Quick Lesson
« Previous EntriesThe Theory of P/E Ratio
Sunday, July 29th, 2007Price Earning (P/E) ratio. You’ll find this ratio all over research reports, and its probably the most important ratio of any particular stock, as it seems that it determines the fair value of a company.
P/E ratio of a stock is a measure of the price paid for a share relative to the income or profit […]
Buying Warrants as Insurance in a Bear Market
Wednesday, July 25th, 2007A few months back, one of my reader requested that I explain the concept of buying warrants as an insurance for your portfolio.
Let me paint you a scenario. You’re holding a portfolio of STI stocks (ie Singtel, Capital Land) worth $100,000. However, for some reason or another, the indications of a possible short term bear market […]
Warrant series: The Basics
Sunday, July 22nd, 2007Have you ever seen the wierd names like GENTING BHD SGA ECW080324 listed on your stock charts?
Well, what you’re looking at are structured warrants. Structured warrants give the buyer the right, but not the obligation, to buy or sell the security at a predetermined price on or before a predetermined date.
If you still don’t […]
Penny stocks… The debate continues…
Sunday, July 22nd, 2007WL said
“Hi PeHon, I dont quite agree with you on your discription of penny stocks as “They belong to companies that have no fundamentals. No growth potential. No drive by the management to expand.”. Or”They are not owned by rich institutional investors. They are almost totally owned by penny stock speculators.” But before I go […]
Penny stocks. Do money really grow on trees?
Friday, July 20th, 2007When a the market is deep in a bull trend, many people who have never even read about stock investing, never even read the business times start to get interested. they are attracted by the bull that has been happening for months before that. They start to dig out their dusty and probably never used […]
Quick Lesson: Inflation & Interest Rates
Tuesday, July 17th, 2007Inflation and interest rates. The 2 seem to have been plaguing the US market over the last few months. And its having an effect on the world.
In fact, since 1948, the US economy has been looking at inflations for every single year, except for 2 years (1949 & 1955) (source miseryindex.us)
So what really is inflation […]
Quick Lesson: Specialisation VS Diversification
Tuesday, February 20th, 2007Specialisation VS Diversification. Thats the question most investors, traders, whether new or experience, ask.
Anonymous said…
“hi musicwhiz
if u look at BusinessedTimes diversification of over 10 stocks, one of the portfolio has a 300% gain over 5 yrs…”
I’ll like to show everybody the insignificant of that return. “300% over 5 years”. If you do your calculations, this […]
Quick Lesson: Cut loss, is that trading or investing, FA or TA?
Thursday, February 15th, 2007I’ve created a controversy with some of my readers by practicing a “cut-loss” at the 7-8% point on my China Farm holding. So is that trading or investing? If the fundamentals of a company is that good, why be shocked at the 7-8% loss in shareprice?
Well, to recap. My China Farm shares were bought at […]
Quick Lesson: Fundamental vs Technical Analysis
Sunday, February 11th, 2007There are 2 widely used techniques of analysis of share prices. Fundamental analysis which looks at the bottom line of a company, its management, its people and its products / services. Technical analysis generally looks at the stock chart and looks for known patterns that show good potential of breaking out. But which method is […]
Quick Lesson: Unit Trusts
Wednesday, February 7th, 2007As requested, many people have been asking me about my claims for high returns in unit trusts. I think this misconception is due to many not knowing and undetstanding the principles of unit trusts.
The basics
Unit trusts are basically funds “trusted” to fund managers to be invested accordingly. There are different type of funds. High returns […]