Proton Preve - Drive it to Believe it

I went to Kuching Sentral last weekend and guess what I found there? The new proton car, Proton Preve!!

We went there quite early in the morning to prevent the crowd. There is not much crowd in the shopping malls but there is a mini crowd surrounding the new car. As a curious Malaysian, my hubby and I went and explore the new car.

 

The famous quote: Drive it to believe it

The booth, quite spacious in my opinion for a sedan car

The famous no car-key slot: To start the engine, you just need to press the button. However, to really activate and drive the car, you will need to slot in the remote control in the slot besides the button. So, basically it is from car-key slot -> remote slot.

The start button, and the remote slot besides it

Apart from that, it comes with a built in GPS system. Now you will never get lost, unless the map is not updated. 

Built in GPS

The back-side look:

The front-side look:

A mini crowd there touching and testing the Proton Preve. Overall I guess it's not a bad car but with the price tag of RM70k for the premium spec, that price range is still out of my range. But for those who can afford it, Proton Preve might be your answer.

Service Recognition Night

I cannot believe time actually passes so quickly. One day I was studying, next I have worked with the same company for 5 years. Actually, this year is the sixth year already. 

To reward those employees that have stay "long" enough in the company, they do reward us with one free dinner and gift (several gifts for you to choose from, but you can only choose one). The celebration is on 29-Feb (special date) at Pullman hotel. The colour theme of the night is gold, white or black. To be safe, I choose black.

Attire of the night

That is me dressing up but nothing dramatic.

Venue: Pullman. The deco of the night

The simple decoration that they manage to "wimp" out for the night. 
 

The menu of the night

The menu of the night. Even though it is an 8 course meal, but the portion is small. I think it's due to cost saving. The favorite terms being used nowadays, increase efficiency, reduce cost, yadah yadah.... 

But anyway, since it's free dinner and free gift available, of course I won't miss it. I need to maximize whatever "juice" that is being offered to me. As the saying goes, maximize the output right? 

The voucher

So, with the RM200 HAW Electronics voucher (Which I choose as my 5-Years award), I managed to get all the following stuffs. =)

 

Slow cooker

Hair dryer

Two fans

My First Home Scheme

From this table, the conclusion dear friends is that we can't afford to buy a house with the salary we are making. Understand? Better rent saja lah...

Before and After

Before at RM1.80 per liter, I pammed 23.89 liter at RM43. But now at RM1.85 per liter, I need to fork out RM44.01 for 23.787 liter.

I need a rich daddy. Anyone want to adopt a cute young innocent girl? Hehe...

Petrol RON 95 + 5cent, RON 97 subject to floating price

This government, really, (shake head) petrol price increases again. Economy is going downhill now but... Looks at US unemployment rate, and how the share is doing.

Most importantly, look at the crude oil price. Why is that they decided to increase the price? Buying car in Malaysia is already like paying 2x more than western country, loan increases due to interest rate hike, and now this. The only thing maintain stagnant is our salary.

The price of sugar will go up 25sen to RM1.75 per kg; LPG will go up 10sen to RM1.85 per kg; petrol RON95 will be up 5sen to RM1.85 per litre and diesel will be up 5sen to RM1.75 per litre.RON 97 will no longer be subsidised

KUALA LUMPUR: From Friday, the subsidies for sugar, petrol, liquefied petroleum gas and diesel will be cut as part of the gradual subsidy rationalisation programme, according to a statement from the Prime Minister’s office on Thursday.

DAMNIT!

Amanah Saham 1Malaysia

To celebrate our Prime Minister Datuk Seri Tun Najib 100 days of leadership, Amanah Saham 1Malaysia was launched today. It's the biggest trust fund offered by PNB up to date, which is 10 billion units.

The opening for subscription is open from 5-Aug until 3-Sept, a period of 30 days. The minimum initial investment for AS 1Malaysia is 100 units. The interest as announced by PNB is around 3.7-4.0 percent, which is benchmark according to 5 year Malaysian goverment yields.

The allocation of the fund: 50% for Bumiputeras, 30% for chinese, 15% for Indians, and the remaining 5% for the minorities.

The maximum investment limit per account holder is 50 000 units for those age between 18 to 55. However, for those above the age 55, the maximum investment limit is 100 000 units.

