Sunday, July 11, 2010

Why invest in stocks?

Why the investor not put their money in to saving, current or fixed deposit?

The answer is because return is low. Stock is hight risk but hight return.

How to calculate return. I will explain you with example. Use this formula to calculate it.

Profit = Invest amount * (1+r /100)^t

Where r = interest rate, t = time.

If you invest 10k into saving. How much you can get back after 5 years later?

Profit = 10K * (1+0.2/100)^5

Friday, July 9, 2010

BANK OF CHINA

Base On RMB $ 000000

2007

2008

2009.00

Market Cap (HK $)

310.16B

Asset

5,991,217

6,951,680

7767364.00

Liabilities

5,540,560

6,461,793

7283958.00

Equity

450657

489887

483406.00

Profit

62036

65,894

85598.00

Price(HK $)

4.08

EPS (Cent)

0.22

0.25

0.32

Equity Growth

9

-1.00

Profit Growth

6

30.00

ROE

14

13

18.00


for more info click here

Thursday, July 8, 2010

China South Locomotive And Rolling Stock Corporation Ltd

Base On RMB $ 000000

2008

2009

Market Cap(HK $)

11.37B

Asset

23716271

55238315

Liabilities

4063162

34917164

Equity

19653109

20321151

Profit

1685603

2116182

Price(HK $)

5.62

EPS (Cent)

15.7

14.2

Equity Growth

3

Profit Growth

26

ROE

9

10


for more info click here

Wednesday, June 23, 2010

Armstrong - A14

Assets 129387 137959 149482
Liabilities 42885 45361 49853
Total Equity 86502 92598 99629
Profit 20488 14885 14717
Price

0.455
EPS (cents) 3.49 2.62 2.81
Equity Growth
7 8
Profit Growth
-27 -1
ROE 24 16 15
PE

16

Tuesday, June 22, 2010

SMRT - S53

Base on $ 000 2006 2007 2008
Assets 1384134 1378952 1437601
Liabilities 795741 738783 760460
Total Equity 588393 640169 677141
Profit 103624 135790 149939
EPS (cents) 6.9 9 9.9
Price

2.29
Equity Growth
9 6
Profit Growth(%)
31 10
ROE (%) 18 21 22
PE

23

Capitaland - C31

Base on $' 000

2007

2008

2009

Asset

25841312

25083613

30166014

Liabilities

13975973

13095811

13286251

Equity

11865339

11987802

16879763

Profit

3152446

1461383

1008634

EPS

98.6

44.7

26.2

Price

3.79

Equity Growth (%)

1

41

Profit Growth(%)

-54

-31

ROE(%)

27

12

6

PE

14




Monday, June 21, 2010

CosCo- F83

Base on $' 000

2006

2007

2008

2009

Asset

1883666

3967170

6799274

6422326

Liabilities

963719

2664416

5190107

4811634

Equity

919947

1302754

1609167

1610692

Profit

279315

478561

419768

137794

Price

1.55

EPS

9.3

15.09

13.51

4.92

Equity Growth (%)

42

24

0

Profit Growth(%)

71

-12

-67

ROE(%)

30

37

26

9

PE

32

Tuesday, March 30, 2010

Risk Management

Risk Management

Type of risk

1.) Financial risk : stock price may be down because of financial risk.

2.) Interest rate risk : It will also effect on stock price when bank change interest rate.

3.) Market risk : Market risk will be occur base on supply and demand.

4.) Inflation risk : People spend a lot of money and can’t pay back debt. As a result financial crisis and Inflation risk will be occur.

5.) Tax risk : Government increase tax.

6.) Political & Gov risk : This risk will be happen when government change rule and it effect on industry.

7.) Personal risk : This type of risk will be happen when you don’t have extra saving cash and need urgent cash.

8.) Emotional risk : This type of risk occur base on your emotion. For example, company financial statement is going down but you love this company and not sell on suitable price.

Minimizing risk

How to minimizing risk? Try to do following step

1.) try to improve knowledge

2.) learn from past unsuccessful investment

3.) before invest in stock, practice on these site

marketocracy.com

simulator.investopedia.com

4.) save minimum 3 month to 6 months of your salary for urgent case.

5.) Don’t invest all of your money into one stock , split and invest in different stock and different industry

6.) Also invest in bond, ETFs and other fund.

7.) Don’t invest more than 10% into one stock

8.) Invest in 4 or 5 stock but should not more than 10

Sunday, March 28, 2010

Type of Stock

Stock can be defined in to 3 type.Which kind of stock is better for invest? It depend on your point of view. Normaly most of the invester invest in growth stock.

1.) Growth Stock
2.) Value Stock
3.) Income Stock


Growth Stock : Dividend Yield may be low in this type of stock because most of the profit will invest again.
Capital gain will increase quickly. Aggressive invetser should invest in this stock.

Value Stock : Book value equal or lower than Market value.

Income Stock : Mostly Dividend Yield may be height. But Capital gain increase too slow.
Uitility stock (electricty, gas and phone service provider) are Income Stock.
Conservative investor should invest in this type of stock.