Portfolio update - contra Noble and offset LBG, nett ROC 1.2%

Cut off LBG. Volume is too low.

Portfolio update - Bought GAR 0.715 and Noble 2.12

Dividend Growth Points the Way to Prosperity

Dividend Growth Points the Way to Prosperity
Monday July 28, 12:00 pm ET
ByJonathan Heller,

In the midst of another earnings season, we are yet again reminded of the many ways to measure a company's recent success (or lack thereof). It's all about earnings, at least that's what's typically reported first.

I'm not trying to denigrate earnings as a metric, but the variety of methods used (basic EPS, diluted EPS, EPS from continuing operations, the list goes on), can be confusing to investors. Even the analysts don't always agree what the most appropriate measure is.

Beyond that, it is clear that earnings can lie -- and I'm not even referring to fraud, but rather legal methods company's can use to make the results look better, at least in the short term.

Dividends, however, don't lie. I do acknowledge however, that David Einhorn has made a compelling case that this may not be true in the case of Allied Capital , but that's another story.

Dividends must be paid in cash, and cannot be manipulated the way earnings can. What you see is what you get. A company cannot declare a $.25 dividend and pay out $.15, nor can it decide to pay it out in the form of excess inventory instead of cash.

The downside, however, is that companies that run into performance trouble can cut their dividend, or eliminate it altogether. In some of these cases, the punishment (i.e. a declining stock price) is severe, and it might have been better had the company never committed to a dividend policy in the first place.

With that as a backdrop, I am a big believer that dividend growth can be an excellent indicator of true company health, performance and a confident management team. This is not about yield, but rather rapid and perennial growth in what a company is willing to return to its shareholders.

In a way, this is self-policing as companies must keep their payout ratios low enough to allow for reinvested capital, and room for further growth.
The intent here is not to suggest this is the only way to truly measure company health or growth, but rather one method that can be applied to dividend-paying companies. We recently screened for dividend growers meeting the following criteria.

(As always, with any stock screen, further research on each individual company is paramount):

• Market cap between $500 million and $10 billion. (This is intended to identify smaller companies which might have room for further growth.)
• A payout ratio less than 30%. (Payout ratios that are too high are not sustainable, and may lead to dividend cuts or eliminations.)
• Total debt-to-equity less than 30%. (Too much debt can constrain a company's ability to pay dividends.)
• Consecutive increases in dividends for at least seven years. (This demonstrates both a strong track record, and management's intent.)
• Five-year dividend growth rate at least 10%. (This indicates rapid increases in dividends paid.)
• All industries except financials. (I am skittish on financials at this point.)

Lian Beng - breakout tomorrow?

Hmm... possible breakout tomorrow if DOW able to close above 100+

Portfolio update - Contra FRC ROC 9.1%

Portfolio update - Bought NOL 2.98

Portfolio update - Bought NOL 3.17 and LBG 0.23

Portfolio update - Contra FRC ROC 3.6%, Buy back FRC 1.23

Portfolio update - Bought FRC @ 1.20

Why is there such market action on ferro?

Portfolio update - contra Noble ROC 4.9% and Olam ROC -1.5%

Square off for some nett gain, can oredi.

Portfolio update: Contra GAR ROC -4.9%

What a bad start for the week?

Book - Investor Therapy by Dr Richard Geist

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

Because of these inherent subjective elements, success investing depends on understanding our emotional reactions to the market and its participants. Buried in these emotional reactions are both investment errors and investment strengths that remain mostly unconscious unless we devote substantial energy to unearthing them and then leveraging what we learn about ourselves into profitable decision-making

Portfolio update - Bought Noble 2.01 and Sold GAR 0.795

Planting the seed of growth

Investing is like gardening. You will reap what you sow if you stay the course through the harsh seasons

By CHRISTOPHER TAN

IT was Monday (yes, just two days ago) and I was really stressed. I wasam due for an article submission for this column but I hadve absolutely no idea what I was going to write. I mean, I have been writing for years now, what have I not written that you don't already know?


And as you know, there hasn't been much good news about the world economy and financial markets lately. Sub-prime blow-ups, rising oil prices, inflation fuelled by rising commodity prices, writing down of losses by banks and the latest - the collapse of IndyMac and the trouble fumes fanning at Fannie Mae and Freddie Mac, the ailing mortgage giants in the US.

How can I encourage you at this time of great difficulty? And then I remembered this story.

Chance was a man who had grown to middle age living in a solitary room in a rich man's mansion, bereft of contact with other human beings. He had two all-consuming interests: watching television and tending to the garden outside his room.

When the mansion's owner died, Chance wandered out on his first foray into the world. He was hit by the limousine of a powerful industrialist who was an adviser to the president.

When he was rushed to the industrialist's estate for medical care, he identified himself only as 'Chance the gardener'. In the confusion, his name quickly became 'Chauncey Gardiner'. When the president visited the industrialist, the recuperating Chance sat in on the meeting. The economy was slumping; America's blue-chip corporations were under stress; the stock market was crashing. Unexpectedly, Chance was asked for his advice.

Chance shrank. He stared at the carpet. Finally, he spoke: 'In a garden,' he said, 'growth has its season. There are spring and summer, but there are also fall and winter. And then spring and summer again. As long as the roots are not severed, all is well and all will be well.'

He slowly raised his eyes, and saw that the president seemed quietly pleased - indeed, delighted - by his response.

'I must admit, Mr. Gardiner, that is one of the most refreshing and optimistic statements I have heard in a very, very long time. Many of us forget that nature and society are one. Like nature, our economic system remains, in the long run, stable and rational, and that's why we must not fear to be at its mercy.... we welcome the inevitable seasons of nature, yet we are upset by the seasons of our economy! How foolish of us.'

That was a brief summary of the early chapters of Jerzy Kosinki's novel Being There, retold by John Bogle, the founder of Vanguard. A simple truth about nature and yet there is so much that we can learn from it: 'Growth has it season. There are spring and summer, but there are also fall and winter. And then spring and summer again. As long as the roots are not severed, all is well and all will be well.'

Do you believe in the resilience of the human race? We are after all the most powerful living things created by God. Do you believe in the sustenance of trade and enterprise? I am sure you will agree that we all have needs that can only be fully satisfied through products and services created and sold by corporations. If you believe, then our economic roots are not severed and all is well and all will be well. We have hope in the investments that we have made in these companies.

Yes, sometimes, it will be a more barren autumn, a colder winter. At other times, it may be a verdant spring or a hotter summer, but our economies will continue to grow, just like how it has grown in past decades (see Figure 1). We only need to believe that growth has its season and we must be prepared to ride out the seasons of life and stay invested in the long term.

In investing, know that time is your friend. Plant the seed of growth in the garden and in due season, you will reap what you sow. Impulse is your enemy, react to your fears and dig out the seeds before the season is over and you may never see the fruit.