As a reminder (Investment, Gamble and Risk)

Investment, Gamble and Risk

Laymen always jumble up the meanings of these 3 terms. To them, buying lotteries is an investment; playing stock market or futures product is a gamble. Risk is anything that jeopardizes your job (monthly salary)!

To certain extent, they may be right. But then again, it depends on how much the person knows about his rice-bowl trade and the risk management skills to be applied!

Some ignorant newbies ever told me market entry in futures and FX market was like tossing a coin - so market is about either going up or coming down. I strongly disagreed!

Profit-trading in the market needs some skills. It involves an entry point, an exit point and a stop loss point. A miscalculation of entry price level will jeopardize the other two. Chances of making money or better profit margin will then become minimized!

This set of skills can only be sharpened and enhanced through years of practice and self-enrichment. Many beginners incurred losses because they carried the thoughts that trading was a gamble. They thought it was about market ups and downs. Inexperienced traders think luck plays important part. Skills are secondary. What do you think?

Generally speaking, most people like to punt money in something that is capped with maximal losses e.g. buying lotteries. Some guys told me they were investing with the lottery operator hoping one day they could recoup all monies through a big windfall. To me, I prefer to do something that makes monies everday and plan for early retirement; rather than be broke for most part of my life and hope to be rich just suddenly one day!

Over recent years, many retail traders went into option trading after being baffled by some unscrupulous coach. The banner of such workshop is always sold on the tag line "limited loss, unlimited profit".

That is a fact though. In fact, there is nothing wrong with this caption. However, how different is it if you compare this tag line to buying a series of lottery tickets? Think again carefully.

At the end of the day, most newbies in options trading gave me feedback that they had made little or no money after started trading in it. Majority ended up in red from many small and limited losing positions. Of course, there were others who have made good monies and enjoyed the profits. My point here is not about options trading, stock trading or futures trading. It is about the in-depth knowledge and the proper risk management skills that a trader should have.

The difference between investment and gamble is vast. Investment is executed based on calculated risk and gamble is always outlines on a 50/50 chance or if not, much lower!

Let me stress again. RISK is everywhere!

You could lose your job tomorrow or next month, just like that. In my context, that is also considered as a risk!

As the old saying goes: "High risk begets high gain. Low risk begets low return."

Do not complain of little profits if you have been involved in low risk game. Nevertheless, you could choose to learn or not to learn the techniques of playing high risk games.

Summary:
What you have believed to be low risk may be non-profitable. Instead, you should learn how to control and manage risk in a high-profit yielding business.

Disclaimer: Basically this is quoted but i'm unsure of the source. Whoever know it, pls do drop me a comment so that I can address it. Thanks.

Advice for Fresh Graduates During Tough Times

One of the great pleasures of my life is speaking to college and university students. My speeches are rarely political and mostly just the sharing of my experience, strength, and hope, to borrow a famous phrase. Lately I have been speaking a great deal about the economy, about which I know a bit, since I am an economist in real life as well as in movies and on TV. In my youth I also worked on economic policy matters in a small way at the White House.

As you might guess, the main issue today's students have in mind is what they can do in the currently difficult -- very difficult -- job market. What do I recommend to them to trump the problems so many young people are having getting started in the labor market?

Herewith, I offer a few suggestions. These are taken not just from my experience but from what my parents and their friends told me about graduating from college in the middle of the Great Depression, when unemployment was incomparably higher and times incomparably tougher than they are right now.

Learn a Genuinely Useful Skill

First, learn a genuinely useful skill. Abstract art and conceptual sculpture are great if your parents are wealthy. But if times are lean, as they are for most of us, learn to do what people need done: medical care of all kinds (the shortage of nurses gets more acute every week, and wages are skyrocketing), accounting, engineering that is used in defense, and any kind of work connected to the criminal justice system (crime is an ever-growing menace).

Second, and closely tied to the above, learn who is hiring. Right now, the main eager employers are in health care, education in urban and extremely rural schools, and above all, government. During the Depression, the main employer was government. Under the Obama administration, there will be immense new hires in most areas of federal government, but especially in the areas Mr. Obama has picked as his favorites: "green" power, education, and environmentalism.

Tailor your education and your skills to where the hiring is. You can always change your skill set and move to another area if you do not find government work or some other form of work appealing.

