Friday, November 27, 2015

The Most essential Lesson for all Investors-Koon Yew Yin

The Most Essential Lesson for all Investors - Koon Yew Yin

Author: Koon Yew Yin | Publish date: Sat, 21 Nov 2015, 11:02 AM

Many of my close friends and my family members want to know how I dare to buy so much of VS Industry shares. As I have announced on 15th June 2015, I have 20,445,600 shares, nearly 10% of the total issued shares before one share is split into 5 shares. I am also a substantial shareholder of Latitude and Lii Hen. The price charts show that every one of the 3 shares has gone up a few hundred per cent per year.

A super investor must have the following 7 traits or characteristic features:
Trait 1. Be a contrarian investor, the ability to go against the crowd in investing. You must not be afraid to buy when most people want to sell and sell when most people want to buy as if tomorrow is too late to sell.
Trait 2. A great investor is one who is obsessive about playing the game and wanting to win. These people do not just enjoy investing; they live it. They wake up in the morning and the first thing they think about, while they are still half asleep, is a stock they have been researching, or one of the stocks they are thinking about selling, or what the greatest risk to their portfolio is and how they are going to neutralize that risk.
Trait 3. A good investor is the willingness to learn from past mistakes or to admit that he or she has bought the wrong share. It is so hard for people to recognize their own mistakes and sell the bad share which they bought at a higher price. Most people would much rather just move on and ignore the dumb things they have done in the past. But if you ignore mistakes without fully analyzing them, you will undoubtedly make a similar mistake later in your career. In fact, even if you do analyze them it is not easy to avoid repeating the same mistakes.
Trait 4. A good investor must have an inherent sense of risk based on common sense. You must have the common sense to realize the risk of buying any share which has gone up a lot and when all the analysts are recommending buy. No share can go up indefinitely for whatever reason. Quite often you might be tempted to fall in love with your purchase because it has been going up and up. You are so proud of your pick and refuse to sell it. Remember your ego can skew your judgment.
Trait 5: Great investors have confidence in their own convictions and stick with them, even when facing criticism. Buffett never get into the dot-com mania and he was being criticized publicly for ignoring technology stocks. Eventually he was proven right. Unlike Buffet, we small investors can get in and out quickly and make some profit.
Besides confidence, you must have patience to wait to buy when it is has established a base and not buy when it has shot up due to some exciting hot news.
Trait 6. It is the ability to think clearly. Our brain has 3 basic functions. One is to circulate your blood and control your breathing. The second is your emotion and the third is logical thinking. All normal investors allow their emotion to control their logical thinking process. All successful investors can think clearly when faced with a problem.
Trait 7. Finally the most important, and rarest, trait of all is the ability to live through price volatility and fluctuation without changing your logical thinking process. This is almost impossible for most people to do when the share goes through a price correction. A swing up or down over a relatively short time period is not a loss and therefore not risk, unless you are prone to panicking at the bottom and locking in the loss. But most people just cannot see it that way; their brains would not let them. Their panic instinct steps in and shuts down the normal brain function.
Most investors believe that no share can continuously go up or come down indefinitely for whatever reason. They will sell to take profit and buy back during price correction. But quite often, the correction is mild especially if the share has fantastic profit growth prospect. They would not buy back at a price higher than the price they sold.
As you know VS Industry share price went up from Rm 2.5 to above Rm 8 in the last 15 months. I know of a foreign professional investor who sold VS at about Rm 4.50 because his chart indicated an unavoidable price correction. When the price continued to climb, he did not buy back because he has not mastered the above 7 traits.
If you want to improve your technic in investing you have to look at the 7 traits frequently until you have mastered them. You have to absolve them into your brain so that you can react automatically like a reflect action.
Basing on the last few quarterly earnings, I believe the company of VS Industry will be able to make more profit this year than last year which complies with my golden rule for selecting shares. But I am obliged to tell you that I am a substantial shareholder of VS. If you decide to buy, you are doing it at your own risk.

