Tuesday, February 26, 2008

Wealth Sharing Talk ??

Is this for real a true experience of someone how he manages or plans his financial or merely make out a story to lure investor for participating ???? but interesting to read though, does this reflect you in anyway ???

Wealth Sharing Talk

Alex (not his real name) graduated in 1993. He managed to get a job with a MNC two months upon graduation. When he got his first salary, he booked a RM80,000 car. Six months later, he purchased a house for RM270,000.00. In late 1995, he married his long time sweetheart Jenny (not her real name). He spent about RM 30,000 on his wedding.

Due to cash constraints, he spent his honeymoon at a neighboring country (Thailand) where he used his credit cards to cover the expenses, about RM10000 in total. The following year, he got a promotion and his salary increased to about RM4,000 (including claims). Up to now he was paying the minimum payment only on all his monthly credit card balances.

One day in a shopping mall, he was approached by a credit card sales person with a balance transfer offer. He was told that he could transfer all his balances to this bank and have a lower interest rate for a period of two years. On top of that he would be given a gold card of that particular bank. He took up the offer as he thought he could save on the interest charges.

In 1998, Alex and Jenny had a baby boy. Jenny was being seen by a specialist at a private hospital. They also decided that she would quit her RM1800 job to be a full time housewife. Alex paid close to RM10000 in total for the medical bills for the duration of the pregnancy and delivery (via a caesarean). Alex utilized his new gold credit card for this.

From now onwards, Alex’s expenditure was more than 90% of his salary. Hardly anything was left for savings. In 2002, Alex got a job offer which was paying him about RM6000. He took the offer. He had a daughter in the same year. Again, the medical cost was close to RM10000 which he paid by credit card.

In 2003 he enrolled his son in kindergarten which cost him RM250 monthly. The next year, Alex lost his job due to the company’s decision to downsize. He was caught unaware without any savings. He survived by utilizing all his credit cards to their maximum limits. He only found a job eight months later and was offered half of his last drawn salary!

Today, Alex earns RM3200 from his day job and teaches tuition at night seven days a week just to make ends meet, including paying back his credit cards outstanding balances (which are standing at about RM43,000). Lack of financial intelligence coupled with a failure to plan has transformed Alex from a bright graduate into a depressed, disillusioned and de-motivated father and husband.

Thursday, February 21, 2008

Contra Gain on LIONDIV

This morning buy in Liondiv at a price of 1.40 and disposing them at 1.43 within the same day, making a quick contra intraday gain on this trade. Some how have been very lucky while dealing with this counter and it never fail me, maybe is pure luck and right timing as somebody claims. Market is drifting down since the beginning of the week, will there be a traditional rally before GE ? Even if it is, the rally won't be long, this act would probably just to make good impression to the "voters", so that many will deceive the wrong impression ?? Just can't predict how it going to be, no matter how during this juncture be cautious with what you trade unless you really know what you trade.........

Monday, February 18, 2008

Completely RISK-FREE Way to Buy Stocks

Interesting Article :-
Completely RISK-FREE Way to Buy Stocks
Let me prove it to you...
By Brian HuntEditor In Chief, S&A Investment Research
Dear Reader,
I want to show you a technique that should change the way you invest, for the rest of your life...
Done right, it's a way to buy stocks that eliminates all of the downside risk. Not some of the risk – all of the risk.
Using this simple technique, you can arrange your portfolio so it will be impossible for you to lose another penny, ever, in stocks. Even better, you’ll still get 100% of the gain.
In other words, if you buy a stock and it drops 50%, you shouldn’t lose a dime. And if it soars to 1,000%, you keep every penny.
It’s kind of like buying an insurance policy for your portfolio. But, it’s even better than that. Because, done right, this “insurance” won’t cost you a thing.
In short, you get a risk-free investment in common stocks – for free.
This is the perfect setup for long-term investors who are seeking capital gains, but can't afford to lose any money.
You can adopt this strategy, buy all of the most promising businesses you find, whether they're risky or not, and never worry, ever again, about losing a single penny.
How is this possible?
Let me explain...
Step 1: Collect the Cash
The key to this technique lies in dividends. This is where it all starts.
To correctly use this strategy – and ensure you don’t lose a single penny on your investment (while keeping 100% of the gain) – you first have to find high quality businesses paying a stable dividend.
Generally speaking, these are not hard to find.
I’m talking about the Coca-Colas of the world. The Microsofts. The Exxon-Mobils.
But there is a catch.
Not every stock – blue chip or otherwise – pays the kind of dividend we’re looking for. In order for this strategy to work, the dividend must cover the “cost” of the investment.
What’s your cost?
The risk you assume by making the trade. Namely, what you’ll lose if the stock goes south.
If you invest $1,000 in a stock, your “cost” in this case is anywhere from zero to $1,000, depending on when you get out. But, believe it or not, there are companies in the market right now that will cover this cost for you – in part with the dividends they pay.
So the first step is finding the right company with the right dividend.

