Saturday, October 29, 2011

Why you wanna to pay so high remuneration?

Some company have paid out high remuneration to directors. Are you agree that? Based on calculation, in Malaysia if you pay out RM1 million as directors' remuneration, means that the company should have turnover of RM33 million above p.a.to support because our local FD interest rate about 3% p.a.

If the turnover generated profit lower than interest income which derived from FD, it seems company held the high risk on investment or should consider cease the business activities and so the funds should place it as FD to maintain such high cost of remuneration. Otherwise, the cost of investment definitely higher than normal. So, ordinary people indirect convince that company business sustainable and also mislead someone thought company is performing well and steady..

Basis ratio like gearing or return on capital employed does not give a good reference for evaluation of company performance. From the annual report, if you use interest rate to compared with Profit after Tax on company performance. You should able understand more on current shares price is it really valuable for you to buy in because it has reflect the actual return of the company. If it is still lower than normal FD interest rate and so you found that the low turnover with high pay of remuneration. It means that the directors not proven their ability enough to the company. Because the say funds should place it into FD to secure the minimum return rather than you take high risk on investments.

Some company said that without the contribution from such CEO or directors. Company hardly to achieve so high turnover. But if you use such capital in hand invest into FD, the return is almost as high turnover. What is the effort have been contributed by such directors or CEO? Just a old man can do so and earn the same amount of profit. Why we need to pay so high remuneration to them?

Friday, October 28, 2011

Good Rally

How long on current rally of stock market? 1 months or 3 months? Or these rally can last for 5 years. So, I do believe such Financial Analysis will table out their report soon. They will give you some historical data to support these rally. Those conservative Analysis will turn their previous point of view and recommend you are buy in and keep.

Honestly, These rally can stop a while somewhere in middle of next week. How long with strong rally. No data has been provided. So, if you are aggressive and worry miss the boat. You may face uncertainty on fluctuation of price.

Sunday, October 23, 2011

How Much you can offer?

If someone asked you to sell your in hand Osk Holding shares. How much you can accept the offer? Maybe 2.80, 1.80 or 1.60? Those analysis quickly set some price in the media to induce someone follow their price. They enforce someone follow how many times of NTA or NVA, that can help their gain somethings with their in hand holding.


As an ordinary holders, you have been confused by them. What should I do now? Accept or reject? Or maybe pray hard the deal won't go off. Actually this game you should avoid it in the beginning stage because the end benefit shall not deliver to you. If you so lucky hold so long in the past 3 years at lower price. You should take this opportunity run away. It may cause yours earn lesses if the deal price higher than your current selling price. but it won't bring you lose anything. A smart investors should not aim higher he should targeted average and consistence gain in the long period.

Sunday, October 16, 2011

When You are not weLL?

20 years ago, My mum was a hawker. Ours never think about employ a foreign worker to help us up. During that time, if yours family are carrying a small business. Most of the family members must involved on that. Now, when you are walk around to find some foods from the stall. You should noted most the younger disappear to help parent to do such jobs. Most of the workers are foreigners. Such foreign worker every year help their countries earn multi billion back to home to develop the country. Our country GDP also indirect helping by them. So , such feeling brought uncomfortable. Such like fall in sick.

In those development countries likes Euro zone and USA. They also do not have skill or semi skill people to save such cost. So, they are trying hard on develop finance instrument to generated the GDP. Ignoring hard  working to earn a boil of rice. Such instrument created a gap in between of riches and poorer. The distance of unbalancing make 1% people enjoying multimillion resources in the countries. Such equipment also indirectly bring certain group of people pay lesser into social but enjoying most of the high end infrastructure.

The above trend now also happen in Malaysia. The Government continue encourage population employ low cost worker from Indonesia, Myamar and Vietnam. So that the cost of production lower but such businessman use it as weapon/excuse to ignore job opportunity to local people. Just indirect way kick off developing skill and semi skill people with good technology. So, there is no any incentive way to remain them stay into country for helping up of development.

