sham s two cents
for newbies in KLSE a word of caution
For your info, i was a manager of a local Bank now retired. Even as managers of Banks we never made profits all the time trading the KLSE. There is no sure winners. All investments carry RISKS. please study the level of risks you can take and then bravely enter the world of KLSE.
There are no perfect gurus, and everyone can claim to have made money after the fact from the stocks recoomended. Noone can guarantee you a sure winner. Noone knows how the market is gonna open and end although i must say there are quite a few gurus here who think they are Gods of the KLSE.
DO YOURSELVES A FAVOUR. Its your money be prepared to lose everything when you enter the KLSE . Only then your daily lives would be smooth and family time and fraternity times can be cherished and enjoyed beter. Then the fluctuations of the KLSE would not effect your moods.
Discussions
1 person likes this. Showing 28 of 28 comments
Let suppose you have 1m cash asset (Share, FD, Bonds, Treasury bills, SA etc excluding EPF). How much risk you you can take?
Some people can stand up to 50% loses (if they are still young <35 yr old)
Some people can only stand up to 20% loses. (may be for 40 -50 yr old)
Some may be 10%, or 5%. (Retired or near to retirement >50 yr old)
It is really depends on your degree of tolerance.
Some may be young, but they have low degree of tolerance. Their temper will fluctuate with market performance. Market good, they got excited. Market down, they will not be able to sleep. This will affect their job performance.
My advice is, if you invest up to 500k, you find that your temper already being jeopardized, reduce to 400k. If still find hard to sleep, reduce further to 300k, 200k,100k etc. There should come to a level whether market up or down doesn't affect performance of your main career anymore. That is your tolerance level.
Some may have 1m cash asset, but not able to stand a 5k loses. These people are not risk taker, share market is definitely not suitable for them. REITs may be most suitable for them as it is low risk with medium gain. Otherwise will be FD or MGS.
2014-11-22 20:07
Well said. Buying and selling shares is an art perfected through time n money and the most important principle is to be patient and not being greedy. Stocks are mostly cyclical in nature due to multiple factors such as weather havoc, political decisions, economic variables and man-made and natural disasters etc...
2014-11-22 20:44
Exactly, I am a retiree living a comfortable life. Share market just my pass time.
2014-11-22 21:33
Bank Manager, Accountant, Doctor or Lawyer don't necessary know about the world of stock investments. Many got their fingers burnt too. I warned one Public Banker Manager about SumaTrap.
As to Reits, they are not recession proof. Before Lehman Brothers' Debacle I owned AlaQar Reit, Tower Reit & Hektar Reit.
All Reits also Crashed with the Crashing Market! I was right to sell them just in time.
I Sold Hektar Reit at above RM1.40 & bought it back later at 70 over cents 50% Discount. At its peak Hektar Reit was at RM1.80
In a True Collapse - Nothing can escape except to sell and keep cash.
2014-11-22 21:59
Murali
"UNDERSTANDING THE PROBLEM DISSOLVES THE PROBLEM"
MP Corp is the most undervalued Property Stock in Iskandar. Its problems are only skin deep.
It has 630 acres Very Prime Lands valued at only RM8.40 psf(Book Value)
Recently it sold 17 acres at RM35.80 psf
If revalued MP Corp lands should worth RM950 Millions. Plus Wisma MPI it is RM1.15 Billions
Debt to Amanah is RM120 Millions
RHB Bank is RM80 Missions
So RM1.15 Bil - RM200 Mil = RM950 Mil Surplus or RM3.58 a share.
At 33.5 cents MP Corp is selling at a Whopping 93% Discount (This beats Perak Corp, Brem, CHHB, KSeng, SBC Corp hands down)
I shall be happy to buy some more on weakness
I once bought
1) Perak Corp at 60 cents
2) KSeng at RM2.60
3) SBC Corp at 45 cent
Listen to the words of J. Paul Getty (the successful billionaire investor)
"Buy when everyone else is selling and hold until everyone else is buying."
2014-11-22 22:16
Why u never ask everyone to buy when u bought Perak corp,kseng n SBC at low prices??
2014-11-22 22:22
From Technical point of view - Monthly, Weekly and Daily, Penny & Small Cap index stocks likely game over liao.
US Market continue to break new high (but with weak momentum). KLCI may have year end window dressing but concern on breaking R61.8% - 1845 level before forming double top at 1896 if any possibility ? Many resistant to break through. Yes, Very Cautious on KLSE but also please don't under estimated their capability. Malaysia always BOLEH....I am referring to those Index counters only.
2014-11-22 22:24
how did you get wisma MPL worth 1.15b?
--------------------------
Monday, December 16, 2013
MP Corp - intention to divest Wisma MPL
Debt laden MP Corp had revealed its intention to divest its core revenue generating asset … Wisma MPL.
