Stock Market is Very HOT now!!!

Trust me, the stock market is really hot now. Try to go to any nearby pasar and listen to their conversations. Chances are there that someone is talking about which stock to buy and which will go up next week. This is the time for you to review your holding and cash in whichever stock that may have limited upside. The bear might be here soon..

Yes the stock market might still rally, possibly until end of the year. This normally happens after CNY and before election. If you cash out too early, you might miss the boat. So to be on the safe side, put your money on fundamentally strong companies. These companies might not rally that much, as some of them are laggard stocks.

Well for me, I'm going to cash out half of my holding and wait for opportunity to come. Half of my money, I'm going to either put in REITS or foreign stock market.
It's not a bad time to invest in some of the bluechips on NYSE or NASDAQ. Ringgit is strong now, you don't need to fork out as much as you need in the past to buy the same stock. Th stock might have up a lot, but still you're paying less in RM. I believe RM will continue to appreciate against the USD, but the upside is quite limited. And eventually the hot money that flows into our local stock market will be flowing to the opposite direction once the local market is not cheap anymore. This will cause RM to depreciate against the USD.

Of course, I'm not asking you to pull out totally from the local stock market. One way to have a safer investment is to "hedge" your holding by spreading your investments into the local and US market. I'm still new to the Wallstreet, and heck I have a lot to learn to trade in NYSE and NASDAQ. In fact' I have only started to learn about investing in the US market recently. I have bought a book called "Rule #1
"by Phil Town. It teaches you to look for the 5 numbers of a company that are important for stock investing. Quite useful for US market, but not really applicable to our local SE (too many GLCs). Overall, the book is about choosing and buying undervalued and fundamentally good companies shares. Besides that, I have also "subscribed" to this report: How to hack the stock market. The name doesn't sound too good (there's no such thing as hacking the stock market)? But I give it a try, to look at the reports which were written by the author (I do not know who's the author anyway) on how to spot a good stock. Basically, same as Rule #1, it's teaching you to choose fundamentally good stock, but with the addition of some technical analysis. I'll try to use their methods to spot a good trade and start "trading" with my game account. If everything goes smooth, I'll trade with real money :)

So are you ready to join the bandwagon? Let's do it together!

I'm Back!

I'm back finally.. to the blogging world.

It's been 4 months since I last blogged. Well, at least it's not another 7 months.

OK, I mentioned that I've bought Bjcorp and Hevea in my last post. For your information, I have sold my Hevea @ RM0.785 and earned around 15% from my cost. I could have sold it higher at 0.80++. But I was too greedy, hoping that it can hit RM1. Too bad it did not happen and now it's on down trend. As for bjcorp, I'm still holding at 15% paper gain. I'm gonna hold this until the special dividend is officially declared. Divi= RM0.045 or use the special divi to buy 2 unit ICULS of HK Cosway. I have made some calculation on the "free" ICULS and it looks promising:


every 1 unit of bjcorp share = RM0.045 special dividend
every 2 unit of bjcorp shares = right to buy 1 Cosway ICULS

the option here is you can use the special dividend to buy 1 ICULS.

example:
10000 bjcorp shares --> right to buy 5000 unit of Cosway ICULS
use all the special dividend to buy 5000 unit Cosway ICULS

the interesting part is:
you can convert the Cosway ICULS to the mother share for free. 1 ICULS = 1 Cosway. meaning you'll have 5000 unit of Cosway. Cosway is now trading at HK$0.95 = RM0.37. With 5000 of Cosway, you'll have: RM0.37 * 5000 = RM1850.

Wow you'll be getting RM1850 of free money. And the best part is only RM0.045 will deducted from bjcorp share price.

Sounds too good to be true? maybe! The special dividend is currently a proposal (since end of april 2010). Anything can change, still.

That's my opinion, and I'm not trying to influence anyone to buy bjcorp now. It's purely my view on this company.

Oh yeah, I have also quick kill on Gadang recently. Bought @ 0.85 and sold @ 0.93. Enough for 1 week of expenses.. :)