Bi-directional View Of the Stock Market Movement

When the stock prices in my portfolio are moving up, I am looking forward to take some profits off the table and to recover some investing capital for the war-chest.

When the stock prices in my watch list are moving down, I am looking forward to deploy some recovered capital and to re-invest some realized profit.

When the stock prices in my watch list are dropping further, I am looking forward to deploy some available investing capital.

When the stock prices in my watch list  continue to spiral downward, I deploy the opportunity fund.

If the stock prices continue to plunge, I go and eat grass.

But, I still prefer the stock market to go up as I don't short it.

Kingmen - Still have some liquidity and may be still tradeable

Over Long Term We Are Safe?

Brolp said: "Yea right, in the long term, we're all dead."
and "I therefore cringe whenever I hear the word 'long-term' being uttered. A shiver of uneasiness will creep up my spine."

But, there is one group of people over long term are safe and happy. The rest of us may or may not. This particular group of lucky people have Bank Of Papa or Bank of Mama behind them and over long term they will takeover the "Bank Account"; if not, then sue the bank for it -  Woman with S$8.8m takes bank to court .

Long Term Planning for Kid's Education

Like many others, I did long term planning for my kids' university education using Endowment policies.

Generally, over long term, endowment policy should be relatively safe, provide protection, and reasonable risk-returns.

But, in reality it is not true at personal level over long term. It is when you need the money that really counts and the outcome may be unexpected. The amount you received may fall short of your projected target after years of inflationary effects and unfortunately at that time, what if you have no other means of financial resources to mitigate the shortfall and can be serious.

My Endowment Plan

Insurance - Enhanced Endowment Policy Suck!

In my case it is unfortunate that the Endowment policy matured at the wrong time. It has matured during the time of the Greater Bear of 2008 and I believe the Endowment fund's assets must have been severely wiped out and give such poor returns.

Has my Endowment policy matured in 2007 instead of 2009, I might be singing different tune about Endowment policy.

Over long term are we safe? It definitely depends when you need the money. If you need the money at the next Greatest Bear, I bet you might be crying bitterly so it is not wise to bet over long term that we are safe.

STI - More down side next week?

Technical rebound didn't survive the selling on strength. Why? People need money to celebrate CNY?

Punggol to host Singapore International Kite Day

Punggol residents love to fly kites. And to bring kite enthusiasts together, Punggol North grassroots organisations are partnering the Singapore Kite Association to organise the third Singapore International Kite Day @ Punggol and Teens’ Day 2010 and Road Safety Campaign on 30th and 31st January 2010 at the open field located at Punggol Field Walk. (Opposite Punggol Plaza)

This year, for the first time, the kites will be equipped with super bright LED lights and flown at night. Residents can expect a spectacular sight when the kites light up the night sky.

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I went to watch the night kites which are equipped with super bright LED lights. Tomorrow, 31 Jan 2010 is your last chance to bring your kids there to watch the night kites.

Ausgroup

Using CPF OA for your kid's local university and poly education - Part 2

Using CPF OA for your kid's local university and poly education

For those on CPF scheme, the government has helped you to invest around 34.5% of your earned income and give you a risk free returns at 2.5% for CPF OA and 4% for CPF SA.

For those self-employed without CPF, I realize that their challenge for investment returns are far greater than those on CPF.

It is a huge challenge to invest another 34.5% of their earned income on top of the regular saving to get that type of returns year after year.

CPF, I think you have made my investment tasks and responsibility easier. Phew!

insurance - enhanced endowment policy suck! - Part 2

insurance - enhanced endowment policy suck! - Part 1

I have three endowment polices, one for each of the three kids. The first endowment for 1st kid matured on last Oct 2009 and the annualized return is 1.64% after XX years with XX insurance co and far away from the projected value.

The second one will mature in Nov 2010. Let see how bad the annualized return will be?

The third one will mature in Mar 2016 for the youngest kid who is now in Sec 3.

At that time, I was a dumb investor and low in FQ and probably that investment decision made was really the right fit for a dumb investor. That is the price I paid for a peace of mind.

Is this really a peace of mind? It has fell far short of the projected value. What if that is the only fund I have? Will I still have a peace of mind?

I have repeatedly remind my kids not to discuss with any financial advisers when they start working next time but get the financial advisers to talk to me first as I am no longer a dumb investor with low FQ.

