From Millionaire to Pauper in less than 2 Years

If you have read the heart-wrenching news, about how a widow got donations & insurance payouts worth S$1million and then squandered it all in just 1 YEAR; you would be utterly disappointed in her.

"I also don't know how I finished (using) the money," she said.

Furthermore, she has 5 kids to look after and now that she's broke, she has to turn back to working a low wage job again.

While you may feel sad for her and the circumstances she fell into, perhaps a few of you will think of why; Why does this happen?!

"how the h*ck can you spend all that in a year!?!?"

More often than not, people who come by large sums of money, whether be it through inheritance, striking lottery, sportsmen who suddenly get rich etc. are set to lose it back all again. (Look at michael jackson, mike tyson). 

Why? This is because of one simple reason - Lack of Financial IQ. If one is not prepared for a financial windfall, the money disappears quickly, with some even reaching a financial position that is worse than before they received the windfall. Some even go to the extent of being bankrupt.

Qn: So How Should You increase your financial IQ?

Ans: Through 3 words.

1) Read - It's just like studying to pass your basic driving theory test. You need to understand the terminologies and how stuff works before actually working on it. Reading up on personal finance can be easy; you can just borrow the library books for FREE so what's stopping you?

2) Invest - After getting basic financial knowledge, it's important to take action (like learning driving lessons to get more confidence before taking the test). Many people are afraid to invest their hard-earned money because they are scared to lose it all. However, when you leave your money in the savings account, you are potentially losing out even more than those who make mistakes but improve on them along the way.

3) Assets - While i may not agree 100% with Robert Kiyosaki on his many philosophies, I do advocate the idea of accumulating assets. As he has always mentioned in his books, Assets can put money in your pocket and make you richer while Liabilities take $ out and make you poorer.

Conclusion

In my own conjecture, i believe there are still many more out there that lack the necessary financial wisdom to secure their own comfortable retirement next time. I have the dream to help as many as I can and hope that I can reach out to them one way or another; taking on the late Dennis Ng's dreams to build a foundation with the donations of people who benefitted from the knowledge i shared.

Bitcoin Boom Bust

Around a month ago, I wrote about the pros and cons of investing in Bitcoins - link here (yes, i am a Fool.sg contributor) :)

One of the key risks I talked about was about the overwhelming chances that it is can be used for fraud or manipulation - like a black market for money laundering.

True enough, just a month plus later, it is going down with one of the biggest exchange shutdown and its founder MIA. Here is the article...

One may wish to exercise caution when moving into such risky ventures; i remember hearing one celebrity buying almost 400K of Bitcoins back when i wrote the previous article. Hope he has cashed out his holdings! And you should too...!

Rowsley - Buying up Land in Iskandar Malaysia!

I am sure people are going to be interested in this.. Just look at the soaring trading volume of Rowsley as at friday (21/12/2012).

You can read about the news here:

• http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_84F219799804932B48257ADB0020FBFD/$file/RowsleyLtd.Announcement_21.12.2012.pdf?openelement
• http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_93D67C6962F8B30548257ADB001CF5C4/$file/RowsleyLtd.MediaRelease_21.12.2012.pdf?openelement

They are acquiring a land size of 9.23 hectares = 92,930 square metres = almost 1000 4-Room BTO Flats' size!

Besides the land, Rowsley is also collaborating with RSP Architects & Planning (http://www.rsp.com.sg/). A check on their projects really made my eyes glare BIG BIG. They are master planners and designers of soooo many big projects like Ion Orchard, Plaza Sing new extension, Jcube and Pinnacle@Duxton etc... You can check it out yourself..

Best of all, i like the concept below:

The Land, which is located at Bandar Johor Bahru, Daerah Johor Bahru, Negeri Johor, is within Flagship A of the Iskandar development region, Johor Bahru, Malaysia. The Land is located on a waterfront site just a few hundred metres from Johor's new customs, immigration and quarantine facility, making it highly convenient for Singaporeans due to its proximity to Singapore.
The Land is to be developed into an integrated mixed-use township centering on a major shopping, entertainment and residential complex. It also comprises of hotel, commercial and office developments. The Land measuring approximately 9.23 hectares is expected to yield a
gross floor area of no less than 10 million square feet.
The adjacent medical hub to be jointly developed by Thomson Medical Pte. Ltd. and Vantage will complement the mixed-use township and enhance the overall attractiveness of the development.

I have done a search on google maps and see that Bandar is really close to Singapore causeway. A integrated mixed-use sounds like a whole business park formation to me which means ka-ching ka-ching!

