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Showing posts from May, 2013

KLCI Historical Price Chart 1981 - 2012

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Legendary investment guru, W.D. Gann once said: " Each decade or 10-year cycle, which is 1/10th of 100 years, marks an important campaign. The  digits from 1-9 are important. All you have learn is to count the digit on your fingers in order to ascertain what kind of a year the market is in." So I did a research on our KLCI prices for the past 32 years to see if there are any repetitive chart patterns and I discovered that:      the years ending with 3, 6, 9 are usually bull years.      among these 3 years, year ending with 9 has the biggest gain in history with 30% -175% gain, followed by 3 with 30% - 100% gain, and 6 with 18% - 22% gain.        years ending with 1 and 5 are the worst performing years with year end closing price below or equal to the beginning price.            4. years ending with 7 and 8 tend to have stock crashes with the exception of 1988.           Although the charts are only applicable to the KLCI component stocks, but these findings are amazing! Most

Merger Mania: Boom Times Ahead?

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Is this an era of good feeling in mergers and acquisitions? Time for a break-up or spin-off? Every other day in the financial media, a deal announcement soars through the headlines.  Dell's founder, Michael Dell, wants to buy back his company, but others bid for the same and "put the company in play" (sort of). US Airways and American Airlines agree to a blockbuster combination that lifts one of the companies out of bankruptcy. Warren Buffett and his Berkshire team decide to purchase Heinz for $23 billion, reinforcing the long-time notion that Buffett has the uncanny knack for extracting value from even the most mature food-products industries.  Sprint Nextel has its eyes on Clearwire.  In the past week, an aggressive activist investor wants to shake up Sony Corp. and spin out its entertainment division, the unit that includes movies and music labels. Dan Loeb, using his Third Point investment-fund vehicle, prepares to take on the entrenched customs of the Japan financial

What Will Dimon Do?

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WWJD. Not what would Jamie Dimon do? But what will Jamie do? Waiting Anxiously for the Shareholder Vote In a matter of days, JPMorgan Chase shareholders will find out the results of a crucial vote to determine whether Chairman and CEO Jamie Dimon should relinquish  his role as Chairman of the bank holding company. In a similar vote last year, 40% of shares outstanding voted for him to give up the role as Chairman.  A year later, Dimon and JPMorgan have had to digest continual impact from the billions in trading losses in the infamous "London Whale" credit-derivatives debacle. They have endured stiff criticism from regulators for how JPMorgan managed those losses and for how regulators perceived the bank was behaving in response to inquiries. Dimon has already been penalized for "Whale" mistakes when his 2012 bonus was reduced, even as JPMorgan continued to generate extraordinary earnings last year and in 2013's first quarter. His inner circle of senior managers

Musing On Election

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Some after thoughts on the Malaysian General Election: High Turnout Rate The 13th GE has the highest voting rate in Malaysia's history with 85%! This shows that Malaysian citizens are politically conscious and we want to take part in this meaningful event. Super Senior Citizens Super senior citizens age 90 and above have shown their keen support for the country. From the statistics, there are close to 40,000 of these people voted. Among them, East Malaysia including  Sabah and Sarawak has the highest rate of participation with more than 10,000 votes. For secrets of longevity can ask these people! Social Media For this election, social media plays an important part in getting the youngsters to be interested in politics. Of the 13.3 million registered voters, about 40% are aged below 40 years old, these people are active users of social media such as Facebook and Twitter. Hence social media becomes an information hub for the voters where they can learn the procedure for voting from t

MBA Professors: Who's the Best?

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NYU's Damodaran: Finance Pundit Take any prominent business school, any of the schools recruiters and prospective applicants gush over. There is likely on campus a well-known, popular, favorite teacher, a campus legend who exudes business-school royalty. That professor would be the one whose course is in saturated demand and is a hot attraction. That's the professor who has the knack for making corporate finance or economics lectures sparkle, who ignites the classroom with animated discussions of business decision-making, business strategy or financial maneuverings. She is the professor who delivers the lecture in operations research or derivative products with verve--an actress at the podium who explores a business-school case as if it were a movie script. He would be the professor, an expert in his field, who commands in-depth knowledge in his subject, who has written tirelessly on the topic, and who is likely the industry's go-to source to explain to the public a f