There will be plenty of tough questions to grill them and then I shall walk away after some free coffee and may be some finger food too. So shiok!

Value Investing Or Active Investing? - Part 2

Value Investing Or Active Investing?

Opportunity In The Stock Market?

do you know where are rocks? (stocks)

“When one door closes, another opens; but we often look so long and so regretfully upon the closed door that we do not see the one which has opened for us.” - Alexander Graham Bell

I know many people who came to the stock market thinking that they have the capability to make money but end up badly burnt by the stock market.

They learned their bitter lessons, chopped their fingers and promise themselves never to touch the stock market again. One of them is one of my brothers-in-law and the other one if I remembered correctly is Piggy's hubby.

Some of them lose money but they never give up. They re-examine their investing strategy and seriously seek out their "Gurus".

Soon they become enlightened and begin making money from the stock market.

The real losers in the stock market are those lose and give up.

I am thinking what are the differences in the two women mentioned in the earlier story and they got it right. May be, they are the lucky ones who came knocking at the right door at the right time. The door was open wide, they heard the whispers about the "Touch Stone" and the "Rocks".

They believe and became confident that they too can succeed. They have seen with their own eyes "people are walking on the water".

May be they are like what Newton said: "If I have seen further it is by standing on the shoulders of giants."

 

If you are not already the giant, may be it is time for you to look for a giant and stand on its shoulder to look further.

Does Your Account Size Matter? - Part 2

Does Your Account Size Matter? - Part 1

The wealth of the stock market is locked by more than one key so you will need more than one key to unlock it.

Capital is the first key to successful investing/trading. Holding power is the second key. Without holding power, you are more likely to panic sell during market volatility and causing you to lose money.

But, some people will tell you that holding on losing positions and sitting on paper losses will cause you opportunity costs.

True or not?

What if you still have some available investing capital at hand? What is your opportunity cost? Your opportunity cost for holding on to the losing positions is the current interest rate and nothing more as you still have money to invest in the stock market or other financial instrument.

It is only when you have zero capital left to invest, then you have to seriously consider what is the opportunity costs of holding to those losing positions?

It may be better off for you to bite the fingers to cut losses on some losing positions to recover some capital to invest.

In 2008 Greater Bear, I have used up all my investing capital and left with zero cent. I too bite my fingers and cut losses to recover some investing capital even though I don't have stop-loss strategy. The truth is that you don't need to win back in the same way that you have lost. 2009 Year End Performance Review

DOW - Bears Came Roaring Back!

The bears came roaring back! Closing 10,067.33, down -0.52%

Will the hell break lose when DOW breaks 10,000 next week?

Stocks ended a disappointing January with a loss as investors questioned whether the economy will be able to sustain its big fourth-quarter growth rate. Downbeat earnings at technology companies also pulled stocks down.

The Dow Jones industrials fell 53 points Friday to close the month down 3.5 percent. Just 10 days earlier, the average was at a 15-month high. Investors who are increasingly uneasy about the economy, earnings and politics have been pulling money out of the market over the past week.

January was the worst month for the market since last February. Many market watchers believe January sets the tone for stocks for the rest of the year, and historical data backs that up. Since 1950, the Standard & Poor's 500's full-year direction has matched its January performance more than 90 percent of the time, according to the Stock Trader's Almanac.

Still, the January barometer can be faulty. Last year, when the market had its worst January ever, the Dow fell 11.4 percent for the month, and then went on to post an 18.8 percent gain for all of 2009.

Stocks inititally rose Friday after the Commerce Department said gross domestic product, the broadest measure of the economy, expanded at an annual rate of 5.7 percent during the fourth quarter, easily topping forecasts of 4.5 percent. The strong growth, coupled with an upbeat report on manufacturing in the Midwest, reassured investors about the economy.

However, details within the GDP report also raised questions about how well the recovery can be sustained. Most of the growth came from companies replenishing low inventories. Rebuilding inventories tends to create just a temporary bump in growth.

"The GDP report looks shiny and new on the surface," said Alan Gayle, senior investment strategist for RidgeWorth Investments. "But once you open up the hood, you start to see it's not as great as on the outside."

Michael Sheldon, chief market strategist at RDM Financial Group said the report "is going to leave doubts" in the minds of investors who are looking for consistent economic improvement.