Be sure to read about the Rationale of Acquisitions and Bonus issue of warrants at $0.18 as well..

The Directors of the Company believe that the Acquisitions are in the best interests of the Company. The Acquisitions provide the Company the opportunity to participate in the growth of the Iskandar Development region in Johor Bahru, Malaysia and transform the Group into a major real estate player with complete multi-disciplinary design capabilities and expertise.
The RSP Acquisition and the Land Acquisition are to be completed concurrently and are inter-conditional. The Directors believe that the award-winning expertise and complete suite of property services of RSP combined with the development potential of the prime Land will provide the Group with the platform, synergy and scale it needs to transform into a major real estate player in the Iskandar development region. The Acquisitions will increase the market capitalisation of the Company significantly and is expected to raise the profile of the Company and generate investors’ interest in the Company.
If the Definitive Agreements are entered into and the Acquisitions materialise, the Directors are proposing the Bonus Issue to reward existing Shareholders and to raise funds for the Group in the future. The Directors believe that the Bonus Issue will provide Shareholders with the opportunity to increase their equity participation in the Company, and potentially increase the Company’s capital base and strengthen its balance sheet. Based on the Company's issued and paid-up share capital of 989,301,265 Shares as at the date of this announcement, the Bonus Issue will comprise 1,978,602,530 Warrants. Assuming all the Warrants issued pursuant to the Bonus Issue are exercised, the Company will receive gross proceeds of approximately S$356.1 million. The Company intends to use the proceeds arising from the exercise of the Warrants for future working capital and expansion plans.

On the downside, Rowsley still has a long way before the acquisitions are completed and the seeds have to be sowed for us shareholders to reap the rewards.

Nevertheless, it may turn out to be another Yoma... you will never know right? ^_*

Olam Fights Back and Gains 5%!

In case you have not heard of it, OLAM is being openly critcized by Muddy Waters, a U.S. based research firm and its latest update is here.

However, Olam has now fought back and decided to take legal action against Muddy Waters now! I believe i call this "Biting more than you can chew" for Muddy Waters.

I can understand them criticizing Sino-Forest or China Public Listed firms because they are those kind of black sheep... but OLAM?! It is a Singapore Corporation with Temasek Holdings as one of its Shareholders!

I don't even need to look at the report to know that Olam is safe and sound. If not, why are they even countering the offense from Carson Block into a legal lawsuit? 

Carson Block still got the nerve to question Olam on their defensive reaction, even much worse compared to Sino-Forest... OH COME ON... Sino-Forest is in the wrong of cos they kept quiet! If not, judging from China top management, they will whack the hell out of those Ang Mos who are running through their mouths blatantly!

If you wish to read up more about the entire thing: Go to this link -> http://bizdaily.com.sg/newsite/olam-bound-to-collapse-says-muddy-waters/

While on the technical side...

Olam has seemingly bounced off the past Support line and the circle shows a very Clear BULLISH Engulfing Candlestick Pattern right there.

I believe if Olam wins this war of words, it will instead serve as a better scheme to attract wide attention to its stock. I am going to bargain hunt on this counter and possibly set a stop-loss below the Blue Support Line OR if Muddy waters can really prove to be accurate in its "offence".

Disclaimer: This blog post is entirely of my own personal opinion and not for anyone to follow. Trading involves high risk, which is not suitable for everyone.

Opportunities lie within US demise caused by Hurricane Sandy

New York suffered the worst hurricane in its 180 year history and left destruction everywhere... it is estimated that it will take a $20 billion toll on the city...

As for the impact on the stocks, hurricane sandy will offer opportunities both on the long and short sides.

Below links show you how to capitalize on the disaster to make some quick gains on your side.

• http://www.marketwatch.com/story/how-to-play-21-hurricane-stocks-2012-10-31
• http://www.foxbusiness.com/news/2012/10/30/home-depot-lowe-deploy-truckloads-post-storm-items/
• http://www.fool.com/investing/general/2012/10/30/video-3-hidden-gems-from-hurricane-sandy.aspx

I believe the same goes for the Japan earthquake that happened in 2011...

http://seekingalpha.com/article/258238-investment-opportunities-in-the-wake-of-japan-s-earthquake

Shorting the nuclear stocks proved very profitable... due to the nuclear radiation which spooked investors worldwide..

