IPO - Do not forget their potential

Instead of participating in the open market, i am going to put some of my funds into new IPO applications. Seems that the heat isn't boiling yet....chances should be high.

Outlier

http://en.wikipedia.org/wiki/Outlier

In statistics, an outlier is an observation that is numerically distant from the rest of the data.

A very interesting concept that puts our existing civilisation in jeopardy of heading the wrong way. Alot of times, the result is a indirect consequence of many factors which we couldn't think of.

Citigroup - Breakout with Huge Volume

Have never seen such high volume for a long long time. Just bought some at $3.75.

2 SGX Shares Hit An All-Time High!

Jardine C&C and Wilmar. I am rather impressed by their recent run and wonder if they are the juiciest short candidates for the upcoming correction.

Dividend Yield - An Important Consideration When Buying Shares At This Juncture

Very often the market has gone up to a level whereby investors will start asking these questions.

"Is it too late to buy?"

"This share has already gone up so much, should i buy now?"

"When will the market correct?"

So what should you do? Should you stay out and watch? The answer is very simple. All you need is some simple reasonings to convince you that investing in the midst of a rally can be calculated risk afterall.

Step 1: Evaluate the Fundamentals of the Economy

We all know the economy is bad but always bear in mind the stock market is a leading indicator of the economy. Be sensitive to the figures pertaining to job losses. Never be behind the indicator....if you find yourself buying shares after the economy has recovered from its worst patch, its recommended you buy on a retracement in the markets and not immediate.

Step 2: Consider Dividend Yield in Your Stock Selection Process

The definition of being stuck in a share is that one is reluctant to sell it should the price falls below his/hers entry price. In this scenario, its only logical of a long-term investor to hold on to his portfolio.

Dividends will help alot if one is ever stuck. Anything above 7% at this juncture is still considered very attractive. Of course this is based on the current market price but of all is the best projection one can have in this uncertain world.

There are also some companies which might not be dishing out dividends now but often in good times they are generous in their dividend payouts. Be mindful of these companies too as they are potential long term investments also.

Take for example Citigroup. In good times, their dividend payout can be up to US$2 a year. At the current price of US$3+, do your own calculation if its worth a long term position. Bear in mind the restriction of dividends by the US Government for the next 4-5 years.

Step 3: Establish an Entry Price Using Technical Analysis

I am not going to teach you charting here in this article but Fibonacci's and Trend Lines work really well in establishing support and resistances for me. I hate buying at resistances and selling at supports.

Step 4: Though its Long Term, Its Good to Set a Cut-Loss

Not Technically, but be sensitive to the news and policy changes surrounding your investment. No company is too big to fail in my opinion.

I hope these helps and onwards, i hope to write more for this blog and share my investment ideas with you all.

Ever Heard of Paul Desmarais Sr. ?

I doubt you ever had. His investment holding company has outperformed Berkshire's return over time.

----------------------

Source: Bloomberg

Desmarais, 82, started out with a backwoods Ontario bus
line in 1951. Now, he and his family control Power Corporation
of Canada, a holding company headquartered in an unmarked,
eight-story building on Montreal's leafy Victoria Square. Paul
Sr.'s sons, Paul Jr., 54, and Andre, 52, are co-chief executive
officers. Together, the brothers govern a labyrinthine business
empire that extends from Denver to Geneva to Hong Kong, with
seats on 38 related corporate boards.

Power Corp. owns 66 percent of Power Financial Corp., a web
of North American insurance and asset management companies with
2008 revenue of C$36.5 billion ($32.7 billion). In 2007, the
Desmarais bought Putnam Investments, a once mighty, Boston-based
mutual fund company that had been wounded by a trading scandal
and weak fund performance.
The $3.9 billion deal closed two months before the Standard
& Poor's 500 Index peaked in October 2007. Power Financial's
biggest challenge is to make good on plans to renovate Putnam
into a flagship for U.S. expansion, after the mutual fund
manager's assets were almost halved by the 2008 plunge in global
markets.
In Europe, the Desmarais have been partners with Albert
Frere, one of Belgium's richest men, for almost two decades.
Together, they hold stakes in Total SA, Europe's third-biggest
oil and gas company, based in Courbevoie, France; Paris-based
Lafarge SA, the world's biggest cement maker; and Paris-based
GDF Suez SA, the world's second-biggest utility. Paul Desmarais
Jr. is a director of all three.

In China, the Desmarais own 4.3 percent of Hong Kong-based
Citic Pacific Ltd., a steel, mining and real estate development
company with a market value of $7.2 billion as of July 13. Andre
Desmarais joined the board in 1997. His father first ventured
into China in the 1970s.

Those who bet on Power Corp. in the 15 years from 1993 to
2008 earned slightly more than investors in Omaha, Nebraska-
based Berkshire Hathaway, according to data compiled by
Bloomberg. Power Corp.'s average annual return in the period,
including reinvested dividends, was 14.5 percent. Berkshire,
which pays no dividend, returned an average of 14.1 percent. The
comparison is in local currencies.

The Desmarais also run a $1.6 billion, Paris-based private
equity firm called Sagard Private Equity Partners. Investors
include companies managed by the Frere family; Bernard Arnault,
CEO of luxury goods giant LVMH Moet Hennessy Louis Vuitton SA;
and Laurent Dassault of the French aviation family, who's on
Power Corp.'s board.

Testing New Integration With Blogo

Hi all, I have just installed Blogo on my Mac and testing the integration with it.

SGX Does 3 Billion Shares !

What a fantastic day for the Singapore market. The Straits Times Index closed up 45.64 at 2074.35. The amazing thing is the volume done...seems that we are back at the pre crisis level. I am apprehensive i must say.

Will US Decouple from the Rest of the World?

In recent times you will find that the co-relation between the US market and the rest of the world is getting really wacky. Believe it or not, this possibility is really low. Of course this is my personal opinion. This New World of ours is too connected and markets accessibility is too high for me to buy this theory. However, a logical outcome of this whole idea is the lesser reliance of US as a leading indicator for global market movements.

Is this the beginning of a shift of dynasty?