Malaysia Stock Market 20121107

Buying opportunities again ... are you dare to go for some year end bonus this year ?

TM : no major news, could have bought in today.  Should be a good keeper.

AIRASIA : EPF leaving, International investors support, internal Directors buy back.  If you like Airasia business model etc.  Opportunity to buy now.  No foreseeable big profit gain by year end thao.

AXIATA : No Major News, EPF & Amanah Raya holding up.

DIGI : face problems in service area, technical issues, licenses etc.  EPF disposing.  Watch closely for Management strategy turn over.  Now this company is 'finally' going south, not just stock wise, mainly business wise.

PBBANK : NO Major news, EPF continuously holding up.  But technically just started a down trend.  Don't chase down trend, wait a bit on this one.

What is your opinions ?  All comments welcome ...

Reversal Trend Stocks

In stock investment, you should learn how to see the mega trend.  When it is generally a bull trend, you simply buy some blue chips and it shall earn you some good money.  When bear comes, you took your profit.  As long as you don't stay too close to the market, this can rather easily be achieved.  Just walk around a wet market and ask 10 stalls how the market is.  You will be surprised how closely their non-professional opinions are related to the real market performance.

Then you must realize NOT ALL stocks are the same.  Even during an obvious bull run, there are some stocks going down.  Like wise during bear runs.  Some stocks will still go up.  Finding out these 'Reversal Stocks' is important for a full time traders.

The reason goes like this:  there is a fix amount of money floating in the market.  The mega fund managers simply CAN NOT withdraw TOTALLY from the market even if it is GUARANTEED a bear market.  They are required by law to keep investing ie. 70% of their fund.  So during bear market, they will focus on a few stocks to minimize loses.  As a result, during bear market, a few stocks will always be on a up trend.  And not surprisingly, those are the stocks didn't join the previous bull run.

As long as you have done your fundamental analysis, knowing mega trend stocks and reversal stocks allows you to invest both during good and bad time.

Cheated or Own Ignorance ?

a Guaranteed 20% return investment was introduced earlier and it is indeed legitimate.  But do you know it is like an offer " Give me $10 now, I will give you back $9 ".  And of course it is Guaranteed !



Gold Price is about $17,000 at the time that offer was made.  You could easily buy a 100g gold bullion at $18,000 at market rate.

A recap of the offer as below

SummaryMaximum Capital : $ 23,500
Total Return : $4,590
Rough Return : ~20%

As you can see, you are actually paying an extra of $5,500 at the beginning without realizing it.  ( If you know the gold price, you would probably NOT buying it, would you ? )

23,500 - 18,000 = 5,500

Then through out the period, they will pay you back $4,590 and yet they can keep an extra profit of about $1,000

5,500 - 4,590 = 910

Of course it is Guaranteed !  Because you already pay them the money they will pay you back.  All they need to do is to keep the extra money in a FD and they can easily honour the 'contract' they promise to pay you back.

Is that a scam ?  Well, not really.  Because they didn't really cheat or present any incorrect facts.  They will even show you the gold price at that point of time.  Gold selling price is always higher than the gold index price because traders need to pay other fees and make a profit.  

The problem is you don't know how much other gold traders are selling gold bullions at.

So the only 'trick' for a person who 'invest' into such a scheme is his own 'ignorance'.  There isn't really a crime nor fault of the business here.  It always PAY to be IGNORANT.  And this is the best real life lesson you can get.  After all, you only pay $910 for such a lesson.

Then again, almost ALL of those who invested in such a scheme STILL DO NOT UNDERSTAND what they have got into.  They will simply just get out of this scheme one day and get into another similar ones.

20% Guaranteed Return through GOLD ?

Have you ever heard of an investment with Guaranteed Return 20% ?  Well, this particular one is from The Gold Guaranteed . . . what do you think the catch is ?

1. You Buy Bullion Gold from TGG ( The Gold Guaranteed )
2. You keep the gold
3. You sign a 3-months-contract with TGG
4. TGG pays you 1.7% every month
5. At the end of 3 months, you can choose to 
1. renew the contract for another 3 months or
2. sell the gold back to TGG how much you have paid for ( ie. your Capital ) 

• To renew the contract, you have to pay the additional cost if the gold price has gone up
• Like wise if the gold price has gone down, you get paid extra and also gets to renew the contract

For example, at end of August . . .

