Aeon Credit to issue rights, bonus shares?

Posted on 16 April 2013 - 05:38am

Kang Siew Li
sunbiz@thesundaily.com

PETALING JAYA (April 16, 2013): Non-bank financial institution Aeon Credit Service (M) Bhd is expected to seek clearance from its board of directors at a meeting on Thursday for a capital raising exercise via a rights issue as well as to undertake a bonus issue to reward its shareholders, according to sources close to the situation.

The company is due to release its full-year results for the financial year ended Feb 20, 2013 (FY13) on the same day.

Analysts told SunBiz they are not surprised by Aeon Credit's proposed cash-call as management has indicated its plan to raise the company's capital base for a while now.

"The main purpose of the equity raising is to boost its capital adequacy ratio to 25% from 18% now, which is nearing Bank Negara Malaysia's minimum level of 16%," said an analyst at a local research firm.

"Aeon Credit may also raise debt to fund future growth. In its annual report, the company had said it would be comfortable with a gearing ratio of 3-5 times and it is now less than 4 times," he added.

A Kenanga Research analyst said the rights issue will support Aeon Credit's loan growth plans for the next two to three years, while the bonus issue will help to improve the stock's liquidity and attract more retail participation.

He noted while the rights issue may result in a dilution of Aeon Credit's share value, the stock will remain attractive to investors post the exercise due to its healthy financial position and sound profitability, and a downward adjustment from its existing high share price.

Aeon Credit closed up 8 sen at RM14.32 yesterday, with 96,700 shares traded.

In a report dated April 12, 2013, HwangDBS Vickers Research Sdn Bhd said a capital call by Aeon Credit is probable since its capital ratio has fallen to 19% in November 2012 and it has always kept a higher buffer of above 20% than Bank Negara's 16% requirement.

"We are positive on the potential fund raising as this will shore up its balance sheet to support future growth, while the enlarged share base could improve trading liquidity," it said.

The research firm also sees the company raising debt to fund growth and refinance some of its medium-term notes which are expiring in the next 12 months, estimated to be RM400 million.

"In our scenario analysis, we assume Aeon Credit could do a rights issue on the basis of 1-for-9 at an indicative issue price of RM12.90 (based on 10% discount to a theoretical ex-rights price of RM14.30), and raise RM210 million to bring its capital ratio to 25%.

"We estimate the enlarged share base (+11%) would dilute earnings per share and return on equity by 5% and 7 percentage points respectively in FY14," it said.

HwangDBS is expecting Aeon Credit to deliver record net profit of RM129 million in FY13, up 35% from a year earlier, with the loan book growing 54% to RM2.3 billion.

"The key drivers remain personal loans and vehicle easy payments as Aeon Credit fills the financing needs of customers in the low to middle income segment," it said, maintaining a "hold" call on the stock with a RM16.10 target price.

http://www.thesundaily.my/news/662692

A Young Boy singing "Ini kali lah TUKAR."

LIM KIT SIANG'S PRESS CONFERENCE FROM UBAH TV

Jim Rogers: We're Wiping out the Savings Class Globally, to Terrible Consequence

Jim Rogers decries the growing uncertainty and recklessness of global central planners as the world enters unchartered financial markets:

For the first time in recorded history, we have nearly every central bank printing money and trying to debase their currency. This has never happened before. How it’s going to work out, I don't know. It just depends on which one goes down the most and first, and they take turns. When one says a currency is going down, the question is against what? because they are all trying to debase themselves. It’s a peculiar time in world history.

I own the dollar, not because I have any confidence in the dollar and not because it’s sound – it’s a terribly flawed currency – but I expect more currency turmoil, more financial turmoil. During periods like that, people, for whatever reason, flee to the U.S. dollar as a safe haven. It is not a safe haven, but it is perceived that way by some people. That’s why the dollar is going up. That’s why I own it. Will I own it in five years, ten years? I don't know. 

It makes it extremely difficult for the investor looking for acceptable risk/reward or the saver looking to protect their purchasing power; as in Rogers' view, all options have their problems:

I own gold and silver and precious metals. I own all commodities, which is a better way to play as they debase currencies. I own more agriculture than just about anything else in real assets because of the reasons we discussed before. We were talking before about the risk-free or worry-free investment. Even gold: the Indian politicians are talking about coming down hard on gold, and India is the largest buyer of gold in the world. If Indian politicians do something -- whether it’s foolish or not is irrelevant -- if they do something, gold could go down a lot. So I own it. I’m not selling it. But everything has problems.