Never Enough of the Best People

Third, be the best at what you do. This is vital. My father often told me that, even in 1935, there was a shortage of top flight people in almost every field. "There are never enough of the best people," he used to say. If you are at the top of your class, you will have a vastly greater job vista than people in the middle or at the bottom.

I know some smart aleck will now say, "Well, Ben, we cannot all be at the top of our class." True enough. But you don't have to worry about the others. Just worry about yourself right now -- and have the best record you can have.

Learn great work skills. Learn to show up on time, to look neat and well-groomed, and to do whatever is asked of you with a willing attitude. Be up to date on all relevant computer skills and happy to learn new ones. Have a super positive attitude. Now is not the time for troublemakers and whiners. Your job is to produce some value for your employers greater than the cost of employing you. Make sure you do just that and do not create "negative utility," which means you destroy more value for your employers than you create -- by complaining, distracting workers, not getting your work done, and requiring a lot of supervision.

The Value of Thrift

Be thrifty. You will be far ahead of the game if you can live on much less than what you earn. Then you can have savings and build them up for the time when you move to a new city or a new job and require "starting-out money." It is just a great feeling to not be desperate.

Make every good connection you can. Almost all good jobs are gotten by who you know at least as much as by what you know. When people are hiring in both government and the private sector, a recommendation from a friend or colleague means more than test scores. Make and expand your web of friends and colleagues from the earliest possible moment, including high school. Your colleagues are a form of capital as real as money, even if not as liquid.

Imagine you are an employer looking at your whole college class. Would you hire you? If not, make yourself better. You can be a rebel later. For now, do what you need to do to get a job.

source: www.yahoo.finance.com

Qimonda in US close down

Today there is another rumour. I heard Qimonda (A DRAM manufacturer) close down (as in WD Kuching case) for all the sites. However, after confirming with an employee there at Senai, he told me that for today, 4/2/09 Malaysian date, only the US site shutting down in Richmond, cutting 1500 jobs. Wow.... That is A LOT OF people.

However, my friend is not so optimistic about the site at M'sia. He mentioned that US site actually send out the official email in the morning to the employees without prior notice and by the afternoon, all the employees are lay-off, without any pay or compensation.

This is bad. And it will get worst. As quoted from the US President Obama, he is alarmed at how fast the US economy has deteriorated, and worrying it keeps him awake at night.


Even the president is having sleepless night over this economy downturn. I have a solution for insomnia, TRY THE SLEEPING PILLS.

Manufacturing sector crushed

Western Digital, formerly known as Komag, is confirmed shutting down by March 2009. This shocking new came out after lunch and people are are still having the aftermaths effect of the news. WD closing down??! This means the unemployment rate in Kuching is going to sky-rocket after March.

Hmm.. I am wondering how long can my company survive. 4 days compulsary leave per month starting next year is a fact. But we can't be sure how long this is going to save our company. I think I need to look for part time jobs liaw.....

Some of the "cute" suggestions given by my colleagues:

1. Grow mushroom
2. Give tuition classes
3. Learn how to do ABC. Then open a ABC stall (Ching's)
   
4. Learn how to do SUSHI. Then open a sushi stall (Didi's)
5. Open nursery (Pregnant lady)
6. Grow cherry tomatoes. Then sell it.
   
7. Recycle old clothes. Patch up those torns and cuts. Don't buy new clothes.
8. Cook everyday. Don't go out eat.

See how terrible the situation is now?

An interesting day...

A very interesting day.......... Share is going up, but silly RESORTS goes down.... The volatility is finally coming back.

Strategy during crisis investment III

Part III

Catching a falling knife
Some may argue that buying now is like catching a falling knife. If you are not careful, you may be hurt and suffer more losses from falling stock prices. There is no doubt that we may incur short-term losses as long as we do not buy at the bottom. On the other hand, who can determine where and when is the bottom. As long as there are still unknown events or hidden problems, an apparent bottom now may not be the eventual bottom. Since we do not have all the information in the market, it is almost impossible to guess where the bottom will be.

In most cases, we only realise the bottom after it is over and by that time stock prices are running high with much improved market confidence. Market bottom could be there only for a short period. In most cases, market did not stay at the bottom waiting for investors. It will just move on.

Since market moves ahead of the economy by about six months, the market bottoms out when the economy is still gloomy, news are still negative, analysts are still calling underweights and most investors are staying at the sidelines.

