Monthly Portfolio 29-September-2007

There isn't any movement on my portfolio, still holding my same old stocks. Has been quite lazy lately to post anything here. My focus has been diverted to Forex lately and still generating profit slowly & steadily. Below is my portfolio for the month of September, till then happy trading. Sayonara...

Dry-bulk shipping rates reach new highs

By C. S. TAN
PETALING JAYA: The Baltic Dry Index (BDI) crossed the psychological 8,000-point level, closing at a new high of 8,090 on Wednesday.
With the latest surge in the index, the BDI, which measures commodity shipping costs of various routes and ship sizes, has averaged 6,950 so far in the current quarter, 16% higher than the average 5,983 in the second quarter this year.
The average in the current quarter is 93% higher than the average 3,593 in the corresponding quarter last year.
A Bloomberg report quoted China Cosco Holdings Co chairman Wei Jiafu as saying yesterday that shipping rates for dry-bulk cargo, such as iron ore and coal, would continue to rise as China's economy would see robust growth for the next 20 years.
In another report, Bloomberg quoted China Ocean Shipping (Group) Co deputy director of research and development Yang Shicheng as saying that China would import 390 million tonnes of iron ore this year, 11% more than last year.
That would hold freight rates at record highs, he said, adding that iron ore would remain the key driver of freight rates, having replaced grain since the start of the century.
AmResearch said in an update report yesterday that dry-bulk charter rates set all-time highs again last week, with average Capesize spot charter rates ending the week at close to US$125,000 a day, while the average Panamax spot charter rates finished at over US$62,000 a day.
Capesize refers to ships that are too large to pass through the Suez Canal and Panama Canal, and which have to go around the Cape of Good Hope or Cape Horn. Panamax refers to ships that are too big to go through Panama Canal.
AmResearch cited a media report that an aluminium smelter would be put up in Sarawak by a joint venture between Rio Tinto and Cahya Mata Sarawak Bhd.
“We view this news as positive to our bulk universe, both for the long haul (Maybulk) and feeder services (Hubline).
“Hubline will have first mover advantage due to its stronghold in resource-rich Sarawak, and with the expected delivery of two handysize vessels by 2009, Hubline will be running a total of 26 bulk vessels,” AmResearch said.
Handysize is the most widely used type of dry-bulk vessel and are between 15,000 and 50,000 tonnes deadweight in size.

Monthly Portfolio 28-August-2007

This month (August 2007), KLSE market took a tumble on concerns of US Subprime mortgage tussle. However the KLCI meltdown recover from a 17% drop to a 9% drop as at yesterday closed. Would this bumpy ride continues....? I would say it certainly depend very much on US Dow Jones, it seem like DJ creating a tank for Asian Markets. When DJ is up, Asian Market would follow and vice versa. The dust has not settled as yet.

This month i bought in JAKS for a quick hit and run at 0.90 sen, luckily was able to dispose at 0.93 sen for a small gain. It was never my policy to buy this type of stock but just can't resist the temptation to join others for a quick punt. Other than this i also received a 25% dividend on PBBANK and have adjusted the purchase price accordingly. My portfolio's profit shrunk from 66% to 60%, a 6% reduction compare to last month. Will certainly take a closer look at the market since September is a budget month, traditionally some tide would be expected especially some of the tobacco & beverage counters. Till then happy trading.

Public Bank not exposed to US subprime mortgage market

KUALA LUMPUR: THE Public Bank group has no exposure to the US subprime mortgage market and expects this year to be another year of strong performance, said chairman Tan Sri Teh Hong Piow.
"The Public Bank group's overall operations, including its Labuan Offshore Bank and overseas operations in Hong Kong and China, Indochina and Sri Lanka have absolutely no exposure to the US subprime mortgage market segment whether directly or indirectly in its investment portfolio," he said in a statement.
The unit trust funds managed by Public Mutual also do not have any direct or indirect investment in the US subprime mortgage market.
Teh expects the group's loans growth to be sustained at the annualised rate of 17% as achieved in the first half of the year.
"The group's customer deposits continue to grow strongly. Asset quality is expected to remain strong.
"Currently, the group's net non-performing loan ratio is only 1.5% – the lowest in the banking industry in Malaysia.
"With its healthy loan to deposit ratio of 75%, the group is very liquid," he said.

Monthly Portfolio 28-July-2007

KLSE market has a sell-down yesterday following the US market plunge overnight. KLCI dropped 26.12 points & settled at 1355.28 points. More selling would be expected next week. I am staying out of the market for the time being and might pick some quality stocks if i see some light at the end of the tunnel. Meanwhile my portfolio increase slightly despite of the sell-down yesterday compare to last month. However, may foresee greater impact after next week. Being longterm, i'm not worry much on the sell-down in-fact it create opportunity for me to get some quality stocks which is relatively high now. Till then happy trading.

