Yeah and some fairy tales.

this thread is inspiring

As a form of discussion edyek, I would like to know why would you advice him in ASB? I don't know much about ASB. But I assume it's more like those WAWASAN and ASM?

From my exp, IPO investment seems to be quite 'safe' to a certain extend and helps yield a higher profit too. And most IPO does increase it's value during listing day. So instead of investing in IPO, why ASB?

Just curious.

Old Skool Boyz theories is very very interesting..will study it more when i'm off peak....awwww....we r working as a slave to make the rich richer.....

Simple. He knows nuts in stock. If he know nuts, how can he invest in good chips? Buy ASB will let him have a peace of mind. If he is good enough to know, i would not have recommend ASB to him, thus not qualify for me to advice him to buy stock.

Ya. True. But I always believe in 'first hand' experience. Or maybe it's just me- I managed to learn from some good shares which I invested in. Thx for clarifying.

Not everyone would like to have first hand experience. He could have experience it, however from his statement he is uncertain what to do with his money, therefore investing with doubt is a big No No.

Cheers.

Yup. I agree. I guess someone is just pure lucky to enter the market well edyek, are u more of a speculating investor or depends on the company?

How are you sure IPO is 'safe', whereby me see quite a number of IPO cases burnt their investors badly? You make 3 round 20% gain on IPO investment will give you too much confidence to invest a bad one that might burn away 60% of your investment and lead you back to the original.

If everyone can make money from IPO, then everyone will be rich. However, from the economic point of view, if everyone think IPO is a good investment, then IPO will not be a good investment , so investors earn no economic profit from IPO investment.

As there is risk inherent in share investment, so investors need to prepare that their capital might be trapped for sometimes during bad time, if they are not willing to bear this kind of risk due to their investment time span is short, then they go for ASB which is a more stable investment.

This post has been edited by kinwing: Nov 2 2011, 10:18 AM

I dont invest in paper assests as im not equip with the necessary knowledge.

Based on my knowledge, IPO shares are often speculative. U dont know hw was was the past performance of the company. However, there are certain IPO is worth apply for such as MSM, next yr FELDA will list its investment arm, dun miss that out. hehe

(1) the owner of company may wants to realise their investment through selling their shares to the public at a high price.
(2) They often do this during bull market, which means most of the shares is overpriced.
(3) Maybe u can make a quick buck on the first day, some shares is just designed for hit and run. After some months, the demand will fall, and the share price will fall accordingly.

I got these information through reading "The intelligent investor" by ben graham. A book u cant missed out if u want to know more about investing. =)

Actually, the application for OLDTOWN shares is my mistake. but i just keep it because it can still generate dividend. I no hope on its capital gain though. Hope there will be miracle happen.

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Added on November 2, 2011, 11:15 pmIf u think i am doing fairy tale, i never asked u to believe. It is based on my true experience. I am a sino kadazan student from Sabah. Now studying in kl. U will never know the frustration after u really experienced it.

This post has been edited by bursalchemy: Nov 2 2011, 11:15 PM

Cool down mate. I believe @prody was saying the networth thing mention by some replies here. Not your story.

No, wasn't talking about you.

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Added on November 3, 2011, 7:38 amYeah, that's correct. Thanks.

This post has been edited by prody: Nov 3 2011, 07:38 AM

Bursal, I didn't apply for OldTown. I guess I was lucky to have avoided in your condition. Of course IPO is sort of speculating. That's why I only buy good company. Like PCHEM, etc. Gas Malaysia seems to be a good buy too. Do take a look.

FELDA next year huh? Will take a look. Everyone learn the stock market, gain wealth and acquire knowledge. So of course I do understand. I just asked why did he suggested ASB. Was just curious.

I'm into stocks too, not a trader, but a long term investor. There is a saying : we must be ready to lose the money that we put into any counter. Hence, yield play may not be that safe too.

another long term investor checking in. just curious, when a someone says that a company yields 6% dividend per year what figure is it based on? is it total dividends divide average price for the financial year or based on yr own purchase price?

It is based on its par value. let say oldtown par value is rm1, the share premium is 0.25 when i firtst bought it thru IPO.

ok, means if par value is RM1 and the company gives total dividend for the year is RM0.06 then yield is 6% right? how bout if no par value is given? how do calculate then?

u can try to inspect their annual statement of changes of equity (SOCE) or statement of financial position (SOFP) in their website. par value will be stated there

icic...thanks a lot for the explanation bursalchemy.