In the absence of a crystal ball and in order not to miss the market bottom, it will be more profitable if we learn how to catch a falling knife. The good thing about a falling knife is that, we know it is a falling knife. So, we only need to use some precautionary measures to avoid being slashed by it. Handling something we know is definitely much easier than dealing with the unknown risks, something which hits from behind without warning. When we invest during a crisis we actually go in with our eyes open. We know it is definitely risky but we also know it could also be very profitable. If we can handle the risk, the risk-reward trade-off will be very rewarding.

Emphasise strategies
What we need is to buy near the bottom, not right at the bottom. Investors’ frequent question now is when to buy, that is where is the bottom? Perhaps it is more intelligent to ask how much to buy now since nobody will be able to guess where is the market bottom. Even if someone provides advice for market timing on when to buy, how can we trust he knows the answer. He is probably doing it as a favour in order not to disappoint the enquirer with a negative answer — “I don’t know” (which is a fact, unfortunately), or he is probably guessing based on some assumptions.

Staggered buying is preferred over bullet purchase which is taking the risk of timing the market bottom. In staggered buying, a pre-determined amount will be set aside for investment over time, say in 10 equal portions.

One common method of staggered investment is dollar cost averaging, an investment scheme made in equal portions periodically, either by a small amount monthly or larger amount quarterly. There are also several variations of staggered investment.

The investment portion can be modified to x percentage of cash balance, say 10% of available cash balance. An investment of RM100,000 will start off with RM10,000 in first purchase, then RM9,000 in second purchase (ie 10% of the RM90,000 cash balance) etc. This method will stretch the money over a longer period.

Other than equal interval investment outlay irrespective of how the market performs, timing of the next staggered investment will only be made if the market dips by say 5% or by 50 points.

For more aggressive investors, a 10-equal portion of investment could be finished before market hits the bottom. This could happen if the market takes longer-than-expected time to recover. On the other hand, a more conservative investor may be investing too slowly and the market may have rebounded before he or she has invested half of the money set aside for investment. This could happen if the market rebounds faster than expected.

Anyway, staggered purchase is a preferred method to avoid the anxiety of market timing and the mixed feeling of fear of further downside and worry of missing the market rebound. As long as the market is undervalued, the strategy of staggered investment ensures that investors are in and are benefiting from the undervalued market.

Strategy during crisis investment II

Part II

Market chaser — a loser
On the contrary, there are also certain groups of investors who always chase the market. They get excited whenever the market runs. They are overwhelmed whenever the bull is in town and they tail behind the bull. When the bull is gone and the bear returns, they become fearful. They hide at home and cuddle whatever balance they have in their savings.

“The public buys the most at the top and the least at the bottom.” — Bob Farrell’s Rule No 5

As a whole they put in more money during the bull market than in the bear bottom. Some even cut lost after a substantial fall in prices. In a way they “buy high and sell low”, whereas the basic rule of investment is to “buy low, then sell high” — a simple investment tenet understood by most people, but not being widely practised. Although we may not know where the bear bottom is, buying in a down market may still lead to losing money. This is definitely true. As long as the purchase is not at market bottom, it may still result in losses for the time being. This is likely to be a short-term loss but compensated by a probable long-term gain. Even if we cannot time the market perfectly, we are definitely better off to “buy low and sell high” then to “buy high and sell low”.

Prices fell but value intact
Presently stock prices have fallen sharply. Banks are trading at 1x book value, property stocks sold at 50% discount from net asset value, utility stocks trading at single-digit price-earnings ratio providing an earnings yield of more than 10% net of tax and there are many good stocks trading at dividend yield of 2x bank interest rates.

While prices have fallen off the cliff, the values of these companies are still very much intact. The present financial tsunami in the US has its impact on many Malaysian companies. It will cause a slowdown in our economy and affect earnings over the next one to two years. But isn’t this part of business risk? Established and proven companies have weathered this many times as in the past and they will eventually end up bigger and stronger.

Prices may fall but the value of a good company is still very much intact. The value of a company comprises the brand name, business contacts, the team of suppliers, the network of clienteles, the internal management control, the technical skills and etc.