Questions about the report added to the market's growing list of concerns. Investors were already uneasy after China said it was trying to limit its economic growth and as President Barack Obama announced plans to overhaul banking regulations. Shares have fallen sharply since hitting a 15-month high last week.

The Dow fell 53.13, or 0.5 percent, Friday to 10,067.33. The Dow is now down 658.10, or 6.1 percent, since reaching its 15-month high of 10,725.43 on Jan. 19.

For the month, the S&P 500 is down 3.7 percent, while the Nasdaq is off 5.4 percent.

Unlike most Januarys, there wasn't a flood of fresh money moving into the market this month, since so much cash went into last year's big rally, said Alan Gayle, senior investment strategist for RidgeWorth Investments. Without that injection of money, portfolio managers are left to collect profits from last year's big run, he said.

The recent spate of bad news and uncertainty led many professional investors to decide the best course of action was to sell.

"The market is in the process of recalibrating," Gayle said. "we will get some retrenchment."

There was good economic news Friday, but not enough for the market to hold its gains. The Chicago Purchasing Managers Index rose more than expected, providing some evidence the manufacturing sector, at least in the Midwest, is rebounding as well. The Chicago PMI climbed to 61.5 in January from 58.7 last month. Economists were expecting 57.5.

The Chicago report is seen as a precursor to the national Institute for Supply Management report due out Monday.

The market is still wary about government plans to increase the regulation of banks. Obama's calls last week to restrict the size of banks and to limit risky trading by big financial institutions helped spark the sell-off in stocks.

"Political uncertainty always gets people nervous," said Peter Zuger, co-portfolio manager of the Touchstone Mid Cap Value fund.

The unknowns coming out of Washington have helped stall the rally that sent the S&P 500 up 59 percent since last March. One political worry was put to rest Thursday when Federal Reserve Chairman Ben Bernanke won Senate confirmation for a second term.

The Dow Jones industrial average closed the week down 105.65, or 1 percent, at 10,067.33. The Standard & Poor's 500 index fell 17.89, or 1.6 percent, to 1,073.87. The Nasdaq composite index fell 57.94, or 2.6 percent, to 2,147.35.

The Russell 2000 index, which tracks the performance of small company stocks, fell 15.08, or 2.4 percent, for the week to 602.04.

The Dow Jones U.S. Total Stock Market Index -- which measures nearly all U.S.-based companies -- ended at 10,991.11, down 191.30, or 1.7 percent.

A Conversation With Benjamin Graham

What general rules would you offer the individual investor for his investment policy over the years?

Let me suggest three such rules: (1) The individual investor should act consistently as an investor and not as a speculator. This means, in sum, that he should be able to justify every purchase he makes and each price he pays by impersonal, objective reasoning that satisfies him that he is getting more than his money's worth for his purchase--in other words, that he has a margin of safety, in value terms, to protect his commitment. (2) The investor should have a definite selling policy for all his common stock commitments, corresponding to his buying techniques. Typically, he should set a reasonable profit objective on each purchase--say 50 to 100 per cent--and a maximum holding period for this objective to be realized--say, two to three years. Purchases not realizing the gain objective at the end of the holding period should be sold out at the market. (3) Finally, the investor should always have a minimum percentage of his total portfolio in common stocks and a minimum percentage in bond equivalents. I recommend at least 25 per cent of the total at all times in each category. A good case can be made for a consistent 50-50 division here, with adjustments for changes in the market level. This means the investor would switch some of his stocks into bonds on significant rises of the market level, and vice-versa when the market declines. I would suggest, in general, an average seven- or eight-year maturity for his bond holdings.

In selecting the common stock portfolio, do you advise careful study of and selectivity among different issues?

In general, no. I am no longer an advocate of elaborate techniques of security analysis in order to find superior value opportunities. This was a rewarding activity, say, 40 years ago, when our textbook "Graham and Dodd" was first published; but the situation has changed a great deal since then. In the old days any well-trained security analyst could do a good professional job of selecting undervalued issues through detailed studies; but in the light of the enormous amount of research now being carried on, I doubt whether in most cases such extensive efforts will generate sufficiently superior selections to justify their cost. To that very limited extent I'm on the side of the "efficient market" school of thought now generally accepted by the professors.