Most importantly, stay the course. Let the uncertain years roll by, and face the future with faith. Do not let short-term fluctuations, fear, greed and news that have no meaning at all to your long term investing affect your judgment. The world markets too have their season but in the longer term will always grow, because their roots have remained strong and intact (see Figure 2).

This article is short, not because I have nothing more to write, but because I hope in its simplicity, it has given you the courage to remain invested and optimistic towards your dreams.

Let me end with our story's character, Chance's final words of wisdom:

'I know the garden very well. I have worked in it all my life.... Everything in it will grow strong in due course. And there is plenty of room in it for new trees and new flowers of all kinds. If you love your garden, you don't mind working in it, and waiting. Then in the proper season you will surely see it flourish.'

My stress is finally gone.

Christopher Tan is the CEO of Providend, Singapore's sole fee-only independent private wealth management firm.

Portfolio update - contra losses KEP -1.0% and SML -2.4%

Portfolio update - Bought Olam 2.17 Contra Noble 2.2 ROC 6.7%

Portfolio update - More GAR @ 0.795

Golden Agri

With Crude oil hitting record high and CRUDE palm oil (CPO) futures prices on Bursa Malaysia Derivatives Bhd ended higher yesterday as crude oil price hit a record high of US$145 (US$1 = RM3.27) a barrel, dealers said. The high oil price was lending support to the global vegetable oil market, including palm oil, they said.

One of the dealers said that improved palm oil stocks and weak exports for the first 10 days of July held back gains as investors questioned when overseas orders would improve.

GAR looked interesting. Technically, GAR is well supported at 0.785 and hope it don't break on Monday due to bad market sentiment reacting to DOW.

Another important observation is that rate of fall in STI in sympathy with DOW has diminished and somewhat not quite coupled to DOW fall (See chart 1)

Portfolio update

Contra NOL, ROC 0.9%
Bought Golden Agri 0.785
Bought Noble 2.05

Could commodity stocks back in play?

Portfolio update

Stand Firm When Your Shares Take a Hit

Stand Firm When Your Shares Take a Hit
Monday July 7, 1:00 pm ET
ByArne Alsin, RealMoney.com Contributor

This is Part 1 of a two-part article.

Get inside the mind of the average investor, and you're in for wild and crazy ride. Metaphors like "the glass is half-full" or "the glass is half-empty" don't apply -- they're too tame. When the glass is brimming to overflowing, investors see it as empty. And when the glass is empty, investors cradle it with care so they don't spill the contents.

The up-is-down, down-is-up mind-set of the typical investor is evident in this example: An investor figures that Whirlpool is worth $120 per share. (Note: My calculations indicate a higher value.) The investor pays $90 per share for the stock and happily imagines taking a $30 profit when the price eventually migrates to fair value. Then the investor watches the stock quote fall from $90 to $80 to $70, and then to $60. The price drop is proof, to this investor, that he made a mistake. So he sells the stock. It's a dumb move. If there is no long-term impairment to Whirlpool's value, it's dumb to sell the stock just because the price quote has dropped.

Investors make dumb moves in the stock market with regularity. It's not because of a lack of intelligence, a lack of effort or a lack of attention. The proximate cause of dumb moves is a lack of understanding. You can't play a game of strategy if you don't understand the game.

Here is a foundational formula for investing in the stock market. Investors suffer significant capital destruction when they act in contravention to this rule. Memorize it. Imprint it into your memory. It might prevent you from making a dumb move in the market.

Here's the short version: Absent a material change to the business, as price declines, risk declines, and your anticipated rate of return increases.

Here's the longer version, applied to the Whirlpool example above: Absent a material change to the business (there has been no impairment to Whirlpool's value), as price declines (the price drops from $90 to $60), risk declines (risk declines because the gap between price and value increases), and your anticipated rate of return increases (selling Whirlpool is dumb, because your capital increases 100% if you hold the stock from a $60 quote until you can get full value, or $120).


To understand the formula better, let's take it apart, piece by piece:

The Qualifier
Absent a material change to the business...

When there is a material change to the business, sufficient to impair the underlying value, the formula does not apply. Here are a few examples of a material change: a permanent loss of market share, product obsolescence and a reduction of profit expectations over the long term.

The current imbroglio surrounding financial companies is a material change, and it requires a valuation adjustment. For example, owners of Citigroup , Lehman Brothers and Washington Mutual , among many others, have suffered equity dilution while, at the same, time, billions of dollars of assets have disappeared from their balance sheets.

What about the recession? Does a recession constitute a material change, sufficient to warrant a diminished business valuation? The answer is, generally, no. A cyclical pullback in the economy does not affect the long-term value of most businesses. That's because smart analysts already factor cyclical pullbacks into their valuation analysis.

The fact that Whirlpool is struggling with a cyclical decline in demand is no big surprise. Not only is the current cycle not a surprise, but skilled analysts will build at least one more difficult cycle into their model for the next 10 years.
Price

As price declines...

If your neighbor offers you one-half of the value for your car, you'll probably laugh it off.

If a stranger parades into your family-owned business and offers you one-half of value, you might roll your eyes or shake your head. You might even be offended. That's because you see these offers for what they are: nonsense.

When it comes to stock quotes, though, otherwise rational, sentient beings take on a wild and crazy mind-set. If you are like most investors, after you pay $90 for Whirlpool stock, the stock quote suddenly carries great meaning for you. It can make your day or it can ruin your day. Even if you don't sell the stock when the price drops, you'll tell your spouse: "We've lost one-third of our money on Whirlpool."

Here's the reality: There is no difference between your neighbor's offer for your car, the stranger's offer for your family-owned business and Whirlpool's stock quote. Each is an offer for your property. Each is an offer you don't have to accept. The offers are not based on a careful appraisal of value. They're just offers.

After your neighbor's offer, you aren't going to say, "I lost one-half of my car value today." And after you hear the stranger's offer, you won't announce: "One-half of our family business value disappeared today."

Do you know why you will not say these things? Because they are not true. It would be a dumb to accept a one-half of value offer for your car and for your family business. A lousy offer is a lousy offer.

And that's all it is.

Look for part two of this column next week, when I'll complete the discussion of the rule above.

Oil vs Stock Trading

After two weeks of serious paper trading on crude oil, the average ROC per trade for crude oil trading is just comparable to stock trading.

Demo account has expired.

Keppel Corp wins US$405 mln Scorpion contract

Keppel Corp wins US$405 mln Scorpion contract
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SINGAPORE - Singapore rig-builder Keppel Corp said on Monday that its unit Keppel FELS has won a contract from Norway's Scorpion Offshore to build a deepwater semi-submersible rig worth US$405 million.


