By Andrew Chia
"I hear I forget, I see I remember, I do I understand," Confucius.
One of the best ways of learning anything is to have a hands-on experience. That will be the method of instruction used in my Stock Market Secrets workshop.
andrewchia.com/workshop
It should not surprise you that I will not be doing much teaching during the workshop. But you will be learning the skills yourself. At the end of the workshop you will convince yourself that you are now somewhat an expert at stock investing.
Hard to believe, right? You'd better believe it.
You will know which companies on the stock exchange deserve your attention. You will know all the criteria these companies should meet, and how they stand up to close scrutiny. You will also know when and at what price you should buy them. More importantly, you will be prepared for all the scenarios after you have bought them, thus eliminating unpleasantly surprises.
Can you imagine learning all these things by yourself? Yes, it is great fun isn't it? That is why it is called a workshop. I will show you the where and how, but you will be doing the working and shopping!
Besides learning stock investing, you will have the privilege of witnessing first-hand one of the most powerful training methods ever invented. It is called the TSDR Method. I know the name sounds far from impressive. Let me tell you what it is. I have used it for the past 20 years and the results have always been satisfying.
Most other methods of training pale in comparison. Now, don't look at me - I didn't invent it. The US Army did.
That reminds me... please entertain me a minute and I'll tell you a joke. Some years ago, my friends and I were having a casual chat. It was during one of those Games; Commonwealth Games, if I remember correctly. The Vietnamese won a lot of gold medals in the shooting and archery events.
My buddy said, "You know why they won? That's because they always had live training. Guys from other countries practise on the sports field. If they lose, they just lose a medal. The Vietnamese practise on the "killing fields". If they lose, they lose their lives! They must always hit their target."
It is wise to employ training methods adopted by the army. Why? Because the army has to make sure that whatever is being taught will be used exactly in battle. There is no room for error.
Now, TSDR stands for Tell, Show, Do and Review.
I will TELL you where to look to find a good company. I will give you the introduction as well as the reasons why you should look in those places.
I will then SHOW you where to look.
You will be DOING the looking. Telling and showing takes only a fraction of the time. You will be having fun doing the work.
The most important part is REVIEW. After observing you doing it, I will let you know your weakness, and how you can improve and perfect your technique.
You will leave the workshop without any doubt in your mind how stock investing works.
There you are, simply as can be. Aren't all great things supposed to be simple?
You now understand why other methods of instruction are failing. Most of the time the trainer just TELLS. He ignores the other three vital steps. And then he's surprised why his students' results are disappointing. He forgets to even SHOW.
(Again you know why this usually happens. Speeding. Completing the four steps requires time and patience. Now, speed kills, remember?)
Good trainers go a step further. In fact, they usually go two steps further. They watch while their students DO what he has explained, and correct their weaknesses.
1. Become an expert at stock investing.
2. Have a lot of fun.
3. Learn how the most powerful training method is being practised.
Hey, that sounds like a three-in-one course. Should I increase the course fees? Just kidding. But you know you're getting a bargain-of-the-year. What are you waiting for?
andrewchia.com/workshop
To your success,
Andrew
By Andrew Chia
I've got to be honest with you. You can't have much leverage with stock investment.
If you want to buy a 100k piece of property the bank can lend you 90k. In some cases you can even do a "nothing down", meaning you can borrow the whole cost from the bank.
If you want to start a business, you can do OPM (other people's money), meaning you can go to your friend or relative with a viable business proposal and they may want to fund it.
It's difficult to get funding from your friends and family simply because stock investment = gambling to them. Imagine telling your friend you want to borrow money so that you can go to the casino.
And I don't recommend you get a personal loan from the bank to invest in the stock market.
Of course, you can buy shares on margin but that is also not advisable. Furthermore, the margin is usually less than 50%.
So, where does that leave us?
I believe the answer simply lies in SAVINGS. Let us examine this very important word, because its impact reaches much further than stock investment alone. It could be the foundation of success (and continual success) in our money world. Because saving requires discipline, and financial discipline is essential for success in our money world.
English is not an easy language, I'm sure you would agree. A word can have different meanings. You can save a man from drowning. You can get a 20% discount and save money if you buy now.
That is not the saving we are talking about.
Save means put away in another place. I always recommend to people who wish to start the journey to financial freedom to open a separate account dedicated to savings. And I usually advise them not to have an ATM card for that account.
Once you have opened a savings account, you start practising the Golden Rule of Personal Finance, that is, pay yourself first. Especially if you are a salaried worker, you should set aside 10% of your salary and put this into your "Saving" account. And I mean you do that before you do anything else, like paying your bills and instalments.
I know this may sound like a tall order to some of you. Your salary may not even be enough for you to survive, especially if you are living in a big city like KL or Singapore. But once you start putting aside 10% each month, you will be surprised. You will discover one thing - you won't be really missing that 10%!