Monday, October 5, 2015


Malaysia’s 10 highest paying jobs

By: Iris Lee, Malaysia
Published: 4 hours 33 min ago
Malaysia – I always wanted to be pilot when I was a kid, and after seeing this list, I regret not pursuing my dream.
If you are rethinking your career, here is where the big bucks are according to
1) Pilot
A pilot earns RM35,000 on average per month, on top of travelling around the world.

2) Senior accountant
You probably spend the extra off-work hours crunching numbers to manage your huge paycheck of RM30,000 a month.

3) Materials engineer
A materials engineer earns about RM28,000 a month. That’s a lot for just testing materials used to create products.

4) Government affairs director
Being in the public sector not only gives you great benefits, but also a high salary at RM27,000 a month.

5) Team Leader in oil & gas, energy or mining industry
You will be compensated for being in a high-risk job, with team leaders in these industries earning about RM26,500 a month.

6) Recruiting manager
Bring in human resources, particularly in recruiting, can rake in the big bucks. The average pay for a recruiting manager stands at around RM25,500 a month.

7) Regional manager in banking
The banking industry has always been known for its perks. A regional manager for any bank in Malaysia can earn an average of RM25,000 a month.
Appeard in HRSG Mar 10
8) Chief operating officer
A COO of a company earns an average of RM24,722 a month.
9) Regional director
Being the regional director is the next best thing after COO, as this position rakes in about RM24,583 a month.
10) Geotechnical engineer
And last but not least, traipsing around in dirt as a geotechnical engineer brings in about RM22,833 a month.
The list above is generated through information submitted by users and also a database of salary information gathered from requirement agencies, companies and employers.
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Saturday, August 15, 2015

Storm Over Southeast Asian Markets -- Koon Yew Yin

Storm Over Southeast Asian Markets

Investors in Malaysia need to be concerned over recent developments in our country as well as externally which have a direct or indirect impact on investor sentiment. Hence the continuing political crisis over 1MDB, the sharp decline in the value of the ringgit against the US dollar, the battered commodity market affecting primary producing countries and pull back by foreign investors all have contributed to the depressed stock market.
What has made it even more of a turbulent storm is the recent decision by China to depreciate the yuan.  Very few in the market – even among experts – expected this and the impact has seen the market take a further sharp fall.
There are two considerations that Malaysian investors may want to bear in mind looking ahead. One is that we are not the only country in the region that has seen its market fall badly. Believe it or not but in fact the Singapore share market – which Malaysians would expect to be the strongest and most resilient in the region – has dropped even more than the Malaysian one during the last one year. Of course, this is small or no consolation to our local investors who have lost money. But it puts into perspective the current market fall in our country for those who have started to panic about our local situation; and who think and mourn and groan that we are alone in experiencing this current market fall.
The table below compares the performance of the markets in the region and shows that only the small markets of Vietnam and the Philippine have remained in positive territory since the end of 2014. Besides Singapore, Indonesia has also taken a bigger hit than us.
The second consideration is that any economic storm will pass if the economic fundamentals are strong. While there may be many problems with our politics, I am confident that our economic fundamentals are not only strong but are superior to those in many other countries. This is why I have kept my money fully invested in Malaysian and continue to do so. This is why I am sure that we will weather the storm over our market right now.
This is the same in other countries where the fundamentals are strong. For those who have lost money and have lost heart, this is what Business Insider has to say in a recent article.
There is an equity risk premium in the markets. Over the long term, stock investors can earn average annual returns that are close to 5% above what they’d be able to earn at the risk-free rate. That’s a huge number when compounded over decades.
But it must be earned the hard way – battling through the worst the markets can throw at us. And, as both Buffett and Templeton can attest, it is when stocks are treating us the worst that this premium is right around the corner.
Read more:
Finally, a reminder, that the stock exchange consists of over one thousand companies in the Main and Ace markets. When you invest your money, make sure you invest in those whose fundamentals are stronger than others and who can take advantage of the shrinking Malaysian ringgit!
As I said many a time, successful investors do not let their emotion over rules their logical thinking process. They dare to buy when people are selling desperately and sell when people are euphoric.    
Change on year
End 2014
Pct Move
Kuala Lumpur
Ho Chi Minh

Tuesday, June 30, 2015

Tuesday, May 12, 2015

Matrix Concepts net profit surges to RM115m! fantasic results!