Upon its completion in the fourth quarter of 2011, the rig will be chartered by Scorpion to Brazilian national oil company Petrobras for a period of six years, Keppel said in a statement. -- REUTERS

Portfolio update - Contra SML & SCI for quick profit

How the Rich Spend Their Time: Stressed

How the Rich Spend Their Time: Stressed
by Robert Frank
Friday, July 4, 2008
provided by

Leisure class gives way to workaholic elite scrambling to maintain their place in life

Being rich used to get you into the leisure class. Money meant freedom -- from work, money worries, household chores and screaming kids (via boarding school).

Now, however, the wealthy seem to be as besieged as ever. The leisure class has given way to what I call the workaholic wealthy -- an elite of BlackBerry-crazed, network-obsessed, peripatetic travelers who have to keep scrambling to maintain their place in life.

More from WSJ.com:

• How the Rich Would Fare Under Obama, McCain

• Private Jets Come Under Attack

• Rich Investors Dumped Real Estate in 2007

According to research by Daniel Kahneman, the Nobel Prize-winning behavioral economist, quoted in an article in the Washington Post, "being wealthy is often a powerful predictor that people spend less time doing pleasurable things and more time doing compulsory things and feeling stressed."

People who make less than $20,000 a year, for instance, spent more than a third of their time in passive leisure, like kicking back and watching TV. By contrast, those making more than $100,000 a year (I would call them affluent, not wealthy), spent less than a fifth of their time in passive leisure. "The richest people spent nearly twice as much time as the poorest people in leisure activities that were structured and often stressful -- shopping, child care and exercise."

In short, stereotypes about the leisure class no longer hold true. "In reality," Mr. Kahneman and his colleagues wrote in a paper they published in the journal Science, "they should think of spending a lot more time working and commuting and a lot less time engaged in passive leisure."

Definitions are key here. Personally, I wouldn't classify exercise as compulsory or stressful. And the true rich ($10 million or more), may be exceeding their less-wealthy peers in true indolence. But my experience suggests that the rich are as stressed and un-relaxed as the merely affluent.

Why? Globalization and competition are probably the big reasons. People with top jobs and businesses -- i.e., the wealthy -- have to work harder than ever to remain competitive. Big investors also have to work more in ever-more-complicated financial markets to maintain their dinosaur-size nest eggs. Add to that the increasing complexity of life at the top -- constant requests for money, overseeing wealth managers, lawyers and household staff -- and the good life becomes its own management job.

Maybe being rich isn't as relaxing as it seems.


* * *


Affluent Brits Want 'Memorable Meals'

One of the biggest trends in the high-end economy these days is "experience." Cars, boats, planes, homes and other traditional status goods have become commonplace for the Richistan crowd. What the wealthy really want today is a unique experience, such as a trip, a class and a conversation with top thinkers.

A new study by American Express of their U.K. Centurion card holders (read: titanium-toting superrich) found that "self-fulfillment and learning" is the second-most-important priority for high-end vacationers. Number one was "value for money."

It also found that 46% of the wealthy plan to spend more in 2008 on new learning experiences. That exceeded planned spending on technology products, home furnishings, charities and fashion.

Gastro luxury is a top subsector of the new experience economy: A whopping 85% of the Centurion card holders plan to travel abroad for a memorable meal. Memorable doesn't necessarily mean expensive: It could be the roasted duck breast at Arpege in Paris or the apricot-smoked duck from a beloved food stall in Beijing.

More than three-quarters of the card holders plan to hire a personal chef in the future, while a surprisingly high 40% plan to grow their own food and rear livestock. Billionaires rearing their own pigs: Now that's an experience.

Of course, Americans lean more toward basic bling than the Brits. But the same fondness for feeding the mind, body and spirit seems to be taking hold here. As Guy Salter, deputy chairman of British luxury-brands firm Walpole, says in the report, "We are seeing the growth in what could be termed a new aristocracy. Their emphasis on the home and family, on personal fulfillment and the environment are all testament to this new way of thinking."


* * *


Superyacht Market Remains Strong

A new Superyachting Index shows that the top end of the yachting market is still holding firm -- at least for now.

The index, which is compiled by the Luxury Institute and Camper & Nicholsons International -- the yacht broker and charter company -- found that new orders for yachts over 40 meters are up 18% in 2008. There were 254 new orders for yachts longer than 40 meters last year, up from 134 in 2005.

The report also puts into perspective the astounding growth rate over the past decade for jumbo yachts. In 1997, there were just 241 yachts of 24 meters or more under construction around the world. Last year, there were 916 such boats being built.

The average price for motor-yachts longer than 30 meters was $10.3 million in 2007. The average price for sailing yachts of the same length was $9 million (although, to the dismay of traditionalists, sailing yachts now make up a tiny fraction of the large yacht market).

Ironically, the biggest constraint to the industry's growth isn't the economy -- it's staffing. The report says that about 25,000 crewmembers are necessary for today's fleet of superyachts, but only about 15,000 currently work aboard yachts. Shortages of captains and engineers, it notes, are especially acute.

All of this sounds encouraging. And the superyacht market likely won't face the same crash it experienced in previous downturns, since it's so global. Just a decade ago, the vast majority of big boats were being purchased by Americans and Europeans. Now, Russian, Indian and Middle Eastern buyers are fueling the market.

Still, after talking with several yacht brokers about the market, I believe the market -- at least in the U.S. -- is poised for a slowdown. A year ago, buyers could order a new boat knowing that, in the worst case, they could flip it for a quick profit. Now they're more hesitant.

"With the American market especially, people are waiting for more certainty in financial markets before make a big decision," said Jonathan Beckett, CEO of Burgess.

Either way, The Wealth Report will be sure to check back with the Superyacht Index in a few months.

Semb Crop - Getting interesting

SCI is getting interesting with greater support coming from SML. Adding more SCI for a quick profit.

Portfolio update

SML looking good with more orders coming in and putting its past behind.

STI High Low

Stock Investment Truisms

Sharing what I read from "Winning the Trading Game, Noble Draklon", since I come from stock trading only, better remember these truisms by heart

When it comes to investing, the first market that anyone is introduced to is the stock market. Throughout your entire stock market learning experience, there are multiple truisms that you learn. These truisms are designed to make you trade smarter and show you how to manage your risk and exposure to market downturns.

The problem occurs when a stock investor attempts to apply these same truisms to futures, forex, and options trading. The following six truisms can easily have a way of backfiring on you and destroying your account. Putting these truisms in perspective and knowing when and how to apply them will make your trading experience less confusing.

Stock Truism 1: Buy low, sell high
In futures and forex you can go short as easily as you go long. Don’t have a buy-side bias

Stock Truism 2: Let your profits run and cut your losses
When using any of the risk management tools we’ve discussed, one side will be losing while other side profits. This is necessary so that you can weather fluctuations, particular on position and swing trades, and catch the largest momentum move possible.

Stock Truism 3: Quantity of accuracy is not important as quality of accuracy
When it comes to leveraged investing, you want to be able to be in as many optimum trades as possible. Constantly scalping 1 point here and 1 point there only to get caught on the wrong side and give away 20 points in one go is not our goal. Focus on getting into trades with the best opportunity for larger profits, and you won’t have to worry about being constantly in and out of market.

