Author Archive

Posted on February 20, 2010 - by Createwealth8888

Is Your Company Hoarding Too Much Cash For You? – Part 4

Understanding cash flow

Cash flow is the amount of cash generated from all sources within a specific period of time. Cash can be generated by the following:

• from operations
• from owners’ equity
• from loans
• from investing
• from one-time activity such as an asset sale

A cash rich company does not mean it is a highly profitable company or its future earning growth is secured.

Cash flow and Profit is not the same. Cash flow is the money that flows in and out of the firm from operations, financing activities, and investing activities. Profit, also called net income, is what remains from sales revenue after all the firm’s expenses are subtracted. Companies can make a profit but still have a negative cash flow and not be able to pay its financial obligation and soon run into serious troubles when more of their creditors becoming worry and demand debts settlement and more suppliers demand cash settlement upon delivery. Read more…

Posted on February 15, 2010 - by Createwealth8888

Olam – Amazing recovery!

Chief executive officer Sunny Verghese said the company could pay a dividend midway through the fiscal year because of its strong first-half performance and good visibility for the rest of the year. Read more…

Posted on February 9, 2010 - by Createwealth8888

Protecting Our Portfolio From The Next Bear – Revisit

Market Truism: Every Bear market is followed by a Bull Market, and every Bull market is followed by the Next Bear market.

Protecting Our Portfolio From The Next Bear

Portfolio Management – Diversification Is Your Friend.

http://createwealth8888.blogspot.com/2009/10/portfolio-management-passive-income.html

“However beautiful the strategy, you should occasionally look at the results.“ – Winston Churchill

Let look at the results:

As on last Friday closing @ 2684, STI has lost -8.5% of its value from its recent high @ 2934 while my portfolio value has lost -4.1%.

What really help? Read more…

Posted on January 22, 2010 - by Createwealth8888

Don’t Forget 200 EMA

Newton’s First Law

Every body continues in a state of uniform motion in a straight line, unless it is compelled to change that state by a force impressed upon it.

You may remember this law as “an object in motion, stays in motion.” This means that once the stock price starts to move in one direction, it’s very likely to continue to trend in that direction until something changes the overall bias of the stock movement.

Simple EMA for my Lizard brain

The 200 EMA could be considered the most important trend indicator. Why? Because the stock price is either moving toward it or away from it. It’s a Yin/Yang or love/hate relationship. Therefore, if the stock price is held by the 45 EMA, the stock price will likely continue to move away from the 200 EMA. Read more…

Posted on January 12, 2010 - by Createwealth8888

The Truth About Retail Investors

Retail investors are profoundly different from institutional investors like mutual, pension, endowment funds or even Warren Buffet.

1. Source Of Investing Capital

Retail investors, where does the source of investing capital come from? Some of you may have rich parents to provide you with big sum of investing capital so it is not a problem; but for most of us, our investing capital come from saving from our hard-earned money. Every dollar saved for investment means a dollar less to spend on other “luxuries”.

Someone even goes to the extreme to save on his daily dose of 70 cents coffee by making his own cup of coffee at home so that he can save every cent available for his investment.

The investing capital of these institutional investors are provided by other investors and not from saving from their hard earned money. This is world apart!

Have you finally realize the significance and emotion attached to our investing capital? In other word, for retail investors it represents our blood and sweat, and losing this investing capital may drive some of us into depression and even having the thought of killing ourselves for being so foolish.

We know that we cannot afford to fail; neither can we be overly defensive and manage to achieve meagre return on our investment and fail to build up sufficient wealth for retirement draw down. Read more…

Posted on December 13, 2009 - by Createwealth8888

CPL Weekly – CapitaLand growing presence in China

PROPERTY firm CapitaLand announced yesterday that it has a pipeline of 14,000 homes in China and plans to launch an average of 5,000 units a year there with its strategic partners.

The announcements came as CapitaLand celebrated the 15th anniversary of its entry into China with a gala dinner. The festivities were held at Shanghai Port yesterday.

It aims to grow the figure to around $10 billion over the next three to five years. Its China arm will then constitute between 35 per cent and 45 per cent of the group’s total business.
———————————————————————————————

CreateWealth8888:


If you love the investment theme on “Invest In China” or “China Will Overtake US as the world biggest consumers”
Read more…

Posted on November 24, 2009 - by Createwealth8888

TA – Always Two Sides To Every Technical Decision

You may look at a chart with your own favourite indicators and system and see one thing, while another person who likes to look for e.g. reversals may look at the chart and see something else or totally different. Every buyer and seller have their own reasons to buy or sell and every transaction is matched between buyer and seller.

So who is right?
Read more…

Posted on November 7, 2009 - by Createwealth8888

Who Moves My Market? – Part 4

I like the simplicity of support and resistance. It can work because it is based on simple crowd psychology; but, sophisticated traders don’t like to admit it that it can work. Many Gurus have developed so many technical indicators, and every Guru claims their indicators work best. Who should we believe?

If you could predict where the market is heading, you would be a millionaire many times. Unfortunately, no one has developed an indicator that will predict the future. Many indicators have been created that will give you a probable direction of the market. But, the concept of support and resistance have not been claimed to be developed by any Gurus and it can also be predictive and even allow you to queue to buy or sell your stocks well ahead of any other indicators. Read more…

Posted on October 26, 2009 - by Createwealth8888

Why Do We Still Need To Read Charts?

Some real hardcore retail Value investors will argue charts are not helpful and they don’t care about charts as holding the stock for long term makes charts irrelevant.

But to the rest of us charts are the best way to judge the emotions and psychology in the market as stock prices are primarily driven by investors’ sentiment. Stock prices move because of what the Big Boys (Market Sharks) are currently feeling and thinking, and not just because of the fundamental numbers that have been released to the market.

The stock market is never a level playing field and will never be. Read more…

Posted on October 18, 2009 - by Createwealth8888

Portfolio Management – Growing Money Tree

It helps me to visualize why am I actively Invest or Trade.

“What the mind can conceive and believe it can achieve” – Napoleon Hill

Common saying: Money Is Not Yours Until You Spend It. (or someone else will spend it for you)

And I said: Profit Is Not Yours Until You Realize It. (or Mr. Market may take it back unexpectedly)

Take a good look at the components of a Portfolio:

(more…)