Thursday, May 29, 2014

MALAYSIA CHABOR by Joyce Chu 四葉草@Red People

Monday, May 26, 2014

My share investment style - Koon Yew Yin

My share investment style - Koon Yew Yin

Author: Koon Yew Yin | Publish date: Sun, 25 May 17:57

How I started investing in shares?
In 1983 I had my heart bypass surgery in London. While recuperating in Harley Street Hospital, I read from the newspaper that the Hong Kong stock market crashed because Margret Thatcher, the British Prime Minister failed to secure the extension of British rule of Hong Kong. The British had a 99 years lease of Hong Kong and a part of Kowloon. The lease was expiring and the Chinese Communists would soon take over.

Everyone was afraid and everything was on cheap sale. The stock market crashed.
At that time, I did not know how to select shares basing on the fundamental criteria of value investing. I did not know how to invest for long term or short term or timing the market to hit and run. I just bought shares that went down the most in terms of percentages. You can say that I started blindly.

As soon as China agreed to offer 50 years extension of capitalist system, the Hong Kong stock market rebounded and I sold all the shares I bought initially with more than 200% profit. With all the proceeds, I bought HSBC and other better known shares. After about 2 years, I made so much money that I bought 46% of the small stock broking company in Hong Kong that gave me margin finance which help me make more profit.
After this short experience in Hong Kong, I decided to retire as Managing Director of Mudajaya and be my own boss. Why should I work so hard when it is so easy to make money from the stock market? Moreover, all my profit is tax free and I don’t have any management problem. I do not need to deal with people which I find most difficult.
After my retirement, I have more free time to read. I have learned the investment philosophy of Warren Buffet, Peter Lynch, Benjamin Graham and others. I found the best book is called “Valuegrowth Investing” by Glen Arnold.
What is value growth investing? It means that the best stock to buy must be undervalued and it has strong profit growth prospect.

What is long term investment?

If I ask you all what long-term investing mean to you. I might get many different answers. Some may say 10 to 20 years, while others may consider five years to be a long-term investment. Individuals might have a shorter concept of long term, while institutions may perceive long term to mean a time far out in the future. This variation in interpretations can lead to variable investment styles.

For investors in the stock market, it is a general rule to assume that long-term assets should not be needed in the three- to five-year range. This provides a cushion of time to allow for markets to carry through their normal cycles. However, what's even more important than how you define long term is how you design the strategy you use to make long-term investments. This means deciding between passive and active management.

Long-Term Strategies

Investors have different styles of investing, but they can basically be divided into two camps: active management and passive management. Buy-and-hold strategies - in which the investor may use an active strategy to select securities but then lock them in to hold them long term - are generally considered to be passive in nature.

Active Management

On the opposite side of the spectrum, numerous active management techniques allow you to shuffle assets and allocations around in an attempt to increase overall returns. There is, however, a strategy that combines a little active management with the passive style. A simple way to look at this combination of strategies is to think of a backyard garden. While you may plant different crops for different results, you will always take the time to cultivate the crops to ensure a successful harvest. Similarly, a portfolio can be cultivated along the way without taking on a time-consuming or potentially risky active strategy.

Market Timing

When it comes to market timing, there are many people for it and many people against it. The biggest proponents of market timing are the companies that claim to be able to successfully time the market. However, while there are firms that have proved to be successful at timing the market, they tend to move in and out of the spotlight, while long-term investors like Peter Lynch and Warren Buffett tend to be remembered for their styles. Studies have shown that most day traders cannot outperform the market index because of the transaction cost.

The Bottom Line

If volatility and investors' emotions were removed completely from the investment process, it is clear that passive, long-term (20 years or more) investing without any attempts to time the market would be the superior choice. In reality, however, just like with a garden, a portfolio can be cultivated without compromising its passive nature. Historically, there have been some obvious dramatic turns in the market that have provided opportunities for investors to cash in or buy in.