Stock Truism 4: You need to know where the market is going to profit from it
In the end, none of us know the future. We make our best guesses and estimates, and still we are wrong. The right money management tools act as our safety net and help make up our mistakes. As long as you set aside your ego and let your tools operate to protect you, you will find them all valuable.

Stock Truism 5: Picking tops and bottoms is the only way to succeed.
This is a variation of buy low-sell high, but it needs to be addressed. Too many traders believe there is a perfect entry and exit price, and in focusing this way they lose sight of the big picture. Often, it’s enough just to get started in the trade. Leave the timing to the timing experts and the money making to the money-making experts. Don’t get bogged down.

Stock Truism 6: It’s not a loss until you take.
This is the worst concept to bring to the futures market. Every dime you make in these markets belong to you; every loss you take belongs to you. Don’t get lulled into a false sense of security in believing that you are immune to or somehow separated from your profits and losses. Be proactive and constantly be vigilant of what you are making and losing, so you can correct it if need be.

Attempting to apply these stocks market investment truisms to futures and forex can quickly backfire on you if you are not careful. They can cloud your risk management judgment when it comes to futures and forex investing. Eliminating the dogmatic stock market approach to trading and you will find a world of doors opening to you.

How is much is needed in 2008 to drawdown at 64?

The CPF Board said the new CPF Minimum Sum will be S$106,000 – up from S$99,600 currently. CPF Members who set aside this amount will get a monthly payout of S$910 from age 64 for about 20 years

I think probably the CPF Minimum Sum is just sufficient for one to live simply from age 64 for about 20 years without other income. To live a better quality of life, one could use 1.x factor times S$106K to determine the estimated nett worth one should accumulate in 2008 to start drawdown at 64. I believe CPF is assuming one will retire at 62.

No safety net in trading future or forex!!!

As I educated myself further by reading more trading books on future, forex, and commodities, these are books that previously, I leave them alone in NLB book shelves or just flip through.

In trading/investing stocks, I go for good fundamental stocks that at least providing me dividend yield of at least 2-3%, and this provides me with the safety net. If these stocks turned again me, the dividends collected from them is still far better than putting cash in Fixed Deposits.

In trading/investing stocks, I don't touch the profits, and all go back to trading/investing stocks for compounding effect; and the past profit also has the effect of offseting or cushioning against the current unrealized losses.

But, in trading future or forex, I must TOTALLY SWITCH THIS MINDSET.

--------------------------------------------------------------------------------

This what I learnt from "Winning the Trading Game, Noble Draklon"

Compounding

While it’s believed that compound interest is the most powerful force in the universe, the concept rarely translates well to the world of leveraged investing. It is easy to see people make profits over a lengthy period of time, increasing their trading volume because of their account size, and give it all back in one bad trade.

Taking Profits

Take your profits off the table. If you are going to focus on your goal of making returns, I would suggest in the beginning that you forget about reinvesting your profits or ideas of compound interest – these are greed-induced fantasies.

Look at interest in futures, forex, and options investing as “simple” interest. If you can risk one to make two, you are ahead of the most. You risk your operating capital in leveraged investments in order to gain unusually big potential returns compared to other alternatives. I am sure thee is some special mathematical formula, but suffice to say that leveraged investing, more so than any other investment, does not take kindly to compounding. Take your profits home.

Portfolio update - Bought Wilmar 4.89

No cut losses

No cut losses this time. STI fall was not really that bad. Can't find any suitable swap candidate.

Portfolio update - bought WMI @ 5.27

Don't ever look happy at work or else....

Old Employee = Depreciating Asset

Ha ha! That is me, depreciated low asset so I have to go to market to enhance my value by trading.

Young ones, one day you too become a depreciated low value so better start early asap to strengthen your asset value.

Hot news for Kep Corp, SML, and SCI

SDRL - Seadrill orders four jack-up newbuilds for delivery in 2010
Seadrill has entered into agreements with KFELS and PPL Shipyard in Singapore for the construction of in total four jack-up newbuilds with delivery in 2010.

The two units to be built at KFELS will be based on the KFELS Mod V 'B' design. The rated water depth is 400ft and drilling depth is 30,000ft. Deliveries are scheduled in June and November 2010 and the total contract price for the two units is approximately US$420 million. These jack-ups will be the fifth and sixth jack-up orders that Seadrill has placed with KFELS. The previous units have all been delivered on time and budget and are all in operation for various oil companies.

The two units to be built at PPL Shipyard will be based on the Baker Marine Pacific Class 375 Deep Drilling design. The rated water depth is 375ft and drilling depth is 30,000ft. Deliveries are scheduled in March and November 2010 and the total contract price for the units is approximately US$430 million. These jack-ups will be the second and third jack-up orders that Seadrill has placed with PPL Shipyard. The first unit, the West Triton was delivered on time and budget in early January this year and is currently operating for Apache in Victoria, Australia.

Seadrill has in addition received option agreements for further jack-up newbuildings in 2011.

Alf C Thorkildsen, CEO Seadrill Management AS, says in a comment,
"These newbuild orders are the best way to increase Seadrill's near term earnings potential in the offshore drilling market. We are convinced that the market for offshore drilling units in general will remain tight in the years to come. The decision to initiate the US$850 million building program was taken based on expected high return on invested equity due to the following factors; the current jack-up order book is less than 20 percent of the existing ageing fleet (which has an average age of 23 years), the jack-up newbuild capacity before 2011 at first class yards is limited and the number of term contract for jack-ups is increasing.

"Furthermore, the combination of deliveries, pricing and expected return is attractive compared to other investment alternatives within the offshore asset market as well as corporate opportunities. The Seadrill Board has specifically concluded that this opportunity is superior to increasing the bid for Scorpion in order to achieve a potential higher acceptance. The four jack-up newbuilds will grow the Seadrill high quality jack-up fleet from eight to 12 units. It is not expected that the newbuildings will significantly reduce Seadrill's short-term dividend capacity. Longer term, dividend is expected to increase as a function of the orders. Seadrill's shareholders should be assured that Seadrill's focus will continue to be on the deepwater segment. However, the Board will continue to work opportunistic in order to seek to maximize return to shareholders based on investments limited to modern drilling assets."



Analyst contact
Jim Daatland
VP Investor Relations
Seadrill Management AS
+47 51 30 99 19

Media contact
Alf C Thorkildsen
Chief Executive Officer
Seadrill Management AS
+47 51 30 99 19


Seadrill Limited
Hamilton, Bermuda
June 5, 2008

NOL - No selling pressure today. Looked alright

My Portfolio Tracking

sharing My Portfolio Tracking with the brothers

Portfolio update - Bought NOL @ 3.70

NOL - Queue to buy if DOW well behave tonite

Full-time investing

Like to share one article Googled. POSTED BY DANIELXX (Thanks to him)


The buoyant stock market may have got some investors/traders who have made good money to consider quitting their jobs and doing investment/trading full-time. This is evident from the enthusiastic response to a thread with the same title in one of the share forums (wallstraits.com I believe). Judging from the comments of one or two of my contacts who have gone down this path, I would think there are pitfalls that one has to be aware of to avoid being sorely disappointed and suffering heavy opportunity costs.