To Rogers, the bigger danger that concerns him is the hollowing out of the 'saving class' resulting from this situation. Central planners' policies are punishing the prudent in favor of rescuing the irresponsible. This has happened before in world history, and the aftermath has always had grievous economic, social -- and often human -- costs:

Throughout our history – any country’s history – the people who save their money and invest for their future are the ones that you build an economy, a society, and a nation on.

In America, many people saved their money, put it aside, and didn’t buy four or five houses with no job and no money down. They did what most people would consider the right thing, and what historically has been the right thing. But now, unfortunately, those people are being wiped out, because they are getting 0% return, or virtually no return, on their savings and their investments. We’re wiping them out at the expense of people who went deeply into debt, people who did what most people would consider the wrong thing at the expense of people who did the right thing. This, long-term, has terrible consequences for any nation, any society, any economy.

If you go back in history, you'll see what happed to the Germans when they wiped out their savings class in the 1920s. It didn’t lead to good things down the road for Germany. It didn’t lead to good things for Italy, which did the same thing. There were plenty of countries where it wiped out the people who saved and invested for their future. It’s usually a serious, political reaction, desperation in some cases, and looking for a savior and easy answers is usually what happens when you destroy the people who save and invest for the future.

Secret of the Wealthy

Asset Allocation: Building a Better Balanced Portfolio

Portfolio Allocation for Peak Earners

Tesco Profit Hit by Write-Downs

Tesco Profit Hit by Write-Downs

BY KATHY GORDON

LONDON—Tesco PLC on Wednesday counted the cost of years of ambitious expansion under former chief Terry Leahy, as the U.K. supermarket operator's profit for the year was all but wiped out by payments to clean up its domestic business and a charge related to its failed U.S. venture.

Full-year net profit fell for the first time in 19 years, to £124 million ($190.5 million) from £2.81 billion a year earlier. The figure was hit by a £1.17 billion charge on the retailer's failed U.S. chain Fresh & Easy, and a £804 million write-down on property in the U.K.

http://online.wsj.com/article/SB10001424127887324493704578427933954071390.html?ru=yahoo&mod=yahoo_hs

17 April 2013
Preliminary Results Announcement 2012/13 Tesco PLC’s Preliminary Results 2012/13 were announced today at 7.00am. View all results materials including full release and Philip Clarke's blog post. Financial highlights £3.5bn trading profit – year-on-year performance largely reflects UK reinvestment Final dividend maintained at 10.13p, giving full-year dividend of 14.76p. Good progress in the UK, delivering improved results – for customers and for Tesco Strong online performance: Group sales of over £3bn for the first time – up 13% Confirming exit from the United States – process well-advanced. F+F brand clothing sales now exceed £1bn in UK alone, with +9% LFL sales growth Clear approach to future growth, capital expenditure, returns and cash, providing clarity for shareholders Philip Clarke – Chief Executive "The announcements made today are natural consequences of the strategic changes we first began over a year ago and which conclude today.  With profound and rapid change in the way consumers live their lives, our objective is to be the best multichannel retailer for customers. Our plan to 'Build a Better Tesco' is on track and I am pleased with the real progress in the UK.  We have already made substantial improvements to our customers' shopping experience, which are starting to be reflected in a better performance. We have set the business on the right track to deliver realistic, sustainable and attractive returns and long-term growth for shareholders. The consequences are non-cash write-offs relating to the United States, from which we today confirm our decision to exit, and for UK property investments which we will not pursue because of our fundamentally different approach to space. We have also faced external challenges which have affected our performance, notably in Europe and Korea. Our focus now is on disciplined and targeted investment in those markets with significant growth potential and the opportunity to deliver strong returns." View full release.

Margin of Safety. Paying Up Doesn't Pay Off

Paying Up Doesn't Pay Off
	1999	2004	1999	2004	5-Year	5-Year
	P/E	P/E	Price $	Price $	EPS Growth	Total Return
Coca Cola	47	20	58	42	66%	-28%
Pfizer	42	13	32	27	165%	-16%
Wal-Mart	58	23	69	53	93%	-23%
Dell	75	35	51	42	78%	-18%
Microsoft	78	21	58	27	69%	-53%
Intel	36	21	41	24	-4%	-41%
Cisco	134	24	54	19	100%	-65%
Average	67	22	52	33	81%	-35%

The above chart contains seven of the best businesses in existence.

In the five years from 1999 to 2004, these wonders of American business boosted their earnings per share by an average of 81%, yet had you invested in all of them in 1999, your aggregate return would have been a disappointing negative 35%.

The cause of your loss would be the high price you paid for these businesses in 1999 when their price/earnings ratio averaged a breathtaking 67 times.