My investment style

Basically my style is a mixture of all the above mentioned strategy including the use of margin finance to increase my profit. With due respect to professional fund managers, they consider current earning EPS the most important criterion. But, I consider future profit growth prospect is more important. For example, Jaya Tiasa which has very poor current earning but it has tremendous profit growth prospect. That is why it has gone up about 30% in the last few months.

It is easier for me to explain by showing you the shares I own and how I manage them. In view of the sustainable palm oil price increase in the near future, most of my investment are plantation shares eg Jaya Tiasa, Kulim, TH Plantations and Sarawak Plantations. Besides plantation, I have about 20% worth of my total investment on Mudajaya, MFCB and Success Transformers. I have only 7 counters so that I can closely keep track of them.

All my shares are pledged for margin finance. I normally use up to about 80% of the allowable limit.

How do I use Price Charts

I do not use charts to trade frequently. I only look at the long term price charts to buy shares that have been depressed for a long time. For example, Kulim is now selling at around Rm 3.50 which is lower than the average price in the last 3 years. This is simply not logical. It the last 3 years, Kulim’s plantation land especially those in Johore must have appreciated in value. Moreover, Kulim would have planted more oil palms and also made profit in the last 3years. I believe the price of Kulim will soon be re rated.

How I take advantage of the share price fluctuation

It is important to note that any share cannot continuously go up or come down for whatever reason. I must take advantage of this phenomenon to make money. For example, I have sold some Jaya Tiasa because it has gone up 30% within a few months so that I have funds to buy Kulim, TH Plantations and Sarawak Plantations which have been depressed for a long time. Jaya Tiasa is still my largest holding.
Please note that all the shares I bought are meant for long term. But it does not mean that I cannot sell them to get money to reduce my borrowing or to buy some other shares which are relatively cheaper.
Those who wish to know more about my investment style or have questions to ask, please attend my seminar on 1st June as according to my announcement.


Tuesday, May 20, 2014

Hypermarket loyalty cards – Are they worth the hassle? From FREE MALAYSIA TODAY

Hypermarket loyalty cards – Are they worth the hassle?

