Wilmar: Conflicting signals and what they could mean.

Wilmar's share price broke resistance at $3.64.

Volume has been declining as price pushed higher. Remember, volume is the fuel that drives rallies. Without rising volume, rallies could eventually sputter and die out. However, Chaikin Money Flow shows that smart money is still flowing into the counter.

The conflicting signals here suggest that Wilmar could do a correction using time and we might not see any hefty price correction. In case a price correction should take place, immediate support is at $3.64 and a stronger support is at $3.53.

The rising 20dMA will intersect the declining 200dMA at some point in the near future to form a golden cross. This suggests that the bulls have the upper hand and that any retracement in share price is likely to attract much buying interest.

It is always dangerous to try looking into the future with technical analysis but let me see if I am clairvoyant. With a healthy dose of patience and with a bit of luck, we could see $4.44 tested in the next two or three months. There. My powers are spent.

Related post:
Wilmar: Testing resistance with strong momentum.

Saizen REIT: Still a buy?

There is no doubt that anyone who bought units of Saizen REIT about half a year ago when its warrants approached expiry would have done very well with some 45% capital gains (based on the current price of 18.8c per unit). We would also have collected a DPU of 0.63c which translates into a half year distribution yield of 4.85% if we had bought at 13c per unit.

I have been asked by quite a few people whether Saizen REIT is still a good buy. So, is it?

A street in Shinjuku at night.

With the JPY having declined by some 17% since the last time I looked at it, Saizen's NAV/unit is probably closer to 25c/unit now. The REIT is flushed with cash from the exercise of its warrants last year and its gearing level is relatively low.

The rapid decline in the value of the JPY is a bug bear for investors who are after regular income. All else being equal, DPU would decline in S$ terms and at the exchange rate today, a DPU of 1.05c per year is a fair estimate. At 18.8c per unit, it would mean a distribution yield of some 5.59%.

Saizen REIT has acquired more residential buildings and is likely to continue to do so with its much stronger balance sheet. The type of residential buildings in Japan that Saizen REIT invests in are mostly selling at below replacement cost. Translation: they are good value for money.

There is a definite growing interest in real estate in Japan. Private investors from Europe, USA and China have been active investors. So, Saizen REIT's portfolio could see its value increase over time as its buildings are revalued. This could cancel out the effect of a declining JPY as it pushes up the NAV of the REIT.

As for distribution income, I would expect the management of Saizen REIT to employ some form of hedging strategy to protect DPU in S$ terms. This is necessary as Mr. Abe, the new Japanese Prime Minister, is determined to cheapen the JPY and to herald in an inflation target of 2% per annum for the country.

Over time, I expect DPU in S$ terms to be relatively stable although it could take a hit from the declining JPY in the next payout in March. In fact, DPU could increase in the longer run as Saizen REIT:

1. Embarks on more acquisitions.
2. Continues with share buy backs.
3. Has loans which are amortising in nature.
4. Negotiates for lower interests on new loans.

Fundamentally, Saizen REIT is still very much undervalued. Would I, therefore, say it is still a buy? Well, theoretically, it is. However, I would caution that compared to 13c per unit, the margin of safety that investors like to have is very much diminished now.

Know what you are buying, know the worth of it and decide if you are comfortable with the asking price.

Related posts:
1. Saizen REIT: Daily share buy backs.
2. Saizen REIT: 2H FY2012.

Bears and Samsung washing machines.

Samsung was having its new ad for the EcoBubble range of washing machines shot in British Columbia out in the snow when a huge bear surprised the crew!

See what happened next: Huge Bear Surprises Crew on EcoBubble Photo Shoot in BC

A simple concept to better mental health.

I used to buy and collect comic books when I was a student, believing the shopkeeper that they make good investments. 

See? 

Another example of AK's foolishness as a youth.

After a year or so, my collection filled up two small boxes. 







Till today, I still have no idea how much they might be worth or how to dispose of them for a profit. 