Resorts World begins share-buyback

Saturday July 21, 2007
Resorts World begins share-buyback
By KATHY FONG
PETALING JAYA: Resorts World Bhd kick-started its capital management plan with the commencement of its share-buyback scheme yesterday.
This came after the group had in a surprise move sold a 14% stake in loss-making Star Cruises Ltd last Friday for RM1.16bil cash.
Resorts World announced to Bursa Malaysia it bought back nine million shares at an average price of about RM4.15 a share, costing it RM37.36mil. The stock closed at RM4.22 yesterday, up 32 sen.
This is the first time that Resorts World has bought back its own shares.
Genting Bhd’s head of strategic investments and corporate affairs Justin Leong said: “As Resorts World’s largest shareholder, we are pleased that Resorts World has finally embarked on its capital management programme.
“We see this as a positive step towards enhancing value for all shareholders.”
In the past, there was criticism that Resorts World’s capital management was not efficient enough, given its large idle cash reserves.
Resort World’s cash pile is nearly RM2bil now and is expected to balloon to RM4bil by year-end.

Monthly Portfolio 30-June-2007

This month my biggest gain is from BJTOTO after the share breaching the $5 psychological barrier. BJTOTO has reported its 4th Qtr result with a decrease of 18% profit and declared 7.5sen dividend for this qtr. Would likely to hold for a while for Bjtoto and monitor how the price move before taking any action to it. I have adjusted RESORT & YILAI purchase price after receiving dividend of 3sen & 8sen respectively. Below is my latest portfolio & there isn't any movement for this month as my focus has diverted to newly discover financial investment that is "Forex" trading at the moment...hehe...yeah..got new toy to play. I'm about 12% in profit right now for this new gizmo not bad huh...!! errr....till then Happy trading....

Trendlines for Novice

Part 2

To find major support and resistance levels, one way is to draw trendlines on chart. It is always possible to find the direction of a particular stock is headed by connecting more than 2 points price tops and bottoms on a chart.

Below appears to be going down in price for EKSONS after connecting the tops price like so. Oscillators like MACD and RSI show down signal :-

Below appears to be going up in price for MAYBULK after connecting the price bottoms as follows. MACD seem crossing showing buy signal and RSI is above the 50% strength level. MAYBULK seems very interesting trading at this price, probably an upside is to be formed in the later stage.

Why did i say so for MAYBULK, it is because if you buy on or near the line, when/if the line breaks, you will get out very near where you got in. Not only that, you will have a clear set of reasons why to get out. That is, you will know that the trend has broken down and that the situation that caused you to enter the trade has changed. Base on current market and the trendline, i would recommend a buy for MAYBULK on current state.

Till then happy trading.

How to define Support & Resistance on Stock for New Traders - Novice

PART 1

Have you ever seen a zig-zag chart before ? The price of a stock in KLSE market works in similar fashion in between the support and resistance.

SUPPORT - is where the buying at a price lever is strong enough to cause a reverse in a downtrend.
RESISTANCE - is where the selling at a price lever is strong enough to cause a reserve of an uptrend.

Most of the traders look for support levels when they wish to buy and they similarly look for resistance lever when they wish to sell.

Trading Stocks Is A Long Haul Thing

When you ask around among the circle of your friends how successful is their stocks trading, it can be pretty depressing. Only probably about 5% of my friends are making any money. With so many trading stocks, why is this?

1. Mentality is wrong. One would probably think that this is the area where they can get Rich Quick by trading stocks and how easy and profitable it is to trade with so many brokers giving abundant informative recommendation of stocks. Well, it is easy to actually trade, but difficult to trade well. Many people will just start trading without knowing what they are doing. A good course of study on the company and how they fare with their competitors with each other, what is the earning, is this company fundamentally strong, TA & blah blah blah is a must before you start any live trading. You must be educated in stocks to trade profitably. You can't just go on gut feeling. Stocks trading should be done for the long haul.

2. Trading for the wrong reasons. Once, i ask my friend, for what is the reason you trade stocks since you are not in the positive all this while. He told me, at least there is a thrill in my daily live and most importantly "is for the fun of it". Yes, there is a high associated with making a huge profit from one trade, then you are all in positive. However, do not treat stocks trading like a day at the race track. You should not trade for the excitement of trading. Not to mention that there is a lot of time to be spent just waiting for the correct trade to come along. Also, don't start stocks trading because you think it only requires a few minutes a day to make money. Even if you are scalping the market (making small quick trades), it takes time for those trades to develop and mature. One should sharpen their saw before start trading and with only one reason, that is "Winning".

