Finance - 人生中不可或缺的一课

这不是工业的年代

noreply@blogger.com (肥仔水) — Sun, 22 Feb 2009 17:48:00 +0000

在10多20年前当我还是 “小时候” 的年代，总不难免听到这一句话：

“用心学习吧，将来能够找到一份好工，要升职加薪也比较容易”

在那时候，觉得这句话没错。如果大家有看以前的港产片（许冠文。。的那一种）， “有读书”的高材生永远好像打工皇帝一样，愚弄下属之余还让老板忌他三分。而且还驾着跑车。。。

但，现在还是如此吗？

“一颗石头往街上丢会打中三个大学生” - 相信大家也听过吧. 现在, 所谓的高才生满街都是. 而且刚毕业到社会做工的 Fresh Grade , 工钱才一千多到两千不等 (以马币计算). 那么所谓的 "用心学习" 真的找到好工吗?

相信已经有答案了, 因为 "这不是工业的年代" !

EPS and PE

noreply@blogger.com (肥仔水) — Mon, 28 Jul 2008 14:16:00 +0000

This post, i will discuss about EPS (Earnings Per Share) and how EPS affect PE.

EPS are the earnings returned on the initial investment amount. The basic formula to get the EPS are:

EPS (Earnings Per Share) = Profit/Weighted Average Common Shares

PE are the formula to estimate the time (year) on getting back the capital. Investor need to know the share price and EPS to get the PE. The formula are:

PE = Price/Earnings Per Share (EPS)

Let's work out the formula and see the example below and you will know how PE help us on share invest.

Company ABC

January
Share Price = RM1.50
EPS = RM0.15
PE = RM1.50/RM0.45 = 3.33 (Years) ~ 3 years and 4 months.

June
Share Price = RM3.50 (Share price on ABC company has been increase for RM2.00)
EPS = RM0.15
PE = RM3.50/RM0.15 = 23.33 (Years) ~ 23 years and 4 months.

So, can you see the difference now? 3.33 years VS 23.33 Years. In the mean time, the lower amount of PE, the faster earn back you initial capital. But:

1: Why some share doesn't have PE in their annual report?
-If the company is facing financial problem. EPS less or equal 0.
-It's a new share in market. Insufficient information on EPS.

2: Why the amount of PE is a huge number
- From the example above (ABC Company - June), The share price are getting too high but the Earn Per Share (EPS) are too low or nothing changes.

So, for the new share investor. This is a simple formula to judge the "Safe" blue chip share.

Air Asia - Everyone Can Fly

noreply@blogger.com (肥仔水) — Mon, 21 Jul 2008 18:15:00 +0000

Today I will do a case study on Air Asia Bhd (Symbol: 5099). This is an investment holding company that deals with air transport and hotel.

This stock closed at RM0.920 on Monday (21 July 2008). This stock has made a critical down trend since first quarter of year 2008.

The price is currently stable after the last 2nd week chart patterns: Long Lower Shadow. This is a bullish signal that might made the transition from down trend to uptrend in future weeks.

First Step to Stock Market

noreply@blogger.com (肥仔水) — Thu, 03 Jul 2008 06:59:00 +0000

This post might help the new investor in Malaysia. The steps below are need to be done before you get involve in the share market in Bursa Malaysia.

1. Open a CDS Account
You may open a CDS Account in any Securities in Malaysia.

2. Charges on Open a CDS Account
Usually is RM 10.00

3. Where I Can Get The Related Information
Bursa Malaysia

4. Unit Per Share
In Malaysia, 100 unit is equal to 1 "LOT".
For example: If RM1.50/Share. 1 "LOT" is equal to RM1.5 x 100 = RM150

Be a Careful Investor?

noreply@blogger.com (肥仔水) — Thu, 03 Jul 2008 06:52:00 +0000

Investment plays an important role in human life. taking one starts with the specific thing like business there is some aim but many a times things do not work as decided earlier . So experts say that before starting with something or investment one should try to study and understand the situation one has got bad experiences one should try to find out reasons for it. From bad experiences it is said one can take right decision.

It is also said that may be if a person or organization or a society everyone learns from experiences in life. In the field of investment one has to understand and study about the future before investing. In stock markets also one should mostly go long term investments instead of short term investments as in short term investments risk involved is more and market always changes. In this field it is also said the one who stays in the market till end is a winner. It is also said that stock markets always gives you more financial freedom in long term.

Experts always say that short term are risk and long term are the rewards. Success is the one which we gets from bad experiences and after long time. So in this world of investments and stock market one who wins this war by staying in market for long term and not to quit from the market gets financial freedom . Those who are not able to stay for long term due to failure they should learn from this experiences and move forward to take right decisions. In stock markets before investing one should understand that how much to be invested and where to be invested and also try to learn from other investors experiences. Instead of becoming greedy one should go for success and surety.