May 20, 2014
Do we really need another card in our already cramped purses and wallets? If you’re aiming to save money in the long run and are loyal to a particular hypermarket, then yes!
By Balkish Rosly
As consumers, all of us must have at least one supermarket or hypermarket loyalty card tucked away and forgotten in our purses. Some cards are given for free, while some require a small fee. As always, the cashiers are forced to utter the same stale and monotonous sale pitch to each of their customers to promote these cards. Although you may have heard it a thousand times before, loyalty cards can actually help you save some money in the long run. But first, what is a loyalty card?
Hypermarket Loyalty Cards – What’s in it for you?
In Malaysia, supermarket and grocery stores are akin to wild mushrooms in the forest. Just take a little drive and you will undoubtedly stumble upon every homemaker’s wish on a Sunday – No, not George Clooney – but rather a giant concrete building filled with promises of fresh food and sundry!
In this country, the choices are plenty: There’s AEON Big (previously Carrefour), AEON (previously Jusco), MYDIN, Tesco, Giant, and many more. However, only the first four of these gargantuan hypermarkets offer loyalty cards to consumers.
A loyalty card gives the users points and other rewards each time they make a purchase. On the business side, a loyalty card is an incentive plan for consumers to stay at their chain as well as allow a retail business to gather more information about its customers.
On the flip side, do we really need another card in our already cramped purses and wallets? If you’re aiming to save money in the long run and are loyal to a particular hypermarket, then yes! There are quite a few perks of owning a hypermarket loyalty card, such as:
  1. Reward points – These points are pretty easy to accumulate and can be exchange with cash vouchers or rebates.
  2. Special member price for selected items – All hypermarket loyalty cards offer discounted price on selected goods for card members.
  3. Additional discount of other merchants – Some loyalty cards also comes with other perks such as additional discounts at other food outlets and other merchants.
The Drawbacks
Every Yin has its Yang, and loyalty cards are no different. The major drawback of owning one of these plastic goods is the fee, but don’t sweat because it is pretty affordable for the masses at around RM12 per year per card. Then there’s your personal information; often times a loyalty card is used as an incentive plan which allows a retail business to gather information about its customers.
Generally, a loyalty card has a barcode or magnetic stripe that is scanned at the point of sale (POS). The card identifies the consumer and sends information about what he or she has bought to a database. As an exchange to giving away your purchase information for free, these stores reward you with points and discounts! Though let’s not give in to paranoia, the information will be used mainly to assist stocks and surveys.
4 hypermarket loyalty cards in Malaysia
imageCard Name: AEON BiG member card
Card Fee: Free
Reward Points: RM1 = 1 AEON BiG Points / 50 AEON BiG Eco Points earned each time you use AEON BiG recycle bags only on every Saturday
1,000 AEON BiG Points = RM5 cash rebate
Monthly special member price promotion (example: Samsung Galaxy Tab 3 Lite for RM649, NP is RM699)
Validity Period: 1 year
Those who visit AEON BiG for their day-to-day supplies should consider taking up the AEON BiG member card. It is after all free, and the points you collected will help you save money in the long run! This is how the card works: Every 1,000 AEON BiG points collected Is equivalent to RM5.00 cash rebate value that’s redeemable in your next purchase. So for example;
Total current purchase of goods from AEON BiG store: RM100.00
AEON BiG points accumulated from previous purchases: 1000 points
(1000 AEON BiG points = RM5.00).
Total Payment: RM100 – RM5.00 = RM95.00
Aside from the lovely rebate, members also get to enjoy purchasing selected items at a lower price.
aeonCard Name: AEON MEMBER card
Card Fee: RM12
Reward Points: RM1 = 1 AEON Point Points for Redemption: 1,000 AEON BiG Points = RM5 cash rebate
Specially priced items at AEON Store and Pasar Raya MaxValue
Special invite to AEON MEMBER Day
Birthday rewards
100 AEON Member points upon card renewal
Refer AEON MEMBER card to family members for instant 100 points
Discounts from a wide selection of merchants
Points can be exchange with AEON gift vouchers, food vouchers, Starbucks card, and many more
Free Pearl Magazine
Special Parking Rate – free 2 hours parking when you shop at selected AEON shopping centre
Points Validity Period: 1 year
AEON MEMBER card is priced at RM12, but it looks like this piece of plastic gives you quite a bang for your buck. The rewards are plenty, and you could use this card to get promotions from other merchants as well. On the flipside, the card doesn’t offer cash rebate like their partner AEON BiG. Instead, you could redeem your points with gifts like AEON cash vouchers, food vouchers, a Starbucks card, and other sorts of cash vouchers. Currently, AEON is offering two types of card fee – RM12 for a year membership and RM24 for 3 years’ worth of membership.
tesco_traj_club_cardCard Name: Tesco Clubcard
Card Fee: Free
Reward Points: RM2 = 1 Clubcard Point
Points will be converted into cash voucher (1 Clubcard Point = RM0.01)
Extra discounts with Product Coupons
Biz Clubcard available for small businesses
Dining or prepaid top-up at Tesco will earn you Clubcard Points as well
Points Validity Period: None
Tesco lovers, grab your free Tesco Clubcard for free and receive cash vouchers! Unfortunately, this loyalty card does not offer extensive offers quite like AEON, but you do receive points which will then be converted into cash vouchers. There is more than one way for patrons to collect their points:
You collect 1 Clubcard Point for every RM2 you spend in Tesco 1 Clubcard Point for every RM2 you spend in Medan Selera
2 Clubcard Point for every RM2 when you swipe your Clubcard and pay with your Tesco-RHB credit/debit card in any Tesco Stores.
2 Green Clubcard Points each time you re-use the Tesco Green Bags
1 Green Clubcard Point each time you re-use any bags
Another pleasant note about this specific loyalty card is that the points don’t expire, and only a minimum of 150 points are needed to convert the points into cash vouchers (but 150 Clubcard Point is equivalent to RM1.50, which is not that great!). Aside from converting points into cash vouchers, members are entitled to extra discounts at Tesco.
downloadCard Name: Meriah Card
Card Fee: RM12 per year
Reward Points: RM1 = 1 Meriah Point
2,000 Meriah Points = RM10 MYDIN gift voucher
Points can also be exchanged for selected in-store redemption items
Meriah Mania Coupons that provides special discount on selected items
Meriah Silver Card available for wholesaler businesses at RM20.00 per card per year
Points Validity Period: one year
MYDIN is Malaysia’s very own hypermarket, and Malaysians and non-Malaysians alike flock there to grab affordable fresh food, clothes and just about everything under the sun. For regular MYDIN customers, there’s the Meriah loyalty card which gives you one point for every RM1 spent. After accumulating these points, card members can then exchange them with gift vouchers that will ease their pockets on the next grocery trip. At RM12 per year, this card is not nearly as impressive as AEON’s loyalty card that offers discounts at other merchants. But then again, MYDIN does offer additional discounts for members on top of their already discounted prices on selected items.
This was brought to you by Balkish Rosly from RinggitPlus compares credit cards, personal loans and home loans to help Malaysians get more for their money.

