Friday, 4 April 2014

2014 Q1 Review

Return: satisfied.

Transactions: 3

1. Top up PNEPCB
This transaction did pull up my average price. So I actually endured the "pain" when I topped up -- already 2X of my first entry price, how could I still buy it? But I don't want to regret, and this share did not disappoint me. It "hurts" me in the sense when seeing the % return "decreased dramatically", however, in terms of amount, the return is of course higher. 

2. Buy INARI-WA
I used to think that an investment of less than 2k wouldn't make me any huge return, at most a few hundreds in short time. But INARI-WA has really "broken my glasses". For this small amount of investment, the return is really surprising in 1 month time. This shows the power of investment, of how money is being duplicated. 

3. Buy CHHB
Clearly a "follow wind" trade, from guazi in Investalks. Buy at low volume, not too bad. 

Dividends 2
1. INARI 1.5 cent
2. INSAS 1 cent

Review:
This results show that I don't have to trade frequently to pursue for huge return. In fact, buy and hold may be the best way for high return - just do nothing and wait for the return, isn't this the best part of investment?

Yes, I could have sold INARI at high price and then wait for adjustment and then go in again, but how could I catch the moment precisely? What if I miss it, and then just let the rest of the return gone?

Yes, I could have sold PNEPCB on 14 Feb 2014 @ RM 0.84 and switch share for another return. And until today it did prove working, since PNEPCB still hovering around this price, but WHAT IF? I am loyal to this share, really feel reluctant to sell at this price though.

After all, it is easier said than done. When my capital gets larger, when I have some cash to play really short term, then I can go for different trading style. For now, I am satisfied with my return.

Thursday, 3 April 2014

US: March options virtual trades

Mar 14 options virtual trades, expired 21 March 2014.

Mar14 virtual trade

1. BAC, return of 33% while the mother share rose 1.2% in that particular period. (magnified power of options, just like call warrants)

2. JPMorgan Chase Co. (NYSE: JPM), advanced US 3++ in 1 week, or 5.93%. I bought the option at $0.98 and it ended up with $3.60. A return of 267% in 1 week time, not bad right? This is the kind of return in US markets.

3. TSLA, a recently hot stock in NASDAQ, where the call option is out-of-money @ strike price of 250, i.e. options expired worthless. A loss of 100% of the capital. 

Not too bad when you are a buyer and you bought at the right trend - unlimited profit and a limited loss of 100%. In real trade I would chose those expire at least 2 months later, so that the price fluctuation will be lower. Still a lot to learn for this financial derivatives.


Sunday, 23 March 2014

US: Symantec stock plunged 12%

Last Friday US stock ends lower, with DJI - 0.17%, NASDAQ -0.98% and S&P 500 -0.29%.

I was wondering how come NASDAQ would have fallen relatively extensive as compared to S&P 500. Having observed the trend of NASDAQ recently, this is rather unusual. A look into Wall Street Journal clear my doubts: SYMC (NASDAQ:SYMC) plunged 12% yesterday due to the news that CEO get sacked in less than 2 years.  Related news can be found in Investor place. Symantec, which develops Norton anti-virus, is a well known company for computer anti-virus software. I am using its product currently.

NASDAQ is an index comprises of 100 companies mainly related to technology / health care operations. A list of its components companies can be found in CNBC Nasdaq component companies. You can easily identify some of the well known international companies by just a glance at the component companies: Microsoft, Intel, Adobe etc.

This is what happens when you get to know US market, a greater insight about the companies of which you use their products daily, and also have a sense of how fluctuating US markets can be.

Sunday, 16 March 2014

KLSE: INARI price soars, transferring to Main Market?

Last time when I wrote something about target price reached, where to?

My target price was RM 1.71, but now the share price stood at RM 2.27. I didn't make any transaction, as I found no reason to sell this share.  The decision is correct, at least, until now.

Last Friday, INARI volume was relatively higher - not a good sign. As volume comes, I would choose to go. The price has increased ceaselessly over the past two weeks. Seeing the share price soars day by day, I am very excited at first, but soon the feeling changed.

INARI


I found myself to be even greedier than ever: when my portfolio sees an earning that has never appeared before, I found myself to be even more unsatisfied. I want to see EVEN more profits. Is this human nature, of the more you have, the more unsatisfied you will be, or is this just about my boundless greed? I guess, in some sense, that this is part of human nature, a weakness that can be improved, but not eradicated.

Anyway, I believe the movement in the past two weeks is strongly related to the news regarding transfer from ACE market to main market. It has been more than two months since the application has been made on 10 Jan 2014.

It breaks new high everyday, sky is the only limit. I have no more target price for this share, will only watch and see what happens, only to decide what to do next.

Cairns trip, the Great Barrier Reef, people met

Continue from Cairns trip, the Great Barrier Reef, a memorable experience.

