A maths question here.

Saw a study on Apple and they quoted 41.7% sales growth rate over the past 10 years.

Curousity got hold of me and I tried to see if I could get the same growth rate.

Average of the yearly growth rates nor the compound 10 years growth rate are not the same as their 41.7%. Can someone help me by showing how they got the 41.7%?

Many thanks.

Good point.

Tried it out, checked the web, got $5740 million revenue for 2002, and the overall growth rate is 40.3%

Still not as what they got 41.7%

I know, the 1.4% delta can make a big difference over a LONG period. Asking myself, does it really matter when it is 41.7% or 43% for my study.

But still want to know how did they calculate the 41.7%.

Thanks.

Beside KLCI (selected 30 companies), is there another index for KLSE (covering ALL the listed companies)?

The KLCI trend does not look right to me vs the overall market sentiment (e.g., higher number of LOSERS vs GAINERS and yet the KLCI on the increasing trend). Some manipulations here and there by the big boys/girls?

Yes, I know, each company has a different weighting on the KLCI and thus number of companies is not the only deciding factor on KLCI.

Cheerio.

gark & felixmask,

Many thanks!

Will see if the emas index tells a different story than KLCI.

Cheerio.

This post has been edited by plumberly: Jul 29 2013, 06:56 PM

Just finished reading Taming The Money Sharks by Professor Cheng (I think from Taiwan). 2 things I would like to ask here.

AA.
Mentioned a few times about sharks here. Are these sharks the ones who buy some shares quietly, then advertise some false positive news on that company, jacking up the demand and thus the price, and later these sharks slowly sell off their shares making a good profit?

If so, who are these sharks, individuals, fund managers? A few in in this forum?

BB.
Stated in the book that one must be fairly knowledgeble in an industry before investing in it. 100% mandatory? My view is, if a company is worth investing, this will be reflected in their annual reports (I know, not all the time as the reports can be manipulated). Then, I don't need to be an expert in that industry. Just need to keep an eye on the performance and get out when needed. Being knowledgeble in that industry will help, but is it mandatory?

Not very impressed with the book. Lost count how many times he stated he will not go into detail as it is not the scope of the book. Examples he used are, to me, picking certain good stocks and at the right time to show some positive results.

P/S Mentioned a few times in this forum, what is "goreng" (I mean from share context)?

Thanks.

Found out how they got a different growth rate.

They used LOGEST in Excel (using LINEST (linear line of best fit) in log scale).

Even a curve (e.g. x^2) will be a straight line when plotted in log scale.

Cheerio.

Reading today's The Star and I got some questions which I hope the more knowledgeable friends here can help.

AA

Among others, Zeti says, Malaysia has strong and sound financial intermediaries operating in a well-developed market. She adds that the country’s robust foreign exchange reserves level, which stood at US$137.9bil (RM456.5bil) as at Aug 15, and low levels of foreign-currency debt at around 1% to 2% of the country’s gross domestic product (GDP) should also serve to protect Malaysia from the impact of disruptive capital flows.

==> Foreign exchange reserve:
* whose money is that? Govt?
* Kept in what form? Bonds, shares ?
* If it is govt $ and if some companies here are in $ trouble, the govt will then use the reserve to help them out? Hope not.

BB

“We had demonstrated our ability to handle such weakness at the height of the global financial crisis in 2008/09 ... we would be able to do the same in the current environment,” Zeti says.

==> Pardon me for my lack of understanding on 2008 crisis in M'sia. What was the root cause of our problem then? It is always easy to say we are in better position now to handle it. But are we really? Problem can be 10x more severe, coupled with new threats?

CC

In Malaysia, the key risk to capital flows, argues Credit Suisse, emanates from the large foreigners’ holding of bonds (47%) and bills (84%), which are much higher than that for Thailand (18% for bonds and 6% for bills).

==> How much are 47% bonds and 84% bills in RM amounts? RMxx billions?

Many many thanks.

I had similar problems in the past downloading from other web sites. Later I realised it was due to compatibility of the internet browser. Try a different one, IE, Chrome etc.

Good luck.

For Euro, like to know which index I should use as overall market indication.

Thanks.

Thanks, Sifu.

Just watched PBS' Money, Power & Wall Street about the CDO, sub-prime, the bail-outs, collapse etc.

While watching it, one question came to mind.

I will avoid investing in things I am not familiar with (e.g. CDO) or something very new. Problem is, companies I invest in may invest in such CDO's etc.

Is a non financial company allowed by law to invest in things beside bond, FD etc.?

Heard some 15 years ago an CEO of a major oil company in Japan invested in the future and lost a few millions. Same rule in M'sia?

Cheerio.

Noted and thanks.

So another thing to be mindful when reading the company's reports.

Cheerio.

Cherroy,

Spin off questions.

AA.
If I understood the videos correctly, the seed to the existing banking problems was planted when one ex US president "cancelled" (don't know the proper legal word for this) the banking regulations imposed after the Great Recession in the 1920's, allowing the banks to do more than just loans, FD etc. I assume our version are the "investment banks" here, right?

BB.
Any banks or companies in M'sia or Asean got into trouble due to their CDO/sub prime involvement?

CC.
The videos were made in 2012, covering events up to 2012. With JP Morgan's US$700+ million fine just a few days ago, I take it then that the crisis in 2007/2009 is not really over and majority of the problems is still hanging in the air, unresolved. Your view?

Cheerio.

Thanks for the clarification.

Much appreciated.

Many thanks, felixmask!

One question came to mind while reading The Star's article on a company's recent share price increases.

Suppose a company ABC with 100 million shares at RM 1. Everyday I buy the shares at increasing prices, say RM5,000 budget per day for 10 days. Won't that artificially increase the share price?

What do I gain from paying RM50,000? Suppose I have 1 million shares in it, all I need is for the price to increase to RM1.05 to break even.

Is the above scenario realistic in the industry? What safeguards are there in SE to monitor and stop this?

Maybe one automatic safeguard is, if there are lots at lower prices than my artificial higher price, then I will need to buy those first before I can buy at my higher price. Depending on the quantity at these lower prices, I may not have enough money left to buy for my higher price lots.

P/S Not implying that this is what is happening in the above company. Just that it triggered the spin off question.

Read in a magazine that India has taken over Japan as the 3rd largest economy market. And will overtake USA and China later. A big plus for India is the population is not as urbanized yet like China and thus potential for further economy/market growth.

Like to know whether there is any one here who has invested in India's shares? Some sharing on the good and bad?

Thanks.

This post has been edited by plumberly: Oct 3 2013, 12:09 PM

Hope you can help me with this (on Guinness).

Type of transaction = others

... which is no longer an investment manager of some funds under its custodian.


I am lost, can't understand it.

If Aberdeen sold it, then of course it would not be managing it.

If Aberdeen sold it, then it should be under "disposed" category. Why stated it as "others"?

Help!

Thanks.

Thanks, gark. I would never have thought of that! Ha.

Any reason why AAM is now not managing GAB? Doing some background check as I am interested in GAB.

Cheerio.

There was a big price drop for GAB recently. I thought that was due to AAM selling the shares as part of their strategy to exit EM with the QE tapering. Guess I was wrong.

Cheerio.