(CreateWealth8888: Hardcore retail value investors, it is about time to wake up as your Grand Master no longer advocate it now. Sentiment of the market is clearly indicated in the chart)

http://www.bylo.org/bgraham76.html

Kep Corp - Can buy or not?

Kep Corp - still in consolidation phase or breaking out soon?

A colleague was quite excited over the 23 cts dividends + special dividend 23 cts worth of KGT and that will give him more than 5% yield. He asked me can buy or not?

Today, Kep Corp is well supported in a STI down day.

Since 2001 I have traded Kep Corp 91 times to make it a golden pillow.
I have one position @  $7.98 for Round 92.

What did I say to him? Can buy or not?

Value Investing Or Active Investing?

"However beautiful the strategy, you should occasionally look at the results." - Winston Churchill

Peter Drucker once said, “What gets measured, gets managed.”


Measure, Measure, Measure - Part 2

Portfolio Management - Stop Losses?

Trading/Investing - Are you winning or losing?

Active Investing, Passive Investing, and Active Monitoring - Part 2

Long Tem Investing and Short Term Trading

I heard one value investor said: "It's hard to understand why people venture into trading. It's better to ignore it totally. I think the reason is the innate nature of human to strike it big through gambling which derives both satisfaction for short-term gain and also the thrill. Maybe some of them really can make some money, but I know none"

I am telling you the true story of two women who has been making money as active investors and they can be considered as relatively new active investors.

• Super Mum started her active investing journey from Jul 2008 and of yesterday her CAGR is 15.5%
• Piggy was lucky to start her active investing  from Feb 2009 where it was near to the low of 2008 Greater Bear and her CAGR is 25%

However, we cannot expect to continue have such good portfolio returns going forward and anything more than 10% CAGR is pretty good.

Who say you can't make money in active investing? Let be open minded!

It is definitely far too difficult to take the road traveled by Warren Buffet and Tiger wood; but to trace the footprints of Super Mum and Piggy is not so difficult as you think.

Work or Further My Studies?

Work or Further My Studies - FF

I couldn't afford it and have to give up full time study for a Degree in Accountancy in University of Singapore (NUS); but I still continue to further my education taking the part-time route by doing a Diploma and followed by a Degree.

I also spent more than a year thinking very hard whether should I continue with a part-time MBA. But, in the end I decided to invest the MBA course fee into the ever learning "University of Stock Market" and hope to graduate with a "Masters In Stock Market".

I am not sure when can I graduate from the stock market?

Sending Your Kids To Overseas University?

Three stories of my colleagues who send their kids to overseas university.

Two of them sent their daughters to overseas university and wipe out much of their retirement fund. Both daughters never came back and their poor parents have to fly over to visit them as their daughters are too busy with their careers to visit their parents.

The third one has to down grade from 5-room to 3-room to raise money to send their son to overseas university and their elder son was quite fed-up with his parent's decision and asked: "Why should the whole family suffer because younger brother fooled around and didn't study hard?" 

If you have more than 1 kid, do you think it is fair to let one kid depleted most of the limited family financial resources?

Kep Corp - still in consolidation phase or breaking out soon?

Will the 5 for 1 free distribution of KGT an incentive for BBs to hold it longer and limit the selling pressure?

DOW rebounding off its support?

STI- down -1.24% @ 2706

STI has corrected -7.7% from its high @ 2,934 and in red for six straight days. More to come as support is broken!

Keppel in driver's seat for Aramco jack-up

Singapore's Keppel AmFels is set to edge out Jurong Shipyard to a newbuild jack-up rig contract from Saudi Aramco, according to a source close to the development.

Jurong was viewed as a favourite to win the race, given the yard is building a heavy-lift jack-up barge for the Saudi Arabian giant.

However, an industry source said Keppel AmFels could have submitted a more competitive bid based on the KFELS B Class design, beating Jurong’s proposal with the Le Tourneau C250.

Aramco has shortlisted three rig designs, the third being Baker Marine’s PPL Pacific Class 375.

Jurong is said to have gone with the Le Tourneau C250 in favour of a participating bid from its sister yard, PPL Shipyard, during the early days of the tender.

PPL Shipyard did not make it to the Aramco’s final shortlist, leaving Jurong and Keppel to battle it out for the Aramco prize, a source said.