F is from Italy. She spent her Christmas holiday traveling around Australia. She managed to travel to: Adelaide, Tasmania, Sydney, Cairns and Uluru in two weeks time. This is just too short. It requires determination: if you don't travel now, you will not have the chance next time. This is why I travel to Cairns. During our conversation, when we talk about having meals, she said that she wants to save money for Uluru, her last trip, during Christmas. Traveling to Uluru during Christmas? God knows how much it would cost. But I understand that. This is all about experience. 

G is locally born, just graduated from University. He was the "translator" between F and I, as the English slang by F is too hard for me to understand. When we first met, F asked me a question: So you are a student here? (she student pronounced as stadent). I didn't get it. 2 seconds later, G said she mean student. I laughed nonstop. Looking back, it is this small things that made up a large part of this memorable experience.

L is from Poland, having two weeks break for her holiday, she chose to travel in Queensland without any plan. I like this, no plan. Unlike me, I plan everything before the trip. I realized how "thoughtful" I was for my trip, which turned out to be redundant sometimes. I guess this is the difference between eastern and western culture. No plan, don't have to think so much for this. Just wing it* as many others here did.

* wing it, verb, it means to accomplish something without preparation, i.e. is like flying through with a wing. E.g. She traveled to Cairns without booking any accommodation and just wing it upon arrival. (i.e. she found her accommodation on the spot).

He is a Canadian, ages 50s from my guess, sold all assets in Canada, traveling since Feb 2013, and will continue till the rest of his live. I admire his bravery, something that I doubt if I have the courage to do it. Living in my comfort zone for years, I couldn't imagine what will happen if I lost a place to stay. Thinking the other way round, why would a person need a certain place to stay? Wherever he wants to go, wherever he intends to stay, just go for it. He planned to stay in South East Asia for sometime, as these places are relatively cheaper.

C is from Switzerland. She came to Penang before. I like to hear this. Listening someone praising my home town made me proud. She travels for 3 months in AU and NZ, has been traveling around other parts of QLD.

Ch is from UK. "Well, I am 40 now and I haven't traveled around the world." He quited his job and started traveling for 3 months. Another difference. They desire of traveling around the world. At the age of 40, I doubt if I could give up my jobs and everything and just start traveling for months. My trip "unit" is days. Their trip "unit" are weeks and months, or even years.

This trip has widen my views and experience. Meeting other travelers is just amazing. The differences in cultures show that there are something we can to learn from each other. It is about embracing the good from other cultures. 

Tuesday, 25 February 2014

Cairns trip, the Great Barrier Reef, a memorable experience

I traveled to Cairns (CNS) alone last year. Solo traveling is not something 'miserable' as I've thought, as I've got chance to meet other solo travelers along the trip, which is part of what making this trip to be memorable. . Cairns is located in Queensland (QLD), Australia, very far north from Brisbane (BNE), a city that would not become a city without tourism industry. Great Barrier Reef is the main attraction in Cairns, a natural gift for Australia with more than 1000 km of reef along the ocean. This is something that I've long sought after for, a place that I would go regardless of how much it would cost.

The first day trip is to Green Island, where turtle can be easily spot. What is wonderful about this trip is the sub-marine tour, where I got a chance to observe the reef through glasses. The view on that day was not excellent, due to the rains few days ago.

great barrier reef

great barrier reef 2

In the city, on the way to Cairns Central, a shopping centre, you will walk by this bar with a creative, humorous sign board:

creative sign board


The second day trip is about a Daintree Rainforest and Cape Tribulation. The tour guide is in his 30s, very outgoing, sociable and passionate about his job. This is what makes him a good tour guide. On the journey to the destination, which took about 2 hours, he explained some history, the locations past by and sharing some of his personal experience. He mentioned about how he traveled around Australia with his girl friend (now wife) in his 20s, and finally decided to settle down in Cairns. The way he sounds when sharing this story reveals how much affections he has to Cairns, the same feeling that I have to my home country Malaysia. 

Cassowary, a big eater, only in Australia and Papua New Guinea


cassowary

WALUWURRIGA Alexandria range lookout point

Alexandria range lookout point

Another look out point:


The tropical climate in Cairns is humid, which somehow compensates the dryness in other parts of Australia. This is part of what making Australia to be a great place: a seasonal climate in the southern part, a tropical climate in the northern part. 

The last day trip is to great barrier reef, which I purposely planned for, which didn't disappoint me. The event crew on the boat are all very helpful, fun and humorous, a typical way many Australians would behave. The coral sea is so beautiful. I opted for a helicopter scenic flight. The view of Great Barrier Reef from the helicopter is just spectacular and amazing.