Firstly, one's risk appetite changes tremendously when going from part-time to full-time. Any entrepreneur would tell you this: that when they start their own business, every cost component becomes magnified to them because it all flows toward their bottom line. So it is for one trading/investing for a living. In general, return is directly correlated to risk, which means the eventual returns may not be what was projected at the onset of turning full-time. For traders and investors alike, the level of volatility which previously worked fine for them might now seem too risky; the change in risk outlook is subtle but palpable. It is a psychological barrier that is difficult to overcome.

Secondly, mental discipline is compromised. An investor previously too busy to track stock prices suddenly finds all the time in the world for his own allocation; the temptation is too great for him to follow the path of least resistance and monitor stock prices since his fortunes are tied to them. Routine office work, whether one likes it or not, gives a definite structure to one's mental framework and hones useful skills. Social interaction and the exchange of ideas with other people (colleagues, clients) also augment this. All such activities are lost when one turns inward to one's own investment portfolio.

Thirdly, one's investment horizon is shortened as there is a definite pressure to "bring bread home every day" or at least every month. While buy-and-hold is hardly the way to go (except for people like Warren Buffett), one should also not be primed to sell every time a portfolio stock rises by 10-20%; as Peter Lynch advises, let the profits run. Worse, one might buy a stock for the wrong reasons as a result of the shortened investment horizon; where previously he used to buy an illiquid stock for its long-term prospects and wait for it to be recognised, he might now start buying highly valued, highly traded momentum stocks to reap quick gains in a highly risky musical chairs game (or the "greater fool" game). Patience is a virtue highly relevant to investing; that virtue is often attenuated when one depends on and consequently focuses excessively on one's stock portfolio.

Fourthly, one has to reconcile within oneself the role of a trader/investor in contributing to society. This social pressure cannot be underestimated, especially from the older generation. This view is understandable, and indeed, one will have to assess his motive for turning to full-time investing/trading. Is it mainly due to push factors (job dissatisfaction)? If so, it is time for a rethink. As for contribution to society, there is none: all that talk about bringing liquidity to the market and helping to ensure efficient resource allocation and prices is just plain bollocks; traders or investors bring nothing to society, unless they reach a certain scale of operations akin to that of venture capitalists. One has to be comfortable with that.

All things being said, there are people who trade or invest successfully on their own, in various areas such as equities, commodities, futures. I would think to overcome the psychological barriers described above, one has to have at least one million bucks to consider this avenue as a complete full-time option, or at least half a million with another additional source of passive income to be comfortable with this chosen path for the long-term. Assuming an annual dividend yield of 3% (typical for the Singapore market), one can collect $30K in dividends on a million-dollar portfolio which is adequate for covering the household expenditure ie. capital gains will be the main instrument for growing the portfolio and the full-timer will have to be confident of making this happen. Additionally, the drive to constantly enhance one's knowledge in this field should be there; there are so many ways to improve one's reading of stocks, from enhancing one's knowledge of the various industries through reading, to locating sources of information to enable monitoring of the environment in which one's stocks operate, to streamlining the stock selection process, to understanding the global or regional markets with a view to assessing global supply and demand dynamics. It would be fair to say that the level of discipline involved is similar to that in operating one's own business.

Kep corp - survive profit taking, breakout tmr?

Uncle DOW well behaved tonite, tmr it will breakout.

Kep - breakout on Monday?

Keppel FELS to build 6th ENSCO semisubmersible rig worth US$537 million

1-June-2008

Keppel FELS to build 6th ENSCO semisubmersible rig worth US$537 million
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6-May-2008

Keppel FELS secures order for a US$512 million rig from ENSCO

Keppel FELS Limited (Keppel FELS), a wholly-owned subsidiary of Keppel Offshore & Marine Limited (Keppel O&M), has secured a contract to build a US$512 million ultra-deepwater semisubmersible (semi) drilling rig from a subsidiary of ENSCO International Incorporated (ENSCO).

To be delivered in the second half of 2011, the ENSCO 8504 will be the fifth consecutive semi that Keppel FELS is constructing for ENSCO.
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Wow! Both Kep and SML are still getting more orders at higher price, probably, to offset higher cost. They are not squeezed by their customers.

I think Kep will breakout on Monday liao. Last Friday, closing with doji near resistance line. Keep up, Kep. Cheers!

Lesson learnt on NTUC Income Saga

Lesson learnt to be passed on to my children. Buy Term for protection and invest the difference for return. I believe that we are the only person that truly care about our investment; and definitely not the so-called money managers, who work for salary and they are not your "Dad". They are not going to ensure you that you get "rich" or say sorry you get "Poor".

We should put in the best effort to increase our FQ and invest the rest of money.

Few days ago, I reminded my two elders that their father is still their best FA, and listen to nobody else.

How much is enough?

In another word, bro dream is asking me a complex question with no simple answer. How much is enough? This amount will depend on what are my values, goals, and desires.

I define financial independence end goal as when staying employed becomes an option or effectively out of the rat race; and I do not need to depend on an active employment income. My nett worth drawdown and passive income will be able to support my living expenses for the next 25 years after 55 i.e. assuming not living beyond 80 years old. Both my parents did not survive beyond 70 years old so I don't think I will last beyond 80, probably, my spouse would.

(1) What is my expected monthly living expenses for next 25 years?

I have been tracking my monthly living expenses since Jan 2001 so I know what is the maximum, minimum, and average monthly expenses. Then, I use this formula Expected Monthly Expenses = (Maximum + 4xAverage + Minimum)/6 to estimate.

(2) How much is enough?

Enough = 25 x Expected Monthly Expenses x 12

(3) Where to find this amount?

I will exclude CPF Special, Medisave, home; and absolutely zero debts. I will live at this home till death. BTW, home is five walk from MRT, shopping mall, and park. 15 mins bus ride to Punggol marina. I don't think I will want to shift elsewhere.

(4) Is this really enough?

Next, to do some sanity check and baring unforeseen life events, and if it happens, then life will be much tougher and will have to face it when it come; otherwise, there will be never, never, be enough. No matter how much?

I assume that I need not support the two elder ones when they start working and the monthly expenses will be reduced by 40%, and when the last one start working, the monthly expense further reduced by 20%.

With the assumption, then I overestimate the living expenses forecast for next 25 years to include 3 kids university expenses, medical expenses, major household applicances replacement, house repairs, and some misc.