Should it manage to find a buyer at the price of rm320 million cash, it would instantly be on a net cash position.
In March 2013, the company had a declaration of default in the repayment of principal sums and interest in its revolving credit and bank overdraft facilities amounting to rm25.7 million and rm61.4 million respectively. It also owes its creditor Amanah Raya Development Sdn Bhd rm119.4 million as at end of its reporting period.
Sale proceeds of over rm300 million would be more than enough to settle the company’s debts of about rm206.5 million. However, the reality may be different for MP Corp. Property valuers did not value the commercial property at such a high price. It is estimated that the property to be worth rm300 million to rm310 million at most. At most conservatively, it is slightly more than rm200 million.
It is worth noting that MP Corp wholly owns the 19 level office tower and three levels of car park, but it only partially owns 75372 sq ft of the building’s retail podium at level 4, with the remaining 66045 sq ft owned by private individuals.
Taking into this account of complications and need refurbishment, prospective buyers may demand a lower price. Furthermore, the commercial block does not offer good rental yields based on an investment of rm320 million.
For its financial year ended June 30 2013, 89% of the group’s revenue was derived from rental income from Wisma MPL and property management services.
Based on rental income calculation of rm12.8 million minus expenses of rm6.6 million, its net rental income is estimated to be rm6.2 million which translates into a net yield of barely 2% - a return that us much lower than the fixed deposit rates in the banks.
Wisma MPL is the main income generator asset, but it is not the company’s only asset. MP Corp owns a parcel of land in southern Johor, near Iskandar Malaysia.
However, its creditor Amanah Raya Development filed a writ summons for an injunction against the company, prohibiting the company from selling certain parcel of land in Johor or entering into any transaction resulting in the disposal or transfer of ownership of certain parcels of land in Johor.
As at June 30 2013, MP Corp’s current liabilities exceeded its current assets by rm224.01 million. These conditions indicate the existence of material uncertainties, which may cast significant doubt about the ability of the company to continue as going concerns.
MP Corp currently (Nov 2013) is solely dependent on the rental income derived on the rental income derived from Wisma MPL and by selling the property it would have lost its recurring income source, although it is able to make profit even after paying off its debts.
2014-11-22 22:24
that is the reason why we should take care our downside first before investing lah. pay bills first, gamble later. by the way, dont cry - we all are meant to lose one way or another .. either way, that's how the world works, boy .
2014-11-22 22:29
Kaki jangan patah
No lah! These are my guidelines
1) NEVER TO LOSE MONEY
2) NEVER CHASE A SHARE AFTER IT HAS GONE UP A LOT & NEVER TO SELL A GOOD SHARE AFTER IT HAS SUDDENLY GONE DOWN A LOT
3) HE THAT IS LOW NEEDS FEAR NO FALL
Expect to make money in all your investments. Or else don't invest at all.
2014-11-22 22:35
KC Loh
Nice to see you here. Were you too early on Mui Bhd?
MP Corp lands are RM950 Millions & Wisma MPI at RM250 Mill
Both RM1.15 Billions
Book Value for Wisma MPI is RM320 Millions. I don't think they can sell it for that price. Should be happy to sell it for RM250 Millions or less.
The Real Gold Mine is Nusa Damai lands
2014-11-22 22:41
Murali,
I told people about SBC Corp & Perak Corp then. My words fell on deft ears. I even called my good friend Mr. Lee of Public Auto from Sitiawan. He asked his Sri Manjung Remisier about Perak Corp. They saw nothing good in Perak Corp even though they were 30 minutes' drive away.
2014-11-22 22:44
Yes Muraii
I told everybody to buy MP Corp since 39.5 cents. I even posted an article called
MP CORP THE MOST UNDERVALUE ISKANDAR PROPERTY STOCK www.jbhouseforsale.com
2014-11-22 22:52
Murali,
I told kyy to switch Mudajaya at RM2.50 to Mulpha at 43.5 cents.
He would have lost much lest if he took heed.
And also JTiasa will lose to Mulpha. You can check out his postings
2014-11-22 22:54
Mr,koon asked me to buy xinquan,rsawit,jtiasa n mudahjaya but I didn't believe him at all
2014-11-22 23:00
Xinquan is really a mystery and a Big Puzzle
If the figures are real then it is the Best Bargain in KLSE
Or is it all fake?
Hard to tell. I am really curious.
2014-11-22 23:07
Ok Calvin, i misread. was following this stock previously, until i saw litigations coming in! may have a relook
2014-11-22 23:15
KYY is con-man. He tell u buy, he secretly sell. That's what happen to a lot of ppl who bought Jtiasa. All loss, including my friend
2017-05-25 09:49
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2014-11-22 17:06