KUALA LUMPUR: Matrix Concepts Holdings Bhd's net profit surged nearly 200% to RM115.4mil in the first quarter ended March 31, 2015 from RM38.6mil a year ago on the back of higher revenue for residential and industrial properties.
The company said on Tuesday revenue rose 135.8% to RM317.6mil in the quarter compared to RM134.6mil in the corresponding period a year ago.
Matrix Concepts chairman Datuk Mohamad Haslah noted it was a bumper quarter due to quicker construction progress of its on-going residential projects in Bandar Sri Sendayan as well as accelerated payments by investors for industrial properties at Sendayan TechValley.
Moving forward, he said the company targets for investment properties segment to contribute 10% to the group revenue in the next five years.
“The group also noted revenue contribution of RM2.2mil from investment properties, comprising Matrix Global Schools and d’Tempat Country Club,” the company said.
On the other hand, revenue from the residential and commercial properties segment jumped more than 120% to RM220.8mil, from RM99.6mil a year ago. Sales of industrial properties and land were RM94.6mil from RM35.1mil a year ago.
Haslah expected demand for residential properties to remain intact due to the population growth of Negeri Sembilan while Kuala Lumpur residents were buying properties in the Klang Valley region.
As at March 31, 2015, the group's unbilled sales of RM392mil would last Matrix Concepts until 2017.
“In line with the positive results, the group today declared a first interim single tier dividend of 4.25 sen per share. The dividends will be paid to shareholders on 9 July 2015 based on the Record of Depositors on June 26, 2015,” Matrix Concepts said.


Friday, May 8, 2015

Malaysians are Not Happy at Work


According to a recent survey on Employee Job Satisfaction in Malaysia, 78% of the respondents claimed that they were unhappy with their current job. While it is often perceived that the main reason many young talent leave a company is due to the low salary, only 17% out of the 1,145 respondents quoted salary as the main reason for influencing their unhappiness at their current job.
Dissatisfaction with their scope of work was the top reason many felt unhappy at work. Most of these unhappy employees said they felt that they have too much work or that their work is predictable and boring. Another factor was also their poor relationship with their immediate supervisor or boss.
The remaining 22% of the respondents who are currently happy at work revealed the top 3 factors which influenced their happiness:
  • 50% are enjoying their working experiences and working challenges
  • 21% are happy with their bosses who appreciate and value their input
  • 19% are enjoying their work because of their friendship with their colleagues
Overall, the employees agreed that the ultimate change in order to determine their wellbeing at work would need to include opportunities for career development and also work-life balance in the company. If the needs are not met, the majority (62%) said they would find another job to restore their happiness at work. One respondent said, “A company with strong management workflow that meets customer's demands, good colleagues who can help one another with office politics at its minimum, and a good career opportunity is a pull factor for me to enjoy my job.”
A total of 1,145 employees, of which 62% are from the middle management level, took part in the survey that was conducted by in September 2012.

