Monday, January 4, 2010


First of all, Happy New Year!!! to all the readers of this blog....I know its has been a while since this blog is active with many exchanges, but I have been occupied with other stuffs in my life... but I'm going to try to write more and share whatever I have for the benefit of everyone including myself... :)

Enough of the intro... let's get back to business.

Generally world equity market will rise, that's a no brainer... similarly I can tell you now, KLCI will have the same trend... and if we're talking about KLCI alone, unless you have tons of cash and luck to trade KLCI futures you just can't make enough to live on stock trading alone... sad to say but its true. In typical case, every investment is suppose to make a return... what differentiates an A list investment from mediocre ones are the performance of the return.

We're talking about 30% per year at least... hence with a 500k capital, it will give you a decent amount of money to sustain your lifestyle and at the same time grow your capital base...While not all in the working class have a ready cash pile of 500k at their disposal, given a typical range of 50k savings for a person who worked for 5-10 years, you should at least generate 30% return from that cash pile and grow them to become your retirement fund.

well if you're already trading for a living, you're basically considered retired already... :p

The market is going to boom and the sector that is going to lead the return of the world's greatest investment tool is property. E&O, IJMLand, Mah Sing, SPSetia and hunza are the ones and in that order. E&O is a well managed company as far as I know and their floating shares are large enough to provide the liquidity for trading... also the size of their landbank is the largest there is in terms of RM if they are to be developed. Easily, E&O could fetch RM1.79 from current level...IJMLAnd is banking on their waterfront project The Light in Penang to spearhead their profit, if executed well, this counter could well be RM3.40 in 6 months down the road.

One of Mahsing's key project which is also in Penang if executed well, will increase the profitability and reputation of the company in the northen region of the country and further cement the company as a reputable developer. The project is ~RM1.5bil which is going to provide a handsome return. RM2.55 is not surprising...SP setia is the big brother who are the ones that most fund managers tend to hold some just to make sure they are exposed to this sector and also a stable company with a relatively solid reputation and balance sheet.

Now which one is considered to be the best cash generating machine, it all boils down to the operating income.... you go dig it out yourself.

Like I always prefer, if you think the mother share is going up, why not buy the warrant as well...? E&O, IJMLAnd, SP Setia all have warrants... they provide better leverage and higher return, afterall, if you have no faith in the mother, why even invest in the first place.

Well, enough for today... just don't let opportunity passes by just because of our ignorance... if you dont' know its ok, but if you read this, don't say its not your luck if things turns out to be just what it has been preached.