By 2004, the average price/earnings ratio had returned to a more rational 22 times, more than offsetting the spectacular gains in earnings per share posted by these corporate giants.

An intelligent investor would have recognized that even for the greatest businesses in the world, at 67 times earnings, Mr. Market was asking too high a price and no margin of safety was available.

MARGIN OF SAFETY

If you had asked Graham to distill the secret of sound investing into three words, he might have replied, "margin of safety/"  These are still the right three words and will remain so for as long as humans are unable to accurately predict the future.

As Graham repeatedly warned, any estimate of intrinsic value is based on numerous assumptions about the future, which are unlikely to be completely accurate.  By allowing yourself a margin of safety - paying only $60 for a stock you think is worth $100, for example - you provide for errors in your forecasts and unforeseeable events that may alter the business landscape.

Just think, if you were asked to build a bridge over which 10,000 pound trucks were to pass, would you build it to hold exactly 10,000 pounds.  Of course not - you'd build the bridge to hold 15,000 or 20,000 pounds.  That is your margin of safety.

Think Independently. You should derive no comfort in either standing with or against the crowd.

Warren Buffett said the best advice he ever got from Graham was to think independently.

Just as you ignore Mr. Market's daily communications (unless, of course, he gives you an interesting quote), you should also derive no comfort in either standing with or against the crowd.

As Graham wrote, "You are neither right nor wrong because the crowd disagrees with you.  You are right because your data and reasoning are right."

If you have reached a rational conclusion about a stock based on sound judgement, you should act even though others around you may hesitate or differ.

The rakyat speaking up for their rights

All tyranny needs to gain a foothold is for people of good conscience to remain silent.

... Thomas Jefferson

Maybe Diamonds Aren't Forever

http://www.businessweek.com/articles/2012-11-15/maybe-diamonds-arent-forever#r=lr-fst

Gold plunges to lowest in more than 2 years

Gold plunges below $1400 an ounce, lowest in more than two years, as selling intensifies

By Steve Rothwell, AP Markets Writer | Associated Press

NEW YORK (AP) -- Gold plummeted to its lowest level in more than two years as traders rushed to sell their holdings following a big price drop on Friday.

The precious metal has plunged almost $200 over the past two days and is trading below $1,400 an ounce for the first time since February 2011.

The sell-off started Friday when the U.S. government reported that wholesale prices fell in March by the most in 10 months. Investors had been buying gold in anticipation of a pickup in inflation. With prices now falling, the attraction of the metal as an alternative investment has waned.

The gold market was also rattled by a proposal last week that Cyprus sell some of its gold reserves to support its banks. Traders worry that Spain, Italy and other weak European countries might follow suit, flooding the market with excess supply just as demand for the metal is weakening.

"This is panic, this it isn't organized at all," said Phil Streible, a senior commodities broker at RJ O'Brien Futures. "If you look at Italy or Spain....if they start liquidating, that's when you get serious movements."

The price of gold plunged $120, or 8 percent, to $1,381 an ounce as of noon EDT Monday. The price of the metal has dropped almost 12 percent in the last two days. Gold peaked at $1,900 an ounce in September 2011 during the market turmoil that followed a downgrade to the U.S. government's credit rating.

Gold has been declining from a recent high of $1,792 on Oct. 4 as the outlook for the U.S. economy improved, diminishing the metal's appeal as a safe haven investment.

Some Federal Reserve officials have also been calling for an early end to the central bank's bond-buying program. If that happens, it would likely cause U.S. interest rates to rise, resulting in an appreciation of the U.S. dollar. That gives traders another reason to sell gold, since they see the metal as an alternative to holding dollars.

Industrial metals also fell after China reported that economic growth slowed unexpectedly in the first three months of the year. The world's second-largest economy grew by 7.7 percent over a year earlier, slowing from the previous quarter, and short of many private sector forecasts that growth would accelerate slightly to 8 percent.

Copper, which tends to follow the outlook for global growth, dropped 12 cents, or 3.5 percent, to $3.23 a pound.

Silver plunged $2.95, or 11.2 percent, to $23.36 an ounce. Palladium dropped $43.05, or 6.1 percent, to $655.70 an ounce and platinum dropped $72.70, or 4.9 percent, to $1,423.40.

The price of oil dropped nearly $3, or 3 percent, to $88 a barrel on Monday, its lowest level since mid-December. The slowdown in China's growth added to doubts about the strength of global demand for crude.

http://finance.yahoo.com/news/heres-why-gold-getting-crushed-164844311.html

"The speed of this sell-off is really amazing."