They could be worth next to nothing and the only value they could have is one of entertainment whenever I take them out for a browse. 

An exotic "investment" indeed.

Of course, it is not as exotic as investing in fine vintage wines, for example. 

That is big money and I have read horror stories of people losing large sums of money in wine investments. 






Anyway, I digress but if you should be interested, here is a story I read before:

"...historically fraudsters have capitalised on people's ignorance of the wine market to offer substandard products or – because of the delay between ordering and delivery – simply taken money without securing the product in return."
Source: Investors lose millions in fine wine schemes.





One of the things I have been doing more is visiting the public library near my parents' home. 

I really like the comics section although it is rather small. 

Although the selection is more limited and the comics are not "fresh", I have been out of touch for more than two decades and whatever is available is fresh enough for me.

Here is a pic of a comic book I borrowed recently:

In it, the wizard, Alben, said:

"Nothing really belongs to us... Things come and go... Just like life itself which lasts a mere moment, disappears and is born again..."

Being more inclined towards Buddhism, this resonates with me. 





Reminding ourselves that nothing is permanent, we will love people who love us more while becoming more detached to everything else.

Being more conscious of impermanence could improve our mental health.

Learn not to be too affected by the price movements in the stock market, for example. (wink)




Related posts:
1. Three point turn.
2. Counting our blessings.
3. Be comfortable with being invested.

Go on a journey to unravel what it is that makes us feel good about ourselves, our lives and our relationships.

Discover the conjunction between the classical teachings of Buddhism and the latest findings from today's sociologists, psychologists and neuroscientists. 

Discover who we are and what really makes us happy.

Get your personal copy:
Buddhism and the Science of Happiness - A Personal Exploration of Buddhism in Today's World

A letter from a 24-year-old fresh grad.

About a month ago, I published a very bracing email from a 66 year old retiree. The email affirmed that I have done good with my blogging efforts and I felt very much encouraged.

Of course, there are people, including eminent bloggers, who have been quite outspoken that my emphasis on investing in S-REITs in the last few years is only suitable for people who are older because they probably require a consistent income stream as they near or are in retirement.

My own stand has been and still is that what we invest in depends on our motivations for being invested. There is certainly nothing wrong with the young investing for income if that should be their inclination.

Today, I received an email from a 24 year old who has freshly graduated from the university.  He gave permission for me to publish his email which shows how pleased he is to be investing for income.

Hi Ak,

 

I've been a really avid fan of your site. I'm a 24-yr old fresh grad, who started investing 3 years ago.

 

When i first started, I read your blog with much interest, but great apprehension, because I didn't know much about investing early on.

 

After building a core portfolio, centering on S-Reits, my investing journey has been nothing but awesome.

 

First REIT is my best performing investment, and I would not have even bothered to look at it, if it weren't for your perspective.

 

In fact, my 3 year annualised gains for my entire portfolio is 22.67% per year! (In most part, thanks to you!)

 

So from the bottom of my heart, I sincerely thank you for all the good work that you have done, and for all the time and effort for crafting such good analysis and entries. :)

Sincerely,

ZZ

 

There isn't a holy book that everyone has to follow to invest in the stock market as far as I am concerned. There is more than one road to Rome and because others walk a different path from us does not mean that they are walking through rubbish.

 

There is room for diversity in this world and if a road takes us to where we want to go, it is in the right direction. Of course, we must first be clear on where we want to go and that is something we have to decide for ourselves.

 

Related posts:

1. A letter from a 66-year-old retiree.

2. Wealth creation in the stock market.

3. Market gyrations, my portfolio and a sabbatical.

 

Achieving $1m in retirement funds: Epilogue.

This is the final blog post which should be read together with the two I wrote this weekend to encourage young people to save and to invest in the stock market.

The aim of  "Retiring a millionaire is not a dream!" is to shake all negativity from the mindsets of the young who think that it is impossible for them to have S$1 million in cash (without counting the money in their CPF or selling their HDB flats) when they retire at age 65 in the distant future.