Results of Mystery Shopping by MAS

If you take a look at the link:
http://www.mas.gov.sg/en/News-and-Publications/Press-Releases/2012/MAS-Releases-Results-of-Mystery-Shopping-Survey.aspx, you will realise that in Singapore, many "financial advisers" in banks or insurance companies aren't really there to advise you on how you should manage your wealth.


They are there for the sales commission and most of us should know it by now.




I got interested about this whole thing because i was once a bank salesperson who joined the bank with intentions to help people make money and grow their wealth. This whole issue is therefore, very personal to me.


How wrong can i be... If you look at the banks profits, you will know that the bank staff are helping the BANKS to make money and not YOU. 


I saw from Wilfred Ling's blog [http://www.wilfredling.com] and earnestly believes in what he say. He as an independent financial adviser, gives REAL and HONEST advice rather than just sell you endowment and wholelife insurance like it is a natural thing for everyone to have.


If you look at REITs nowadays, you can get a minimum of 6% yield yearly, without even considering the capital gains, why the he*k do you need to give one year premium [Yes! in case you don't know.. one year premiums = their commissions $_$] to the bank adviser who sell you the stuff and leave you in the lurch until he/she is ready to sell you another product again?!


As the slogan goes, there is no such thing as Free Lunch in the world. They provide you with "Free" financial advice on how good endowment policies are and then earn big fat profits for their ownselves.

Straits Times "Invest" section on 15/7/2012

It's little wonder DIY Investing is on the trend now.. People nowadays surf the net and visit investing blogs like mine :P for news and Unbiased, independent financial advice before making their big decision.

Right now, Independent financial advice should be hot now.. I will perhaps come out with some personal finance articles in the future rather than just touch on stocks :)

Hope you like my post and can do me a favour by "Like"-ing my facebook page at www.facebook.com/kissinvesting. Thanks & HUAT AH!

Don Buy GPH now!!!

Don't try to catch the IPO of GPH!


Here's why:

With the BULK speculators selling at $0.30, its a wise choice to sell it at 0.295 (if you are lucky to get some from the IPO).

I woke up in the morning to check on GPH, but i didn't get any.. Refunded all back to me.. Nevertheless, i have turned my attention to Informatics... The next Penny Stock that looks like JEL Corp to me :D

Quick Profit: Bumitama Agri IPO

Short Introduction: 
A producer of Crude Palm Oil (CPO) and Palm Kernel (PK), Bumitama Agri operate in three provinces in Indonesia where its oil palm plantations are located, namely Central Kalimantan, West Kalimantan and Riau. 


The Group's primary business activities are 
1) cultivating and harvesting oil palm trees, 
2) processing Fresh Palm Fruit Bunches (FFB) from its oil palm plantations 
3) selling CPO and PK in Indonesia.

Many people have this question in mind - To subscribe or not to subscribe for this IPO?

Let's take a look at more of the news revolving around it... I will take the snapshots...

According to http://business.asiaone.com/Business/News/Story/A1Story20120404-337604.html:

• attracted strong demand from funds and wealthy investors looking to tap into the region's booming resources sector.
• placement was 31 times subscribed, the highest oversubscription rate for a corporate offer since Yangzijiang Shipbuilding's 2007 IPO
• (The IPO) attracted more than 150 investors but the majority are long-only funds. There's huge demand from high-net- worth individuals and family offices as well
• Bumitama plans to sell 327.4 million shares, including an over-allotment option, at $0.745 each - the top of an indicative price range of $0.675 to $0.745.

Conclusion

In a nutshell, the IPO fever is coming and wealthy people have nowhere good to place their money now since the property markets are in the overpriced region with the government clamping it down.

Strong interest will mean more volume and more potential for it to go up since everyone wants a slice of it! Furthermore, majority of LONG-ONLY funds means that they will not be short-selling them and likely to push the prices up to buff up their own portfolios (make it nicer for investors to see).

Lastly, Bumitama is clever to sell the shares at $0.745... it shows that they know the IPO fever is here and they are here to earn from it.


I strongly urge people to subscribe for the IPO & set a profit target for it so you can sell within the 1st few days and make a quick profit! As usual, i walk the talk and have subscribed for them already! I will keep you updated as the IPO lists on the first day!