(Gartman on Gold: We've Never Ever Seen Anything Like It )

http://finance.yahoo.com/news/heres-why-gold-getting-crushed-164844311.html

The Day the Dollar Died

The first 12 hours of a U.S. dollar collapse! http://inflation.us

Extraordinary Popular Delusions And The Madness Of Markets

The twin bubbles of today: Government bonds (which are set to burst) and gold (which is getting ready to enter the mania phase).

How I Learned To Stop Trading And Love The Farm

@ 20 min

Great Quotes from Great Leaders

The Wisdom of Thomas Jefferson

Thomas Jefferson was one of our founding fathers and his words still ring true today. He knew that we would make mistakes with our government and he also knew what we should do to fix it. After viewing this pass it on to others.

All tyranny needs to gain a foothold is for people of good conscience to remain silent.

Educate and inform the whole mass of the people .....  They are the only sure reliance for the preservation of our liberty.

Experience hath shewn, that even under the best forms of government, those entrusted with power have, in time and by slow operations, perverted it into tyranny.

I predict future happiness for Americans if they can prevent the government from wasting the labours of the people under the pretense of taking care of them.

Information is the currency of democracy.

It does me no injury for my neighbour to say, there are twenty gods or no God.

It is error alone which needs the support of government.  Truth can stand by itself.

It is incumbent on every generation to pay its own debts as it goes.  A principle which if acted on would save one-half the wars of the world.

It takes time to persuade men to do even what its for their own good.

Liberty is to the collective body, what health is to every individual body.  Without health no pleasure can be tasted by man; without liberty, no happiness can be enjoyed by society.

No government ought to be without censors; and where the press if free no one ever will.

That government is best which governs the least, because its people discipline themselves.

The government is the strongest of which every man feels himself a part.

The care of human life and happiness, and not their destruction, is the first and only object of good government.

The democracy will cease to exist when you take away from those who are willing to work and give to those who would not.

We hold these truths to be self-evident: that all men are created equal; that they are endowed by their Creator with certain unalienable rights; that among these are life, liberty and the pursuit of happiness.

When the press if free and every man able to read, all is safe.

When the people fear their government, there is tyranny; when the government fears the people, there is liberty.

The Wisdom of Abraham Lincoln

Abraham Lincoln (February 12, 1809 April 15, 1865) served as the 16th President of the United States from March 1861 until his assassination in April 1865. He successfully led his country through its greatest internal crisis, the American Civil War, preserving the Union and ending slavery.


Let not him who is houseless pull down the house of another, but let him work diligently and build one for himself, thus by example, assuring that his own shall be safe from violence when built.

My great concern is not whether you have failed, but whether you are content with your failure.

Any people anywhere, being inclined and having the power, have the right to rise up and shake off the existing government, and form a new one that suits them better. This is a most valuable - a most sacred right - a right, which we hope and believe, is to liberate the world.

As I would not be a slave, so I would not be a master. This expresses my idea of democracy.

Better to remain silent and be thought a fool than to speak out and remove all doubt.

The Wisdom of Mark Twain

The Wisdom of Mother Teresa

Mother Teresa (26 August 1910, 5 September 1997), born Agnesë Gonxhe Bojaxhiu, was an Albanian Catholic nun with Indian citizenship who founded the Missionaries of Charity in Kolkata (Calcutta), India in 1950. For over 45 years she ministered to the poor, sick, orphaned, and dying, while guiding the Missionaries of Charity's expansion, first throughout India and then in other countries. Following her death she was beatified by Pope John Paul II and given the title Blessed Teresa of Calcutta.

The miracle is not that we do this work, but that we are happy to do it.

The most terrible poverty is loneliness and the feeling of being unloved.

The Wisdom of Napoleon Hill

There is one quality which one must possess to win, and that is definiteness of purpose, the knowledge of what one wants, and a burning desire to possess it.

The Wisdom of Benjamin Franklin

Those who would give up essential liberty to purchase a little temporary safety deserve neither liberty nor safety.

The Wisdom of Socrates

The Wisdom of Confucius

Confucius (Chinese: 孔子; pinyin: Kǒng zǐ; Wade-Giles: K'ung-tzu, or Chinese: 孔夫子; pinyin: Kǒng Fūzǐ; Wade-Giles: K'ung-fu-tzu), literally "Master Kong," (traditionally September 28, 551 BCE -- 479 BCE was a Chinese thinker and social philosopher, whose teachings and philosophy have deeply influenced Chinese, Korean, Japanese, and Vietnamese thought and life.