With the help of numbers provided by The Business Times, the companion blog post "What is S$1 million dollars at retirement? Peanuts?" aims to demonstrate how $1 million is enough for retirement expenses, given certain assumptions.

In this final blog post which would complete the trilogy of blogs, I am going to tell you that there is no need to constantly invest to achieve a 5% annual return on your investments. Then, why did I bother to say that in the first instance?

Simply because it was the easiest way to illustrate how being disciplined savers who invest our savings, we could make reality out of a dream.

You know what is the best way to make money from the stock market?

It is to buy at the depths of a bear market when even the best blue chips are bombed out. During the GFC, I bought many more units of First REIT at 42c and LMIR at 18.5c. During the deep correction at the end of 2011, I bought more AIMS AMP Capital Industrial REIT at 95c. There are many such examples.

However, without any money put aside, there is no way we would be able to take advantage of opportunities to buy on the cheap!

Indeed, we might not even have to wait for a bear market to buy bombed out stocks as mispricing by Mr. Market could happen anytime and my large purchase of units of Saizen REIT at under 13c per unit middle of last year is a good example.

So, once we have savings put aside for investment, we should hedge by investing some of it but we should not invest all of it because we must always have a war chest ready to take advantage of any mispricings by Mr. Market.

We want to buy low and sell high. This means to sell stocks which are overvalued and to buy stocks which are undervalued. The former usually takes place in times of great optimism while the latter usually happens in times of great pessimism. Doing this will make us quite a bit of money from the market. Add to this our monthly savings and any dividends received, we would do quite well.

Making financial projections with average rates of return is all fine and good in theory but, in practice, making money from the stock market requires a little more diligence on our part but it is definitely not rocket science.

With this, we end this weekend's trilogy of blog posts which hopefully have demonstrated to the 25 year old reader whose email started all of this that his scepticism could be put to rest. The ball is now in his court.

Related posts:
1. Retiring a millionaire is not a dream.
2. What is S$1 million at retirement? Peanuts?

Marco Polo Marine: Will buy more on pull back.

Marco Polo Marine is a turnaround story which is simply at the right place and at the right time. Of course, they have also positioned themselves to ride the next wave up. In the shorter term, however, we could see some weakness in its share price.

A retracement could see share price declining to the top of the recent base formation at 37c, give or take 0.5c, where we should see very strong buying interest. The formation of a white candlestick with a very long upper wick on the back of heavily increased volume in the last week suggests that a pull back is a strong possibility.

Weekly chart.

I would definitely buy more if support at 37c should be tested as the reaction to Marco Polo Marine's much improved numbers including the listing of its subsidiary in Jakarta seemed relatively muted. Marco Polo Marine's valuation is inexpensive compared to peers even at the high of 43c a share last week.

When Marco Polo Marine's numbers continue to improve and good news continue to be announced, more market participants will become believers and buy the stock. That is when we would see a truly breathtaking winning streak.

Related post:
Marco Polo Marine: Longer term buy on weakness.

CapitaMalls Asia: Buy more at $1.93.

Thanks to accumulation at much lower prices, my long position in CapitaMalls Asia is firmly in the black. The question I am faced with now is whether to sell.

Breaking out of a double bottom formation almost one year ago, the share price of CapitaMalls Asia has been climbing a wall of worries. On the weekly chart, the uptrend is clear to see. Could this continue? It could, of course.

Weekly chart.

However, with the MACD histograms not forming higher highs, we could see a pulling back in share price. When? That is harder to say.

This possibly impending weakness is, however, likely to be short lived as the CMF shows smart money pouring back into the stock. Hence, a pull back to support is likely to see strong buying interest.

Drawing a trendline to connect various lows, it is easy to see that the 20w MA is the support to watch. Using Fibo lines, we get a rough idea of where is the support in dollar terms in case a retracement should take place. In this case? $1.93 seems likely.

