Bursa Malaysia to see buying interest on Wall Street gains

KUALA LUMPUR: BIMB Securities Research expects the local stock market to gain buying interest today, following a positive lead from Wall Street. 

The research house expects the FBM KLCI to hover at around 1,630 - 1,640.

Overnight at Wall Street, markets closed higher as investors turned positive following the stabilisation in oil prices and high expectations for the Federal Reserve to hike rates.

The DJIA and S&P500 gained 0.90% and 1.06% respectively to end at 17,524.91 and 2,043.41.

Meanwhile in Europe, shares soared yesterday following the recovery in oil prices and positive data from the auto sector. 

On the other hand, key regional markets were mixed ahead of the interest rate hike by the Fed. The FBMKLCI slipped 7.12 points or 0.44% to finish at 1,622.84. 

Bursa’s market breadth was positive with 387 gainers against 386 losers while 389 counters were traded unchanged. TOPGLOV (+86sen), AJI (+62sen) and TAANN (+18sen) led the gainers. While BAT (-100sen), UTDPLT (-48) and GAB (-22sen) led the losers.

Trading participation shows net buying by local institutions and retail while foreign institutions were net sellers. 

SET emerged as the top gainer, 2.60% up to close at 1,300.51 followed by JCI (+0.80%), TWSE (+0.41%), KOSPI (+0.27%), STI (+0.21). While N225 (-1.68%), PSEi (-0.66%), SCHOMP (-0.29%) and HSI (-0.17%) were the losers.

MUFG substantial shareholder in Public Bank

KUALA LUMPUR: Mitsubishi UFJ Financial Group, Inc. (MUFG) has emerged as a substantial shareholder in Public Bank with an indirect stake of 5.002%.

A filing with Bursa Malaysia on Thursday showed the stake accounted for 193.15 million shares as at Oct 21.

MUFG is deemed interest in the shares via its stakes in its units and also via a 15% stake in Morgan Stanley Group.

Public Bank, which has a paid-up of 3.861 billion shares, shed two sen to RM18.16 at midday.

Its largest shareholder is Consolidated Teh Holdings Sdn Bhd with 840.13 million shares followed by the Employees Provident Fund with 601.18 million shares.

Stock Quick Glance: L&G[3174]

LAND & GENERAL BHD

Background:
A property and development company(which also involving in Education and other segments like plantations, hospitality and part of oversea development in Australia)

1. Why should we quick glance of this company?
- High ROE, PE <10, and got dividend!

- Huge cash flow(Total of 363mil of cash and not to mentioned the inventories, receivables and the tax that the company going to get back)

363mil/1078mil of shares =  33cents of cash per share
This means paying 41cents(current share price) to owned 33cents of cash and 8cents worth of stocks!
Anyway, this does not mean anything but obviously this counter is undervalued!

Besides, the health financial reports and the growing revenue speak louder than words!

2. Future developments:
- Astoria Project(GDV of 845mil)
- Foresta Phase 2(GDV of 490mil)
- Landed residential(GDV of 280mil)
- so on...

*btw, don't forget their NTA of around 60cents(which considered the share is also trading at 35% discount of current price)

There are few things to take not about the company are:
- weak property market sentiment
- material mitigation(late completion of project)

- not to forget the low debts of 85mil
- ICULS will also dilute the EPS in future


Property is expensive now? perhaps considering invest in the company with cheap price?
*I do holding L&G shares but just wanted to share what is noticed, it's not a buy/sell call as just for reference only

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

Still learning and always will be :)

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Days after the RM20bil donkey show

Just about a week after the fund of RM20bil announced to save the day. However, the market somehow behaved unexpectedly when everyone still enjoying the ride back above 168X. KLCI has been consecutively dropped for the pass few days and MYR weaken to 4.33+ against USD. Besides, the foreign fund were also found retreating...

Up until now, we never hear of any news from the ValueCap but merely based on own imagination. Many so called GLC related counters were already rebound for more than 20% within days after the announcement. But things seems to be so abstract as no one know where it gone. @.@a

Well, stock market really is a place full of excitement. It can climb up few hundred points up because of some "news" and also can back to square within days. Somehow questions still remained blurred, where and when this RM20bil be rolling out? Donkey show were about to be over and it's time for the real call. Show time's coming, either it is a bull or a bear? we shall see... enjoy it...

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

Still learning and always will be :)

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The RM20bil

Ever wonder, why government intervened the stock market by injecting RM20bil?