Tuesday, May 13, 2014

Highest and lowest paid fresh graduates

Highest and lowest paid fresh graduates

May 13, 2014
From this survey, we were able to gleam the top 5 and bottom 5 in terms of salaried fresh grads. Looking at the list, it appears that supply seemed to be the biggest motivator for salaries being either on the upward spiral or the downward.
By Caitlyn Ng
Much has been said about fresh graduate salaries: about how low it is or in the view of employers – how unreasonable it is to expect more. There’ll always be two viewpoints because employers are looking to save as much as they can in the hiring process and the employees will be looking to earn as much as they can. The constant struggle between two polar opposites will really never abate but numbers at least, speak for themselves.

Whilst an employer may argue about an overpaid fresh grad and a fresh grad may lament the low salary – in view of inflation, market forces of supply and demand – what does economics say about fresh grad salaries in Malaysia? We looked to a recent research that was conducted by JobStreet and published in April 2014, which showed that a majority of fresh graduates were struggling to make ends meet (approximately 77% who said that their salary does not leave them with any savings after spending on essentials such as car and study loans).

From this survey, we were able to gleam the top 5 and bottom 5 in terms of salaried fresh grads. Looking at the list, it appears that supply seemed to be the biggest motivator for salaries being either on the upward spiral or the downward. Meaning, are we producing more graduates (though with less quality) for a single field resulting in shortages in others? It could very well be that oversaturation of low-quality graduates could be contributing to the equally low salary.
Top Five
pharmacy1) Pharmacy: RM3,640
It may seem a surprise to some that the usual career choices did not make the top spot, but there you have it, pharmacy takes the top spot on this list. Pharmacy involves the process of dispensing drugs and medicines, in addition to preparing them. Modern services related to this field include clinical services where pharmacists are the experts on drug therapy for the benefit of patients.

2) Corporate Strategy: RM3,200
Having to ensure that the corporation is headed in the right direction as well as the way in which its various business operations work together to achieve particular goals is definitely not an easy task. That’s why a fresh graduate who lands a job in assisting the senior management to guide the corporation in the right direction to successful outcomes has to be focused and driven – and will thus be paid handsomely for it.
cor3) Sales – Financial Services: RM3,054
Financial services are the types of services (such as insurance, financial planning and money management) that one can expect from institutions such as banks and insurance companies. As such, this means that fresh graduates will be required to have an in-depth knowledge about the products and the benefits they can offer since they are representing major corporations in the industry. Not only do they require training and lots of reading up on the products and services, they will have to remain up-to-date on the ever-changing market so that they are in the best position to advice their clients. It’s not for everyone and those who meet the mark will be paid better than other fresh graduate counterparts.