His philosophy emphasized personal and governmental morality, correctness of social relationships, justice and sincerity. These values gained prominence in China over other doctrines, such as Legalism (法家) or Taoism (道家) during the Han Dynasty (206 BCE -- 220 CE). Confucius' thoughts have been developed into a system of philosophy known as Confucianism (儒家). It was introduced to Europe by the Italian Jesuit Matteo Ricci, who was the first to Latinise the name as "Confucius."

The Wisdom of John D. Rockefeller

7 Most Effective Exercises Slideshow

Does Your Workout Really Work?

Done right, these seven exercises give you results that you can see and feel. You can you do them at a gym or at home. Watch the form shown by the trainer in the pictures. Good technique is a must. If you're not active now, it's a good idea to check in with your doctor first.

No. 1: Walking

Why it's a winner: You can walk anywhere, anytime. Use a treadmill or hit the streets. All you need is a good pair of shoes.

How to: If you're just starting to walk for fitness, begin with five to 10 minutes at a time. Add a few minutes to each walk until you get to at least 30 minutes per walk. Add time to your walks before you  quicken your pace or add hills. 

No. 2: Interval Training

Why it's a winner: Interval training lets you boost fitness, burn more calories, and lose weight. The basic idea is to vary the intensity within your workout, instead of going at a steady pace.

How to: Whether you walk, run, dance, or do another cardio exercise, push up the pace for a minute or two. Then back off for two to 10 minutes. Exactly how long your interval should last depends on the length of your workout and how much recovery time you need. A trainer can fine-tune the pacing.. Repeat the intervals throughout your workout.

No. 3: Squats

Why it's a winner: Squats work several muscle groups -- your quadriceps ("quads"), hamstrings, and gluteals ("glutes") -- at the same time.

How to: Keep your feet shoulder-width apart and your back straight. Bend your knees and lower your rear as if you were sitting down in a chair. Keep your knees right over your ankles.

Squats Done Right

Practice with a real chair to master this move. First, sit all the way down in the chair and stand back up. Next, barely touch the chair's seat before standing back up. Work up to doing the squats without a chair, keeping the same form.

No. 4: Lunges

Why it's a winner: Like squats, lunges work all the major muscles of your lower body. They can also improve your balance.

How to: Take a big step forward, keeping your back straight. Bend your front knee to about 90 degrees. Keep weight on your back toes and drop the back knee toward the floor. Don't let the back knee touch the floor. 

Lunges: Extra Challenge

Try stepping not just forward, but also back and out to each side, with each lunge.

No. 5: Push-Ups

Why it's a winner: Push-ups strengthen your chest, shoulders, triceps, and core muscles.

How to: Facing down, place your hands slightly wider than shoulder-width apart. Place your toes on the floor. If that's too hard, start with your knees on the floor. Your body should make a straight line from shoulders to knees or feet. Keep your rear-end muscles and abs engaged. Bend your elbows to lower down until you almost touch the floor. Lift back up by pushing through your elbows, Keep your torso in a straight line throughout the move.

Push-Ups: Too Hard? Too Easy?

If you're new to push-ups you can start doing them by leaning into a kitchen counter. As you get stronger, go lower, using a desk or chair. Then you can move onto the floor, starting with your knees bent. For a challenge, put your feet on a stair, bench, or couch while keeping good form.

Crunches -- Method A

Start by lying on your back with your feet flat on the floor and your head resting in your palms. Press your lower back down. Contract your abdominal muscles (abs) and in one smooth move, raise your head, then your neck, shoulders, and upper back off the floor. Tuck in your chin slightly. Lower back down and repeat.

Crunches -- Method B

You can also do crunches with your feet off the floor and knees bent. This technique may keep you from arching your back. It also uses your hip flexors (muscles on your upper thighs below your hip bones).

Mastering Crunches

Keep your neck in line with your spine. Tuck in your chin so it doesn't stick out. Breathe normally. To keep chest and shoulders open, keep your elbows out of your line of vision.

No. 7: Bent-Over Row

Why it's a winner: You work all the major muscles of your upper back, as well as your biceps.

How to: Stand with your feet shoulder-width apart, bend your knees, and bend forward at the hips. Engage your abs without hunching your back. Hold weights beneath your shoulders, keeping your hands shoulder-width apart. Bend your elbows and lift both hands toward the sides of your body. Pause, then slowly lower your hands to the starting position.

http://www.webmd.com/fitness-exercise/ss/slideshow-7-most-effective-exercises

Jim Rogers: Never In History Has This Been Seen

The Seven Ps of the Marketing Mix: Marketing Strategies

Log graphing in Excel

Buying a Home

Tour Warren Buffett's Office

Marketing Mix - 7 Ps

How to Become a Millionaire - Money Rule #1

What are the central issues in this general election? Number 1 issue is addressing CORRUPTION.

