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Be prepared to see some selling pressure in the next 3 weeks. Short term view is still bearish, however the long term view is still bullish as the KLCI is still trading above the 200-day Moving Average.

Today I’m not going to talk about investment, but something equally important to us, which is Personal Financial Planning! According to EPF, as at March 2010, about as much as 74% of the EPF members have not made nomination to their EPF savings. Many EPF members are either not aware of the importance of nominating beneficiaries for their EPF savings or they are just too lazy to act! Hence, there’s an urgency for those who have not done it to act immediately! Let me tell you the consequence of not having a nomination. First, the EPF savings will be termed ‘EPF savings without nomination’ after the demise of the EPF member. Then the EPF authority will disperse RM20,000 of the deceased money in two stages to the next of kin in 2 months time, and the balance will only be released upon the submission of Letter of Administration/ Grant of Probate/ Faraid Certificate which may take minimum 6 months or up to a maximum of 7 years. Imagine your love ones have to go through this tedious process,

Any value investor should have heard of Benjamin Graham. He was the teacher of Warren Buffett at Columbia University and was known as the ‘Father of Value Investing’. Graham is famous for his stringent stock criteria to pick the undervalued stocks. His idea was to buy the liquid assets such as cash and its equivalent of a company at a discount which is known as the Net Current Asset Value (NCAV). Here’s the calculation: Take the total current assets of a company, minus the total short term and long term debt of the company, the value times two-third. Formula = (Current asset – Total Debt) x 2/3 This means that Graham is only willing to pay 2/3 of the net current assets of the company! In layman term, you are actually looking for a campany with solid financial position that can pay off all its short term and long term debt in a short period of time. To give you an idea how stringent the criteria is I have calculated some cash rich companies in our Bursa Malaysia. Many stocks are in nega

How To Be A Long Term Winner in the Stock Market There are 3 sessions Date &Time 1. 20th November 2010 (Saturday) 10.30 am - 12.30 pm (Registration starts at 10.00am) 2. 20th November 2010 (Saturday) 2.00pm - 4.00pm (Registration starts at 1.30pm) 3. 3rd December 2010 (Friday) 12.30 pm – 2.00 pm (Registration starts at 10.30pm) (Registration closed for 3rd Dec as it was fully booked) Venue CIMB Securities Tropicana City Branch Level G Tropicana City Office Tower 3 Jalan SS20/27 47400 Petaling Jaya Selangor Topics: 1. Personal Financial Planning 2. About value investing 3. Fundamental Analysis - Annual reports - Financial ratios - Analyst reports 4. Technical Analysis - Price volume analysis - Price charts - Technical indicator 5. Market Psychology See you there!

No body can predict the market. Even Warren Buffett said: “Don’t try to time the market.” However, we can always make our decisions based on facts and probabilities. Take a look at our KLCI chart, at 1526 it’s our all time high now, is there room for growth? All the technical indicators and analyst reports are bullish about our stock market, mostly based on the favourable news from US that the US Federal Reserve announced they are going to pump in more liquidity in the market (its called the Quantitative Easing) and the possibility that our Malaysia general election might be coming soon, hence, many analysts predicted our KLCI will reach 1800 in 2 years time! In order not to be crowded by all the noises in the market, we must be firmed with our own investment plan. In your investment plan, ask yourself these: • What is your investment horizon? 2 years, 5 years or longer? • What are my stocks? Dividend stocks, blue chips, or tech-stocks? • Do I have the holding power if my investment

Last week I mentioned about the importance of reading the analyst reports, however, just sitting down with a pile of financial statements isn't a very efficient or effective way of determining whether or not a company is a good investment decision. You've got to organize your thoughts - otherwise you're just going to be spinning your wheels. That's why creating your own investment analysis form can be one of the most valuable investment tools in your arsenal. An investment analysis form is a tool that you can use to help gather numbers and essential information needed to make an investment decision in one easy-to-use format. An investment analysis form allows you to better interpret your data systematically, as all of the information is collected into a standardized format. Because information is plugged in uniformly, you're guaranteed not to miss anything that you have deemed important. Moreover, an investment analysis form also allows an investor to simplify his o

Many people say property and share investments are sources of passive income. Well, yes and no! No doubt, if you are a value investor that practices long term hold strategy, you may not sell your share until 5 or 10 years later. Hence, you get dividends and capital appreciation during the holding period, and yes that’s passive income. However, as an investor, before we buy any investment, be it properties or shares, we need to “actively” searching for the relevant information available to us, and to scan for any fundamental problem for the particular investment that we are buying, as there must be a reason why a certain investment is too cheap. There are many sources of information available in the stock investing business. One good source is the analyst report. Just two months ago in August, it was the Chinese “Hungry Ghost Festival”, traditionally, investors would think that it is not a good month for investment, however, when I read the analyst reports from various brokerage firms,