Remember, as always, that TA is about probability and could help to optimise returns but there is no certainty.

What is S$1 million at retirement? Peanuts?

In my last blog post, I made certain assumptions which would see a 25 year old saving and investing S$650 a month today having S$1,000,000 by the age of 65. As the blog's purpose was to show that retiring as a millionaire is not a dream, I only had to show that it is indeed achievable.

The next question which is of relevance is whether we can retire with S$1 million in cash in Singapore? This led me to search through my stack of The Business Times because I remember reading a recent article on this.

Cai Haoxiang wrote a piece on 7 January 2013 in The Business Times on the topic. In the article, he made certain projections as to what an average household's expenses on a monthly basis could look like in 2042. The projections were made using the Household Expenditure Survey 2007-2008 from the Department of Statistics as a base.

It was revealed that from 1997-1998, an average HDB household's expenses was S$2,681 and 10 years later in 2007-2008, it was S$3,138 or an increase of 17%. By 2042, assuming a core inflation of 2%, an average HDB household's monthly expenses would become S$6,400.

So, over a 34 years period, expenses could increase by some 104%. Let us assume that expenses would increase another 17% over another 10 years like it did from 1997/98 to 2007/08 and we would see monthly expenses for an average HDB household at S$7,488 a month.

S$1 million in the bank would last an individual 133 months or roughly 11 years assuming that the banks did not pay interest on savings and that there would be no inflation. Of course, these assumptions are unrealistic but we get an idea of how things might look like then. So, S$1 million would only last 11 years from 2052?

Let us not be too pessimistic. Remember that the survey is about average HDB households. What is an "average" household like?

In the article, it was mentioned that an average household would mean one with 3 to 4 members. However, it is unlikely that by the time we retire at age 65, we would still be supporting children or our parents. OK, with the former, it is possible if we became parents in our 50s and with the latter, it is also possible if our parents had us when they were very young or are of hardy stock.

However, these would be more exceptions than the norm, I would imagine. As both husband and wife retire in their 60s, it would be more realistic to imagine an average household with only 2 members, therefore. Then, their average monthly expenses would be much lower than a household with 3 or 4 members. Sounds less scary now, doesn't it?

Less scary it might sound but is S$1 million still enough for a couple of retirees in their 60s to live off in Singapore? Enough is really subjective, isn't it? So many questions need to be asked but with a household size of 2 average elderly folks, it could actually be enough.

Remember how I made the assumption of a 5% return on investments in my last blog post? If the 25 year old reader should stay invested, by the time he is retired at age 65, his S$1 million portfolio would be generating S$50,000 annually. Instead of re-investing the gains, it would be time to use it for his expenses in his golden years.

Now, let us not be chauvinistic. Let us assume that the future wife of the 25 year old reader should do the same thing he should be doing, setting aside S$650 a month in savings for investment and at the same rate of return, she could retire a millionairess! At age 65, her portfolio would also be generating S$50,000 annually assuming a 5% annual return.

Pause and imagine that. Smiling?

Remember that the journey is the hardest at the beginning. I would even describe the early years as being rather miserable. So, every time you are tempted to stray, every time you are thinking of giving up, come back and read these blog posts.

We don't have to be very rich when we retire but we should have enough and we should be happy.

Related posts:
1. Retiring a millionaire is not a dream.
2. To be a happy peasant.

Retiring a millionaire is not a dream!

I recently received an email from a reader in his mid 20s who just joined the workforce. Reading my blog at the recommendation of a friend, he wrote that he felt encouraged and sceptical at the same time. 

He wondered if it is really possible for him to become a millionaire (without having to sell his future flat) when he finally retires. Do you feel the same way he feels?

If we were to squirrel away $50 more per month in a biscuit tin from age 30 to 60, we would save another $18,000!




With the increasingly high costs of living in Singapore, it is easy to think that it is no longer possible to retire wealthy and having a million dollars in liquid assets seems to be a popular yardstick. 