Thursday, April 23, 2015

How to interpret company announcements - Koon Yew Yin

How to interpret company announcements - Koon Yew Yin

Author: Koon Yew Yin | Publish date: Tue, 21 Apr 2015, 04:13 PM

According to Malaysian Securities Commission’ rules all listed companies have to make announcements of their quarterly results and other business activities that are unusual to their daily business operations.
I would like to share with you my experience on how to interpret and take advantage of the various announcements as follows:
  1. Announcement of quarterly result: this is often a catalyst to move share price. If the profit is good, the share price will go up but if the profit is not good the price will likely come down.
  2. Announcement of purchasing a large piece of land for development eg MRCB’s recent announcement of signing the S&P agreement to buy the Germen Embassy land in KL for a few hundred million Ringgit. Many investors would think that it is a wonderful deal to be able to own and develop the property right in the heart of KL. But smart investors with some imagination must consider this purchase very risky in view of the oversupply of properties in KL. Moreover, it will take about 7 years to complete the project from planning approval to construction and sale of all the properties before you can see the financial result. At the mean time, investors are exposed to 7 years of risk.
  3. Announcement of company share buyback is tricky to interpret. It can mean that the management wants to buy back its own shares because it is undervalued. But sometimes the management wants to prop up the price to stop the price from falling because of poor quarterly result. Investors must look at the profit growth first before buying the share. You may be tempted to buy because the chart says so. Share prices can be manipulated if the daily trading volume is small.
  4. Announcement of right issues with free convertible warrants can be tempting to many investors. You must be careful to examine the true reason for calling the right issues. Do not subscribe blindly. Quite often due to poor management, the company has poor cash flow and the business has too many challenges. As a result, the company needs more cash. Moreover, this kind of announcement will push up the share price, offering you a chance to sell at a better price. You must remember that good profitable companies do not need to get money from calling for right issues.
  5. Announcement of bonus issues is usually a good sign that the company is able to accumulate sufficient profit to issue more shares to benefit shareholders. This announcement will push up the share price. Of course the price will be adjusted soon after the bonus issue and the price will go up again if the company continues to show good result.
  6. Announcement of share placement of not more than 10% of the total issued shares is a good sign that there is demand by fund managers to own these shares. If they buy them from the open market, it will cost more. This is reassuring to all existing shareholders because the big buyers would have studied the operation of the company in great detail before making such a big financial commitment. They should not think that their interest is being diluted. They must bear in mind that the company will have more cash for expansion which will benefit all the shareholders.
  7. Announcement of a new substantial shareholder who bought all his shares from the open market is a good sign. According to S.C. rules, any investor who owns more than 5% of the total issued shares has to declare his interest. He has also to announce if he subsequently buys or sell the shares because his action will affect the decision making process of other investors.
  8. Announcement of Company Directors’ buying or selling shares is a good indicator of the true value of the shares. All company directors have to make announcement when they buy or sell their shares. If they continue to buy more shares, it is a healthy sign, provided you know that the company is really doing well and that they are not buying them to simply push up the share price.
  9. Announcement by a contractor of securing a large multi million Ringgit contract for the construction of a big project through the open competitive tender system will often encourage investors to rush in to buy the shares in anticipation of the company’s profit growth prospect. Many would think that the contractor with additional work would naturally make more profit. You must remember contracting is a very risky business because of the open tender system. The contractor has to take a lot of risk to submit the cheapest price to win the tender. That is why there are so few really successful listed contracting companies. Very often building contractors are also property developers.
  10. Announcement of dividend is a good indicator of the company’s performance. The company that declares increasing dividend is definitely a good company. This shows that it has positive cash flow and can afford to benefit all its shareholders. This sort of company will not need to call for right issues to raise cash for expansion.
  11. Announcement of privatization of the listed company is rare but when you see this type of announcement, you can make money if you know how to position yourself. The controlling shareholders offer to buy up all the outstanding shares that they do not already own, usually at a higher price than the current market price. As soon as you see the announcement, you can buy it before the price go up to the offered price. If you consider the offer is unreasonable, you can wait until they offer a better price. You must bear in mind that the better offer may not come and it may be more advantage to accept the cash offer and use the cash proceeds to buy other shares.
Conclusion: There are about 1200 listed companies and many of the companies are making announcements every day. It is impossible to read all the announcements. After you have read the above guidelines, you can select the useful announcements to read to save time.
Under the current condition, I will not read announcements by building contractors and property developers. I am not interested to know about huge land transactions.
I will also not read companies that have poor profit growth prospect.
As you know, our Ringgit is the lowest in the last 5 years and readers should look at announcements by companies exporting their products in US$.
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