[☃ Xaivier Blog ☃]

Cat Mario - The Funny and Cruelness Game

noreply@blogger.com (Xaivier Chia) — Fri, 10 Feb 2012 18:43:00 PST

8 Advices from a Respected and Experienced Businessman about Life and Business

noreply@blogger.com (Xaivier Chia) — Tue, 07 Feb 2012 02:18:18 PST

Yesterday is the 15th day of lunar new year 2012. I was lucky to meet my girlfriend's friend's father in the celebration party last night. I believe it is the so-called 'luck' or 'destiny' to have a chance to learn lots priceless lessons and advices from an experienced businessman about his life and business.
Here I summarise the top 8 advices from the respected and experienced businessman about life and business.

1. Success people must 'drink'.
Personally, I think that 'drinking' is a way to respect the one who treats you, especially when your customers treat you. There are lots of arts in 'drinking'.
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Making mistake is not a shame, but refusing to acknowledge and correct it

noreply@blogger.com (Xaivier Chia) — Sun, 05 Feb 2012 18:16:00 PST

1Malaysia Book Voucher: Insight

noreply@blogger.com (Xaivier Chia) — Fri, 03 Feb 2012 18:42:00 PST

Finally, I have my favourite books by using 1Malaysia Book vouchers yesterday. These books have significant influence in my life, they give me motivation and insight to improve the quality of my life. Since they are quite costly, I did not plan to own one of them and I can only read them for awhile in bookstore and library previously from time to time. Now, luckily, I can not only re-read them from time to time in my living place, but also can recommend and lent them to my sibling and friends for free.

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A Retailer In Stock Market Investment

noreply@blogger.com (Xaivier Chia) — Mon, 30 Jan 2012 00:27:00 PST

For me, stock market is just an open market for buyers and sellers to complete deals every working day. Every day when I have free time, I will go to "the market" to see whether I can buy one or two discounted "goods". Since most of the time I could not find attractive deals, once I find a good deal, I will definitely buy it regardless the time is bull or bear market.

To be a retailer, I also know that I must use one of the advantages provided in stock market, that is, zero maintainance fee. In addition, I believe the fundamental logical in this world, that is, everyone like to buy good investment. For me, a good investment in stock market is buying a good business which can breakeven as soon as possible, can provide attractive cash flow (dividend), and can keep growing in the future. Is it the same as your? I don't know. But at least I know what I am going to buy is a good investment which fulfills what I want.
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Five Benefits in Stock Market Investment

noreply@blogger.com (Xaivier Chia) — Sun, 22 Jan 2012 23:55:51 PST

Stock market is probably the most convenient place for people to buy assets. Some advantages of stock market investment are stated as follows:
1. Low Cost
The transaction of buying or selling a share of a company in stock can be less than 0.5%.

2. Zero maintainance fee
No maintainance cost is charged even you hold a particular company's shares for whole life.

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Stock Market Investment: Focus on What You can Control

noreply@blogger.com (Xaivier Chia) — Sun, 15 Jan 2012 20:46:00 PST

In stock market investmet, there are plenty of uncontrolled or unpredictable events (natural disaster like earthquake and tsunami) that affect the trend of the market in short term period of time. Besides that, unless you are insiders, retail investors like me are lacking of first hand information. Therefore, what we can do is to control what we can control to redure the impact of uncertainty. Here I list out three things we can control in stock market investment:

1. What company to invest?We can choose what we want to invest. Therefore, make sure you have more than 95% confidence about your choice based on your personal homework and study.

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No Fee Charged for Basic Saving Accounts in Malaysia

noreply@blogger.com (Xaivier Chia) — Tue, 10 Jan 2012 22:47:01 PST

Sometimes, I was wondering why I need to pay some annual fee for my saving accounts, while other friends do not need to pay. After doing some searching, I find an relevant letter from Bank Negara Malaysia who replied the editor of The Star, regarding an article entitled "Ironic that I 'Paid' bank to use my money" on 24 August 2009.

In fact, Bank Negara tended to create awareneness and provide guidance to public regarding the imposition of fees and charges by banking institutions via the letter. From the letter, "No fee charged for basic savings accounts" is highlighted.
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Investment Insight: Fact and Rumous In stock Market: Plywood Companies Case

noreply@blogger.com (Xaivier Chia) — Thu, 05 Jan 2012 20:16:01 PST

Previous information in stock market:
The orders of plywood and construction materials will be increased due to re-construction in Japan after the tsunami disaster.