4) Doctor: RM2,719
This is probably one position that comes as no surprise to the public, considering the amount of students who do their best to enter the profession after graduating from secondary school and it comes time to choose a profession. To be a doctor, it’s not all about the complicated operation procedures you see on TV shows such as E.R or House, it’s about being a qualified practitioner of medicine in general. Treating patients, no matter in what way, and then seeing them recover is one of the best ways to dedicate one’s life in working towards. Sad though, that doctors are only 4th on the list with pharmacists overtaking them!

5) Sales – Engineering / IT: RM2,612
Another sales position popping up on this list, which makes one realise that in the world of sales, if you have the determination of steel and the willingness to work hard, one can reap the rewards soon enough! Similar to the sales position above, this position involves the need for fresh grads to have a thorough knowledge of all things engineering and IT, not an easy task! This is because people in these fields make buying decisions differently than those in other consumer contexts, being based more on technical information and rational analysis.

The Lowest Paid
Customer Service Executive: RM1,800
imagesIs it any surprise that this position is on this list? Many fresh graduates (yours truly, at one point, included) would have started out in a call centre and handled the numerous calls of enquiry and complaints coming in on a daily basis. While this job seems straightforward enough, it requires a great deal of patience as the fresh graduate will not only have to answer all calls efficiently, but deal with sometimes irate customers. Yet, it doesn’t take any particular skill and most any graduate can do it if they are of the right disposition and thus why customer service people are paid as they are.

Sales Coordinator: RM1,650
A sales coordinator is the person in charge of all types of inquiries related to sales as well as having to implement new policies that have been specifically designed to increase sales quotas and find new customer bases. One would have to conduct thorough market research as well as keep tabs on competing businesses. This person is the link to the sales manager and the other sales people.

Graphic Designer: RM1,600
If you’ve ever enjoyed beautifully designed advertisements, then you’ve got graphic designers to thank! They’re the ones in charge of putting together images or motion graphics in a way that’s visually appealing to create a piece of design. In the beginning, a fresh grad will face strong competition when applying for positions within the industry, as many companies will look for candidates with convincing talents. The starting pay may be crap but if you’ve got the goods; you’ll be raking in no time.

Administrative Assistant: RM1,500
adminThe title is a little self-explanatory, but these people are the ones who have the task of providing different kinds of administrative support to the people and groups in business enterprises. This could mean doing anything that is required of them, from managing various files to managing the inventory of assets and supplies as well as preparing minutes of meetings.
Caitlyn Ng is an Investigative Journalist of, an online consumer advice portal which aims to help Malaysians save money through smart (and most of the time painless) savings in their daily banking, technology, and lifestyle spending habits.

Friday, May 9, 2014 - An Excellent website for Malaysian stocks

recommendation from

Tuesday, May 6, 2014

Mitrajaya Holdings Bhd from Kenanga

Mitrajaya Holdings Bhd Last Price RM0.75
Kenanga Trading Buy RM1.13 Earnings Reached Inflection Point Consensus N.A. N.A.
By Iqbal Zainal l

• Mitrajaya’s earnings have reached an inflection point after its core net
profit (netting off the RM4.2m land disposal gain in Rawang) grew
significantly by 40% to RM25.1m in FY13, driven its construction and
property divisions. According to the management, its orderbook has
reached its all-time high of RM1.2b (3.3x to FY13 revenue), 140% higher
than that of its previous historical high of RM500m. As for its property
division, there is RM80m locked-in sales, which will be recognised this year
and about RM146m ready stock yet to be sold. Based on our conservative
analysis, we forecast Mitrajaya’s core earnings could at least report high
double digit net profit growth of 52% and 31% in FY14 and FY15. This is
substantially higher than that of our construction universe’ aggregate FY14-
FY15 earnings growth forecast of 16%-9%.

