(stupid me). Months later, I decided to sell all after it dropped to RM155/g(forced to sell at RM148/g, due to the spread) which equivalent to 10.x% loss(hmm...just realised I know cut loss even before stock trading... hahaha).

After this experience, I would only think that gold as an jewellery which for you to display or show off(but some time keep, like the old folks do). Besides, I will not think this as an type of investment anymore since then. Why? because it's actually has no appreciate value but merely depend on the supply and demand. In fact, it will not generate you passive income like stock giving out dividend/bonus/free gift or eat(during AGM).

Anyway, not to admit that gold is really a beautiful metal when you are holding it physically. That why I've just bought some to wear regardless it will appreciate or not. kikiki... it's still shinning :)

Well, don't get mad at me as it's just my opinion or you can share your view if you disagree with me. Sorry ya...

Hope you enjoy reading, good luck and to be continued...

Still learning and always will be :)

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Are you ready for the Market?

Have you ever wonder, why are so many analysts/ medias/ or even government are still telling you that "NO BIG DEAL" for current market? Have you ever feel or thought of another crisis is near the corner? Yeah, I think is time to sit down and think about this before entering the mist(so hazy). Stop believing the positive news! Why? Well, take a look at these

- world indices(just look at Malaysia will do)

- gold(from highest 1900USD/oz till now around 1100USD/oz)

- RM(depreciated 18% since Jun, just only 3 months? Well... not so much only... Our "smart" ministers said is beneficial for export and so)

- weak commodity price(Crude oil to around 45USD/barrel)

- however, regards the local "Good" news inside Malaysia. We are proud to present GST and 1MDB and "Good" leader(donations from middle east, many more coming) and Foreign fund saying sayonara and Foreign reserve going low and so many more... sigh...

See for yourself, don't positively think the market will be better in near terms as "Many" are covering it up with positive news! This slow down, will somehow benefits to those who are ready but definitely not the newbie(or whom not aware)... In facts, these are signs showing bear is more stronger than bull.

Sigh(disappointed)... go oversea -> think twice(weak RM), stay within Malaysia -> hard(super inflation, money seems so small now), and investment -> difficult(not pro). Only one word can describe "Suffer"! 

Hope you enjoy reading, good luck and to be continued...

Still learning and always will be :)

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A dummy's trading experience Part-3: Cut loss

Frankly, no one hope to loss their investment... aww, who don't want to earn more? Somehow, trading in stock exchange does not guarantee profits but in fact, you may loss more than earn sometimes. The market can be so cruel and they don't care who you are or how new you are... haha... all about they care is of course $$$(Money). We may get ourself hit until bleed if we didn't learn some tactics to protect ourself. One of the tricks is to not to loss more than your preferred loss comfort level and doing so we can still protect our capital. Think those pro named it "Cut loss" but I called it "stop bleed and come back later" hahaha... Tell you, this is not funny but this is really helpful. Me experienced numerous times of cut loss and then able to join back at lower price to enjoy the rebound(sometimes bro, i meant sometimes)! By the way, my cut loss point was around 15% initially(I was a long term investor) and slowly became 10% then now preferred at 8-10%. I know is crucial for some people watching your portfolio valued lesser and lesser but, if you still locking your capital in and kept yourself watching only will only make yourself feel more painful. Of course, most of you've developed your own preferred way to trade and I'm not saying you are wrong but don't you think locking it until it to rebound may takes months or even years. Imagine, during the locking period, you may lose a lot of opportunities to buy some other potential stocks. For your info, I've just cut another loss for SBC at around 0.90(purchased at 1.0) and lowest it hit 0.64(hell, that's around 26% dropped but I managed to stop the bleed earlier and lucky to collect some other good counter that rebound after that). Well, I guess am just lucky again...

After so many times of stop bleed(cut loss) I do realised that I can buy any counter because I have cash in the weak/bad market! So I come out with a conclusion that, wise people are waiting the market to collapse and they can get to buy more superstar cheaper with the cash on hand. So if your capital is not liquid enough then you may just only watching the rich become richer while holding a bucket of blood(Sorry, I've no mean). Well... Try to develop your own tactic to practice it and also be disciplined for it to protect your hard earn money!

Hope you enjoy reading, good luck and to be continued...

Still learning and always will be :)

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A dummy's trading experience Part-2: Strategy

Ever heard of anyone saying the first step of Investment is not to lose money? Well, that seems to be very simple, however it's not practical to me. You'll see, many often dreams to earn first, but eventually loss in reality. What I can say that is actually a norm and don't blame yourself as we are human(especially to newbie), we made mistakes and fall. What really matters are, we practice, learn and always find a better strategy. 