Warren Buffett is busy buying
Warrant Buffett, the second richest man in the world who makes his fortune from stock investment, is busy buying undervalued companies. He sees the value and he also sees prices detaching away from the intrinsic values. He said: “I haven’t the faintest idea as to whether stocks will be higher or lower a month — or a year — from now. What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turn up.”

Although we may not be able to imitate exactly what he is doing, we can still follow some of his investment strategies. There are a few strategic moves that he has employed in the current financial crisis:-

• He is able to buy those shares which he likes in the past at a huge discount to the net worth, which means his safety margin at this point is very good.

• He aims to hold the investments for several years for huge profit margin as he is unlikely to sell for a small profit.

• He does not rush in to buy, he is very selective on the stocks he bought.

• He buys gradually. Thus far, he only uses about half of the cash balance in Berkshire Hathaway, his flagship company.

While others witness the collapse of banks in the US and wonder which one will be the next to fall, Buffett discovers many cheap buys. When Alan Greespan said this is a once-in-100-years financial crisis, Buffett believes this is a golden opportunity to accumulate undervalued stocks for his collection.

Strategy during crisis investment

Adapted from theedgedaily.com

When market was high, many investors were careful and avoided jumping onto the bandwagon. Now that the market has fallen, and fallen sharply, many investors are still wary about investing. There is nothing wrong about being careful with one’s hard-earned money. Not unless our interest rate falls to 1%, like in the case of US or close to zero in Japan.

The only problem with extremely cautious investors is that they kept their money in banks most of the time. They sighed with relief for not being caught by the market. While they escaped the bear, they also missed the bull. Many Malaysians witnessed the bear and bull during the ups and downs of the economy. Nothing happened to them as they did not suffer any losses and neither did they gain anything from these cycles.

No crystal ball
Many investors were cautious because they do not have a crystal ball to predict where the bottom of the market is. Unfortunately, there is no such thing as a crystal ball in the investment world.

Everyone is faced with the same dilemma. Even the professional investment fraternity cannot predict the market accurately. The only difference between a layman and a professional is that the latter is equipped with a bit more information and some knowledge about investing. But their vision is also limited.

They can only see a few feet ahead. Their vision becomes hazier further away from the target. Beyond certain circumference, they probably cannot predict what will happen. Whatever they forecast is purely based on a set of assumptions which may or may not be valid. As such, the predictions of many analysts and fund managers are nothing more than their own assumptions.

Travelling on rainy night
Investment is like travelling in the rain at night. Some may park their cars by the side of the road during thunderstorms while waiting for the rain to stop.

This is especially true for those with astigmatism and poor night vision. They know they can only travel on a rainy night if they have their vision corrected.

Some will drive very carefully in the downpour due to poor condition of their wipers. They know that they are not equipped to speed before changing the wipers.

For those who are well equipped and familiar with the road conditions including the bends and nooks, they can drive on with reasonable speed. Hence, they arrive home early and safe. Getting home safely is important, but getting home early is definitely an achievement. For those who are less equipped, it is better to get someone who knows how to drive to take over the wheel.

In investment, one must be equipped with the basic investment knowledge and familiar with the investment conditions. Otherwise, the road ahead could be treacherous.

Let the savings work
The ability to grow one’s money is definitely crucial especially if we look at how inflation has eroded our savings over time. Gaining a higher return over one’s savings not only can help overcome the erosion due to inflation, it also helps to build up a higher reserve for retirement.

Most financial planners encourage people to save and save early so that the compounded return on the savings can accumulate to a substantial amount leading to financial freedom.

While it is true that early compounding is crucial to amass a pile of wealth, having a higher average return from the investment allows us to achieve the target earlier. The question is how to get our savings to work harder for us.

Crisis means opportunities
The prevailing financial crisis in US may provide the much-desired opportunities. The Chinese character for crisis means danger and opportunity. These meanings must have been coined many years ago based on the Chinese’ experience. The explanation can be seen as a clue and it has helped many successful people to make huge profit.

“Buy when markets hit the point of maximum pessimism.” — Sir John Templeton

For those who have been keeping their savings in the bank, the opportunity arises during a crisis. Their patience eventually becomes fruition. The day of recognition finally arrives and their prayer is answered. Ironically, many who have patiently kept their savings in the safe cradles become more protective of their savings and they just stood by the sidelines, watching the crisis comes and goes. It happened in the past and it is happening now and it may also happen in the future.