The sanity check does show this amount is enough barring any unforeseen life events happening

(4) Where is the contingency fund?

I plan to allocate 50% of this amount for drawdown for monthly expenses and it will be able to last for 10-12 years. The other 50% for investment income which will help to offset inflation. From history, the market cycle between the two peaks is less than 10 years. I will be able to recover any capital losses. CPF Special account will be the additional buffer.

(5) Lastly, pray to God for blessing and good health.

May 08 - End Game Goal update

I think the days of easy profits are over, and moving forward towards this End Goal for next three years will be harder and tougher. No more foolish thinking that easy money can be made from the market. Cheers!

Portfolio update - Sold WMI ROC 15.5% and contra NOL ROC 3.8%

Kep and SML

Both Kep and SML are doing well today with good volume so will there will a possible breakout tomorrow? Uncle DOW, hope you don't tumble tonite!

SML and Kep - Will the rise continue with this news?

Petrobras Hits in Deepwater GOM
Wednesday, May 28, 2008

Petrobras announced the discovery of oil and gas in ultra-deep waters in the Central Gulf of Mexico, in the U.S., via its Petrobras America Inc. subsidiary, based in Houston, Texas. The discovery was made via the Stones # 3 well, drilled to perform the exploratory assessment of the Stones discovery, which is operated by Shell and located in Block WR 508, in ultra-deep Walker Ridge Quadrant waters. Petrobras America Inc. holds a 25% stake there. The remaining partners, in addition to Shell (35%), are Marathon and ENI, with 25%, and 15%, respectively. The Stones # 3 well is located at a depth of 2,286 meters from the water line and reached a total depth of 8,960 meters under the sea bed, finding oil in multiple reservoirs. Future drilling and assessment activities are being planned to define this discovery’s size and commercial viability.
This result confirms the potential of significant oil reserves in this type of reservoir in the Gulf of Mexico, where Petrobras operates the Cascade and Chinook fields which at the present are in the production development and facility construction phase.Petrobras will be the pioneer company in production in this type of reservoir in ultra-deep waters. It will also pioneer using an FPSO (Floating Production, Storage and Offloading) type platform in the region, the production of which is slated to go online in June 2010. In this same area, Petrobras also holds 25% stakes in the Saint Malo field. This field is operated by Chevron and is in the assessment and extension exploratory drilling phase. Also, studies are being done to the production development project for Saint Malo.
Holding stakes in these discoveries confers Petrobras a differentiated position in the Walker Ridge Quadrant and its neighboring areas. Furthermore, these discoveries are aligned with the company’s Strategic Plan and are important steps in the consolidation of a quality Exploration and Production project portfolio in deep waters in the Gulf of Mexico."

Portfolio update - Contra NOL ROC 3.2%

Anyone else interested in Brazil Oil?

Keppel Attracts SunAmerica as Cheap Way to Brazil Oil (Update1)

By Kyunghee Park

May 26 (Bloomberg) -- Brazil's push to find $135-a-barrel crude in water more than 2 kilometers deep is prompting AIG SunAmerica Asset Management Corp. to invest in Keppel Corp., the world's biggest oil-rig maker.

Jersey City, New Jersey-based SunAmerica Asset, owned by American International Group Inc., bought 865,000 shares after a 24 percent decline in the first quarter, according to regulatory filings. Since then, Singapore-based Keppel has climbed 19 percent, five times as much as the Straits Times Index. The shares, priced 19 percent below smaller competitor Sembcorp Marine Ltd. based on estimated 2009 profit, may rise 27 percent to S$15 over the next 12 months, according to Merrill Lynch & Co. analyst Melinda Baxter.

``Demand for rigs and floating platforms will continue to be robust for at least the next four to five years,'' said Soo Hai Lim, a member of the emerging-markets team responsible for $12 billion of Asian equities, including Keppel, at Baring Asset Management Ltd. in Hong Kong.

``We favor Keppel and Sembcorp Marine because they are the leaders in the industry,'' said Lim, whose firm is a unit of Springfield, Massachusetts-based MassMutual Financial Group.

Untapped Reserves

Keppel is selling more deep-water rigs, which are twice as expensive as those for shallower water, as supplies tighten amid an intensifying search for untapped reserves further from shore. That helped the company post profit margins last quarter that were 1.9 percentage points wider than Sembcorp Marine's, according to data compiled by Bloomberg.

Of 20 analysts surveyed by Bloomberg, 16 recommend buying Keppel and four say to hold it. The company's offshore and marine unit accounted for half of first-quarter net income.

Keppel dropped 2.4 percent to S$11.52 as of 11:20 a.m. in Singapore. Sembcorp Marine fell 3.6 percent to S$4.32.

Petroleo Brasileiro SA, Brazil's state-owned oil company also known as Petrobras, plans to order 40 drill ships and platforms worth about $30 billion for delivery by 2017 after finding the Tupi field, the largest Western Hemisphere discovery since 1976. The field may contain 5 billion to 8 billion barrels.

``We are likely to see order-book momentum picking up again in the short term,'' Winnifred Heap at JPMorgan Chase & Co. in Singapore wrote in a May 21 note. The analyst rates Keppel and Sembcorp Marine ``overweight.''

An offshore platform takes as long as 32 months to design and build after a contract is signed. That means Petrobras will continue to award orders until 2014 to meet a 2017 delivery target, according to analysts.

More Spending

Keppel and Sembcorp Marine may capture 27 percent of the global market this year for semisubmersible rigs, which use anchors weighing more than 10 metric tons, JPMorgan said.

Petrobras, based in Rio de Janeiro, said May 21 it struck oil in a well in 2.1 kilometers (1.3 miles) of water off the coast of Sao Paolo state. The company has leased about 80 percent of the world's deepest-drilling offshore rigs to explore that find and other prospects.

The head of Brazil's oil agency said last month that the nearby Carioca field may hold 33 billion barrels of crude, making it potentially the world's third-largest. Petrobras is evaluating the field and hasn't confirmed the estimate.

Such findings may require even more offshore-equipment spending, Petrobras Chief Financial Officer Almir Barbassa said May 21.

Oil companies including Exxon Mobil Corp., Royal Dutch Shell Plc and BP Plc will spend a record $98.7 billion this year on exploration and production, more than quadruple the amount eight years ago. Crude oil rose to a record of more than $135 a barrel on May 22 as OPEC ministers said they could do nothing to stop a rally that may be heading to $200 a barrel.

Jumping Prices

``The underinvestment in the 1980s and '90s in the industry gave rise to this jump in the oil prices,'' Choo Chiau Beng, Keppel's senior executive officer, said April 24. ``There will be demand for offshore equipment.''

Keppel, whose Brazilian yard is the largest in the Southern Hemisphere, has completed projects for Petrobras that produce more than half the country's output of 1.8 million barrels a day, according to Keppel's Web site.