The Aramco tender came as a surprise last year amid an excess supply of standard jack-ups in the market.

The Saudis have long wanted to build their own fleet of high-capacity rigs and the jack-up on order is said to feature a larger deck space than the average unit in the market.

Saudi Aramco could not be reached for official comment as of press time.

Finding Both Dividend & Growth Stock?

Begone idealistic youth!

LP said: "I thought that the market only have two kinds of stocks - dividends or growth stocks. Dividend stocks means that there is no growth anymore while growth stocks means that there is a huge chance of capital gains. I used to like growth and detest dividend stocks."


Can we find a stock in SGX that gives both dividend and growth? Yes, it is even possible to find them in STI blue chips that are backed by Temasek. You can certainly sleep soundly at night holding them.

Kep Corp is one good example where I am sleeping soundly for years - good dividend and growth:

Kep Corp - Big Pay Day. Thank you!

Besides being a dividend and growth stock, it is also a great trading stock.

Kep Corp is now growing its third wing to replace its weaken 1st wing and may continue to fly high with 1 weaker wing but supported by 3 wings altogether.

STI - Possible Technical Rebound Today?

STI has corrected -6.4% from its high @ 2,934 and in red for five straight days. May be today, we may see a possible technical rebound.

Market On Sale!

I believe many weak holders and margin traders were more or less cleaned up in today market action.

Were you afraid today?

Did you grab a little to build up your inventories?

A shop owner without inventories can't do much.

Kep Corp - Big Pay Day. Thank you!

Final Dividends and Listing of K-Green Trust


With the good results, the Board of Directors would be recommending a total distribution to shareholders of 61 cents per share for the whole year. This will comprise the interim dividend of 15 cents per share, a proposed final dividend of 23 cents per share, and a proposed dividend in specie in units in our K-Green Trust, equivalent to 23 cents per share.

We are proceeding with the listing of our K-Green Trust, which will optimise returns from our Infrastructure assets. The Trust was established last year with the Senoko Waste-to-Energy Plant as seed asset. We will be injecting two additional assets in Singapore into the Trust, which after listing, will aim to generate long-term, regular and predictable distributions to Unitholders

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My full year dividend yield = 5.3% (interim $0.15) + 8.1% (final $0.23) = 13.4%

Another proposed dividend in specie in units in  K-Green Trust, equivalent to 23 cents per share. The Proposed Distribution will be effected by way of a dividend in specie to Entitled Shareholders on the basis of 1 KGT Unit for every 5 Shares held by an Entitled Shareholder,


Indeed a very good year for loyal shareholder. Thank you, Keppel Corp for creating shareholder value.

SCI - Got it @ $3.47

Round 50

Round 51 is on ....

SML - Got it back @ $3.47 (2nd batch/3 batches of buying back)

Buying back SML - 1st batch out of 3

Spending Quality Time With Loved Ones? - Part 2

Time is the most valuable coin in your life. You and you alone will determine how that coin will be spent. Be careful that you don't let other people spend it for you ~ John Dryden


Spending Quality Time With Loved Ones?

Time is the new currency.
 
If time is the new currency and you spend so little time e.g. $100 instead of $500 on your loved ones as you have too many other commitments.
 
Would you tell people that you are spending quality $100? 
 
 
 

Synear - Breakout or Resistance tmr?

Spending Quality Time With Loved Ones?

This phrase: "Spending quality time with loved ones"

This is another nonsense often spoke by those who felt deeply inside their hearts that they are guilty of not spending enough of their personal time with their loved ones and to justify to themselves that those time spent with their loved ones are quality time.

You either spent more or less of your personal time with their beloved ones. There is no such thing as quality time. Stop kidding and get real!

Time Value Spent On Saving and Investment

Do you think you are a smart investor with your investing capital and time?

Most of the smart investors are very smart when it comes to managing their investing capital; but when it comes to determining the time value spent on saving or investment, these smart investors may not be so smart.

One good example is painting your house for the coming Chinese New Year.

Assuming you are a smart investor who knows how to make few hundred bucks from the stock market from time to time?

Would you rather pay the painting contractor to paint your house or you save that few hundred bucks by laboring yourself over the weekends to paint your own house?


If you choose to paint your own house just to save that few hundreds instead of doing researches over weekends to look for stocks ideas; then you are still unclear of time value on saving and investment.