What a Run on the Euro Could Mean for Precious Metals Prices

What a Run on the Euro Could Mean for Precious Metals Prices

We haven't heard much out of Europe lately. In fact, since Greece secured another bailout a couple weeks ago, it's been downright quiet. Oh sure, there are some whispers about Spanish unemployment and some new Italian tax program. But for the most part, Europe has surrendered the headlines… And it's all quiet on the western front. But not for long… The euro looks like it's ready to tumble toward new lows for the year. Take a look at this 60-minute chart of the euro currency ETF (FXE)…   FXE is forming a bearish head-and-shoulders pattern. This happens when a chart hits a new high – which FXE did in late February – but then fails to make a higher low. The next rally attempt fails to make a new high, and the chart starts to roll over – which is what's happening now. FXE does have support at about $129.50. But a drop below that level projects a move all the way down to $125 – which would be a new low for the year. The interesting thing about this chart is FXE is forming a short-term head-and-shoulders topping pattern on its 60-minute chart (getting bearish) as both gold and silver are forming longer-term head-and-shoulders bottoming patterns on their daily charts (getting bullish). But the gold and silver patterns need one more push lower to create symmetry on the charts. Weakness in the euro supports a strengthening dollar. A strong dollar usually leads to lower precious metals prices. So if the euro falls in the short term, we might get the necessary push lower for gold and silver to set up their longer-term bullish patterns. It looks like everything is just about ready to come together. Keep an eye on the euro, and watch for bad news out of Europe to take over the headlines once again. That'll be the first sign that it's time to re-enter the gold and silver markets.

HUAT AH!

If you have been following my posts, you would have also joined in the fun and reap such handsome gains in just a few weeks or a day!

I have been busy the week before and always wanted to write a post on why buy MDR & Sarin...

Furthermore, on why the market conditions are favourable for you to invest right now: http://kissinvesting.blogspot.com/2012/03/euro-worries-wanes-beginning-of-global.html :)

Euro worries wanes, Beginning of a GLOBAL Stock Markets Recovery?

**The world’s biggest banks are less pessimistic about the euro as the European Central Bank provides unlimited cash to the region’s financial system, Germany may avoid recession and Greece looks to complete the biggest sovereign debt restructuring in history. 
You can read it more here: http://www.bloomberg.com/news/2012-03-12/euro-weakness-waning-as-draghi-cash-prompts-forecasters-to-drop-bear-views.html

Here it goes again...

Whenever bad news come during a bullish market, people shrug it off and newspapers continue to say that things aren't that bad & Stocks are looking even cheaper! However, when GOOD news come during a bearish market, people are slow to digest it and get back to investing in the stock markets due to the pro-longed fears that things aren't over yet.

There is the wrong Herd mentality almost 90% of the stock (investors/speculators?) have! They should start investing when the WORST is over... and things aren't going as bad as they are. You only require PATIENCE and the determination to hold onto the stocks and ignore all the buzz buzz going around you..

So.. in a nutshell, it's the right time to invest NOW. Greece isn't going on a default, and basically i don't really care about how they are going to solve the problems. I just know things are not going to be WORSE than what has happened before [no default = good news!] and i rather be the early bird to invest at the start of the trend... 

As the early bird gets the worms!

REITs: Both Pros & Cons

Recent newspaper articles have increasingly laid blame on real estate investment trusts (REITs) for the rising occupancy costs in retail and industrial properties. Here is an article i plucked out from todayonline.com about Reits so that people may gain more understanding about it.

REITs, in their relentless pursuit of superior shareholder returns, have generally been very proactive and efficient in raising the rental rates of their investment properties. This is in the best interests of REIT shareholders; unfortunately, it also results in higher rental costs, which eventually filter through to the inflation basket.

However, while potentially resulting in higher inflation, REITs also have their benefits.

First, the introduction of REITs has provided a cost-effective way for investors, especially the retail investors, to gain exposure in a pool of diversified commercial or industrial properties. Before REITs were introduced, ordinary investors were largely shut out of commercial and industrial real estate due to the generally large amount of capital involved. REITs have helped to attract retail money into these previously inaccessible property sectors, thus expanding the investment options of ordinary Singaporeans.

This, in turn, has boosted the supply of commercial and industrial properties in Singapore. Even if REITs mainly purchase existing buildings from property developers, they effectively free up capital in the property developers, who then gain the incentive to build new commercial and industrial buildings. In fact, many property developers who are large REIT sponsors in Singapore, have been recycling the capital they generate from the sales of their investment properties to their sponsored REITs to build new retail properties. This helps to create a more vibrant retail mall scene in Singapore. One might even say REITs have helped to boost Singapore's profile as a tourist and commercial hub.