Friday, February 15, 2008

IOI Corp earnings surge 52% in Q2

IOI Corp earnings surge 52% in Q2
PETALING JAYA: IOI Corp Bhd's net income surged 52% in the second quarter ended Dec 31, as soaring palm oil prices boosted profits from plantation and resource-based manufacturing businesses.
The three-month earnings swelled to a record RM581.2mil, or 9.71 sen per share, compared with RM382.6mil, or 6.25 sen per share, a year earlier.
Revenue jumped to RM3.46bil from RM2.26bil before.
IOI Corp released its latest quarterly results during the market's midday break, reflecting a growing trend among big corporations to announce vital corporate development to investors in a more effective manner.
“The stock is pricey at these levels, but the premium could be justified given its size, trading liquidity and probably because most people consider IOI Corp to be the best proxy for rising palm oil prices,'' a local fund manager said.
Last year, IOI Corp bought its first overseas plantation land in Indonesia and acquired a rival refinery in Johor. Last month, the company announced a plan to raise RM600mil in fresh capital to help fund further expansion.
IOI Corp shares closed 20 sen higher at RM8.15 yesterday on volume of 13.3 million.
The stock hit a record RM8.55 a month ago.
IOI Corp's six-month earnings jumped 62% to RM1.03bil against RM638mil a year earlier.
The company said its palm oil fetched RM2,572 a tonne during the six months, up from RM1,560 a tonne in the year before.
“Barring unforeseen circumstances, all business segments are expected to continue to perform well in FY08,'' it told Bursa Malaysia.
The crude palm oil (CPO) futures on Bursa Derivatives, the global benchmark, had risen 80% over the past one year amid fears the global edible oils market was in short supply to meet growing demand worldwide.
The CPO futures contract for April delivery jumped RM91 to RM3,451 a tonne yesterday, its highest closing price.
“We remain upbeat on CPO price prospects as supply deficits for other edible oils will encourage consumers to switch to palm oil,'' CIMB Investment Bank said in an update on the sector yesterday.
Shares in Kuala Lumpur Kepong Bhd (KLK), the third most valuable plantation stocks behind Sime Darby and IOI Corp, hit a record RM19.20 yesterday, up 60 sen.
KLK is due to announce its first quarter ended Dec 31 results on Feb 20.
In a separate statement, IOI Properties Bhd said it posted a net profit of RM91mil on sales of RM191mil for the second quarter. Its six-month net income surged to RM171mil on turnover of RM396.8mil.
The improved performance was attributed to “higher demand for residential properties”, it said.
IOI Properties proposed a gross interim dividend of 60 sen per share for the period.

Wednesday, February 13, 2008


Bought Carlsberg at 4.18 for 1000 units today. Total holding increased to 3,000 units for now. The impending dividend is going to announce someway around this month. Still very much in tact with dividend stocks. PM has just dissolved the parliament this afternoon and the market react negatively on the announcement as to what i've anticipated in my previous post. Many will sell off thier share as many think that is a safer move for the time being. I will foresee uncertainty on the KLSE market till the end of General Election. During this time is best to wait and see how the GE turn out before making an attempt again in KLSE. Till then happy trading....

Monday, February 4, 2008

Sold my LIONDIV again

Have sold all my LIONDIV at 1.61 this morning, another quick contra gain, thanks to DJ who rebounded strongly. The timing is just right for me on these two occurences recently. Try not to keep too long as the CNY and GE are both just right the conner. Would like to take this opportunity to wish all 'A PROSPEROUS And HAPPY CHINESE NEW YEAR'. See ya....
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