The Singapore company's S$11.8-billion ($8.69 billion) backlog at the end of March includes a $1.2 billion Petrobras contract for a semisubmersible platform.

Demand for the offshore units has pushed up prices the past two years. Samsung Heavy Industries Co., the world's second- largest shipbuilder, won a record $942 million order for a drill ship earlier this month from Stena AB, owner of Sweden's biggest ferry company.

Rising Costs

Higher labor and material costs associated with construction of the P-51 offshore platform for Petrobras helped push Keppel's fourth-quarter operating profit, or sales minus the cost of goods sold and administrative expenses, down 40 percent. That prompted DBS Vickers Securities to advise caution on the shares.

``We are still avoiding Keppel for the moment,'' the Singapore firm said in a May 22 note. It has a ``hold'' rating for Keppel.

Even so, investors say the tight yard capacity and higher fuel prices will translate into more offshore-equipment orders, extending the industry's boom.

``The upcycle for offshore equipment, like drill ships and offshore platforms, has just started,'' said Park Hyoung Ryol, who helps manage $1.2 billion, including Samsung Heavy shares, at Consus Asset Management Co. in Seoul.

To contact the reporter on this story: Kyunghee Park in Seoul at kpark3@bloomberg.net

STI High Low

The rate of fall in STI has slowed down, probably due to lack of aggressive sellers. It might be a good sign. Let see how badly will STI fall on Monday.

SML - can it survive the profit taking on Monday?

Earlier buyers have been sitting on a very nice profit. Let's see how they run.

8 Rules to break to build Wealth

By Melissa Ezarik

Being "upside down" is usually a negative term when applied to financial matters, but multimillionaire Robert Shemin believes that sort of thinking is ... well ... upside down.

Shemin, author of "How Come That Idiot's Rich and I'm Not?" feels there are two positions when it comes to wealth: right side up and broke, or upside down and rich. Shemin prefers upside down. The best way to build and maintain wealth, maintains Shemin -- once considered the "least likely to succeed"-- is by breaking the rules you think and hear about when building wealth.

Following are eight rules worth breaking -- in upside-down order -- and what Shemin and other financial gurus have to say about them.

Diverging from the traditional mind-set may put you on the right course to riches.

8 rules to break to get and stay wealthy

8. Avoid mistakes, learn before investing
7. Don't ask for help
6. Follow the path your advisers recommend
5. Don't invest in unchartered territory
4. Try to time the market
3. Have enough money or good credit to invest
2. Don't get into debt
1. Have a plan

8. Before investing, learn enough so that you're not going to make any mistakes

The problem here: Fear causes inaction, Shemin says. "Everything in life has a risk and a cost for doing it, and a risk and a cost for not doing it. Rich idiots focus on the risk of not doing something." In his experience, most people don't get started on stock marketing or real estate investing, or in estate planning, because they're so scared of making mistakes, they're overwhelmed.

"Of course you should expect to make mistakes when you start investing (or any time)," agrees Ramit Sethi, who writes the popular blog, WillTeachYouToBeRich.com. " But if you start with small amounts, any mistakes won't hurt you too bad. Plus, any mistakes can be mitigated by time."

7. Don't ask for help

"We're taught from an early age that you've got to do everything yourself and that if you ask for help, something's wrong -- you're dumb," Shemin says. Yet he adds that getting help is critical to most people's success. "Getting rich is a team sport."

From selecting the best stocks to the best mortgage, trying to figure out everything yourself is stressful and won't likely result in the best decisions, he explains. "Everybody's good at a few things and not good at a lot of things."

M. Nora Klaver, author of "Mayday! Asking for Help in Times of Need," says, "Asking for help is actually a sign of strength. It shows that you recognize the gap between where you are and where you want to be -- financially and otherwise -- and have both the smarts and guts to take action and seek others' support."

6. Choose the path your advisers recommend

Of course, asking for help wisely means asking the right people. Get referrals, and in interviewing potential financial advisers, "ask how they're getting paid," Shemin says. "You really have to be careful about who you're dealing with."

Michael Edesess, author of "The Big Investment Lie: What Your Financial Adviser Doesn't Want You to Know," says, "The path your financial (adviser) advises is the one that will make them the most money. Money they make is money you lose. It's that simple." Edesess adds that there are ethical financial advisers out there but, he contends, "You're most unlikely to find them at the big-name firms."

5. Don't invest in uncharted territory

Shemin gives the example of virtual real estate, which people are buying and selling with real money through Second Life. "When I found out about this, it made no sense to me," Shemin says."And a lot of smart people out there ask, 'Why would anybody buy and sell space on the Internet that doesn't even exist?'"
But that's right-side-up-and-broke thinking. So, Shemin says, "The rich idiot in me found some experts to explain it to me, and now I understand. It's out there and it's growing and it's something that's of interest. I have a lot of students and friends who are making fortunes sitting around on the Internet."

4. Try to time the market (Createwealth8888: Goes with the market tides instead trying to time the market high or low as you can more easily tell a rising and falling market)

Every day, Shemin says he hears people say that the financial or real estate markets are down, making it a horrible time for investing. Sure, if you're trying to make money within 90 days, maybe it's not the best time to invest, he agrees. "But if your goal is five, 10, 20 years away like it should be, then we know over time the market's going to do well," he explains.

"Nobody can effectively time the market," says Sethi. "We've seen this time and time again, with people thinking they can time the market and failing." And as Peter Miralles, president of Atlanta Wealth Consultants, points out, "Timing the market is not investing. Timing is speculation." Miralles sees valuations, or the process of estimating the market value of a financial asset or liability, as less subjective than market timing and something that can lead to success.

3. Don't invest until you have the money or good credit

Certainly most finance experts would not agree, but Shemin says building credit and maintaining a good credit score aren't necessary in building and maintaining wealth.

This example of upside-down thinking is one he learned in his early 20s, when he went to buy his first real estate property. Shemin had grown up in a cash-only home, and it didn't occur to him that never having borrowed meant he had no credit history. The bank denied the loan. But rather than letting the property pass him by, Shemin found a friend with good credit and they cut a 50-50 ownership deal. When Shemin sold the property a few months later, his cut of the profit was about $20,000. "Not bad for a kid with no cash, no credit and no experience," he writes.

Even though he has built a credit history now, Shemin says he hasn't checked his score in more than two years. "Everybody in America worries about their credit score -- it's like a badge of honor," he says, adding that it's only important if you need to use your credit. His own experience has taught him that there can be ways around it.

2. Don't get into debt

"Most people think debt is debt," Shemin notes. "No matter how hard you work, your money is going to work harder for you if you put it in the right things." For him, that has even meant doing real estate deals with a credit card. "A lot of people say credit cards are bad, but not for me. It's discipline. I pay them off every month."