Crystal clear water:


a fish

Life experience - helicopter scenic flight!


helicopter

Nice view from the helicopter:

spectacular view

 This is just spectacular:


spectacular view 2

How beautiful is this?


spectacular view 3

Staying 4 nights in a backpacker resort, people come and go. Each and every day I will meet new travelers staying in the same room. We always talk and exchange experience. The next post will be about people met along the trip.

Wednesday, 19 February 2014

A past experience, a reminder to myself

There are several types of stock account. One of the most common is a cash upfront account, in which you are only able to buy shares with the money in your trust account, i.e. trading limit = cash available. Another common one being the margin account, which allows you to trade, e.g., 2X based on your cash available.

Having mentioned margin account, once I saw a "joke" in Investalks, saying that for those working in Singapore, they don't even need to have a margin account to trade 2X of the cash available, because what they are earning already has the marginal trading effect in Bursa Malaysia. Kind of cold jokes, but it reflects how the continuous depreciation of MYR erodes its value against other currencies.

Back to story. When I opened my account, I opted for cash upfront account. I know that, deep in my mind, this will prevent me from "gambling", as my weaknesses will be completely reflected in stock market, of how greedy I am, of how uncontrollable I am, of how unsatisfied I am, when the crucial moments come. By only forcing myself to use cash upfront account, I can avoid gambling on trading limit which may be over my financial affordability.

This decision DID save me from some losses. Back in 2011, I have a cash value of about 10k in my account. It happened at that time that PROTON (now delisted, took over by DRBHCOM), came the news about take over by DRBHICOM. Read a related news here.

Due to the news, PROTON gap-up open on 6 Dec 2011, from RM 4.50 previous close to open at RM 4.75. Its call warrant, that I was aiming at, PROTON-CG, open at RM 0.430 from a previous close of RM 0.370. Seeing such a strong positive sentiment, I plan to hantam (ALL-IN) all my cash to buy this call warrant.

PROTON-CG


I remember vividly that, I key in BUY RM 0.435 for 250 lots. ORDER DECLINED. I don't know why the order was declined. I tried a second time IMMEDIATELY (such a rash decision), same amount same price. ORDER DECLINED. Only then I calculated the total amount I wished to trade = RM 0.435* 25000 = RM 10875, which is over my trading limit for about RM 1k. I gave up buying.

Soon after that, PROTON turned from green to red, and PROTON-CG closed at RM 0.315 on that day. Had the transaction been successful, I would have suffered a loss of 3k in a day. Although it has gone up finally - 1 month later, I wouldn't have waited until that should I have the call warrant, I would have cut lost on the first day of my purchase.

My cash upfront account SAVE me from the loss. Of course, it did "prevent" me from some earning, but using margin trading limit for me is risky currently, as I am still learning how to control myself. In addition, past experience has shown that even though I may win some money at first, I might have lost even more at a later stage due to uncontrolled trading. I still feel comfortable using this cash upfront account. The feeling of "not earning enough" lessens as my experience accumulates.

This experience also proves the well-known quote "buy on rumours and sell on facts". When news have already been announced, don't chase, is time to sell if you hold the shares. Anyway, this is an experience for me to remember, which will hopefully remind me to avoid the similar mistakes in the future.

Friday, 14 February 2014

Selling call options: some basic stuffs

This time is the seller of call options. Selling options will always earn you premium, as you get the chance to be the "insurance company", as if collecting premium from buyers who wish to protect their shares. 
Case 1: Out of money

Buy: AMD JanWk5 3.5
Strike price = $ 3.5
Expired date = 31 Jan 2014
Cost: 0.13/options = 0.02*1000 = $ 20 + ($ 15.35 brokerage)
AMD cloased at 31 Jan 2014 = $ 3.43

AMD @ 30 Jan 2014 = $ 3.45. It has little chance to close above $ 3.50, hence the premium is very small. At the expired day, AMD closed below strike price, so premium was collected free by call seller.

Case 2: In the money

Buy: AMD JanWk5 3
Strike price = $ 3.5
Expired date = 31 Jan 2014
Cost: 0.13/options = 045*1000 = $ 450 + ($ 15.35 brokerage)

Call options is in the money at the expired date, i.e. call options will be exercised. I am required to sell the share @ $ 3 to the call options buyer. If I will to buy back immediately, this will cause me a loss of $ (3-3.43) = - $ 0.43 / share. But I collected premium from selling the call. So is a different story.

Based on yesterday closed price of $ 3.70, if I buy back to close my position, my net loss will be:

+ $ 450 - $ 3000 + $ 3700 = - $ 250.

There is something known as Sell Covered Call, which is pretty common in options. Covered here means that you own the mother share, and at the same time, selling call options to earn premium. If the shares go down, the premium collected will be yours. If the share rises, you still earn from having the upside of the mother share. This looks to be a good deal, although still need some time to have a deeper look on it.