I have a feeling that this belief is widespread amongst the young and, perhaps, the slightly less young too. 

This belief is very dangerous! It could be a self fulfilling prophecy!

Hey! Young people out there, listen up! You can become a millionaire by the time you reach retirement age or earlier! What's more, this is possible without even counting the money in your CPF or the value of your flat! 

AK is not pulling your leg. It is true.

I don't know how much money you make a month. I don't know how much money you spend a month. 

Of course, you know that I would say you should increase your income and reduce your expenses as the first step to wealth building. You already know that.

I won't tell you how much money you should spend a month. How could I tell you? Everyone's circumstances are different.

What I can tell you is how much money you should at least save a month! 

Now, based on this and with the knowlege of how much money you are spending every month, you would know how much money you must make a month to achieve the target of having a million dollars in liquid assets by the time you reach retirement age.

Young people have the most valuable asset in the world and that is time! Young people have time on their side.

The younger we start saving and investing for our retirement, the easier it is going to be. I know we hear this all the time from insurance salespeople and often, we brush them off because we believe that they are just out to make money from us. 

Well, AK is not an insurance agent and I am not going to make money from you listening to me. So, don't brush me off.

So, listen, what the insurance salespeople say is true. Yes, it is.





Now, let's work our calculators!

How much should we be saving and investing every month if we would like to have a million dollars in liquid assets by the age of 65?

Taking the example of the 25 year old reader who wrote to me, S$650, give or take a few dollars. Yes, only S$650 a month! Accumulate savings, buy stocks of good companies with about 5% dividend yield a year and re-invest the dividends. 

Saying nothing of possible capital gains, voila, you would have $1,000,000 by age 65!

The power of compounding is amazing and I have blogged about how money in our CPF-SA will grow 50% every 10 years even if we were to stop contributions today and this is from an annual interest of 4%!

What about the not so young? Well, if we start at age 30, we would need to put aside about S$880 a month. Not so bad. 

What about age 35? Ah, S$1,200 a month. Still manageable. 

Then, age 40? Hmmmm... S$1,680 a month. 

Later at age 45? S$2,430 a month! 

Wah! Sorry, I shouldn't shout.

OK, don't ask me for the monthly amounts for age 46 and above. I am in cold sweat.





Now, when I blogged about my passive income from S-REITs, I said that it is always hardest at the start. The Chinese say 凡事起头难. Hard to start but start we must.

To the 25 year old reader, believe me when I say that if you keep at it, your annual investment gains will eventually exceed the annual sum that you are saving and investing. 

Yes, your annual investment gains will exceed S$7,800 at some point in time and it will continue to grow if you continue to do the right thing.

Now, pause and picture that. Are you smiling?

If you know anyone who feels the same way this 25 year old felt, tell them that AK will shake them hard by the shoulders. 

Nah, let's not be violent. 

Just tell them to read this blog post. 

It won't take too much time but it could change someone's life.

Remember, all of us can do it!

Related posts:
1. 7 steps to passive income from stocks.
2. If we are not rich, don't act rich.
3. Warren Buffet, the world's greatest money maker
4. Rich Dad, Poor Dad: 2 are better than 1.
5. Recommended books for FA and TA.
6. 7 money habits of AK71's.
7. What is $1 million at retirement?
8. Achieving $1 million in retirement funds.

L'OCCITANE Shea Butter Foot Cream.

Almost two years ago, I blogged about moisturisers, admitting that I use them. Well, I still use them! Recently, I discovered shea butter!

"Shea butter is a solid fatty oil made from the nuts of Karite Nut trees, also known as Mangifolia, that grow in the semi-arid savannah regions of West and Central Africa. Shea butter is sometimes called “women’s gold,” because extracting the butter from the nuts gives employment and income to hundreds of thousands of rural African village women. Shea butter is so non-toxic and beneficial that it is used in foods and cooking as well as soaps and beauty products." Source: www.care2.com

I actually bought a big tube (150ml) from L'OCCITANE at the recommendation of a good friend. It says Shea Butter Foot Cream but I use it on my hands and elbows too. It really works and the moisturising effect is long lasting compared to other moisturisers I have used before.