What are the central issues in this general election?  

For me, these will be corruption, accountability and transparency.  Other issues of equal importance are economic development and cost of living.

Are these adequately addressed by the main political parties?  How well are the political parties putting forward their arguments to win the debates on these issues?  How well are they in winning the hearts of the people on these issues?

In particular, almost everyone I meet, irrespective of race, have a united view that they perceive corruption is rampant and uncontrolled.  This is their perception and how are the political parties addressing the concerns of the voters on this single issue?

Yes, there are also politicians who are still wearing their racial glasses, spurting out racial issues and negatively talking about racial unrest post election.  Strangely, such exhortations seem to be predominantly from a particular party and not from the other.  Just wondering why.

Do exercise your votes wisely.  You should feel free to exercise your vote to elect the representatives of your personal choice.

HOW TO BUY STOCKS LIKE SIR JOHN TEMPLETON

Value Investor: John Templeton from 1989

Sir John Templeton and Peter Lynch

David Bach on how to get rich

Financial writer and best selling author David Bach advises how to get rich in his book, "The Automatic Millionaire."


Important point:  @ 19 min, 20 min.

Buying a Home Vs Buying an Investment Property & Renting

Renting vs. Buying a home. Isn't buying always better than renting?

Renting vs. Buying (detailed analysis)






CNN Weekend Shows : Should you rent or buy a home?

Lehman Brothers fraud explained

CEO Richard Fuld got $483,800,000 to Bankrupt Leheman

UMW's NAGA 4 rig is contracted to Petronas Carigali for 3 years, with an additional two year option for renewal

UMW Holdings bags US$157.68 million contract  
Business & Markets 2013  
Written by Fatin Rasyiqah Mustaza of theedgemalaysia.com     
Wednesday, 10 April 2013 18:51  
 
KUALA LUMPUR (April 10): UMW HOLDINGS BHD [] has entered into a contract with Petronas Carigali Sdn Bhd through its wholly-owned subsidiary UMW Standard Drilling Sdn Bhd for the provision of UMW’s jack-up drilling rig NAGA 4.

The contract is for Petronas Carigali’s domestic operations within the Malaysian waters, valued at US$157.68 million for performance of the scope of works as described in the contract.

According to an announcement to Bursa Malaysia, the contract is for a duration of three years, commencing from the date of the contract when NAGA 4 arrives at the mobilisation site, with an additional two year option for renewal.

“The contract is expected to contribute positively to the earnings and net assets of UMW for the financial year ending 31st December 2013 and beyond,” said the group in the announcement.

NAGA 4 is an independent leg cantilever 400 feet B Class mobile offshore self-elevating drilling unit, with a water depth and drilling depth of 400 feet and 30,000 feet, respectively.

Did You Make the Same Mistake?

By Marc Lichtenfeld, Investment Director

Monday, March 25, 2013

One of the first lessons I learned about investing had nothing to do with the markets.

In my first job out of school, I was a junior assistant marketing whatever at a credit union. It was the early 90s and there was a recession. My boss was a 30-something-year-old VP with a drinking problem. But she could market the heck out of that credit union.

She grew our membership manifold, explaining to me that the time to spend and grab market share is during a recession when everyone in the industry is cutting back on marketing.

She was the ultimate contrarian.

I’ve applied that lesson to investing. As real estate melted down, my wife and I picked up investment properties. In 2009, when investors were bailing on their stocks and plowing everything into cash, I put my cash to work and bought stocks with both hands.

Most investors weren’t that lucky (or smart) and are just now getting back into the market.

In fact, in February of 2012, when they should have been buying stocks, investors pulled $1 billion out of stock mutual funds. And this February, as the markets close in on record highs, investors went on a buying spree, stashing some $550 million in stock mutual funds last month.

In other words, investors are returning to stocks after the market has already more than doubled.

While sentiment has improved significantly, it’s not at extreme levels yet. Think back to the dot-com boom, the real estate boom, or the Great Recession. Those were extremes.

Doesn’t Matter

I can’t tell you if we’re on the verge of a bear market, correction, or another 100% rally. For my purposes (and probably yours if you’re reading this column), it shouldn’t matter.

Investing for the long haul means ignoring all the noise, whether it’s market action, talking heads, or magazine covers.

When you take a sensible approach to investing with your eye on the long term, good things happen.

It’s not exciting mind you. But it works, year after year, decade after decade. And that’s my focus – to help you make money and prepare for, or live better in, retirement.

