if you are ever so lucky that the company will be listed again in future... else you are stuck with it.

I have 50 units of 0014 KRNSOFT from 2005 wuahaha...

Mine was Linear corp, i think more than 10years ago lol, PN17

Hi, i am a newbie to this forum. I plan to start investing in stocks and would like to know if anyone can recommend a good online course for investing in stocks for beginners?

Has anyone heard of bursamethod? http://bursamethod.com/?awt_l=fACQxU&awt_m=3gYuzopdfGscPfC

It sounds good. But i cant find any testimonial about the course outside its own website. Has anyone else have other recommendations on how to start?

Suppose there are 2 companies with about the same financial performance (same EPS, PE, ROE, etc).

The only difference is their shareholder makeup.

Company A
* institutional investors 40%
* company xyz 40%
* retailers 20%

Company B
* company xyz 20%
* retailers 80%

Which company would you prefer for investment?

Why?


For me, I would prefer company B because the real market force will be at play via the retailers. Company A's movement is heavily dependant on the institutional investors' and company XYZ's mood.

Right?

Any other pointers I should keep in mind when I come across such companies?

Thanks.

Cheerio.

Company A is good in the sense that their II power is balance with the xyz ie 40%, thus, those senior executive mgmt will have in pressure to keep up the performance of the company.. Well, still have to look at their annual report thou

This post has been edited by oOoproz: May 24 2015, 02:31 AM

Hi, i have a question. Hope some of you can help me.

When I see a statement e.g. Maybank (fundamental: 1.5; valuation: 1.45), what does that mean? Tried reading fundamental and valuation up but it doesn't make sense to me. Anyone can provide a simple explanation? Should the fundamental value be higher than the valuation value or the other way round?

Many thanks..

Hi there,

I suppose you got the sample above from The Edge website/newspaper at http://www.theedgemarkets.com/my/AA/dashbo...5&exchange=KLSE. Basically fundamental and valuation are both different things.

In the case of fundamental analysis, it analyses the company’s financial statements (eg: Income Statement, Balance Sheet & Cash Flow Statement).

If you click on the website above and click “Edit” for Fundamental, you can see the weightage for each ratio like ROE (%), Net Interest Margin (%), Overhead Cost Ratio (%), Total Capital Ratio (%) and Gross Impaired Loans Ratio (%)” to gauge the fundamental strength of the company. Of course, each company/sector has their different of analyzing. For instance, if you search for Tenaga, you will see “ROE, Net Margin”, Current Ratio (x), Cash Ratio (x), Gearing (%), Interest Cover (x)”.

On the other hand, Valuation takes into account of the share price of the company. Generally, it will tell you whether the company is a good buy based on current trading price. Take The Edge’s example again and you click Edit for Valuation, it shows “Price-Earnings Growth (x), Price-Earnings/ROE (x), Price/Net Asset Value (x) and Dividend Yield(x)”. All the valuations takes into account of the share price. Even a company which has a fantastic set of financial statement, the current share price might have already reflected the value of the company. Hence, the potential upside might be limited if one were to buy into the aforementioned company's shares.

Take an example of Company A and Company B which operates in the same sector. Assume both company’s fundamentals are intact (strong financial statement, healthy balance sheet and cash flows) whereby both is made RM10.0 mln per annum with share issued of 200.0 mln shares. Company A is trading at RM1.00 whereas Company B is trading at RM0.50.


Based company A’s P/E valuation, its current P/E is at 20.0x
Price/Earnings Per share = RM1.00/5 x 100
=20.0x

Based company B’s P/E valuation, its current P/E is at 10.0x
Price/Earnings Per share = RM0.50/5 x 100
=10.0x

In the above case, investors would usually choose Company B. However, it is always very subjective when it comes to valuation. Some might even choose company A because he/she thinks that Company A’s earnings might perform better than Company B's future earnings by 300% in coming year. If you’re not sure what P/E is, you can Google it.

As Warren Buffett says; “Price is what you pay. Value is what you get”.

Not too sure if my explanation is simple enough for you or was it too long. But just to let you know, I’m not associated with The Edge.

This post has been edited by Dreamer09: May 30 2015, 05:34 PM

Thanks for the explanation! Yes, that makes sense.

Hey guys, newbie/noobie here. Just opened an account in uobkh. Wonder what are these when I clicked the buy button ;

eg;
1.860 Best Sell Price
1.850 Best Buy Price
1.840 2nd Best Buy Price
1.830 3rd Best Buy Price

Why does it different prices? Which should I choose when I want to buy the stock? and what does it mean?

1.86 will be the current selling bid price from seller

1.85 will be the current buying bid price from buyer

1.84 will be the 2nd buying price from buyer ( when the current buying bid price is done, the 2nd buying price will turn to current buying bid price )

1.83 will be the 3rd buying price from buyer ( when the 2nd buying bid price is done, the 3rd buying price will turn to 2nd buying bid price )

Sorry, I'm still a bit blur about this. So if I want to buy, which one is the best option? and when do the current buying bid price is done?

Easy saying.. if you want to que for your buy order to matched then u q in the price of the best buy list... if you do not want to que then you might as well straight take the seller bid.

I see.. Is there any expiration for que?

expired at the end of the day... after 5pm..

oh.. if can't be matched then can't get back the money lo? Sorry for asking too much

Your amount wont be deducted as long the transaction didnt managed to go through.

Alright... thanks for the explanation

1) Do they charge you (brokerage fee/clearance/stamp duty) if you cancel an order on que?
2) Trust account and Available trading limit ... if you deposit 10k ... what is the available trading limit?

1. No. 0 cost, so you can queue for fun.

2. It depended on individual broker house on individual, no specific rules on it.

[Mplus]

If I trade using cash upfront (Deposited 5k to Trust Account)

Does it automatically pay the settlement due for me? (T+3)

Cause it seems that my trust account increased with a huge amount (I think they just added the sale proceeds amount without deducting the settlement amount)

For each transaction, I need to manually make payment using my trust account?

Also, If I don't pay within T+3, is there any penalty? Like interest charged or something?