My tube of L'OCCITANE Shea Butter Foot Cream.

Now, instead of using Aesop's Resurrection Hand Balm (which is more expensive), I use this Shea Butter Foot Cream on my feet. Massaging the cream well into my heels before going to sleep, it prevents cracked heels. As it contains lavender essential oil as well, massaging it into my hands, the scent which is very soothing helps me sleep better too.

This is good stuff and to anyone who is thinking of a hand and foot moisturiser, you might want to give this a try. Inexpensive and effective, this can be bought online for US$36.00 per tube and it ships free to your address in Singapore. You could also be eligible for some discounts.

Find out here at this link:
L'Occitane Shea Butter Foot Cream 150ml/5.2oz

Related post:
Should guys use hand moisturisers?

Old Chang Kee: Have my curry puff and eat it too.

Time really flies! It really does not feel like I have been a shareholder of Old Chang Kee since October 2011 but it is true! 

I have been a shareholder of the company for more than a year now.

Today, I made a decision to sell half of my shares in Old Chang Kee. 

Why not hold? Well, it has more than doubled from my buy price.

The decision is not based on TA since it is such a thinly traded and volatile stock. 

The decision is more based on FA as I feel that although it is a great company with characteristics similar to See's Candies which Warren Buffet likes so much, valuation is now rather rich.

Then, here comes the interesting part. 

Why have I chosen to sell at 57c or higher? 

Why not 55c or 56c? 

For those of you who think that AK is a savvy investor with profound insights or thoughts, this could change your mind (hahaha..).

Well, my entry price was 26c a share. A doubling of the share price would see 52c a share. 

Old Chang Kee recently announced a 5c dividend which is payable sometime next month. So, 52c + 5c = 57c. 

Tadah! Rocket science at its best.





Why not sell all my shares then? 

Well, apart from the 5c bumper dividend declared, I really don't know why Mr. Market is so into Old Chang Kee suddenly. 

Could there be something brewing that is more delicious than the comfort fast food that Old Chang Kee is famous for?

Being minority shareholders, we are usually slower in getting any type of news, if at all. So, I am keeping half of my shares (which are free of cost now) just in case. 





Of course, then, I will still receive the bumper dividend to be paid out to shareholders next month. Yummy!

Related posts:
1. Old Chang Kee: Special interim dividend.
2. Old Chang Kee: Initiated long position at 26c.

If we are not rich, don't act rich!

We are familiar with excuses. 

We hear them all the time and, sometimes, we also make some. 

I am being honest. 

Yes, sometimes, I make excuses.

"I cannot save money because I don't make much."

Heard this before?




We have to earn money and save money. 

Basically, that is the way most of us start building up our wealth. 

For those lucky enough not to have to do that, skip to the next step which is to invest. 

Of course, there are those who are extremely lucky who don't need to invest but if you are reading my blog, I don't think you belong to this group of people.

Anyway, this blog post is off the cuff and if you have friends or family members who are not saving money, justifying their inaction by saying they make too little, send them the link to this blog post or share this in any social media, whichever you find easier.

Now, this may sound jaded as I have said it before many times and that is we should run our lives like we would run a business! 

We must try to contain costs and increase revenue!




Contain costs? 

Yes, what do we spend our money on? 

Are they needs or wants? 

If they are wants, cut them immediately. 

Mercilessly. 

If they are needs? 

Are there any cheaper alternatives which do the job just as well?

If we were always going to Starbucks et al for our coffee fix, we could start by bringing a packet of 3 in 1 coffee mix to work every day. 

That's coffee too and I think that would set us back by 20c a day instead of $5 (I don't know how much Starbucks coffee costs and this is just an educated guess)! 

Doesn't sound too difficult, does it? 




