that limit rule if not mistaken is after 1 session like in morning session above 30% will stop trading then afternoon trading will resume... im not sure how long this thing has been implemented but i can still remember which stock and around when it actually rose 4040% after 1 week

http://www.bursamalaysia.com/website/trading/definition.htm

Stock Market Basis

An Investors Guide to the Central Depository System (CDS)

FAQs : Board Lot

FAQs : Circuit Breaker

Market Terminology

http://info.channelnewsasia.com/bb/viewforum.php?f=12

Someone has been asking me about seminar on options, and I somehow stumbled this today while doing my daily lurking. To my suprize they comment on many seminar in Malaysia. Happy reading.

Just to add some point regarding the dividend yield

The calculation = total dividend per year/share price

It is correct Maxis gave out 400+% dividend in a year but Maxis par value is only 10c not as usual RM1 for most stock so is around 40+c per stock which is turn the dividend yield is 0.40/8.6 = 4.6%

For this few years, a handful of company give out good dividend yield because there are abundant of acculumated cash in their bank balance and found out no much opportunity (economy quite in stagnant stage) to reinvest, therefore you see a lot of capital repayment, special dividends etc but this doesn't necessary sustainable and some may be one off so be care when studying their dividend yield is one off or not and long term high dividend is only sustainable with sustainable profit every year.

Cherroy,

Agreed with your statement about dividend is only sustainable with sustainable profit.

Banking in Malaysia has a margin of 3% to 4% (the difference between loan and deposit rate). Only in the case of high bad loan, it is not profitable. So, it is highly profitable in general. Do your own research to verify whether I am saying is true..

Dreamer

This post has been edited by dreamer101: Jan 18 2006, 11:13 PM

yup, what dreamer said is true, if not bad loan all banks are highly profitable with the margin around 3% because banks in Malaysia is well protected by the gov with the widespread between BLR and FD rate.

Pbbank is the top most well-managed bank which has default loan less than 3%. Ambank top the default list with 12% and average default loan is around 6% if not mistaken. Actually pbbank is the one of the blue chips which long term investor should be paying attention on.

What I am trying to highlight is the situation involving the plantation sector few years back.
Previous few year when CPO at the level of RM2000 all plantation stock has 10+% dividend yield so dividend is declared in the form of like final dividend 30c + special dividend 50c = 80c if the share price is RM8 then dividend yield is like 10% but with CPO now RM 1400+ only final dividend 30c is declared then dividend yield become 3.75%.

Most plantation management know that RM2000 for CPO is not sustainable in the long term so they declared the extra profit generated as special dividend while final dividend is the value they can expect to give out every year.

Cherroy,

Plantation stock is actually one of the best to have when CPO price is crashing like hell and nobody like the stock. Right now, the CPO price is high and everyone like the plantation stock so it may not be a good time to buy.. They tend to go in cycle.

Actually,there are people who are retired with earning from their 100 acres of Palm Oil plantation..

Dreamer

fixed deposit --> unit trust --> share

risk
low--------------------------------------->high


return
low--------------------------------------->high

this my opinion, fixed deposit is almost like saving account even though the interest is higher than those normal saving account..but safe, low return

for share, high risk high return, also high risk for bancrupt...

unit trust is in the middle

This post has been edited by I_AM_THE_CHOOSEN_ONE: Jan 19 2006, 01:51 PM

I was reading about the trial of the Enron case in the States yesterday and I came across a term called "Insider's investing" ...

I'm not completely sure about the term "insider's investing" so can someone explain on what "Insider investing" really is and why is it considered as illegal?

Thanks alot

By the way, I have a friend that worked for Enron for about 22 years. He lost about one millions from Enron stocks. There are 3 facts in Enron case

1) In Enron, the retirement plan money aka 401K plan is invested almost totally in Enron stock.

2) While the insider aka executive was selling their own Enron stocks, they tell their employees everything is fine and they should continue buying more Enron stocks

3) Furthermore, they aka insider/executive stop their employees from selling their Enron stocks in their retirement plan by passing some rule on the plan while they exempted themselves from this restriction.

One of my friend's co-worker commited suicide and jump off the Enron building and killed herself.

Dreamer

Hmmmm didnt have time to read through everything

got a question actually..

what kind of investments are good for times of recession (or coming to recession?)
Coz most shares will surely drop in recession.. so what do u move to next? or wat specific industry should u buy?

many of them actually believe what the executive said
many of them also bought share on Enron when the executives were selling

insider trading means that you brought/sold a share or something like that based on informations that are not release to public.

like one of your friend is working on a company,that currently you are holding shares of it,and if he tell you that their company is suffering losses,before the company itself announces it to the public,and you quickly sell all their shares before they announce it,that is consider insider.It is illegal,and you will be sentenced to jail.Martha steward is one of the example.

thats the best i could explain,sorry if you do not understand

umm...real estate?

i dunno lol
¯\(º_o)/¯

i want to know too

Real estate also falling when recession hit. Most of industries will suffer during recession that's why share tumbled during recession. However, certain industry will at least perform better (not necessary rising but at least not as bad) than the other especially consumer based industry like food, tobacco etc. since you still smoke and eat no matter how the economy is doing. That's why they call consumer based industry/stock as more or less defensive stock.

Normally, gov bond/treasury will rise during recession since during recession, gov normally will push the interest rate to a low point so that industries can survive and recover therefore, the fixed coupun rate of the gov bond/treasury will be seen as far more attractive. Corporate bond also will rise (depends also the quality of the bond, rating) but bare in mind the default rate of the corporate bond will rise also since corporate generally not doing well during recession.

There is my brief and simple view, not certainly true/correct also.

But generally, recession is not good for everyone.

During recession,interest bearing instruments should be the best bet as your capital will be protected.

u meaning fixed deposit?

Somehow I believe fixed deposit isn't all that good ...

Readjusting the earnings after accounting for inflation everyyear, the itnerest rate offered by FD doesn't mean much

in the long run you will be actually losing money

Yes,instruments such as FD,Govt bonds etc


These instruments are only good at the time of recession.

The increasing inflation rate will offest the interest you gained from FD. Investing in FD is not a very briliant strategy.

Stitchy®