Likewise, as a smart investors, do you spent most of your time to look for better deals to save on pennies and forgo the time to spend on finding better investment ideas that will return more dollars.

Time spent on saving is the opportunity cost for investment.

Saving and Investment are the twin sisters while Leisure and Working are the twin brothers.

Why Your Mee Pok Will Cost $2.50/$3.00?

Looking at the product costing of a bowl of your favorite mee pok? Why will it cost you $2.50/$3.00?

The bulk of the cost comes from the stall rental and the cost of rental is very high and so the cost of a simple fare like bowl of mee pok has to cost that much.

Any business that don't have to incur high rental cost e.g. home-based business, they are likely to offer similar or comparable product at better cost-value or price-value.

A home-based group tuition is a good place to start your small business; but too bad I am out-of-date for such biz. What else can I do? Any suggestions?

Using CPF OA for your kid's local university and poly education

The biggest use of CPF OA is for housing loan and not sure how many married couples out there are consciously aware that the next biggest use of their CPF OA is to pay for their kid's local university or poly tuition fees.

Those couples taking up 30 years housing loan, are they consciously aware that the next bigger use of CPF OA is waiting for them while at the same time having their CPF Employer contribution cut upon reaching 50 years old. In another word, more use, less fund.

SML - No panic selling on last Friday? Monday?

Round 38: ROC 21.1%, 217 days, B $3.07 S $3.74

Got it back partially at $3.67

Hope to get it fully back in the next two batches - buy slowly and sell slowly. Nobody really know where is the market heading to?

Straits Asia

Anyone interested?

What Happen?

What happen when we have the following events:

• A badly burnt toast bread
• A drown man at the sea
  
• A badly unwanted pregnancy
  
• A badly burnt investors/traders

Answer: Pull out too late!

So knowing when to pull it out is equally important than going in.

The 8th Sin Of Investing (Not deadly)

"The 7 Deadly Sins of Investing” by Maury Fertig. It is a good  book to read on investing.

But, there is one more sin that hard core value investors are not aware of. The 8th Sin of Investing: Refuse to read stock chart and it is like saying I am always right and the views of the market are irrelevant.

Before you come to the market, it is wise that you hang your high ego at the door; otherwise Mr Market will one day punish you and show you who is the real master.

Although the No 8 sin is not deadly, it is still good not to commit it.

Get Real, Margin Of Safety - Part 2

"However beautiful the strategy, you should occasionally look at the results." - Winston Churchill


Get Real, Margin Of Safety - Part 1

Let look at the recent Noble trade:

Round 10: ROC 6.5%, 20 days, B $3.07 S $3.29

I bought back Noble at $3.04 on Friday for Round 11 and this immediate position has a real margin of safety of 6.5% and not an imaginary number in the investor's mind.

Do you know how to play the game of real margin of safety?

OBearMa is here!

Have you been preparing for this Great OBearMa? What is your plan next week?

STI - Just another Ladder and Snake Game

STI today closed down @ 2,819.71 for three straight days of down.

STI took nearly one month to climb the small ladders and only need 3 days to slide down the snakes to reach where it began.

Do you realize why?

Noble - Another round trip

This is the nature of the stock market. Never assume you will never be able to buy it back lower.

Noble - Got it back @ $3.04 for next round

Last round as follows:

Round 10: ROC 6.5%, 20 days, B $3.07 S $3.29

STI (Sexually Transmitted Infection)

To avoid getting STI, I usually avoid having new "sex" partners. I like to go back to visit the newest mistresses. Love them and don't get married to them.

Treat your stocks as your "sex" partners.

DOW : Here come Obama's Bear!

Finally, we have 2 big down days that many have been wating for.

DOW poked through the support line and more to come?

Will STI just poke through or crash down?

Your Chinese New Year Sales is ON!

Are you doing your shopping today?

STI - Correction finally is here?

Nicely, it touches the support line today so will it rebound or break through tomorrow?

We shall see.

Who Want To Be A Instant Millionaire?

Buy ToTo  ... You have 2 chance to become an Instant Millioniare. Last Monday, someone became an Instant Millionaire with $3.3M in his/her pocket.

-----------------------------
Singapore Pools will hold two draws to usher in the 2010 Lunar New Year.