Current Fact:
The orders of plywood and construction materials will be reduced due to over-orders and overstock-ing of materials immediately following the earthquake in Japan and the slower than expected re-construction exer-cise.

Current information in stock market:
"The manufacturing sector slowed to 2.1% (1Q 11: 5.5%) due mainly to the weaker global environment and the pro-duction disruptions following the disaster in Japan in March 2011. For example, orders for plywood and construction materials reduced in 2Q due to over-orders and overstock-ing of materials immediately following the earthquake in Japan and the slower than expected re-construction exer-cise."(Source: IM BizWatch 8/2011)
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New Year Resolution 2012

noreply@blogger.com (Xaivier Chia) — Sun, 12 Feb 2012 01:46:48 PST

Happy New Year 2012!!!

This is the third New Year resolution which I have published in my blog. After re-read the New Year resolutions for 2010 and 2011, I felt that they are quite silly. But it also means that I have improved my thought, philosophy and insight compared to last few years. It is a good thing to encourage me keep move up in my life and help me to get rid of the same mistakes in my life.

In order for me to make a holistic New Year resolution, I have separated them into non-recurring and recurring resolution. This is because I have learnt that some of the resolution should be maintained annually. In the same time, some of them are needed to be modified to suit present conditions.

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Internal Rate of Return: Case Study: Saving Plan - Think IRR first Before Invest

noreply@blogger.com (Xaivier Chia) — Mon, 26 Dec 2011 18:42:00 PST

Today, I am going to share some insight about the so-called saving plan and to point out some important aspects we should concern about. Besides, I will also demostrate the computation of the effective interest rate of the return from the saving plan. The two cases of saving plan are what I heard before. So, lets justify the so-called return based on IRR – Internal Rate of Return calculation:

For this ‘Plan’, all you need to do is to save 28,000 annually for 10 years. In between these years, you will ‘receive’ some cash return as shown in the cash flow below (case 1): 3,600 for first three years, then 8,400 for the consecutive years until the mature date.

MMODE (0059): Employee Share Option Scheme (“ESOS”) 2011

noreply@blogger.com (Xaivier Chia) — Fri, 23 Dec 2011 00:27:31 PST

Here is some of my homework of MMODE (0059). It may consist of mistakes due to human errors. So, don't take it so serious and please let me know. Thanks

According to the MMODE annual report 2010, the ESOS of MMODE actually have been given out since 25 April 2005

"Proposed employee share option scheme of up to ten percent (10%) of the issued and paid-up share capital of M-Mode ("Proposed ESOS")" which is around 96,267,000 x 0.1 = 9,600,000 shares

After given a bonus 1:2, total issued shares became 144,400,500 (2006) compared to 96,267,000 (2005).
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Happy Winter Solstice (Mid Winter Day) 2011 冬至快乐 + Some Thought

noreply@blogger.com (Xaivier Chia) — Thu, 22 Dec 2011 00:20:37 PST

It is good to have family members and friends get together during this special season. But the unlimited money always costs lots of our limited time in our daily basis.

Life is short. Enjoy more priceless pleasure. Yes, it is priceless and costs you nothing but your precious time.

So, what do you want from your priceless time? To exchange it to priceless happiness or priced pleasure? It is up to you. No one force you to have a big car, branded bag, slim and fit body, etc. This is only our personal desires to show off.

As always, human's weakness: Fear and Greed.
Fear to lose face so buying expensive (but always useless) things to show off in front of others.
Greed, buying discounted things which is always useless at the end.

So, conquer your fear and greed, you will achieve better life everyday.

8 Things I Have Learnt and Experienced from a Virtual Game (Dragons of Atlantis) : Appreciation Create Fulfillment and Happiness Life

noreply@blogger.com (Xaivier Chia) — Tue, 20 Dec 2011 21:24:00 PST

Yesterday, I suddenly realize and understand the reason why appreciation make our life more pleasant and contentment after playing a virtual game (Dragons of Atlantis) in Google Plus for around two weeks.

My journey of Dragons of Atlantis is stated as follows:
“Initially, I was given 7 days protection to build my “virtual empire”. So, I was very excited to make my “empire” stronger before the end of the protection. After having a small group of army, I tried to attack other players to obtain more resources to enhance my “empire”. Everything was nice since no
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Financial Management: Introduction - Risk Management - Investment, Insurance, Commodities and Cash

noreply@blogger.com (Xaivier Chia) — Thu, 15 Dec 2011 22:16:00 PST

Personally, I think Financial Management is a combination of Risk and Investment Management. Risk management help us to hedge the unexpected potential risk in our life. Investment Management, on the other hand, assists us get rid of being victim from inflation and subsequently grow wealth from it.

