Big writeoffs for sub-prime losses

By: Tan Kin Lian Mr Tan, Why are there so much writeoff for bad loans by the big American banks and brokers? I thought that they package the products to sell to other investors. It seems that they are stuck with a lot of these products in their own funds. Surely, they know the risk and the defaults with the sub-prime mortgages? REPLY In a large institution, there are many layers of … [Read more...]

Gold VS Silver

By: Derek Lim After reading Brendan's post on Stagflation, it rekindled my interest in Gold again. I'm looking for a investment that have very low co-relation to stocks and Gold/Silver is one of my consideration. Since Brendan is more bullish on Silver, I decided to read up more if Silver is indeed a better choice. Silver or Gold? This topic has been widely discussed and there are both Gold … [Read more...]

Stagflation is here

By: Brendan Lee When I was studying economics during my university days, I learned that the worst economics scenario is not recession, but its stagflation. In a normal recession situation, inflation falls and unemployment rate rises. In a stagflation situation, inflation rises, unemployment also rises. When the economy is facing recession, the government can implement expansionary monetary … [Read more...]

To be or not to be (in debt): that is the question

By: PanzerGrenadier Different people see debt differently The issue of debt raises many points of views among different people. Debt is an issue all of us have to deal with in one way or another because there are some things in life that we are unable to finance it fully in cash at the point of purchase. Your home for instance. As long as you have aspirations to own your own little abode, … [Read more...]

New SGX Securities Market Min Bids & Holiday Season Trading Hours

By: Derek Lim For your useful notice: there will be a change to the minimum bid sizes for SGX market with the effect from Monday 24.12.07 (kindly refer to the notice extract below & the attachment). Generally, the change for securities : Below $1.00 --- $0.005 $1.00 to $9.99 --- $0.01 $10.00 and Above --- $0.02 (The old schedule, for your reference, was: Below $1.00 --- … [Read more...]

Short-selling Part 2

By: DanielXX Continue from Short-selling Part 1 We start with the SBL account, an abbreviation for Shares Borrowing and Lending. This is the traditional method for short-selling, whereby one borrows from a pool of ready-for-lending securities in order to sell short. This enables the trader to hold longer than if he were doing "naked" short-selling, where he basically just sells the stock … [Read more...]

Bid and Offer prices of Unit Trust

By: Tan Kin Lian Hi Mr Tan, Not really about specific financial product, but I'm keen to know the difference between Bid-offer spread to Single pricing Unit Trusts. Is there a better model or do they work out the same? REPLY Most unit trusts indicate the Offer price and Bid price separately. You buy at the Offer price and you sell at the Bid price. The difference is called the Spread. … [Read more...]

Short-selling Part 1

By: DanielXX Long-time readers of my blog would know that I have so far been quite resistant to trying to profit from short-selling. But not for moral reasons, for really there is nothing immoral about taking the view that markets will go down and hence backing up that view by selling first before buying up (covering) later. What is immoral is the additional measures the unscrupulous … [Read more...]

Short-selling Part 1

By: DanielXX Long-time readers of my blog would know that I have so far been quite resistant to trying to profit from short-selling. But not for moral reasons, for really there is nothing immoral about taking the view that markets will go down and hence backing up that view by selling first before buying up (covering) later. What is immoral is the additional measures the unscrupulous … [Read more...]

“Investing” Competitions – Blessing or Bane?

By: musicwhiz Interestingly, the topic of trading and investing competitions first came up on another investor's blog. He was commenting on the salient aspects of such competitions and how they did not create a very real-life scenario for people to learn investing. For myself, I have always felt that the term "investing" was too loosely used in such education "seminars" and "competitions". The … [Read more...]

Lian Beng Chairman and Director Sold 10m Shares

By: Derek Lim The Chairman and Managing Director of Lian Beng, Ong Pang Aik sold 10000000 shares to Kim Eng Securities Pte. Ltd. Read the full details here. The folks in CNA forum is debating if this is a good sign - seems to me that there are more negative sentiments. I am not vested in Lian Beng but DanielXX wrote about it in his blog in October. It may be a bit old but still a good … [Read more...]

United Overseas Australia IPO.

By: Kleer Closing date of application: 17 December 2007 Commencement of trading: 19 December 2007 Established in the 1987, United Overseas Australia (UOA) is a Malaysian-based, Australian-listed property developer that focuses on the middle to high end residential and commercial property development and investment projects in Kuala Lumpur. They are seeking a secondary listing in … [Read more...]

JES Holdings IPO.

By: Kleer Closing date of application: 17 December 2007 Commencement of trading: 19 December 2007 Established in the 1970's, JES is a major PRC shipbuilding group with production facilities capable of producing different types of vessels: Bulk carriers - for transportation of bulk cargo items such as ore, food staples, or similar cargo Containerships - for transportation of all kinds … [Read more...]

The Efficient Market Revisited

By: Jay There has been a lot of debate since the 1950s whether markets are efficient or not. Btw, if you are asking what the heck is an Efficient Market, you can read this posts first. Label: Modern Portfolio Theory Ok Efficient Market. Essentially, some academics came out with this theory that nobody can earn a superior return than the market return (ie average investment return) over … [Read more...]

Act in the interest of consumers

By: Tan Kin Lian Dear Mr. Tan, You spent three decades promoting insurance. Why are you now posting anti-insurance articles in your blog. Why? REPLY I do not wish to be anti-anything or anti-anybody. My purpose is to educate the public, so that they can make the right choice for their future. In recent years, the right choice is: 1. Buy Term insurance to provide the … [Read more...]

KTL Global IPO.

By: Kleer Closing date of application: 12 December 2007 Commencement of trading: 14 December 2007 Established in the 1960's, KTL Global is a supplier of rigging equipment and related services. Their customers are mainly in the offshore Oil & Gas and marine industries, and also in the engineering and construction industries. Their sales and marketing team covers mainly Singapore, SE … [Read more...]

Mercator Lines IPO.

By: Kleer Closing date of application: 10 December 2007 Commencement of trading: 14 December 2007 Established in the 1983, Mercator Lines is a leading Indian-owned international dry bulk shipping company, focusing on the transport of coal into India, and iron ore from India to countries such as PRC, Japan, and South Korea. Their customers are large players in the thermal-based power and … [Read more...]

Soon Lian Holdings IPO.

By: Kleer Closing date of application: 11 December 2007 Commencement of trading: 13 December 2007 Established in the 1980's, Soon Lian is a specialist supplier of over 1,200 different aluminium alloy products, mainly sold to the marine and precision engineering industries. They also sell their products to other aluminium stockists and traders, as well as customers in other … [Read more...]

Mental accounting

By: Wilfred Ling A client of mine was paid in US dollar. He asked me whether should he maintain a US dollar saving account and accumulate his saving there as he receives the US salary. The rationale is because of the declining US, he hopes it will “recover” in the future. If he converts all the money into SGD now, there is no “hope” of recovering. Read more... … [Read more...]

The Buy and Hold Fallacy

By: musicwhiz I notice one very distinctive trait of many investors, which is the flawed view of the “buy and hold” strategy. Many investors believe that as long as the fundamentals of a company are sound and that the company is making profits, they can simply hold on o their shares forever until they are “above water” again (meaning they can break even or make a small profit). A lot of traders … [Read more...]