Don't brush it off! 

Savings add up especially if we do it in every aspect of our lives!

The worst type of costs is the type we really have great difficulty escaping from due to bad decisions leading to long term commitments. 

Can you think of some?




Here goes. 

Just because our friends or family members have a car (or two) or a condo (or two), it does not mean that we should have them too. 

Just because our friends or family members are married and have two or three children, it does not mean we should do it too. 

Always think carefully, plan ahead before making such huge commitments. 

They could really haunt us later on, otherwise.

For anyone, especially those who have trapped themselves into huge, longer term expenses which they cannot easily escape from, who says they cannot save money because they don't make much? 

Ask what is the logical thing to do? 

Increase revenue!

Increase revenue? 

Yes, find ways of making more money. 

Unless we are severely handicapped mentally or physically, there is no excuse for not being able to make more money in a country like ours where opportunities abound! 

Often, people are just lazy or picky.



There are a few well known bloggers who are private tutors by night. 

I even know a blogger who was a DJ by night! 

I know someone who helps out in his family's chicken rice store on weekends and I have a friend who sells her cakes and cookies to friends who appreciate them.

In case you are wondering, all of them have day jobs and have about the same amount of free time as any other person with a day job, everything else being equal. 

They have a choice on what they would do with their free time just like anyone else.

Please choose and choose wisely.



Once we are on this journey of containing costs and increasing revenue, we should naturally be saving money. 

A pertinent question to ask is how much should we save? 

Personally, I have been asked that before by many people and I always tell them that if they do not feel that they are sacrificing something in the process, they are not saving enough. 

Remember the Starbucks coffee example earlier?

We can do it!

Of course, "sacrifice" is a subjective concept. Someone might think that sacrificing Starbucks coffee for coffee from a neighbourhood coffeeshop is enough. 

Well, there is still savings, I reckon. 

I am not dogmatic when it comes to details. It is the concept that I want to share. 

It is the spirit I wish for every person to embrace.




Perhaps, what is most important to remember is this:

If we are not rich, don't act rich! We have to work harder to save money because we are not rich! If we act rich when we are not, we will never be rich!

For more blog posts on the topic, please refer to the right side bar and look for the box titled "Wealth Creation: Earn and save."




"When you do these things, people assume you are an intelligent, important and responsible person."

I guess I know why some stock market gurus like to show off their expensive purchases now.

LOL! Oops.

Bad AK! Bad AK!



---------------------------------
Related posts:
1. Not enough money to be married.
2. Rich Dad, Poor Dad: 2 are better than 1.

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The Richest Man in Babylon & the Magic Story: Two Classic Parables about Achieving Wealth and Personal Success

The Richest Man in Babylon is a story of Arkad, a person of humble origins who became the richest man in Babylon. Discover the attitudes and behavior that bring wealth and happiness.

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A new Sun has risen.

SunVic Chemical Holdings made history today appointing a 26 year old as CEO, possibly the youngest CEO of a listed company in Singapore, as reported by The Business Times.

26 year old Sun Xiao will take over from his father, Sun Liping. Sun Xiao graduated from Curtin University of Technology more than two years ago and joined the company as an intern. He became deputy CEO last May.

I think it comes as no surprise that people think Sun Xiao is somewhat young for the job. How often do we hear of an employee with only 2 years of working experience being promoted to the position of CEO?

Mr. Mak Yuen Teen of NUS Business School said that it is the job of the nominating committee to justify the decision. Why is Sun Xiao the best person for the job? How was he chosen?

See what they said:

"The nominating committee and the board have after considering the relevant industrial experience of Mr. Sun Xiao, found him suitable for the position of CEO and have approved his appointment with immediate effect." Duh...

Sun Liping has almost 62% interest in SunVic. Other shareholders can be unhappy and object until the cows come home but this is definitely one of the things which minority shareholders of family controlled companies could possibly have to live with.

Remember my recent blog post? Who you know is important, isn't it?