Risk Managment
There are three main types of unexpected potential risk in our life is Death, Accidents and Illness. Luckily, all of them can be hedged by buying a Personal Accident and Medicate Card Insurance. But please bear in mind that the total sum of payment for risk management should not more than 20% of your salary. Besides, the sum of insured should be based on each individual needs. For instance, Person A want to save 100K money for his son educational fee after 10years. To avoid those unexpected potential risk during these 10 years saving plan, Person XXX can buy total sum insured of 100K annually for death benefit to hedge the risk, which normally only cause few hundred annually. Another example is if Person XXX has a housing mortgage of 200K, he also better to buy a Personal Accident Insurance with total sum insured of at least 200K to avoid this mortgage will be a burden if unexpected potential risk happens. Again, yearly payment for such insurance normally only costs few hundreds.
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Life Insight: Appreciate Your Time with Your Kids

noreply@blogger.com (Xaivier Chia) — Sat, 10 Dec 2011 23:40:00 PST

Life is strange.

When children are still young and want to stick with their parents;

Parents are busy to earn money.

When parents want to accompany with children;

Children are already used to the life without parents;

So they are normally closed to their peers instead of their parents.

Ask yourself:
Are your children really need a iPhone or luxury car or house to have a better life?

Need or want?

Understand them, distinguish them, your life would be different.

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That's all for today. More fascinating articles and sharing will be updated from time to time in Xaivier Blog. So, you are welcome to subscribe our feed, look at our sitemap or simply visit our Homepage.

Written by: Xaivier Chia

Internal Rate of Return (IRR) -The Trick of Monthly Installment with Low Annual Interest Rate

noreply@blogger.com (Xaivier Chia) — Tue, 06 Dec 2011 00:30:28 PST

Annual Interest Rate: 8%
Amount of Loan: $10,000
Annual Interest: $800
Total load (plus interest) = $10,800
Divided by 12 months,
monthly payment: 10800/12 = $900

Does it look like very usual for you about your monthly installment plan?

Be careful!!
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Price per Earnings (PE) Ratio (PER)- Controllable Variable or Uncontrolable Variables

noreply@blogger.com (Xaivier Chia) — Wed, 30 Nov 2011 23:15:00 PST

Controllable variable is a variable which is under control by us, while Uncontrollable variable is its opposite.
For Price per Earnings (PE) Ratio, or PER, we can analogue the price is a controllable variable and the Earnings is an uncontrollable variable.

The price that we are willing to pay to a particular investment is controllable by ourself. Although sometimes people will tell us that a particular business "should" have particular PER, it does not mean we should invest it with the PER. In most of the time, the higher the PER, the lower the safety margin. For example, if a particular investment already has PER of 20, (Price/Earning = $2.00/$0.10 = 20), with estimated profit of 100%, its PER must soar to 40,with the assumption that its earning is maintained.
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Cash Machine: Low Capital Expense (CAPEX) + Low Fixed and Variable Costs

noreply@blogger.com (Xaivier Chia) — Fri, 25 Nov 2011 22:57:00 PST

"Most successful companies earn a lot while using little, and firms that spend little and sell their wares quickly are best" - Stock Screen by Jack Hough in Smart Money (October 2009)

I am quite agree the statement of Jack. In fact, if a particular company can do what Jack said, it is a supreme company. Only supreme company can reduce or maintain a very low Capital Expense (CAPEX) and other fixed and variable costs to grow its business. With a very low CAPEX and other costs, this kind of company is the so-called "Cash Machine". Every day, the goods or services of the company will become CASH, and then, only portion of CASH is consumed by CAPEX and other costs, and the remainder cash, of course, will soon flow into shareholders' pocket (as dividend) or retained to expand its business significantly (business acquisition).
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Demand VS Supply in Stock Market: Greed + Fear = Big Disaster!!

noreply@blogger.com (Xaivier Chia) — Thu, 24 Nov 2011 23:23:00 PST

Firstly, let me give you a situation:

Demand
Most people:"Want to buy a Stock which will move up very quickly."
Supply
Company H: "Let me help you!!" (But will down very quickly too. (Silent))

Every time when I see the so-called victims complaint about be cheated, fall in trap, etc. Most of the time, nothing is wrong or correct. Because nobody forces you to put your money out from your pocket (even you have many reasons to do it due to greed and fear).

