Child's Education Fund @ 30/4/2007

The Lionind has perform better & faster that I expected.
The KLSE is in correction mode amid fear of sharp correction on China Stock Market.

Since most of the local investors appear getting ready for the China correction, the possible impact on local market will be minimal. (hopefully)

▀ 不当房奴──中国中产阶层的心声

Lionind & Muiind

My two major shares investment are Lionind & Muiind.

Lionind has surge to 1.95 on 23/4/07. If you have done your homework, you should notice that Lionind is a major shareholder of Liondiv, holding around 23.9% of Liondiv. It has biz in Properties & Steel also. If you are optimistic on Retail, Properties & Steel Industry, We should not underestimate the future prospect of Lionind. Is this the reason why Liondiv has increase their investment in Lionind in recent weeks?

My friend asked why I'm so positive on Muiind.

I always like to compare Muiind with Warrant ( others company's warrant).
It's not difficult to find warrants that market price are above 0.30, which is higher than the existing price for Muiind.

We all know that most 'warrant' is worthless if their exercise price + warrant's cost is more than the mother's market price. But a lot the warrant still more expensive than Muiind despite Muiind has assets & some good profit making biz.

It has incurred losses for the past quarters, but it's improving. The confidence will return if Muiind recover and making profits again in coming qtr.

We see it now as half empty, but you will see it as half full in near future. Just like the Bursa Malaysia.

ACB Vs Liondiv

ACB has surge to 1.54 on 20/4/07. Why pay 1.54 for a Company without core assets ? If it's sorely due to Parkson Biz in Liondiv, why not we compare it as follow:-

A) If buy 1000 ACB at 1.54 = RM1,540. you get 250 Parkson shares after capital reduction of 4 to 1.

B) If you use RM1,540 to buy Liondiv at 8.55, you get 180 Liondiv shares. plus another 234 Parkson shares after the demerger exercise completed.

Same amount of money (1,540), in situation of A, you only have 250 Parkson shares.
In situation of B, you will get 180 liondiv shares + 234 Parkson shares.

Which one you will choose ? Don't forget the risk involve for ACB, because it's still a company without core biz now, if the demerger exercise fail, you get nothing !

Financial Planing, Investment, Credit Card

Today newspaper highlighted that more young people are using credit card as source of finance, they overspend and the amount owing to credit card company are increasing. thus there are higher number of young people are bankrupt due to credit card debts.

The above phenomena actually is a result from our existing outdated education system which totally ignore the education on finance (esp personal finance). The end results is the Country produce a lot of young people with/without excellent academic results but mostly weak in managing own finance.

ALL WE SEE & WATCH IN MASS MEDIA IS TO TELL YOU TO SPEND, SPEND & SPEND.
DO YOU NOTICE ANY INFO TO ASK U SAVE & INVEST? ALMOST NONE !

The Govt need to revamp the entire education system by introducing Financial Planning & Investment subjects in school. The current education system only teach the student on subjects like language, maths, science, history, Geography. Why no Financial Planing & Investment? This is so important and it affects our life because we all dealing in 'Cash & Money'.

Small Cars Potential In China, How Investor to gain from it ?

▀ 微型車的大潛力

▀ 聯合國稱部分亞洲國家或再爆貨幣危機

▀ 中國近期可能採取進一步緊縮措施

Get Ready For A Pull Back

Tenaga & PBB has announce a good set of quarterly results tonight, this will push up the KLCI to new height tomorrow. Wow! New high again!

While we cheer for this, we should not be over optimistic.

A pull back is likely to happen very soon, do not chase hot stock!

BE CAUTION !!!!

Be A Professional and Responsible Remisier

I still remember this; My friend asked my opinion when mkt dip in end Feb, she said her friend's remisier advise them to sell 'ALL' shares they owned. This particular remisier had also advise the same thing when mkt down on Thai capital control event.

Now the market has move upward again which has almost come back to the level before the Feb correction, just 10 points below the previous peak of 1280+.

A professional & responsible remisier should be able to provide better advise than 'SELL ALL' during market correction !

I really sad for those who dump their shares at the bottom price when the market dip in Feb correction.

Portfolio as at 30/3/2007

Even Lionind latest price at 1.60, it's still under value. It's NTA as at 31/12/06 is 3.11, it's EPS for latest half year is 0.23. It's earning is improving, we will see a big jump in it's NTA after the demerger excersice by Liondiv in mid 2007.

The financial performance for Ornasteel is good. EPS for year ended 31/12/06 is 0.19, NTA is 1.68. Dividend for year 2006 is 10 sen per share.

I'm bullish for Ornasteel and extremely bullish for Lionind.