• Tenderbook of RM1.75b, targeting to win at least RM300m this year.
Tenderbook includes: Petronas RAPID project (RM600m), building works
for Ikano Cochrane (RM350m), infra projects for ECERDC (RM300m),
building works for Bandar Setia Alam (RM300m), and building works for
Putrajaya (RM200m). The management expects to win at least RM300m
this year and that, we believe, will be coming mainly from building works in
Putrajaya and other infra projects. Note that Mitrajaya has established a
long-term relationship (10 years) with Putrajaya Holdings through its
excellent project delivery track record. The latest project they secured with
Putrajaya Holdings Bhd was the RM427m MACC Building last year. With
this track record and background, we believe Mitrajaya is well-placed to win
more contracts from Putrajaya.

• Key catalyst for property division: Wangsa Maju. Mitrajaya will be
launching a property project comprising 3-blocks of luxury condominiums in
Wangsa Maju starting 4Q2014. Total GDV for the whole project is estimated
at RM650m and it is located right opposite Wangsa Walk Mall and is only
150m away from Sri Rampai LRT station. Despite the property cooling
measures, we believe this project will achieve strong take-up rates due to
the strategic location. According to the management, 1st phase of the project
will be around RM200m and we expect this project to contribute significantly
from FY16 onwards.

• Other businesses to support earnings growth. We understand Mitrajaya
has other businesses, including (i) a 51% stake in Optimax Eye Specialist
Sdn Bhd, one of the largest optical companies in Malaysia and

Friday, May 2, 2014

Basic Share Investment Philosophy - Koon Yew Yin

Basic Share Investment Philosophy - Koon Yew Yin

Author: Koon Yew Yin | Publish date: Thu, 1 May 18:53

Koon Yew Yin

Fundamental Analysis

When talking about stocks, fundamental analysis is a technique that attempts to determine a security's value by focusing on underlying factors that affect a company's actual business and its future prospects. On a broader scope, you can perform fundamental analysis on industries or the economy as a whole. The term simply refers to the analysis of the economic well-being of a financial entity as opposed to only its price movements.
Fundamental analysis serves to answer questions, such as:
Is the company's revenue growing?
Is it actually making a profit?
Is it in a strong-enough position to beat out its competitors in the future?
Is it able to repay its debts?
Is management trying to "cook the books"?
Of course, these are very involved questions, and there are literally hundreds of others you might have about a company. It all really boils down to one question: Is the company's stock a good investment? Think of fundamental analysis as a toolbox to help you answer this question.

The Concept of Intrinsic Value

Before we get any further, we have to address the subject of intrinsic value. One of the primary assumptions of fundamental analysis is that the price on the stock market does not fully reflect a stock's "real" value. After all, why would you be doing price analysis if the stock market were always correct? In financial jargon, this true value is known as the intrinsic value.
For example, let's say that a company's stock was trading at $20. After doing extensive homework on the company, you determine that it really is worth $25. In other words, you determine the intrinsic value of the firm to be $25. This is clearly relevant because an investor wants to buy stocks that are trading at prices significantly below their estimated intrinsic value.
This leads us to one of the second major assumptions of fundamental analysis: in the long run, the stock market will reflect the fundamentals. There is no point in buying a stock based on intrinsic value if the price never reflected that value. Nobody knows how long "the long run" really is. It could be days or years.
This is what fundamental analysis is all about. By focusing on a particular business, an investor can estimate the intrinsic value of a firm and thus find opportunities where he or she can buy at a discount. If all goes well, the investment will pay off over time as the market catches up to the fundamentals.
The big unknowns are:
1)You don't know if your estimate of intrinsic value is correct; and
2)You don't know how long it will take for the intrinsic value to be reflected in the marketplace.
Criticisms of Fundamental Analysis
The biggest criticisms of fundamental analysis come primarily from two groups: proponents of technical analysis and believers of the "efficient market hypothesis".