Greed about losing "opportunity" to earn money.
Fear about the same thing - "losing "opportunity" to earn money".

Therefore, Greed + Fear = Double Fears = Double Greeds = Big Disaster!!!

Therefore, please bear in mind that always be responsible to our actions and think twice before act.
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TESCO CASH Voucher 24 - 25 November 2011

noreply@blogger.com (Xaivier Chia) — Wed, 23 Nov 2011 21:04:03 PST

Surprise, surprise. Tesco Cash Voucher is available for 24 and 25 (2 days) November 2011. To get this Cash Voucher, simple go to Tesco official website. For more information about my personal views, experiences and summary about Tesco Cash Voucher, do visit my previous posts at

TESCO RM10 Cash Voucher: Download and Spend it now
and
TESCO RM10 Voucher giveaway That's all for today

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KEN HOLDINGS BHD (KEN, 7323) - Q3 2011: Within Expectation

noreply@blogger.com (Xaivier Chia) — Wed, 23 Nov 2011 21:33:12 PST

Everyday, one of the happy activities I do is to read the financial reports of my invested companies. What I feel about from the financial report is that it is really very difficult to earn 10sen from RM1.00 annually. You may think that it is a easy task. Let me clarify properly: get profit from RM0.10 from RM1.00 annually is equivalent to interest rate of 10% annually, which is 300% more than our current fixed deposit rate (around 3.3%). So, are you still think it is a easy task to complete annually?

Let's go back to the main focus today, KEN (7323) third quarter report also comes out already. So far so good. After receiving so many Cash from receivable, finally, KEN did what I expect it to do from last quarter, that is, CAPEX.
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OPCOM HOLDINGS BHD (OPCOM, 0035) Q3 Quarter Report 2011: So Far So Good.

noreply@blogger.com (Xaivier Chia) — Wed, 23 Nov 2011 20:03:56 PST

Personally, I quite like OPCOM business even using the special dividend I received from OPCOM to top up some more OPCOM shares to enjoy the grow of its future earning. Although this Q3 report is relatively less attractive compared to preceding year's corresponding quarter and preceding quarter, OPCOM still maintain its attractive areas (Zero borrowing, low CAPEX, Strong Cash flow, lots of Cash).

Let's take a look at what OPCOM comments from its Q3 report:
Review of Performance
The Group registered revenue of RM22.6 million and profit before tax of RM6.7 million in current quarter as compared to revenue and profit before tax of RM34.5 million and RM9.3 million respectively in the preceding year's corresponding quarter. The sales of the Group's products was affected by the festive season which resulted in lower revenue contribution in current quarter. However, profit before tax margin for the current quarter was higher as there was relatively more sales of higher margin products.
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Insurance - Be aware of Automatic Premium Loan (APL)

noreply@blogger.com (Xaivier Chia) — Sun, 20 Nov 2011 22:28:00 PST

"Don't worry! All you need to pay is for the first six year. After then, the profit of the insurance will cover the rest of premium payment". Does it sound familiar to you? Be careful. There is no free lunch in real world. Based on my personal experience, we should always avoid "Automatic Premium Loan (APL)".

Interest Rate of Automatic Premium Loan (APL)
The first thing we need to concern about is how many interest rate of the loan. Normally, it is quite high, more than 6%, for example. Besides, the policy will only valid with the condition that the cash value must always more than the payable loan.

For instance, a total of $3000 have been paid for 6 years. Then the insurance will keep active as long as the amount of loan (automatic premium loan) is lower than the cash value.
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TESCO RM10 Cash Voucher: Download and Spend it now

noreply@blogger.com (Xaivier Chia) — Thu, 17 Nov 2011 21:22:32 PST

Personally, I quite like the strategy of TESCO to giveaway RM10 Cash Voucher as a reward to its clubmembers. RM10 discount when you are spending a total of RM100 means you can save 10% from your purchases in TESCO. Besides, if you are using credit card and TESCO reward card (of course, you must have it to enjoy this privilege), you can get at least another 0.5% debate from your credit card and the reward card, respectively, or total at least 1%.

This time, TESCO has implemented more clear guideline for this exclusive rewards compared to previous TESCO RM10 Voucher giveaway as stated below:
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