Wednesday, April 16, 2014

Is it now a good time to buy MAS (3786) - privatised soon?

Some people say, when the stock price fall, it's the opportunity to invest in that stock. This statement is half true, the reason, it's not simply any stock may consider good stock to invest.

One example, if 5 years ago, a investor invest in MAS (Malaysia Airline System Bhd 3786.kl), after 2 right issues, he still making a lose of 67.47%.

On the other hand, if a investors choose a "five star" solid company to invest, for example, Public Bank (1295.kl), his total return in 5 years is 159.50%. Refer to my blog, how to become a millionaire by just invest into one stock and keep for 30 years!

Now, come a question from an investor. He ask, is now good time to Invest into MAS (3786.kl) since MAS having a "big problem"? If you are a teacher and someone ask, who will be the top 3 student in the class for this coming year? Guess what's the answer? I think you just need to refer to last 3 years' record, very high percentage, the top three students will remain the top 3 this year. (unless something unusual happen)  Just share the below interesting article: Is MAS worth a buy now?

Today, Maybank Investment bank came out another report, what if MAS is privatized? The report suggest that MAS become private and to list other profitable units as standalone. Then the question is, what will investor get to invest in MAS?

My personal view, no harm to put some money in MAS at this moment since there could be a spark in stock price. However, when the next quarterly report coming out, be prepared for the stock price to turn down again!

Saturday, April 5, 2014

Doing Good to Support Those Who Need it!

It come the time to pay income tax for those Malaysian who are eligible. I know, there are many people out there may not agree if I say paying tax is your responsibility. After all, I think the system is fair, if you are poor (income below $2500), no need to pay income tax. Perhaps I should congratulate those eligible as taxpayer, you become taxpayer because your income already reach certain level. The higher your income, the higher your contribution. Let accept the fact that we need to pay tax in most of the countries, unless you migrate to country like Brunei, where all residents are rich including the Government.

We are the one who control the way how to think, don't let the mind full of negative thinking that paying tax is a lose for you. Or thinking that government is sucking your blood? For those stay at apartment, we require to pay maintenance fee in order for the management to operate smoothly. Similar for a country, we need someone to take care of the daily operation job, to clean up or maintain the road, run the school, to have a police team to take care of residents needs and many more. In fact, I would think that as a taxpayer, it is doing for your own good. Just imagine, you are actually support the building of school, hospital, road and even paying the government servants salary.

Some people may think that they lose out (the money) by doing so. Yes, as a taxpayer, you actually support certain group of people, who need help. They may not as rich as you are, so they don't need to pay tax. You (the taxpayer) are the one who support this group of people, don't you feel proud if one day they success in their life? You are one of those who contribute to their success story.

What's the benefit by doing so? Don't ask...Just imagine we are living in a society that come with cycle, we need to support each other. You work for a company because the company need the employee and you need the company in order to earn a living. The money is similar to rain, it's out there stay ready for those who know the way how to take it, there are million or even billion of it. Many already learn the way how to earn it, but no one can take away the money with them when they leave this world.

It's similar to donation, there's no question of gain or lose. What you give, the universe will return it to you in the bigger form. When we do good to someone, we are actually create a good condition for us to success in life.

We can apply the same theory in stock market. Just select a few companies that the business actually contribute to the society's need. Time come when some bad news occur and people are fearful to buy the stocks, we just doing good to buy and hold. Don't afraid if we may lose the money. One day, when the market conditions turn good, everybody will chase the stock again. It's time for us to do good by selling it to those who want to buy it! Opportunities is everywhere, it's up to you how to think it or take it!