The key is to own what I call Perpetual Dividend Raisers – companies that raise their dividends every year. Stocks like Colgate-Palmolive (NYSE: CL), The Coca-Cola Company (NYSE: KO) and Proctor & Gamble (NYSE: PG).

Warning – you’re not going to impress anyone at a cocktail party when you sing the praises of your favorite stock that makes dishwashing liquid and toothpaste. But here’s how those three stocks performed over the last 10 years, most of which encompassed what is being called “the lost decade” because of a zero return in the stock market.

During that time period, Coke raised its dividend an average of 10% per year. Colgate, the boring toothpaste company, boosted its payout by an average of 13%. Proctor & Gamble’s annual raise was 11%. And these companies have been doing it forever.

On average, the three of them have raised their dividends every single year for 52 years.

That goes back to 1961… when a gallon of gas was $0.27, Alan Shepard became the first American in space and John Fitzgerald Kennedy was inaugurated as President of the United States.

That was a long time ago.

Money Machines

What makes these “boring” stocks exciting is how much money investors could have made on them. I don’t care if the company makes paper towels or technology for mobile devices; it’s hard to argue with the 9% to 13% compound annual growth rates of the three companies.

And best of all, they did it while most stocks went nowhere.

Even more impressive is that these are conservative stocks. Investors are not sticking their necks out when they buy these kinds of names.

Even during the Great Recession, Dividend Aristocrats, which are stocks that have raised the dividend every year for 25 years or more, were positive over 10 years. And by a lot.

In the decade ending in 2008, the depths of the recession, Aristocrats were up 40%. In contrast, the S&P 500 was down 9%.

Most investors chase the hottest trends. They buy stocks when they’re going up. And sell their stocks when they’re going down.

It’s the exact opposite of what you’re supposed to do.

There are lots of ways to invest. But the only way I know of that has consistently made money is to invest in stocks that raise their dividends every year.

You don’t need to zig while others are zagging. The ultimate contrarian move is to stay calm and hang on to great stocks while others are trying to figure it out.

http://wealthyretirement.com/did-you-make-the-same-mistake/

The truth is the first casualty in an election. Please respect the intelligence of the voters in having access to information to make their appropriate choice.

Rais says ten minutes airtime is what Pakatan manifesto deserves

UPDATED @ 07:20:49 PM 10-04-2013

BY SYED JAYMAL ZAHIID
APRIL 10, 2013

KUALA LUMPUR, April 10 — Datuk Seri Rais Yatim said today the 10-minute airtime given to Pakatan Rakyat (PR) parties to explain their polls manifesto was “suitable”.

The interim information, communications and culture minister also said the short time offered to PR was more than enough to showcase PR’s pledges.

“It was more than enough because we are only explaining the principles of a party’s struggle. So for BN and the opposition, they deserve to receive the respective airtime after we consider how important it is to explain their manifestos.

“For BN, its more than that, it is a commitment and a vow just as announced by the prime minister,” Rais (picture) told reporters after attending a closed door meeting between BN chairman Datuk Seri Najib Razak and the coalition’s division leaders at PWTC here.

PR had snubbed the offer, calling it a “joke” and a mockery to the freedom of press.

Leaders from the opposition pact said it had wanted the right of reply, not only during the general elections, but at all times in all of the mainstream media and TV stations, almost all of which are BN-controlled.

Free access to media was among the key eight demands made by the opposition and poll reform group Bersih 2.0. It was also one of the recommendations made by a parliamentary select committee for free and fair elections.

Rais, who told state news agency Bernama it was “ok” to use state assets to campaign ahead of the official campaigning period, said the opportunity was provided in respect of the democratic system of the country and described the snub as “arrogant”.

Meanwhile, the Elections Commission (EC) claimed the offer was to be serial and not one-off and said the opposition had misunderstood government’s intention.

http://www.themalaysianinsider.com/malaysia/article/rais-says-ten-minutes-airtime-is-what-pakatan-manifesto-deserves/

1929 Wall Street Stock Market Crash

Revisiting the Stock Market Crash Of 2008

Uploaded on 19 Dec 2008



Uploaded on 3 Mar 2011



Uploaded on 29 Sep 2008


Uploaded on 14 Dec 2011
The Financial Crisis of 2008 was an economic bubble that reached its limits and exploded. A bubble is simply where prices continue to rise beyond the true value. People buy, simply because they believe everybody else is going to buy. A bubble is based on speculation, expectation and ignorance. When these three elements collide it creates a crisis, which is often defined by irrational financial exuberance.

