A House or Property?

Everyday read news found most of the article mentioned a developer going to launch a billion project or some place the value already increase about 25%. You hardly find a news saying that some location has been ignore.

Every one can stay at Dubai or London or maybe your country city center. So, riches man grab more assets because they have money to buy in advance and then follow by news reporter highly recommend such location.

Like a shares, everyday you open a paper can see some news about special issue. Like, how many people buy gold, how many people invest FB from IPO. Thus continue push you aim it and jealous. You life become not peaceful and steady.

A house for you to rest or invest? A house for you to accumulated wealth? A house for you to gather you friends and relative.When it was started make you crazy have many many houses in hand? So, a property counter make you happy because when you buy a share you may own many many house. Is it this a investment theory? or just make you dream you have many many properties in hand?

China crazy about the luxury thingy and so make a multi project in one time. Does it work for helping economic better? The closing up policy still is a big issue, it stop someone transfer a lot of money out from country but the government servant can use some power to do that. So, finally a lot of high level people rich in oversea but poor with steady in china. So, his son or daughter very rich but parent very poor.

China's Shanghai Composite Index Alert

In the last day of July, China Shanghai Composite index hit the 52 weeks low and recorded at 2100.25 That is a bad signal.

All this time, the above said index standing at 2300 above. That is a check point for me to refer. So, if it was broke the support line. What is it never level of support? Normally, if the index broke support that have more than 20% to 30% adjustment. Would it be happen on Shanghai index?

Actually, I do believe that will happen. So, the second issue is that will affect world share market? Maybe this is a good time for investors to think over whether should keep stock or selling in hand stock.

Is it needed Monopoly?

Why monopoly is not good? Government always claim that we should control some resources to ensure the supply is enough. But such mind set has been bring some one can indirect control the government to adopt a good policy.

Like Wall street Financial people created a giant bond to threat government. So, the liabilities be population burden. So a lot excuse to rescue and then make a lot of unfair policy for them continue the monopoly.

In the Asean countries, we can see Power, water supply, wheat, sugar and oil control by few big tycoon. So, if the government lose the election, then this become a threat to all. Recently we could see a joke happen in State of Selangor, Malaysia. A full water cannot supply to user. Why this can happen?

The monopoly system stop good people can adopt a good system for population. So, state government should use in hand resources to take over the company. As a population, I think no one will blame the government use more than normal price to buy the shares from open market. It does not care your are from which politic parties. Every one in the state will benefit on that, at least stop some one earn higher salary and do nothing. 

Of course, such buying stake activities should follow by some ideal system, like all population staying in the state should own some controlling stake to ensure that, which is no one monopoly. State government should pass over such shares to all population by way of equal. No one is more than 5%. Maybe should consider, in the water bill charge another RM1 per month as share buying. maximum up to 1,000. Who do not paying bill can buying at 1 per month per share from government, maximum also 1,000.

If the system is work, then should apply to other type of resources. Then, the sharing resources become fair and discourage some business earn the extra from national. So, the minority riches cannot use our funds to expand the business, buy so many assets in the oversea for planning their own family migration.

We can see a group of company, from guarantee of supply electric to Tenaga already accumulated the cash in hand more than 12 billion. Then they are not shameful tell reporter they are very smart to do business in Malaysia. Not only one, that is few of them.
So, are you think the monopoly is necessary?

Is it a qualify auditor?

How to read annual report? A lot of professional said read annual report help you select a good stock. You can find a company holding a lot of cash in hand or maybe find them whether is over borrowings. So, every one become a qualify auditor.

In my stupid opinion, how to value a company must refer the business whether is monopoly or selling the sole idea for people life. If someone create such a company, the value at least 50 time of P/E because that will not ahead by anyone. Furthermore I also must determine whether the business gain any pioneer status because that is not easy to step in by any new competitor. Normally, the company also can be valued higher and gain finance institution lend money to support the business. If the said business easily build up by cash, that this business become valueless. Like development of houses business, that is easy build up by cash. So, the offer price cannot set higher in the IPO. Banker also not easy finance big amount for the project.

Currently a lot of company management like to join in to bond market to call up additional funds for business and they also like to issue Islamic bonds to call up the working capital. How many people can tell me that KLSE's listed company already issued how many trillion of Islamic bonds? How many can sustain the repayment by such borrowing? Is it Central bank has been set a rules and regulation to control it? Is it auditors can summary the details and compile it as data base for reference. Such warning note should be highlighted into report. Not like someone said so, only read the report figure and comment something in the newspaper with no sense.

So, to be qualify as auditor not only must know the annual report. He/she also must well know the necessary or unnecessary thingy in the business. Not only claim someone borrow money, he also must know the repayment ability as well as the business in the company whether can last long or sustain.

How to be a good investors?

Some people thought read the company annual report, attend the AGM. It can be a good investors. If your are one of them, I could said that you are waiting the fruits drop from a tree, like a farmer employed few foreign worker to plant for you. You are just sitting there and do nothing people.

In my mind, shareholders or investors should be well know every business transaction in the company. He/she should be able inform the directors about their view on every project in the AGM. Of course such activities would be not encourage by management because they wanna to end the meeting in time.

So, as a management level should encourage putting a suggestion box in the meeting for future reference. It should a guidance to improve quality of investors in the company. The door gift for investors should awarded to such a good and quality investors.

Sometime the management will say, that is not necessary because our management people all capable than investors. That is a selfish thinking of them. The value or quality of investors upgraded actually is indirectly help company improve the company image. Rather than now most of the investors just aiming for gift given during the meeting time.

That is easily allow management allocate more funds of the company for self benefit and allow company facing the high risk on every investment. Simple like buy a luxury car cost about 800k per unit for director's used. In the AGM, the door gift maybe just cost about RM100k only. So, which one is more important? 

The quality investors bring healthy of culture to the company. Not only the company the benefit as well as the employee/staff also can proud of it. So, if you are the investors, Do you still care about voucher of 50 butt or company can registered as top 100 in the world.