I have a friend who recently loss more than 70% of his capital trading stocks in less than a year... hmm, am not sure how he did it but I'm pretty sure he never prepared himself for the drop. The sad thing is, he already quit and stopped trading after losing so many. To some certain extent, he's good in protecting capital balance from losing again but I would say it's not a wise move. For me, I would take a few days/weeks to rest(but still keep myself updated to the market) and reconsider the strategy which is really workout for me. Remember, don't run away from mistakes but equip yourself a better plan or try to learn more from a successful investors(which I assumed you already have a role model). Frankly, I can assure you that no one can guarantee that they can make profit every time even those successful peeps out there were once with head bleeding... So, stay strong, stay positive and of course don't forget to equip yourself the rightful knowledge before reenter the war.

Hope you enjoy reading, good luck and to be continued...

Still learning and always will be :)

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A dummy's trading experience Part-1: No Rush

Well, sharing this isn't just for others to follow/refer(because I'm just a dummy) but to keep myself awake and hope I would not fall like previous.

All this while I earned, learnt! and of course mostly loss... However talking about stocks, my experience tells me "don't rush into buying a stock". In this cyber generation, we can easily find informations for a company eg: QR(quarter reports)/ balance sheet/ researcher's report and many more. We can actually start reading and try to understand what the company are doing(many of my friends bought a lot of counters that they don't even know what's the company is doing), do some own analysis(try to understand some basic of technical analysis, and don't forget the fundamental of the company), and many more. You have no choice but to put a side and kept it monitored if it's price already gone up before your analysis is done. We don't have to chase it unless you think it's very worth investing it. Do remember, we always have other chance or other counters to invest while we still have cash(Cash is King right?).

Hope you enjoy reading, good luck and to be continued...

Still learning and always will be :)

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A dummy's trading experience Part-0: Start from Zero

I think nothing much to talk about myself as just an ordinary man who trying to earn some pocket money by investing in stock exchange(we normally called it KLSE: Kuala Lumpur Stock Exchange in Malaysia). I'm still remember my first counter chosen was AIRASIA(5099), during year end of 2013 which I bought it at RM2.2 and felt so happy because it went up 6% few days later. Since that day(lucky) I thought "hey... this is so easy to make money in KLSE". Soon, I'd started to pump more money into the trading account and hoping to get "fast" money. After that, I've gained more attention in stock market everyday, watching news and even using apps to monitor it. Hoping to understand more and learn more about the market... so, I could make more money in the stock exchange. My second IRIS(0010) had helped me to get more than 10% during the Chinese New Year(2014) and then I bought SBCCORP(5207) later which also made some handsome profit about(30%+). It's seems to be so easy and I started to think 'am a god' in investing. I also topped up even more later as i thought this will help me gain more and of course 'FAST'. Happy huh? seeing someone without any of this so called 'stock exchange' knowledge can make money so easily.

A while later, I made more moves to buy in some counters like GUH(3247), OKA(7140) and more. However, everything seems to be so fine until the world oil price slumped! See, I have no idea what it has to do with my stock that time and it just impacted(more than 30% of Malaysia Government revenue were depending on oil). Without knowing what to do, i just saw my portfolio had turned red for all the counters I've bought over months. People panics, force selling and never see a clear sky during that time. Then, I learnt the terms 'cut loss' during the discussion with my friends. Hence, I also cut my losing and parked my cash until I feel is right to re-enter again.

Since that day, I was trading very patiently and not rushing into the market as 'that' fears me off so badly. I know some who earned and I assumed, mostly have at least 30% negative in the account and still trying to think they know the market so well which can bring their money back after that storm. See, I was so naive and trying to pretend myself knowing the 'Mr Market' very well(but is not true). Am, writing this because I'm still learning and wanted warn those(newbie) who are out there trying to earn fast money like I do. You guys saw how the past months goes as FF(foreign fund) kept selling off, Czech refused the bailout(initially), more lower oil price it goes, RM and Yen depreciated, and not to say our political un-stability. For your info, I have sold all again as to locked in some profit last 2 months before it touches 1500 points(another lucky time for me). I am not asking to sell at this time but, you should start reconsidering whether this is the right time to hold long or sell in the current situation. Think I've missed a lot of details which i will continue to share it soon...

*this is not a buy/sell call and it's merely a sharing*

*don't rush and always play safe*

Hope you enjoy reading, good luck and to be continued...

Still learning and always will be :)

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