Second, REITs also help to improve the quality of existing commercial and industrial buildings. Due to their focus on shareholder returns, REITs are normally very active in enhancing the premises, facilities and services of their investment properties whenever the opportunity arises. This has resulted in better quality investment properties (especially the retail malls) that are more exciting to visit. For example, many retail malls (such as Plaza Singapura and IMM Building) have been successfully refurbished and enhanced by their REIT owners.

Last but not least, the Singapore REIT sector was created to provide an additional high-yielding financial instrument for Singaporeans to invest their savings in order to secure a steady income upon retirement. This is especially important given Singapore's ageing society. The sector has developed well over the past decade with more than 20 REITs being listed currently, offering investment opportunities into different investment property asset classes. In fact, the Singapore REIT sector is currently the second-largest in Asia, just behind Japan, another ageing society.

Thus, like in most situations, the case for or against REITs is not a straightforward one as it entails both social and financial benefits and costs. I guess the key question is whether Singapore as a society values the social and financial benefits of REITs more than its costs.

by Tan Chin Keong

Analyst at UBS Wealth Management Research.

In my opinion, Overseas markets have been doing very well with the inception of REITs and has been there since 10+ years ago. Singapore is new to this field and a few teaks here and there will balance out everything. Nonetheless, i believe that one should still take advantage of the high dividend yield REITs are providing (it's so much better than putting your money into bank savings account where your money is eroding each day!)

Warren Buffett gone Totally Wrong... Twice!

Who says the richest Investor - warren buffett is always correct?

Here is the recent news where he made a wrong bet and may even get Nothing back from his $2 Billion investment! - http://business.financialpost.com/2012/02/27/even-buffett-is-hurting-from-low-natural-gas-prices/?__lsa=c5983af1

Read about that article and the lesson you can learn from this is to understand the underlying business fundamentals of your investments.

What Buffett has done correctly in his most profitable investments e.g. Coca-cola, P&G, Washington Post etc.. is that these are consumer durables products... easy to understand, you just need to wait for the time to purchase them at Cheap Prices [undervalued]!

What Buffett has done wrong is that for his two mistakes:

1) buying ConocoPhillips stock near the peak of an energy boom
Lesson learnt: you need to know how Energy prices move and how they affect the exploration or pricing of the oil -> basic product the company is selling!

2) bought about US$2-billion in bonds of power company Energy Future Holdings Corp., said the investment is at risk of losing all its value after natural gas prices fell.

Lesson learnt: you need to know how Natural prices move and how they affect the exploration or pricing of the natural gas -> basic product the company is selling!

Thus, a wise thing to do is still to invest in what you are familiar with. If you look at hindsight, you will always say "Aiya, why i didn't buy this stock and now it has risen by so much." Instead, buy something safe & profit with ease, all with a simple understanding of what you are familiar/knowledgeable about :) 

Nevertheless, Warren Buffett is still my idol as he built his entire BILLIONAIRE [$_$] wealth through frugality and investing it for compounding returns. Everyone make mistakes through the path of investing and so does people at the top. Most importantly, learn from your mistakes and improve every-time; sooner or later, you will reach the top :)

DBS issuing Preference Shares yielding 4.7%!

DBS Bank will be offering a new tranche of preference shares for subscription.

Up to S$500,000,000 in aggregate liquidation preference of 4.70% non-cumulative, non-convertible and non-voting preference shares callable in 2020 in the capital of DBS Bank will be offered, with an option to increase the offer to up to S$800,000,000 in aggregate liquidation preference of preference shares.

DBS preference shares at the issue price of S$100 per preference share will be offered to the public in Singapore through electronic applications made through ATMs belonging to DBS Bank (including POSB), Oversea-Chinese Banking Corporation Limited and United Overseas Bank Limited and its subsidiary, Far Eastern Bank Limited or the Internet Banking website of DBS Bank.

An application for the preference shares under the public offer is subject to a minimum of S$10,000 (or lots of 100 preference shares) and in integral multiples thereof. The public offer will open at 9.00 a.m. on 11 November 2010 and close at 12.00 noon on 18 November 2010, subject to changes as may be announced.

They are expected to be listed on the Main Board of the Singapore Exchange Securities Trading Limited from 23 November 2010, and will be traded in board lots of 100 preference shares.

The preference shares carry a dividend rate of 4.70% per annum, payable semiannually in arrear on 22 May and 22 November each year, subject to certain conditions. The preference shares are perpetual securities with no maturity date and are not redeemable at the option of the holder of the preference shares. DBS may redeem the preference shares for cash under certain circumstances.

The DBS preference shares OIS (prospectus) can be found here:

DBS preference shares Offer Information Statement