Related post:
Discrimination: Get real!

Yongnam: The ADR effect!

In October last year, Yongnam had a roadshow for overseas investors. In that roadshow, it was revealed that they were getting their shares traded as ADRs in the USA. This has happened and their ADRs commenced trading on 8 January 2013.

"This market platform will allow Yongnam shares to trade more easily on an international basis, enable the Company to diversify its shareholder base, encourage trading liquidity, and improve access to new capital markets." (Yongnam)

Mr. Market certainly likes the news!

If 26.5c should be taken out, then, I see 28c as the next resistance level to watch with 29c as a much stronger resistance which could be tested under very bullish circumstances.

Of course, we can only wonder if share price would go even higher tomorrow or the day after.

What are ADRs?

ADR stands for American depositary receipt and it is a stock that trades in the United States but represents a specified number of shares in a foreign corporation. ADRs are bought and sold on American markets just like regular stocks, and are issued/sponsored in the U.S. by a bank or brokerage.

ADRs were introduced as a result of the complexities involved in buying shares in foreign countries and the difficulties associated with trading at different prices and currency values. For this reason, U.S. banks simply purchase a bulk lot of shares from the company, bundle the shares into groups, and reissues them. (Source: Investopedia)

Related posts:
1. Yongnam: Worried about warrants?
2. A Christmas collection of charts.

Fly with AK71.

These were two shots I took from my window seat as the plane was flying over Narita, Japan.

These sights made the very uncomfortable flight more bearable.

See some of my past vacation photos in Japan: here.

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Singapore-Japan-USA

Wilmar, China Minzhong and Sound Global.

Wilmar's share price could not overcome the resistance provided by the descending 200d MA. Look out for a retest of the support which approximates the 100d MA at $3.20. I would buy more if that should be tested.

China Minzhong's share price has established 86.5c as the resistance to watch. There is still a chance of a pull back to support provided by the rising 100d MA. I have sold some at resistance as a hedge and if support should be tested, I would probably buy more. Breaking resistance at 86.5c could see share price heading towards $1.00.

Two dojis in a row suggest indecision on the part of Mr. Market with Sound Global although a higher high on the MACD suggests a strong positive momentum and we could see price pushing higher. Expecting a band of resistance from 68c to 70c while expecting a band of support from 59c to 61.5c.

Related posts:
1. Wilmar: Testing resistance with strong momentum.
2. China Minzhong: What are we to do?
3. Sound Global: Another resistance level broken.

Discrimination: Get real!

Fortunate are those who have not encountered discrimination anywhere! Actually, they might not be fortunate, they could just be delusional!

In the real world, discrimination takes place all the time and everywhere!

Are you good looking? If you are, you are lucky because you are assumed to be good in many other things even though you might not be. Well, would we rather be around good looking people or ugly people? Now, be honest.

Are you a man? If you are, you are lucky because in jobs which both sexes are able to take on, employers would favour men to women. 

Why? 

Men don't get pregnant. They don't have to take leave to give birth and take care of babies as a consequence.

Are you young? If you are, you are lucky because you have more mileage left in you than older people. Generally, employers prefer to have younger workers.

Are you well connected? If you are, you are lucky because who you know is more important than what you know! This is the bombshell!

There are probably many other ways in which people suffer discrimination: racial discrimination, religious discrimination, weight discrimination, class discrimination or even political affiliation discrimination!

If we are receiving the shorter end of the stick, of course, we can complain all we want about how unfair things are. However, the real world is never fair.

If we feel that we are a victim of discrimination, what can we do? Look for greener pastures, I suppose, as discrimination is probably hard to eliminate.

If we feel that we have been wrongfully dismissed, we could approach the Ministry of Manpower and here is the link: 

Claims, Complaints and Appeals.

That discrimination exists in all its forms should be one of the first lessons we learn in life unless we do not live in the real world.
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Added (3 Feb 17):

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Tea with AK71: Looking good.