To be honest, I'm quite worried and not sure how this will help our economy fundamentally. However, the market is positively behaved after the government's announcement. The ValueCap emerged out of nowhere with this huge capital like GOD. Khazanah, PNB and also KWAP suddenly became the saviour from certain point of view. Why RM20bil but not RM40bil directly push above 1700? What's the point if not focusing on the exact issue causing the foreigns retreat unconfidently? The stock market is actually reflecting on how well Malaysia economy is doing. I maybe wrong, but am pretty sure is due to your politics, your economic policy and part of the overall sentiment. The government should come out with something really help or boost the economy. As the matter of facts, government can do something like promoting local products oversea, improving the infrastructure, subsidise anything that benefits to the citizen and many more. Sorry to say that, obviously the government have no care to the people but to own benefits(GLC)! The people don't feel secure/safe while you became trader yourself to earn some handsome profits huh? The foreigns fund would be so happy when you helps them to unload more. This is definitely a short term solution only. And is not a wise play after all. Let we all see how long the government can play...

feeling disappointing...

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

Still learning and always will be :)

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Sharing: How To Invest Like Warren Buffett

WARREN Buffett is the third richest person on Earth with a net worth that’s north of US$60 billion (RM258 billion).

I remember in 1992, while interviewing my friend Tan Teng Boo for Malaysian Business magazine, I asked: “Who is Warren Buffett?” Tan told me in enthusiastic detail. In the intervening decades, Tan, a fan and student of Buffett, has racked up a fine record as a fund manager.

In recent months, before global volatility spiked, Tan sold profitable equity positions and raised the cash levels of his domestic and international funds. Initially, as markets continued rising, his moves elicited disdain; but the grumbles gave way to respect for Tan as cash has been the best performing and most defensive asset class in the current global market turmoil! What I have gleaned from studying Buffett’s annual letters to shareholders of his investment vehicle Berkshire Hathaway and several biographies has helped me better serve my financial planning clients. Warren Edward Buffett was born in Omaha, Nebraska, the United States, on Aug 30, 1930. His father was a stockbroker whom the younger Buffett adored. In later years, Buffett attributed the honing of his mental investment framework to two teachers: Benjamin Graham (85 per cent) and Philip Fisher (15 per cent)! Over the last half century, Buffett has used the balance sheet of his company, Berkshire Hathaway, as “a canvas to paint” an economic masterpiece through judicious stock investments and the wholesale purchase of businesses.

Here are four less-ons from numerous Buffett-derived principles which I have taught my clients:

1. Nurture emotional strength When times are good, it is easy for all of us to label ourselves investors. But what separates the men from the boys is the ability to keep a cool head when everyone else is terrified by imploding markets. You see, markets rise and fall… with certainty but unknown periodicity and magnitude! So, as Buffett once wrote: “Unless you can watch your stock holding decline by 50 per cent without becoming panic-stricken, you should not be in the stock market.”
2. Know the difference between value and price The best way to make money is to buy low and sell high. Only those who truly internalise this principle can grow wealthy through investing. On March 16, 1979, Buffett explained in his 1978 letter to shareholders: “We continue to find… small portions of really outstanding businesses that are available, through the auction pricing mechanism of securities markets, at prices dramatically cheaper than the valuations inferior businesses command on negotiated sales.” Today, more than 36 years later, local and global markets are roiling from Chinese securities markets, commodity and currency downturns. Therefore, countless opportunities will arise for you to identify the yawning gaps between intrinsic economic value and temporarily depressed prices.
3. Allocate capital wisely Buffett has long maintained that his one core skill was capital allocation. When he took over Berkshire Hathaway half a century ago in 1965, it was a struggling New England textile maker. He then allocated the dwindling stream of cash flow from the ailing concern into businesses with brighter prospects. He diverted Berkshire’s free cash flow into positions in general insurer Geico and other undervalued listed companies. So, by the time Buffett shuttered the last Berkshire textile plant in 1985 his reinvented investment holding company enjoyed cash gushing in from diversified insurance, retailing, media, banking and confectionery operations.
4. Maintain large cash reserves for stability and opportunistic flexibility In his 2008 letter (published February 27, 2009) to shareholders, Buffett wrote: “I have pledged — to you, the rating agencies and myself — to always run Berkshire with more than ample cash. “We never want to count on the kindness of strangers in order to meet tomorrow’s obligations. When forced to choose, I will not trade even a night’s sleep for the chance of extra profits.” So, for the tough road ahead, I encourage you to tap into this incomparable wisdom by studying his Berkshire shareholder letters (www.berkshirehathaway.com/letters/letters.html).

Source : How To Invest Like Warren Buffett

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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