Opportunity! (22/5/09)

At 4:03 AM, the daily Dow Jones (America's CI) fell another 129.91 points to close at 8,292.13. So what we will see this morning in Bursa is that most share prices will plunge in a knee-jerk reaction to the changes in the equity market of the US. My advice is that be patient and wait until the force-selling momentum fizzle out, then only you go in and get yourself some valuable gems among the stones, dust and debris. Good Luck...

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Is it the right time to invest?

Veterans who experienced the 1997 crisis which triggered an equity meltdown will tell you to be patient and wait as they had seen KLCI (Kuala Lumpur Composite Index) plunged to a new historical low of 262.7 points on the 1st of September 1998, when investors had strong confidence that the worst was over after a rally of 267.79 points to 745.36 on February 26, 1998. They are pessimistic over the current market condition and fear that the stock market's rallies which surpass the expectation of most investors are actually the beginning of another...

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Rights Issues

It was on the 5th day of March that Maybank proposed rights issue at RM2.74 per share (43.2% discount to the closing price of RM4.82 of Maybank Shares as at 5th March 2009) on the basis of 9 shares for every 20 existing shares. Ok. Let's analyse it in a simple way. If the market value of a product which you are selling stands at RM5.00, and you are selling it at RM2.80, what will people think? There must be something wrong with the quality of the product that leads to selling of the products at fire-sale prices? This is what most people would think...

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Short Introduction

Basically this is an educational blog. My main purpose of creating this blog is to share knowledge among my friends. I find people at my age are not too keen to read on books written by successful investors, famous economists and FOREX speculators. Not because they do not want to know the secret behind their success, but because of the hard-to-understand economic terms - which most teenagers are not exposed to at this age - that erode their interest in it. Some people do not even understand a single thing when he/she read the business column of...

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