Happy trading.

Congratulations to our PM

Would like to take this opportunity to offer my sincere congratulations to our PM and soon-to-be first lady for their coming marriage. All the best and may God bless you.

Modern Zen

Interesting...........Look at item number 18...

Monthly Portfolio 26-May-2007

KLCI stood at 1339.08 yesterday, many have felt that KLCI now is at tail end and hard to find a new breath after sustaining the bull for almost a year. This is mostly the perception from many each time i get their comment, will the KLCI end right here and make a south turn ?? What would you think ??

This month, there isn't any trading in my portfolio. I have adjusted the purchase price for CARLSBG and GUINESS accordingly after receiving 32sen and 13sen of dividend respectively. Other than that, I have added a 500 free units of MAYBULK shares after the "ex" of the bonus issue of 4:1. Please find my portfolio below & till then happy trading.

Whose fault is it ??

Just want to share this, i find it funny. Interestingly, when i happen to have a lunch chat with my friend recently, he told me that he just got a small windfall while placing an online order of a penny stock. To his surprise and disbelief that when he checks the matched order, it was 10 cents below his ordered price, which means, a 40 cents stocks which was placed and it matched at 30 cents. The price jumps back to 41 cents right after that where he quickly sold it for a quick intra-day profit. I wonder is a computer glitch or human error ??? Walau er.... This kind of thing also can happened ????

Magnum may unveil big special dividend

KUALA LUMPUR: Magnum Corp Bhd is finally set to proceed with its long-expected capital management plan as it may soon announce a bumper payment to shareholders.
A source said the company, subject to board approval at a meeting on Tuesday, could announce a special dividend of between 60 and 70 sen a share.
The board may give the go-ahead for the numbers forecast operator (NFO) to distribute its vast cash pile of more than RM700mil.
Last year, Magnum raised its dividend to 14 sen a share from 10 sen. The return of cash will benefit shareholders and none more greatly than Multi-Purpose Holdings Bhd (MPHB), which owns 51% of Magnum.
The cash from Magnum may help MPHB pare down debt but the source said MPHB also had a good story to tell.
MPHB, the source said, was set to announce a record profit for its first quarter ended March 31, thanks to Magnum's strong NFO business and a robust stockbroking business owing to the bull run on Bursa Malaysia.
MPHB announced a pre-tax profit of RM86.4mil and a net profit of RM60.5mil, or 6.3 sen a share, for its fourth quarter.

Which high cap stock will replace Maxis on KLCI?

Below was extracted from The Star for you reading pleasure :-

PETALING JAYA: The Kuala Lumpur Composite Index (KLCI) is going to miss some significant members with Maxis Communications Bhd on its way out of Bursa Malaysia alongside Island & Peninsular Bhd (I&P) and Malakoff Bhd, which are also being taken private by their respective owners.

The three companies have a combined capitalisation of close to RM50bil, representing almost 7% of the benchmark's total market capitalisation (market cap) based on yesterday's closing prices.

Maxis closed RM2.30 higher at RM15.30 while I&P and Malakoff were unchanged at RM2.33 and RM10.30 respectively.

Earlier this week, business tycoon T. Ananda Krishnan made a 20% premium offer of RM15.60 per share to take full control of Maxis.

Last week, Permodalan Nasional Bhd announced plans to take I&P private by buying the remaining shares it does not own for RM2.35 each.

Malakoff, on the other hand, will be delisted at the end of this month on completion of the sale of its assets to parent MMC Corp Bhd.

A fund manager noted that the liquidity in these counters would have to be distributed elsewhere. “It means more money will be going into other index-linked counters,” he said.

While the funds could move to new entrants to the benchmark index, there were not many blue chips that were not already part of the KLCI, the fund manager added.

Bursa Malaysia chief executive officer Datuk Yusli Mohamed Yusoff said in an e-mail reply to StarBiz that the exchange would implement “a standard process'' to replace any index-linked stocks that had been de-listed.

“The number of index constituents in the KLCI is fixed at 100. The weightage of each constituent is distributed by way of market cap, with bigger companies assuming higher weightage,” he added.

A head of research at a local brokerage said: “Ultimately it depends on how Bursa wants to replace the companies. The new entrants don't have to be of similar size to those that are being dropped.''

He said based on sectors, YTL Power Bhd could represent the power industry and Green Packet Bhd the telecommunication sector.

Other potential candidates were Nestle (M) Bhd, Dutch Lady Milk Industries Bhd and JT International Bhd, the research head said.