Think about it. Despite us earning so little, a sizeable percentage of that unwittingly goes to unnecessary spending like eating out, fancy dresses and gadgets, and sight-seeing trips. We just need to trim down a little bit on those. I don't mean stinge. I just mean we will appreciate it more the next time we spend money on those items. We will have a better sense of the value of money.
You can only put your money house in order if you start practising the Golden Rule, pay yourself first.
In no time you would have accumulated your capital for stock investment. And you're on your way to financial freedom. Think about it, although saving is important, it is extremely difficult to become rich just by saving alone. Making money and investing will do that for you. That is why after you save, you must learn how to invest.
Furthermore, a little secret which I omitted in Money Secrets (come to think of it now), is that most people's hard earned savings disappear after some time, don't you agree? (I'm not even talking about the EPF/CPF.) Do you know why? It's a bit long for me to explain here, so I will tell you that when you come to my workshop,
andrewchia.com/workshop.
This little secret is easily worth $1,000. People have blown hundreds of thousands of dollars simply by not knowing it.
Investing is made much easier today compared to a decade ago. 1 lot of shares is only 100 shares, compared to 1,000 shares earlier. The average price of a share on the Malaysian stock market is about RM2 or RM3. Therefore, you can become a stock investor with only RM300 or less!
Don't worry about brokerage. It is only about 0.42%, less than a cuppa at Old Town Kopitiam. You are investing, not trading, remember? Brokerage doesn't affect you.
Opening an account is usually free. You should open a stock investment account today. You do not need to put any money into the account, but you can start making use of all their tools like historical charts and company information and statistics. You can fund the account only when you decide you want to buy shares.
There you are, you don't need to worry about capital to invest in stocks. Imagine this, if you bought just a RM1,000 of Public Bank shares when it was RM0.80, you would be receiving RM500 in dividends and passive income when the share was selling at RM12.00. That is a 50% return, compared to 2% if you put it in FD!
So, come learn stock investing. It's on 10th January 2010. The next workshop would only be available after Chinese New Year, or end of February.
andrewchia.com/workshop
To your success,
Andrew
My friend, Andrew Chia, will be conducting a 1 day workshop titled "Stock Market Secrets". He's giving a great offer for his Money Secrets readers :-)
Dear Readers,
Property and stocks are the most common ways of generating residual income. With residual income you are on your way to financial freedom and early retirement.
Just like other forms of investment, they cannot be learned overnight. Therefore, it would be wise to start your education in these two streams of income as early as possible.
I will be conducting my first one-day stock investing workshop for Money Secrets readers on 10th January 2010. It will be held at Dewan Mutiara, Jalan Ipoh, KL. Inclusive of lunch, 2 tea breaks and course materials, it is at a giveaway price of only RM380. (A participant from Penang at an earlier seminar told us he spent about RM22,000 for stock investing courses.)
So, hurry and book yourself a place. You can get the details and registration form here,
andrewchia.com/workshop
To your success,
Andrew
Source: http://biz.thestar.com.my/news/story.asp?file=/2009/12/23/business/5355341&sec=business
Wednesday December 23, 2009
PETALING JAYA: Hai-O Enterprise Bhd posted an 84% increase in net profit to RM20.45mil for its second quarter ended Oct 31, compared with RM11.15mil in the previous corresponding period.
Revenue improved by 52% to RM132.4mil from RM87.3mil previously.
In a filing with Bursa Malaysia yesterday, Hai-O said the increase in net profit was mainly due to higher contributions from all core divisions.
It said the recovery in the domestic market had increased consumer spending, which boosted sales of its health and wellness products in the second quarter.
Moreover, it said, the increase in other income included the realisation of exchange fluctuation reserve on the disposal of foreign associates amounting to RM624,799.
For the first-half year ended Oct 31, Hai-O achieved a 40% higher revenue of RM280.95mil compared with RM200.20mil previously.
Meanwhile, Hai-O has proposed to implement the following:
·Bonus issue of up to 16.89 million new ordinary shares of RM1 each held in Hai-O to be credited as fully paid-up, on the basis of one bonus share for every five existing shares held in the company on an entitlement date to be determined later
·Share split involving the subdivision of each Hai-O share held in the company into two ordinary shares of 50 sen each in Hai-O
lAmendment to the Memorandum and Articles of Association of Hai-O and
·Private placement of up to 10% of the then enlarged issued and paid-up capital of Hai-O.
Daniel's Recommendation: Maintain HOLD
Recommendation: HOLD
Last night I gave a Sell recommendation. However, due to the optimistism on the stock before the market opens this morning, I'm revising my recommendation from Sell to Hold. So, for those of you who havn't sold your stock yet, maintain Hold as there is potential upside to this stock further.
Refer to previous write-up here for more info about this company.
