Cherroy,
Just curious if there is a website or application where I can check the volatility of a particular stock? thanks

can sum1 tell me wat is private placement , i google it but i dun reli understand ... thx

From Google search and Wikipedia.

"Private placement (or non-public offering) is a funding round of securities which are sold without an initial public offering, usually to a small number of chosen private investors."

Meaning a public listed company decides to issue some new shares normally no more than 10% of total shares privately to institutional or strategic investors instead of to the public.

Just look at the beta of the stocks which generally got published.

But I don't know which website which provide it for free.
Normally paid services got all such kind of info.


Private placement is similar to right issue.
Just instead offer to all existing shareholders in right issue, private placement offers to selective investors, which generally in big block for instituitional investors.

hi i am under TA., and the brokerage fee is RM40 for normal transaction
is it expensive?

Non-online transaction is RM40 which is the min brokerage amount announced by gov during budget years ago.

Definitely good discussion. I really appreciated. Thanks

I want to understand more about MARGIN ACCOUNT.

As what i understand CIMB margin account is BLR - 2%

So if let say if market downturns. I can leverage up to buy dividend stocks with good yield around 8%. Sounds not bad to me.

Correct me if wrong. Thank you.

The always fear is the underlying stock price going down, which being margin call.

Er. not really know what is margin call. Should be some sort like force sell if the stock price drops within certain percentage right?

For eg.

You have ABC stock use as collateral for the margin at Rm1.00, which give you 90% margin aka you can borrow RM0.90 or you have used the Rm0.90 to buy xyz stock.

But ABC stock now drop to Rm0.80
RM0.80 x 90% = RM0.72

Either you top up the margin call, aka put cash in the account the differentiate 0.90-0.72 = RM0.18
or face the consequences to force sell the xyz stock.

Ic. CIMB gave me RM 200K collateral margin. So that means if i only use RM 100k OF BORROWINGS. It gives me more margin right?

Take for example,

ABC stocks dropped from RM 16.00 to RM 12.00. So i use my margin account to buy 100 LOTS which is RM 120K. Since my collateral margin are RM 200K. So I ONLY USE RM 120K out of RM 200K. Let say ABC stocks dropped to RM 8.00 which worth only RM 80K. So that means i have to make RM 40K payment?

This post has been edited by darkknight81: Jun 7 2010, 02:07 PM

As long as you don't max out your margin, then there won't be margin call or force sell.

That's why we see some fierce selling when some stocks limit down or drop severely time, as brokerage need to force sell those stocks in the margin account to meet the margin call.

Collateral margin condition can vary from broker house and individual specific issue as well.

Margin call is to protect them (brokerage house) as whenever value of stocks sold cannot repay your existing borrowing

Ok. It sounds to be a good tools for leverage especially those dividend counters which can provide at least 8% dividend yield and above as long as you don over max your margin account should be fine already with BLR - 2% which is around net interest of 4% only. Don you agree Cherroy Sifu?

You need to see the market condition as well.

If market is under bearish tone and expected to be prolong, it is not a good ideal as well.
It is a good leverage tool when market is deep down and expect to rebound soon.

Some roughly timing is ver important for the leverage to be successful.

Also, bare in mind, broker house can cut the margin given when market condition is not favourable time.
While some stocks may be out of margin account consideration, if the stocks fundamental deteoriate.

You won't get net 8%, after deduct tax issue.
so, roughly realistic about 6%
BLR now 6.05% -2 = 4%

So you are leverage to gain 2% out of it, without consideration of stock price movement.

But we know stock price swing more than 2% easily.

So the most important aspect is to look for the stock entry price, which is the most important factor for the leverage to be successful.

Yes. Entry price determine the sucess of marginal account. I will invest every cents i receive from my dividend to buy stocks which provide me yield more than 6% at the moment at least it is better than savings in FD. That means i don want to keep cash. Whereas, when market crash only then i will use margin account to buy dividend stocks at great discount with 8 % yield and above.

I think this should be quite save. Take for example i have annual dividend of RM 25K. Let say i took up margin acccount of 100K during market crash i can easily pay off my debts within 4 years. Taking into considerations the extra dividend i can receive from margin account.

Thanks again Cherroy Sifu for your explanation.

The most important is to invest in "right' stock over the long term one.

Also, steady income from your core job/business to support your daily expenses, potential beef up your capital.

Q : i would like to know what is [additional listing announcement] , and how will it affect the counter ? thx in advance , newbie here

if you watch technical indicators, Average True Range ( ATR) is a rough measure of stock volatility.

When entering a trade, there's a fee charged by the broker, but when exiting is there another fee as well?

If I exit the trade in two or three parts instead of all at once. I'm using Hong Leong.