“Liquidity and free float could be an issue. But there are stocks on the KLCI currently which are low in liquidity.

“Market capitalisation is probably one of the biggest single factors,'' added Pong Teng Siew, head of research at MIMB Investment Bank.

Monthly Portfolio 28-April-2007

There is a lot of movement in my portfolio this month. Firstly, i have adjusted the buying price accordingly after receiving the dividend from BJTOTO and MAYBULK. I have added 2000 units of LONBISC for a price of 1.68 and 1.64 respectively. Thus, making my total holding of LONBISC to 4000 units for an average price of 1.68, the reason for increasing the number is simple - "long term & good dividend payout". If you follow my previous posts closely, you will know that i'm one that favour on dividend stocks, that is my style. I always believe that dividend stocks are defensive stocks, irrespective whether the market goes up or down, i have a peace of mind holding on to my stocks unless some drastic or unexpected thing that tarnish the company image happened like terribly bad financial result, company being wind down due to poor governance, a catastrophic that causes the company's core business no longer a niche market and etc...

Secondly, i also bought in 2000 units of RESORT for an average price of 3.40 and 5000 units of YILAI at 1.23. These are my biggest buying spree so far for this month. Below is my latest portfolio, till then, "Happy trading".

Good Article - What triggers a downfall in the market?

Ooi Kok Hwa is a licensed investment adviser and managing partner of MRR Consulting and he writes on 'Personal Investing'.
AS a result of China's higher-than-expected economic growth of 11.1% and fear of possible further interest rate hikes in China, regional markets, including Malaysia, fell sharply last Thursday.
This was the second time after Chinese New Year (CNY) that a drop in Chinese stock prices rattled the markets across Asia.
According to Lee In Ho in his study on Market Crashes and Informational Avalanches, there are four stages in a market crash. They are boom, euphoria, trigger and panic.
Under the boom stage, the market will normally have a main theme that excites everyone about stocks.
In Malaysia, several positive measures under the Ninth Ma- laysia Plan got investors excited about the construction and property sectors. At this stage, this is seldom a bubble as companies continue showing good corporate results. A bubble will be created at the euphoria stage. The unjustified extrapolation of future earnings and the revision of higher target prices by research analysts can cause overconfidence in companies’ future performance.
A bubble will start to take shape when the general public reacts to this overconfidence. An irrational exuberance will occur when market prices and expectations about future values are far beyond the fundamentals of the companies.
However, no one will know when the rise will stop. A market will resume its upward trend until something triggers the downfall.
Usually, the stock prices get higher and steeper just before the market crash.
At the trigger stage, private information will reach a threshold that triggers other traders to alter their behaviour. At this critical situation, when almost everyone is at irrational exuberance, any event can trigger the market to tumble.
In January 1994, our stock market put the blame on former finance minister Tun Daim Zainuddin for saying that he had sold all his shares because prices had reached dangerous levels.
Until now, nobody can really understand the main reason behind the sharp plunge on the Shanghai Index right after the CNY.
According to some fund managers in China, the selling was mainly due to investors panicking when they noticed that their friends were selling stocks.
A famous researcher in behavioural finance, Robert Shiller, conducted a survey by asking institutional and individual investors what was in their mind during the stock market crash in 1987. One conclusion he drew was that the crash was due to people reacting to each other with heightened attention and emotion.
Investors seemed to follow what other investors were doing. As a result of action and reaction, a feedback loop was created when everyone had a simultaneous reaction to common stimuli.
A market crash is described as a process that corrects a public belief that is inconsistent with the current distribution of private information. The severity of a crash will depend on whether the market is filled by “new generation” investors or experienced traders.
“New generation” investors do not know anything about the stock market but are greedy and want to get quick money from it. A market will not crash if it has experienced traders who know how to control risk and when to cut losses.
However, if a market is filled by “new generation” investors with no holding power and do not know when is the right time to sell a stock, any sharp drop in prices could result in panic selling. At this panic stage, the fear of further drops could cause big fall in prices.
When will the stock market crash again?
My usual answer for this question is the stock market will not crash as long as you continue to worry about when it will crash. The market will crash at the time when you least expect it to happen. Investors should remember that the market always performs beyond your expectations.
We should not be too worried about when the market will crash. Instead, we should consistently review our portfolio and sell those stocks whose prices have gone beyond their intrinsic value.

Famous Quote

Reveals the high dividend yielding stocks

Below is the compiled list of all high dividend yielding stocks. Those in light green are my preference at the moment. Take a look you may find your preferred stocks here. Bear in mind that these companies might not pay the same amount of dividend as they used to be, is very much depend on the company performance & result that lead them for consistent dividend payout.