Stock Market & money related sharing

 Recently received few query about Astro IPO (initial public offering) many seem not understand why Astro share price could fall below IPO price (something similar to Face Book IPO). In fact, no one can guarantee that IPO will always make money. Someone also make a joke, IPO seem equal to “It's Probably Over-Valued”. Why so many people chase for IPO? In fact, strike IPO is similar to strike a lottery, you wouldn't know how much going to make. However, base of past record, many IPOs were actually very successful, hence investors could make quick easy money. That's why there's always interest in IPO. In fact, for those company who opt to raise fund through IPO, there are a set of stringent guidelines that the company must follow. The Securities Commission (SC) is the body responsible to monitor the public listed company follow the rules and guidelines. Usually, there's one document call “Prospectus” the company need to issue and if you read carefully, they ha

The purpose of BC portfolio is to receive stable income (hence seldom buy or sell, and we selected the stable stocks) and at the same time making comparison against my friend's single stock position and the one who park the fund in Bank's FD. The is how we manage risk by creating a portfolio to protect our capital against choppy market. We started with RM242,000 on 19 Jun 2011, purchase only three stocks: Name Cost Price (RM) Total share Market Value (RM) Maybank 8.80 9,000 79,200.00 Maxis 5.50 14,800 81,400.00 Arreit 0.91 89,200 81,172.00 Total 241,772.00 As of  4 Oct 2012 ,  the position look like this: Name Market Price (RM) Total share Market Value (RM) Maybank 9.05 9,000 81,450.00 Maxis 7.00 14,800 103,600.00 Arreit 0.93 89,200 82,956.00 Total 268,006.00 On the income side (total dividend): Dividend sen Fr last Q 26,144.00 Maybank 6/4/12 36.00 5,328.00 Maxis 9/28/12 8.00 7,136.00 Maxis 6/29/12 8.00 7,136.00 Arreit 10/8/12 1.80 1,605.60 Ar

Last week, PM announce the latest Malaysia Budget 2013, below are some of the goodies highlight: 1. One month bonus for 1.4 million civil servants. 2. One off RM500 for household income less than RM3,000 and RM250 for single with income less than RM2,000 3. Special incentive RM200 per month for all military personnel. 4. One off RM1,000 for former member of armed force who did not receive any pension. 5. RM100 to all primary and secondary students and book voucher RM250 to all form six and tertiary students. 6. Individual income tax cut by one percent. 7. RM200 debate for aged group 21 to 30 who purchase of 3G smartphone. 8. Oil & Gas - Companies with investment activities in the refinery of petroleum products will be provided with tax allowance of 100% for the period of 10 years. So, which company will gain in terms of profit? Personally, I think all the Telco's will doing very good, then company like Dialog, SkPetro and CBIP will doing very good in next com

Today, I came across an interesting article in The Star, “Can you retire with one million?” Just click here to read the full article. According to the writer, he assume a person with 55 now, having one million in the pocket and have a life time for another 25 years (about 80 years old) He use simple math to divide 1,000,000 by 25 then divide further to come out $3,333 a month. With this, he concluded that life would be tough, hence one still need to work after 55 as $3,333 might not enough to cover the expenses. Oh no... how can the writer did not know in the world we have something call Investment. One can invest in property, stock market, bond or even business to generate income. For example, he can buy 5 or 6 houses with each value at around $200,000 and collect the rental income. (we don't talk about borrow money, but just use all the cash in his pocket) Assume each house generate $900 of net rental, with 5 or 6 houses, you can simply collect $5,400 per month. Don&#