The Reunion Draw with a jackpot prize of S$5 million will be held on Monday, February 15. Ticket sales will close at 9pm that day.

Ticket sales for the Hongbao Draw with a jackpot prize of S$10 million will close on Friday, February 26 at 9pm.

There will be no Toto draw on Thursday, February 25.

Are Loan Good or Bad?

When is your loan actually good and not necessary bad?

First, we look at net worth of a person:

Net Worth = Assets - Liabilities

*Assets exclude your residential home as everybody need a roof over their head.

When you are net worth positive, then all your loans can be considered as good loans in the current low interests environment. You should be able to generate higher returns to pay off the interests payable.

Net worth positive means that you have enough assets to repay your debts fully if you are pushed to the corner to do so.

Don't Forget 200 EMA

Newton’s First Law

Every body continues in a state of uniform motion in a straight line, unless it is compelled to change that state by a force impressed upon it.

You may remember this law as “an object in motion, stays in motion.” This means that once the stock price starts to move in one direction, it’s very likely to continue to trend in that direction until something changes the overall bias of the stock movement.

Simple EMA for my Lizard brain

The 200 EMA could be considered the most important trend indicator. Why? Because the stock price is either moving toward it or away from it. It’s a Yin/Yang or love/hate relationship. Therefore, if the stock price is held by the 45 EMA, the stock price will likely continue to move away from the 200 EMA.
 
When the stock price arrives at the 200 EMA and breaks down; it means the bears have finally over run all the bulls.
 
If 45 EMA crosses below 200 EMA, the bears celebrate their victory.
  

But not all bulls are dead as some bulls are busy producing more bull calves.

200 EMA is known to be used by many long term investors looking to exit or reduce their long term holding in a stock.

So the general rule is that if the stock price is above the 200 EMA then you should look for buying opportunities until it falls below this indicator, at which point you should seriously consider selling some or all your stock.

But, of course you may look for oversold positions when the stock price is substantially below the 200 EMA; but you will never know when the stock price is at or near the bottom and may substantially fall further to trigger a falling knife effect.

STI- Chinese New Year Sales coming?

What will you be betting?

1. Hit the support and rebound?

2. Break down and have a Great Chinese New Year Sale?

Yanlord: Lord of China property play?

In every Bull somewhere there will be some small bears and we want to avoid them.

In every Bear somewhere there will be some small bulls and we want to spot them.

Is Yanlord is one of those small bears in a Bull?

Did you see the heavy top consolidation and breaking down 200 EMA? Watch 45 EMA closely!

7.38% return over 4 year 11 months!

7.38% with XXXX Invest Equity YYYY over 4 year 11 months!

I believe if you come here often and implement the "Buy 1 cents lower strategy". You will beat this return flat!.

ROC or Absolute Dollar Gain?

When you made $50K from the stock market, how will you shout out? The announcement should make you feel good and hopefully you can hear the "wow" sound coming from the crowd.

When you have small account size like $100K, you shout out 50% ROC. Wow!

When you have big account size like $1M, you shout out: "Brothers, I made $50K man!"  Wow! $50k

One Way This Blog Can Help You

10 Ways This Blog Can Help You - Financial Freedom


One way this blog can help you by showing you as a retail investor, you can make money from the stock market using simple TA, FA, Money Management and Emotion Control.

Believe it or not. Up to you.

Investment Decisions

• Fully understand the true meaning behind these quotes

Stock picking is part science, part art, part luck, part intuition, and always uncertain - "not precisely knowing."

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"If I have seen further it is by standing on the shoulders of giants." - Isaac Newton, letter to Robert Hooke, 1676

Peter Drucker once said, “What gets measured, gets managed.”

"However beautiful the strategy, you should occasionally look at the results." - Winston Churchill

"When the tide comes back, you will soon find out not all boats rise high." - CreateWealth8888

Implement these strategies:

Value Investing - It is about multi-baggers

Long Tem Investing and Short Term Trading

Pillow Stocks Strategy

If you make money from the stock market. Please remember to buy me a cup of kopi-O to say "thank you".

DOW: A powerful rally and a new high @ 10,725.43

Many are wondering when will correction come?

Some are happy and some will be sad.

STI ETF: Low Risk at Market Return over long term?

Why do people think that STI ETF is low risk at market return over long term?