Technical Analysis

Technical analysis takes a completely different approach; it doesn't care one bit about the "value" of a company. Chartists are only interested in the price movements in the market.
Despite all the fancy and exotic tools it employs, technical analysis really just studies supply and demand in a market in an attempt to determine what direction, or trend, will continue in the future. In other words, technical analysis attempts to understand the emotions in the market by studying the market itself, as opposed to its components. If you understand the benefits and limitations of technical analysis, it can give you a new set of tools or skills that will enable you to be a better trader or investor.
You can use technical analysis to:
1. Identify profitable stock patterns
2. Minimize your risk
3. Maximize your return in up and down markets
You’ll learn how to make big money on stocks using a technical analysis toolkit that has been wielded successfully for hundreds of years. That’s no exaggeration.
Put simply, technical analysts base their investments (or, more precisely, their trades) solely on the price and volume movements of securities. Using charts and a number of other tools, they trade on momentum, not caring about the fundamentals. While it is possible to use both techniques in combination, one of the basic tenets of technical analysis is that the market discounts everything. Accordingly, all news about a company already is priced into a stock, and therefore a stock's price movements give more insight than the underlying fundamental factors of the business itself.

Efficient Market Hypothesis

Followers of the efficient market hypothesis, however, are usually in disagreement with both fundamental and technical analysts. The efficient market hypothesis contends that it is essentially impossible to produce market-beating returns in the long run, through either fundamental or technical analysis. The rationale for this argument is that, since the market efficiently prices all stocks on an ongoing basis, any opportunities for excess returns derived from fundamental (or technical) analysis would be almost immediately whittled away by the market's many participants, making it impossible for anyone to meaningfully outperform the market over the long term.

Random Walk Theory

As mentioned above, if all the shares would have been efficiently priced, how can you make money? In the Random Walk Theory, this is the idea that stocks take a random and unpredictable path. A follower of the random walk theory believes it's impossible to outperform the market without assuming additional risk. Critics of the theory, however, contend that stocks do maintain price trends over time - in other words, that it is possible to outperform the market by carefully selecting entry and exit points for equity investments.

My Method

As I am not an accountant, I use my common sense to select shares, like buying a small part of a business. It must be a business with long term good profit growth prospect. It must be undervalued and not many analysts write about it. I do not buy famous stocks which are frequently in the news because they would have been fully priced.
Although buying bank shares are very safe, I do not buy them because their rate of return is not good enough for me.
I also do not buy property development shares because I think the supply is more than demand as you can see there are so many vacant properties unsold. That is why banks have imposed stricter loan conditions to discourage speculation.
The best shares to buy are plantation shares because of the palm oil price increase which is sustainable for this year and the near future. Due to the poor palm oil price for the last one or more years, all plantation shares have been depressed. With the CPO price increase, all plantation companies will enjoy additional profit for no extra effort, getting additional profit for doing nothing.
After having selected any share I wish to buy, I must look at the price chart to make sure that the price is reasonably cheap. For examples the price of Kulim or TH Plantation is about the same or lower than the average price for the last 2 or more years. In view of the CPO price increase, I am sure almost all plantation shares will be show better profit in the next few quarters. As a result, I am sure of making good profit.
Conclusion: How to make profit?

After you have bought some shares basing on one or a combination of two or more methods as mentioned above, you must sell to make profit. You must bear in mind that no share will continue to go up in price for whatever reasons and no share will continue to come down for whatever reason. To make profit, you must not fall in love with the shares you have bought and keep them forever. You must sell so that you have money to buy the same share when the price makes a correction or buy another undervalued share.
Like most investors, I frequently have difficulty to decide when to sell to make profit. The best time to sell is when I see that the company is showing reduced quarterly profit. If the company is showing increasing quarterly profit, I do not sell too early.

Now, what you need is some LUCK which is what happens when preparation meets opportunity. 

an excellent article to share from Mr Koon Yew Yin
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