Sethi learned just how common it is to not to understand bad versus good debt when he gave a talk at the University of California, San Francisco School of Medicine and spent most of his time comforting the students who paying for their educations with student loans that they'd made the right financial decision. He knew they would enter an industry where they would almost assuredly be able to pay off their debt. "You made one of the smartest decisions in the world," he told them. "That debt is just a hoist to get to let you get to the next level."

1. Have a plan

Shemin says he failed math in high school, but he does remember learning that things with zero probability happen all the time. "Has anything in life not worked out as you planned? As a business person that happens about eight times an hour to me, so you'd better be prepared," he says. To most people, that means having a plan A. But Shemin says it's best to have a plan B and plan C, and sometimes even a plan D and E for when things don't work out as planned.

Miralles says, "A plan should be dynamic and will change as you grow in wisdom." He suggests building a plan and showing it to as many as five people, and then repeating the process every six months as the plan evolves.

Tanya Marchiol, founder and president of the Arizona independent real estate firm Team Investments, also agrees that it's best to break the rule of having a single wealth-building plan. She's an advocate of financial goals, but says the path to them shouldn't be set in stone.

"There will always be an abundance of opportunities that will present themselves to you. If you have your mind set on only those things written out in your plan, you could very well miss out on that opportunity, (which) could have been the one that would have gotten you where you wanted to be faster than your planned investments allowed," she says.

Yet, Shemin notes, even on the road to wealth, it's important to have the right mind-set and realize you're rich already -- with family, friends, health, freedom and "appreciation for what you have already and the gifts that are yet to come."

Portfolio update - More NOL @ 3.56

Ride this ship safely to Germany or drown half-way at high sea?

SCI

I sold yesterday and today you go up big, big hor!!!

Portfolio update - Sold SCI Bought NOL and FRC

Portfolio update - add some indicators to track trading performance

NOL - What is brewing there? M&A?

6 bullish white candles, rising price and 4 consecutive days of rising volume. What is driving this stock? Gooogle did not return any recent news.

Let see I could get some more on Tuesday and ride this ship to Germany for M&A.

Do you know where are rocks? (stocks)

I like this story ...

Once, three millionaires decided to take a short break. After some discussion, they agreed that the best way was to row a boat to the middle of a lake and have an afternoon tea.

They rented a boat and rowed to the center of a serene lake. As they sat down to enjoy their tea, they realized that they have forgotten to bring the teapot. they looked with amusement at each other.

"No problem. I'll get the teapot," volunteered the first millionaire. He stood up, put one leg over the side of the boat and began to walk on the water back to the shore. After purchasing a teapot from a village, he walked on the lake and returned to the boat. All the three millionaires were ready to have their lazy afternoon tea.

As they boiled the water, they found out that they had forgotten the tea leaves.

"Leave that task to me," volunteered the second millionaire as he stood up. He put one leg over the side of the boat and walked on the water. After purchasing some tea leaves, he returned to the boat by walking on the water.

Soon, the three millionaires smelled the sweet aroma of the tea and drank it. Then they realized that there were no sandwiches. An afternoon tea would be wonderful if there are some tidbits.

"okay. since both of you had ran the errands earlier, it leaves me no choice but to get some sandwiches," volunteered the third millionaire reluctantly, when the first two millionaires cast their eyes on him.

He stood up like the other two and put one leg over side of the boat. He began to put his weight on his leg. Splash! Splash! He sank and struggled to keep himself afloat. Seeing that he was drowning, the other two millionaires jumped in to rescue him and managed to get him into the boats.

As the third millionaire was drying himself with a towel, he asked sheepishly, "How did you two manage to walk on the water?"

The millionaires looked at each other, then at him and replied, "We know where the rocks are."

If you know where the rocks (stocks) are in your life (market), you too can be a millionaire and walk in the waters of your life without drowning.

(extract from book entitled "from Beggars to Millionaires")

Power of Dream, Self-belief, and Strength of Determination

In today, ST, May 17 2008, Sports section on Page S31.


The Natalie's life story teaches me the lesson on the power of dream, self-belief, and the strength of determination. It is also true for trading success.

NOL - did not see it coming

I underweight NOL as I have concerns that high oil price will impact its earning; but, it turned out to be wrong. Maybe now, there are more and more believers buying the Hapag-Lloyd and NOL merger story.

Kep Corp - Good recovery

This stock is really taking me through the roller costal high drop ride. Got in @ $11.34 on 28 Jan 08 and reached all time low $9.29 (-18.6% or -$2.05)

It may test $13 soon.

Portfolio update - Bought JES, Sold SML and WMI

Bought more JES @ $0.42. Sold SML @4.12, bought 4.08. Sold WMI @ 5.02, bought @ 4.96. To recover capital and then use the recent purchase WMI @ 4.90 and SML @ 4.02 for a longer term. (Cleared the cupboard of old inventories)

Is stock trading that easy?

From Kelvin's blog:

Stock trading atttracts many people because it’s easy to try. Many view it as an easy and quick way to riches.

Do you agree with this statement?

Think about it.

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I have asked about this before - Is stock trading that easy? Some professional traders are given scholarships to learn the craft!

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My colleague started active trading last year, and he is feeling very stressful now, market goes up, goes down, up, and down. Sell and then goes up big times, buy, and it goes down, cut loss, and then see it goes up, and so on...

I has advised him to read books by Van Tharp on trading psychology, and success-related issues such as self-sabotage. , Ph.D or visit http://www.smarttraderblog.com/

Kep Corp- slowly moving up

Collected dividend $0.55 for Kep Corp today. Cheers!

SML - possible breakout soon?

Portfolio update - add YZJ @ 1.12

Me & my money, thesundaytimes May 11, 2008

Well said by Dr wong:


"One cannot depend on salary alone. We need passive income as well. I hope to be business owner rather than worker"

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I, createwealth8888, trade and invest to achieve a second passive income; and to reach FI stage by Sep 2011, where the passive income from yearly drawdown (4%) from this net worth plus trading profit to become the main stream income and salary to form secondary income or no income.

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Motivational guru Tony Robbins teaches that the reason for doing something rates much higher than the methods you use to get the job done. If you have the strong enough “why” to begin trading – then you will find a way to get the job done. ( extract from David Jenyns )

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Personal goal keep you motivated and focused. Take that goal and put it where you will see it when you wake up in the morning and before you go to sleep each night. If you really want to burn this goal into your subconscious mind you should read it aloud once each morning and evening.

This technique really works. It is not “corny”. This is a key technique Napoleon Hill teaches in “Think and Grow Rich”; the class success book teaches how to turn your thoughts into riches. ( extract from David Jenyns )

Wealth Creation Strategy Video

http://www.listofpennystocks.com/personalvideos/wealth.html

SML - possible breakout soon?

I have added more SML on Friday. Looking at rising volume and price despites STI going down is a very good sign of early buyers are coming on board to take off the profit takers. Is possible breakout coming soon above $4.22? What about its parent SCI? Shouldn't it be performing too? I will be adding more on Monday if SCI come down further.