Looking at the chart and I can't see any evidence of low risk?

CPL - Breaking out or Consolidating at next higher box?

Do you like China play?

'This proposed acquisition is timely and an excellent strategic fit for CapitaLand,' said CapitaLand chairman Richard Hu in a statement. 'It also fits into our stated goal of growing our asset size in China from the present 28 per cent of total assets to 45 per cent over the next five years as we remain very confident of the long term future of the country.'

The acquisition will double CapitaLand's China property portfolio from 1.4 million square metres to 2.8 million sq m and increase the asset size in the country to around 36 per cent of the group's total assets. The deal is expected to be completed by the end of the first quarter of 2010.

If you like China play, can you afford to give this one a miss?

STI - Is correction coming or not?

Why are we still here?

Home for Living and not for profit taking - Part 3

Read? Home for Living and not for profit taking - Part 2

SuperMum was telling us the story of her friend who has sold her Seng Kang flat at profit of $100K after 5 years and then bought another older flat at Hougang. The profit is so shiok!

This is the same story but different actor only. May be SuperMum should check with them at the next recession.

SML

Has it corrected from its high of $3.91?

Biosensor breakout!

Biosensor breaking out today?

So shiok!

CapitaLand buys Orient Overseas Developments Ltd for US$2.2 bil

CapitaLand growing presence in China

CapitaLand Limited said on Monday it has inked a deal with Hongkong-listed Orient Overseas (International) Limited (OOIL) to buy the latter's 100 per cent stake in Orient Overseas Developments Limited (OODL).

Under this arrangement, CapitaLand will acquire a real estate business with a portfolio of seven sites located in Shanghai, Kunshan and Tianjin for a purchase consideration of US$2.2 billion (approximately S$3.1 billion).

The move will double CapitaLand's China property portfolio from 1.4 million sq metres to 2.8 million sq m.

Will CPL breakout from this news?

Biosensor breaking out today?

Biosensors International Group, Ltd. (“Biosensors”, Bloomberg: BIG SP) announced today that its BioMatrix™ drug-eluting stent system has received approval for reimbursement in France. The addition of BioMatrix to the LPPR (“Liste des Produits et Prestations Remboursables”) was published in the Journal Official on 15 January 2010 and as a result of this announcement, the BioMatrix will be available from 28 January 2010 to patients with coronary artery disease throughout France.

Where Does The Money In The Stock Market Come From?

Everybody comes to the stock market with one objective - to make money?

Since everybody want to make money; where does the money from the stock market come from?

There is some money coming from companies paying out periodically as stock dividends or shares buy-back; but it is not much money compare to the enormous size of the money change hand in each trading day.

Most of the money made in the stock market come from capital gains through Greater Fools distributing their money to the Better Fools.

It is foolish to expect to make money in the stock market where in fact there is so little money to make from stock dividends or shares buy-back. So all stock market participants are indeed fools. It is either you are Greater Fools or Better Fools.

Better Fools make most of their money from the Greater Fools and perhaps some money from the stock dividends as well.

Who Want To Be A Millionaire?

The possible stages before becoming a Millionaire ..

Four Financial Progressive Stages

Asset Rich Millionaire

They accumulate enough wealth to become a millionaire; but by then they are near retirement and their wealth may be enough to see them through a decent retired life. They are unlikely to have the ability to take more risks to create more wealth. They tend to be very careful with their money as it will most likely to dwindle down with passing time. These millionaires are typical asset rich Singaporeans who have substantial CPF saving,  unit trusts, mature insurance endowment, and down-graded or sold their residential home after retirement.

[After post:
Comment from Laksa: I believe your Asset Rich Millionaire definition does not fit what you are trying to say. Asset rich millionaires could also be people who have plenty of properties and nothing else. Those are termed assets as long as it generates a positive cashflow and they may not be investment savvy.
Comment from CW8888: Not sure someone who have plenty of properties and still not considered as investment savvy. Maybe they inherited those properties so we have another class called Silver Spoon Millionaire]

Investor Millionaire

They create and build up massive wealth through various classes of investment including properties. They have vast knowledge, skills and experience in investing and able to continue create wealth even after their retirement but may be at a slower pace. They are shrewd investors during their lifetime.

Noble Weekly

Plenty of profit laying on the table and due for more profit taking?