Manage Your Suddent Wealth

noreply@blogger.com (肥仔水) — Thu, 03 Jul 2008 06:44:00 +0000

You get up one morning and realize that you are rich with sudden wealth. You may get rich through receiving an inheritance, sale of property or business, insurance settlements or a lottery. Now, in such a situation, how do you deal with this windfall wealth? Most of them may not be prepared for the consequences of sudden wealth. It has been found through a survey that 35% of lottery winners turn out to be bankrupts within a span of ten years. People who receive sudden wealth may be clueless about how to deal with this large amount of money. You must be mentally prepared to face the above mentioned situation when you are a regular reader at FinanceMate. The tips are as follows:

1. Gain control over your situation
If you receive sudden wealth, you must first learn to gain control over your emotions. You must then decide to plan your wealth carefully in order to make it grow.

2. Check your financial situation
People, who have high cost debts like personal loans and credit card balances, should settle them first by using part of the wealth.

3. Have a sense of control
Keep a portion of your wealth in liquid form for emergency purpose. Plan it for three to six months living expenses. Then review your goals and allocate resources accordingly. You may then set aside a part of the money towards your retirement fund. You could also consider allocating more of your assets to equity.

4. Choose a good advisor
It is very important to choose the right financial advisor who can advise you rightly towards the allocation of your wealth. The financial advisor whom you are choosing must have a good reputation.

5. Watch out for any rough paths
You must put a check over your spending. You might tend to over spend your wealth. Keep this urge in check.

6. Review your plans
You must keep a track of your executed plans. Also, pay attention towards insurance needs and your tax situation.

Become A Stock Market Investor

noreply@blogger.com (肥仔水) — Sun, 29 Jun 2008 15:45:00 +0000

The key to becoming a successful stock investor is to know the difference between a great investment and a bad investment. Many investors assume that great companies are great investments, but this is not always an accurate assessment. Sometimes, a wonderful business can make a lousy investment.

Most stock investors can be classified into two investment styles: value and growth. Value investors utilize an investment style that favors good companies at great prices over great companies at good prices. These investors use such valuation measures as price-to-book ratio, price-to-earnings ratio, and dividend yield to determine the attractiveness of an investment. Growth investors invest in companies that are growing their earnings and/or revenue faster than the industry or the overall stock market. These companies usually pay little or no dividends, instead preferring to use profits to finance future expansion and growth. Value investors prefer to own companies at good prices, and growth investors prefer to own great companies and price is a secondary issue.

Most stock investors can be classified into two investment styles: value and growth. Value investors utilize an investment style that favors good companies at great prices over great companies at good prices. These investors use such valuation measures as price-to-book ratio, price-to-earnings ratio, and dividend yield to determine the attractiveness of an investment. Growth investors invest in companies that are growing their earnings and/or revenue faster than the industry or the overall stock market. These companies usually pay little or no dividends, instead preferring to use profits to finance future expansion and growth. Value investors prefer to own companies at good prices, and growth investors prefer to own great companies and price is a secondary issue.

Which style is better? It depends on the investor. Stock investors with a lower tolerance for risk should consider investing a larger portion of their portfolio in value stocks. Investors with a higher tolerance for risk should consider investing a larger portion of their portfolio in growth stocks. However, investors who want to avoid under performing the stock market as whole should always invest at least a small portion of their portfolio in both investment styles.

Over the long term, value has outperformed growth, but from time to time growth has outperformed during the short term.

Stock investors should be aware of the following:

1. The stock market rewards different styles at different times.

2. Value investors tend to be buy-and-hold investors, and growth investors tend to be more short-term oriented.

3. It is very difficult to determine which style will outperform in the short-term.

4. The variance between performance of value and growth styles can be very large during short time frames.

5. For some growth stocks, growth never does come. Eventually the share price falls.

6. Some value stocks are cheap for a reason - they are bad stocks and they deserve to be cheap.

Overall, the best investments are those companies that able to grow profits and add shareholder value. These companies have traditionally been value companies. Investors who prefer to select their own stocks should consider a value approach and complement these investments with a growth mutual fund. Remember that selecting the wrong growth company is not as forgiving as selecting a value company erroneously.

Start Invest

noreply@blogger.com (肥仔水) — Sun, 29 Jun 2008 11:02:00 +0000

Investing can be confusing, especially for the beginner. Getting some basic tips can help a beginning investor to make informed choices that fit their needs. Each person has a different goal when investing and that plays a big impact on how you invest. The following list explains some things beginners should know before investing.

1. Understand that there are no set rules for investing. There are no guarantees and no perfect way to invest.

2. Make informed choices. Before investing in any way you should completely understand how your investment will work and all of the details of the transaction.

3. Make a simple plan to determine your goals and needs. This will help you to determine what investments to make and how much money to invest.

These three tips are great for general investing, but many people are looking to invest in the fast paced world of the stock market. The above tips are a good beginning, but the following tips will further help those interested in investing in stocks.

1. Look at the value of the stock instead of the price. Low cost stocks may be low for a reason. Look at the whole picture. See why the price is low and if there is a possibility it may rise.

2. Check the companies return on net worth. This is the profit after taxes divided by the net worth. It is important to see a trend of growing return on net worth.

3. Spread out your risk. You should not put all your money in high risk stocks. Try some lower risks and some higher risks. This is the best way to protect your money.

4. Understand the basics of stock prices. Prices move up or down depending on future projections.

These four tips can help a beginning investor start investing in the stock market.

No matter what type of investment you are looking into, knowledge will be the key to success. These short tip lists are just the beginning to understanding investing and how to maximize your return. Keep learning and trying.