The causes of the economic crisis of 2008 are related to the Bush administration's attempt to finance the war in Iraq with, basically, inflation. The Federal Reserve cooperated by financing the Iraqi war, by essentially lending money to the American state. But printing new money out of thin air, actually devalues the national currency, this is called inflation. This cheap money went straight into the economy, particularly the residential housing market. As a consequence the demand for houses rose; and housing prices took off like a rocket in 2001. Thanks to inflation the prices further accelerated in 2004. More and more people took on mortgages based on cheap currency. The lenders then sold the mortgages as bundles to secondary investors, such as American banks. The American banks then sold their bundles to banks in other countries. This is how American debt spread around the world and became a real international financial crisis. European banks were selling and buying American mortgage as bundles. And all the while all of this was based on cheap money, with no value whatsoever behind it.

People expected housing prices to continue to rise, but the opposite happened. The steady decline began in 2005 and by 2007 the panic kicked in and house prices were crashing down. The collapse of the housing bubble dragged the secondary investors along with it. US debt had spread all around the world and the damage was truly on a global scale.

A Look Back at Black Monday 1987

After the Crash - Wall Street Week Oct. 23, 1987

The Wall Street Week episode from Friday October 23, 1987 just after the market crash on black Monday October 19. Hosted by Louis Rukeyser, guests included John Templeton, Steven Einhorn and William Schreyer.

Part 2 - Excellent advice from John Templeton.

Reliving the Crash of 87

The Nightly Business Report episode from Black Monday, October 19, 1987. The Dow Jones Average dropped by more than 22% that day to close at 1,738 with volume double the previous record (set the preceding Friday). Just two months earlier the average had peaked at 2,722, a level it would not see again for two years and would revisit for the final time in early 1991.

Understanding Warren Buffet (16.11.2009)

Not doing anything differently: Buffett (16.11.2009)

Uploaded on 16 Nov 2009
Warren Buffet, chairman and CEO, Berkshire Hathway, has faith in his long standing value investing philosophy

The Wisdom of Warren Buffett

The Wisdom of Sir John Templeton

Sir John Marks Templeton was an investor and mutual fund pioneer. Templeton was born in the town of Winchester, Tennessee. He attended Yale University and was selected for membership in the Elihu society. He financed a portion of his tuition by playing poker, a game at which he excelled. [2] Templeton graduated in 1934 near the top of his class. He attended Oxford University as a Rhodes Scholar and earned an M.A. in law.

Templeton married Judith Folk in 1937, and the couple had three children: John Jr., Anne, and Christopher. Judith died in February 1951 in a motorbike accident. He then married Irene Reynolds Butler in 1958; she died in 1993.

He was a lifelong member of the Presbyterian Church. He served as an elder of the First Presbyterian Church of Englewood (NJ). He was a trustee on the board of Princeton Theological Seminary, the largest Presbyterian seminary, for 42 years and served as its chair for 12 years.

Templeton became a billionaire by pioneering the use of globally diversified mutual funds. His Templeton Growth, Ltd. (investment fund), established in 1954, was among the first who invested in Japan in the middle of the 1960s. He is noted for buying 100 shares of each company for less than $1 ($16 in current dollar terms) a share in 1939 and making many times the money back in a 4 year period. In 2006 he was listed in a 7-way tie for 129th place on the Sunday Times Rich List. He rejected technical analysis for stock trading, preferring instead to use fundamental analysis. Money magazine in 1999 called him "arguably the greatest global stock picker of the century". He renounced his U.S. citizenship in 1968, thus avoiding U.S. income taxes. He had dual naturalized Bahamian and British citizenship and lived in the Bahamas.

John Templeton Investment Wisdom

Richest Man In Babylon Wisdom

The Richest Man in Babylon is a book by George Samuel Clason which dispenses financial advice through a collection of parables set in ancient Babylon. Through their experiences in business and managing household finance, the characters in the parables learn simple lessons in financial wisdom. Originally, a series of separate informational pamphlets distributed by banks and insurance companies, the pamphlets were bound together and published in book form in 1926.
- wikipedia

Philip Fisher 15 Points for Growth Stocks

Top 20 Quotes from Warren Buffett

Warren Buffett - 4 Steps to Picking a Stock

1. You have to deal in things that you are capable of understanding.

2. Then once you're over that filter, you need to have a business with some intrinsic characteristics that give it a durable competitive advantage.

3. Then you should vastly prefer management in place with a lot of integrity and talent.

4. Finally, no matter how wonderful it is, it's not worth an infinite price, so you have to have a price that makes sense and gives a margin of safety considering the natural vicissitudes of life.

It's a very simple set of ideas. The reason that these ideas have not spread faster is they're too simple.