When you are taste the food in front of you, you should able to noted 20 years ago delicious taste has gone. So that is a signal showed that our country need to continue give some subsidy to develop country. By the way, the subsidy amount partly has been pass it to foreign worker at here. So, Government so kind of it help other countries people survive with the same time transfer out our GDP to others.

So, Government compulsory extended the retirement age on that because the group of hard working people going to withdrawn heavily from local retirement funds. During the withdraw time from hard working people or oldest people, definitely the outflow will higher than inflow because younger do not know how to survive.

During the period of time, shares market may lost it heavily because of liquidation from local retirement funds. That time not only you are not feeling well as much as our country economic also must see doctor for diagnosis. When Greece happen such crisis, Government servant should capture some information as experience to ignore such story happen in our country. 

Why they select dead way for us? Why we should happy a while and forever suffer? Please take note as at today our Government related Trust Funds or Retirement funds never registered loss since it has been established although World and Local  shares market has lost/adjusted about 20 to 30%. 




Tuesday, October 11, 2011

Are you need an economic book?

Nowadays, a lot of people start take an economic book for reference. They are trying hard to understand more on current economic crisis. So, are you one of them. I am still remember when I took an economic start study for my exam, I felt loss because I do not have any good basic on my upper level of A level. So many graft into the syllabus and it was totally confused me.
Human have been accumulated so much of experience to help a country build a stability of grown. But finally such economic books does not provide any help to them on current crisis. WHY?

Such politician care about feeling of voter. Sometime they refused such good medicine for their country and accept unreasonable demand.from voter. On the same time, they lose a decade to help population living in peaceful life. Every budgeting handle by civil servant and most of the benefit have been distributed by same group of people. Prime Minister or President not aware of it. So, they just presented in the Parliament and keep informing people of the country. That is good for everybody.

As an ordinary people look at the such statement or budget proposal. Just can accept it and so finally noted that actually the resources have been passed into "AIR". No one enjoy it and not even taste it but few hundred billion dollars have spend out. So, who got the right to reject it such proposal or budgeting.
Economist just busy on evaluate it when the crisis was happen. Why they do not want to stop it in the initial part.

Is it economist study on demand and supply attached with human behaviour or human behaviour plus certain condition affected the demand and supply. Is it the line onto the chart reflected the real situation of basic needs of people. Is it monetary policy still effective when over borrowings by one nation or one country. is it centralise of bank can take immediate action to prevent the down trend of economic. When crisis happen Is it should allow such bad things eliminated  by natural way? or Created another scope of way to restructure of economic. Is it without the demand and supply behaviour will more helpful to ordinary people?

I am not a professor of economic but such above issue already confuse our economist in the world. Why they still believed such currency policy can help a country come back from crisis? I really not understand.

Saturday, October 1, 2011

Disgrace

Every fruition must support by hard working. Now you can see a group of people simply created a group and name it as EFSF just open their mouth and claims that they can put in about 430 billion Euro for rescue. That is creating another bomb into market. They just print out the paper and tell you they have been settled the debts.

One day, bank will accumulating such bonds and so another day they tell you they can't afford on that. They buying time in order to extend the repayment date. That's shameful and irresponsible. However, they use such way to build the confident. So, ordinary people said they can spend again.

On the other hand, make so much of population can't alive at normal with lack of support on daily necessity. In the first place, they should close off the bank in Greece. Tell them they are not even have one cent in hand. Furthermore inform them if they still depending on support from Government Welfare. All people will die.

It is not create new group of terrorist people. Just do not have a person dare to tell them" That's fact". In order to create a sweet dream and bury them continuously. By right we should do some right thing to solve the critical issues. 

Actually I do not want my second generation tell me, That's "disgrace". With some correct direction instead of continue disgrace. I am prefer suffer at this moment of time.