Lowyat.NET: Latest topics by benghooi

KLCI manipulated?

benghooi — Mon, 04 May 2009 11:11:20 +0800

From: bla bla bla

1) Suddenly "someone" threw 1 lot to the buyers almost simultenously for quite a number of counters.

2) Mostly are KLCI components stocks

3) It happened near "00" second

4) If you look at the stock tracker of those KLCI component stocks, you will notice it started late 3pm and happened almost every minute till late 4pm. Is this manipulation of KLCI index?

5) It happened on the last day of a month, the settlement day for KLCI future.

6) This show could not be performance within individual capacity. It must be by a syndicate or a group of people. They are so synchronised, and they probably hold a wide range of KLCI component stocks. (Unless it is done using intra-day trade)

7) I am sure SC and Bursa are aware of this. But does this constitute manipulationof KLCI? Is this considered illegal? Will SC or Bursa take action against them?

Read more about suspected share price manipulation: Suspected stock price manipulation

Will you buy this counter? MAEMODE

benghooi — Fri, 23 Jan 2009 11:39:12 +0800

Kenanga has a buy call on this counter MAEMODE,7075 (RM 0.965) on 22 Jan 09 with target price of RM 1.58.

The revenue and profit looks normal. Profit generally growing in tandem with the growth in revenue.

Wait... Do you see something in the Trade Receivables?

The total profit for the most recent 10 quarters is RM 52.352 millions. However, the trade receivables has increased RM 129.244 millions over the same period.

Will you buy this counter?

http://ooibenghooi.blogspot.com/2009/01/wo...is-counter.html

Don't simply follow Warren Buffet's strategy

benghooi — Wed, 17 Dec 2008 11:41:13 +0800

I heard an advertisement by a unit trust company on my way to work today. A person asked whether it is time for equity investment in view of gloomy economy and the other person clarified it is fine as the investment is for long term.

How true is the statement? Is long term investment strategy always the best?

I graduated in year 2000. If I made regular monthly investment since I started working in year 2000, or if I made bullet investment in year 2005 from the saving I have made for working 5 years, the return would be WORSE than keeping the money in fixed deposit, which has much lower risk compared to equity investment.

Some may quote Warren Buffet that "If, when making a stock investment, you're not considering holding it at least ten years, don't waste more than ten minutes considering it" and follow the investment principle blindly. The statement by Warren Buffet was applicable as the US stock market was having very long term bull run over a period of 80 years since 1929 great depression, as can be seen in the chart of Dow Jones Index since 1929. However, since the eruption of recently global financial crisis, it is still a question mark whether Dow Jones can stay above 8000 points and continue its uptrend.

If I made investment in US market about 10 years ago after I started working, I could have not earned any return from the investment and worse, lost some of the investment capital. A more conservative individual who saved his/ her money in fixed deposit would be much better off and I wonder how much longer does it take from current global financial crisis for the equity market investment to catch up with the return one would have earned if he/ she saved the money in fixed deposit since 10 years ago.

I give you a classic example.

If one invest in Japanese stock market about 10 years ago when I started working, he/ she would have lost more than half of his/ her investment capital!

It is worse for those who invested in year 1989 when the Nikkei peaked at 38915.9 points. They would be left with less than a quarter of their initial investment capital.

How much longer they need to keep just to recover their capital?

Abstracted from : Don't follow Warren Buffet's investment strategy blindly

What companies in KLSE has monopoly business?

benghooi — Fri, 21 Nov 2008 11:03:29 +0800

Which listed companies in KLSE have monopoly business besides BURSA?

Let's share

Loan interest 1%/month?It's actually 23.84 a year!

benghooi — Mon, 17 Nov 2008 09:14:37 +0800

A local bank is offering personal loan at interest rate of 1% a month.

The effective interest is actually 23.8354 a year!

This is because they use simple interest method (similar to our carloan) to calculate the interest.

So if you think you are getting a 12% interest loan to finance your credit card outstanding amount, it is better to check and compare the effective interest rate before you do so.

more details at How much interest rate you pay for personal loan?