1. You pay $22,500 for a 100g bullion and signed the 2 pages contract
2. You get paid $382.50 monthly for the next 3 months ( 22,500 x 1.7% )
3. 3 months later, 100g gold price goes up to $23,500.
4. You paid an extra $1,000 and renew the contract
5. You get paid $399.50 monthly for the next 3 months ( 23,500 x 1.7% )
6. another 3 months later, 100g gold price goes down to $21,500.
7. You get paid $2,000 and renew the contract
8. You get paid $365.50 monthly for the next 3 months ( 21,500 x 1.7% )
9. another 3 months later, 100g gold price goes back to $22,500.
10. You paid $1,000 and renew the contract
11. You get paid $382.50 monthly for the next 3 months ( 22,500 x 1.7% )
12. when the contract ends, you sell it to TGG and get back $22,500

Month	paid	get back
1	$22,500	$383
2		$383
3		$383
4	$1,000	$400
5		$400
6		$400
7	-$2,000	$366
8		$366
9		$366
10	$1,000	$383
11		$383
12		$383
		$4,590

Summary

Maximum Capital : $ 23,500

Total Return : $4,590

Rough Return : ~20%

All this happens while you are keeping your own bullion gold with you until you sell it back to TGG.

How does this sound to you ?  What could be the catch if any at all ?

What other strategies you may apply assuming this is a genuine deal ?

Malaysia Lowest Stock Brokerage Fee

MPlus Online and ECMmoney offers the lowest brokerage fee @ 0.08% for cash upfront account.  MPlus offers even lower rate @ 0.05% if you have more than 30k balance.

Follows by Hong Leong, Jupiter Online, OSK 88  who offers 0.1%

source

I have been using Jupiter but I am paying 0.45%.  I forgot why I pay so much, perhaps its because I am an Elite member who obtain extra trading info !?  My effective fee cost is actually 0.6% and below.

I tried to switch to CIMB but not successful due to their systems are not easy to use.  I stay with Jupiter mainly because I can trade from my android phone.

Have you used any of above brokers ?  Are they good ?

How Corrupted are we ?

Below table shows how corrupted a country is perceived to be.   The smaller the number is the more corrupted the country is.  For example, North Korea, Russia, Nigeria, Pakistan and Philippines are perceived to be corrupted while New Zealand, Singapore, Australia, Hong Kong, Japan are perceived to be "clean".

Malaysia is somewhere in the middle comparable to Soudi Arabia, South Africa and Italy.

source : wiki

earn Money with Money

Read this from Alan Tan's facebook, seems very meaningful to me.  So sharing here with you all ...

By Alan Tan

One day, an old man and his assistant arrived at a farming village. The old man gathered all the villagers and told them that he is in the business of buying and selling monkeys and that the reason why he has come to their village is becoz there is a forest next to that village which is infested with lots of monkeys. He told the villagers he would pay $10 for every monkey they bring him.



So some of the villagers started to stop work on their farms to go into the forest to catch monkeys. They brought their monkeys to the old man and true enough, he paid them $10 for every monkey. Words spread and not long after, more and more of the villagers stopped working on their farms to go into the forest to catch monkeys. And they were all paid $10 for every monkey they delivered to the old man.

Becoz more villagers were now monkey hunters, it became more and more difficult to catch monkeys as their numbers started to dwindle. The supply of monkeys started to come down. So the old man gathered all the villagers and told them he would pay $20 for every monkey they bring him. Wow! That sounds great and the villagers started to drum up the beat to look deeper into the forest and higher into the trees to look for more monkeys. And they were paid $20 for every monkey they caught and everyone was happy.

As more and more villagers turned monkey hunters, the monkey population in that forest started to dwindle very significantly and it became increasingly difficult to catch even one monkey a day. As such, the villagers started to return to their farms to work.

Once again, the old man gathered all the villagers and told them that as he is running out of time and he needed more monkeys, he would up the stakes and pay $50 for every monkey delivered to him. He also told the villagers that as he has to leave the village for a few days to attend to some business in town, they can deliver the monkeys to his assistant and his assistant has been instructed to pay $50 for every monkey caught.

The villagers got all excited and went deep into the forest to look for monkeys but by this time, there were no monkeys to be found. The villagers approached the assistant and told him the $50 offer is wonderful but the monkeys were simply not there.

That assistant then said to the villagers......"I know there are very few monkeys left in the forest. But here in my cages, I have thousands of monkeys. Tell you what...why not you buy these monkeys from me at $35 each. Then when the old man comes back, you can sell your monkeys to him for $50 and make $15 each."

Wow! That sounds like a great idea...the villagers thought. So they bought as many monkeys as they could from the assistant at $35 each.

After that day, the villagers never saw the old man or his assistant again

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What do you take away from this story ?