Current Price: RM 7.50
Recommendation: SELL
The recent quarterly profit which was announced today showed an improvement to the overall current EPS of RM 0.788 from previous RM 0.677. Thus, I raised the Fair Value to RM 6.64 from its previous RM 5.70. However, the current market price is 12.95% above my calculated Fair Value for this stock. Also, there is an announcement today that Hai-O is proposing a Private Placement of 10% of the company shares at a date to be determined later. The Private Placement will dilute the current EPS and thus will further decrease the current Fair Value by 10%. Thus, I give it a Sell rating. Buy back below RM 6.64 as the company's fundamental is still strong.
Refer to previous write-up here for more info about this company.
Published: Wednesday December 16, 2009 MYT 3:45:00 PM by http://biz.thestar.com.my/
Top Glove pre-tax profit up 100% in first quarter
KUALA LUMPUR: Top Glove Corporation Bhd has recorded a 100 per cent increase in pre-tax profit for its first quarter ended Nov 30, 2009, to RM86.6 million from RM43.3 million in same quarter last year.
Revenue of the world's largest rubber glove manufacturer rose 22 per cent to RM472.3 million from RM386.1 million previously.
Chairman Tan Sri Lim Wee-Chai attributed the continuing profit growth to aggressive marketing strategies and improvement in product productivity and quality.
"Top Glove is efficient and has adapted well to the chalenging business environment, resulting from cost-saving measures implemented at all factories," he said in a statement on Wednesday.
Lim said the group was continuing to strengthen its balance sheet and working capital position, currently in net cash position of RM222 million, with RM237.1 million cash in bank as at Nov 30, 2009.
"In view of the strong profit growth for the first quarter, the group is optimistic of its future outlook despite ongoing global economic challenges," he said.
"With a diversified range of good quality products offered to a huge customer base spread over more than 180 countries, the group is confident of continuous growth and good profitable performance in the current financial year," he added. - Bernama
Daniel's Recommendation:
Fair Value: RM 9.97
Current Price: RM 9.94
Recommendation: HOLD
I've raised the current Fair Value for this stock to RM 9.97 from RM 8.49 previously. As the current share price is very close to my Fair Value, I give it a Hold rating.
Refer to previous write-up here for more info on this company.
Anne Scheiber was born in Brooklyn, NY in 1893. She was employed as an auditor in the Internal Revenue Service (IRS) in 1920 and retired in 1943. With her savings of $5000, she started an account at Merrill Lynch Pierce Fenner & Beane.
Her investment strategy was simple: Buy companies in which she understood their businesses well and hold on to them for the long term until she passed away. She didn't panic during the bear market of the 70's or during the crash of '87 because she was convinced her stocks would come back. Besides the $5000 which she started, she continued to grow her portfolio by investing a major portion of her annual pension of $3,150 and also reinvesting her dividends.
Scheiber did her own research before she did her investing. She didn't trust stock brokers because she was burned by brokers during the 1930's.
She passed away in January 9, 1995 at the age of 101 and by then her portfolio had grown to $22 million! In her will, she donated the $22 million to New York City's Yeshiva University to help educate the bright and needy young women.
Here was Anne Scheiber's top 10 stockholdings:
Here are some morals of the story:
1. Buy and hold strategy does works if you've done your homework like Anne Scheiber. Of course, buy-and-hold critics may say that timing the market will earn you even more. It's just a matter of personal preference here. I'm just proving a point here that one can make a handsome profit from the buy-and-hold strategy, without sleepless nights even when the market crashes.
2. Invest in companies that you can understand. Anne Scheiber invested in leading companies that created products she admired. She loved the movies. So she invested in Loew’s, Columbia, Paramount and Capital Cities Broadcasting. She drank Coke and Pepsi and bought shares in both. She invested in the companies that made medications she took - Schering Plough and Bristol Myers Squibb.
3. Keep saving and investing. Anne Scheiber regularly contributed to her portfolio from the small pension that she got. Regular saving and investing allows you to pick up additional stocks that fit your criteria. Merely saving is not enough. Take advantage of the power of compounding by letting your money work hard for you in the stock market.
4. Give something back. Anne Scheiber's $22 million gift to Yeshiva University will help countless young women realize their full potential for years to come. Yeshiva's president Norman Lamm says: "Anne Scheiber lived to be 101 years old, but here at Yeshiva University her vision and legacy will live forever."
Should we buy and hold our shares or time our buying and selling of our shares?
Watch this video of Prof. Kenneth French of Dartmouth on Investing Strategies:
Buy and Hold vs. Timing the Market @ Yahoo! Video
Some important points to take note:
- No one can ever be consistently right in forecasting or timing the market. One who trys to time the market are likely to miss a good year and avoid a bad year.
- If you are to follow someone's advice who is timing the market, and that person turns out to be right, you can't really tell if it's because of that person's skill or pure luck.
