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Showing posts from August, 2013

SPAC Boom! (Part 4) : How worst could it be?

1st QE tappering and foreign fund flight 2nd South East Asia currency crisis??? 3rd US to hit Debt Ceiling latest by Mid of October 2013 4th US may shoot missiles to Syria as soon as this Thursday Has all the issues above scares you??? Will the market fall somemore? What is the best time to buy??? What is the best price to get blue chips? It's really a tough question as the market is now very shaky and we are not sure whether which blue chips will be hit down if the crisis really comes. As a believer of SPAC, I will still tell you that the SPAC is a best buy at this juncture. Why??? 1st SPAC always have 90% of their IPO proceeds with their trustee as long as they haven't purchase any assets.  According to the theory above, we can see that CLIQ and SONA still has 90% of their cash in the "vault" as long as they haven't purchase any asset. Which mean CLIQ has RM0.675 in the bank while SONA has RM0.45 in the bank. CLIQ Looking at their closing price today, where CLIQ...

Is financial crisis around the corner?

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FBMKLCI Down by 32.94 points or 1.85% today while Thailand fell about 27.62 points or 1.98%, Indonesia fell 138.53 points or 3.21% in a single day. Indonesia had droped about 524.74 points or 11.2% from 15 august 2013 while Thailand drop about 89.77 points or 6.2%. Malaysia drop 48.39 points or 2.7% since 14 August 2013. Looking at the big drop, lots of investors has started to worried whether should they sell? Is this just the beginning? Is there any big crisis around the corner? Personally, I don't think that this is a very big deal and I would advice to take this opportunity to buy good stock on weakness. Why? 1st, the market was dropping not due to our economy is having any big issue but it was due to the FED tappering!  As we know, the QE had press down the cost of fund in America, where we can see that their 10 years treasury rate was just about 1.6%. This was due to the US govt keep buying back the treasury which is creating more demand just to press down their interest rat...

SPAC Boom! (Part 3) Different Stages of SPAC

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  Would like to add up some point that I've ommited in Part 2. After mentioning about the risk of investing is great, its important to know that the risk of investing in the mother shares of SPAC was just about 10% of the IPO price. This is because of the 90% will be given back if the SPAC failed to acquire any assets in 3 years time. Only warrant holder will suffer the most if they failed to acquire as the warrant holder are not allowed to convert to mother shares if they SPAC failed to make any acquisition. Different Stages of SPAC  There are 5 different stages of SPAC for small fish like you and me. Each stage provides U a different theme as well as the return.   The Initial Stage This is the stage where the SPAC looking for money and this is the IPO Stage. Looking at the past, the very 1st  SPAC in Malaysia wasn't really doing well at this stage as Hibiscus was only able to get a total of RM235 million as initially looking for about RM300 million from the IPO. T...

A very good post from Le Investment

Came across this website and found this article which talk about my darling stock CLIQ. It really worth reading. I think RM1.00 for mother share is not a fantasy and it might go even higher! Huat ah!   周期分析: CLIQ能源(CLIQ:5234) 可以用木槿花石油为参考的目标吗? CLIQ能源(CLIQ,5234,主板特別并购)是一间在油气 领域的特別并购公司;该公司会寻找与收购能为投资者增值的资产。 SPAC是一间特別并购公司,在掛牌时应没有业务或者收入,其上 市的目的就是筹措资金,以便去寻找与收购能为投资者增值的公司。 CLIQ能源就是一间特別并购公司,该公司拥有3年的时间去寻找 符合条件的资产,如果届时没有找到,必须把90%在掛牌时所筹获 的资金退还给投资者。 在美国,只有一半的特別并购公司完成真正的收购工作,而有关收购 平均造成18.6%的负成长。 木槿花石油(HIBISCS,5199,主板工业产品组)是第一 间特別并购公司,目前已收购了勘探和生产业务的公司,并正在进行 其勘探活动。 CLIQ能源是在今年4月10日掛牌,是第二 间特別并购公司。SONA石油(SONA,5241)是第三间特 別并购公司,它是在今年7月30日掛牌。 木槿花石油是在2011年7月25日掛牌,当天此股以0.54开 出,最高掛0.58,当天最低0.52,当天收市掛0.53。 此股后来在2012年4月13日升至2.19的高价,上周三,即 8月7日,此股掛1.45。 由于木槿花石油可以从掛牌当天最低的0.52,逐渐升至2.19 ,升幅1.67,上升天数263天,回酬率达321.15%,因 此,大家认定CLIQ能源及SONA石油也会有同样的表现。 但,那只是一种迷思,不一定会成为事实,保守的人说,只要升至1 令吉,他们也是有利可图了,因此,CLIQ能源及SONA石油的 飙升是建立在人们相信这两只股会有飙升的可能;基础相信是虚的, 他们的投资信心不是建立在公司的业务表现上,因为这两间公司目前 仍没有业务。 周期分析 假定你手上持有1万 令...

SPAC Boom! (Part 2)

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After coming back from holiday, it's time to get back into BIZ again. Its time to continue with my story telling session again! To continue with the SPAC Boom, 1 of my beloved lecture had give me a task by convince him that why should he invest in SPAC instead of those listed company which already has good track record and gives good dividend.  To answer this question, I would have to touch about the concept of investing as well as the risk profile. Investing in company with good track record and dividend 1st. Investing in a company that already has good track record is because we know about the past of the company and we could evaluate the company whether is it worth to invest or not. On the other hand, this is a very safe strategy to invest as we knew the pattern of the management and the capability to make profit in future. As long as the company is still doing well hence they will create wealth to the shareholders which is also the ultimate role of the board. As a result, those...

The take away from the Taiwan Trip

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8 days and 7 nights, a short trip I would call and it's tiring but it's fruitful. Why? I think I've learned quite a lot even its just a short trip. Many would say, what can U learn by travelling? Actually travelling can let us know more about the culture of the other nations and see what they doing and learn from them! After all, I would like to share some of my experience and learning right here no matter its good or bad.  The Kitty Land This country loves Hello Kitty so much! They have everything about Hello Kitty! From the toys in McDonalds, facial tissue with Hello Kitty, Masks with Hello Kitty packaging and even Diapers with Hello Kitty packaging, Landyard and more! The best part is even EVA Air has Kitty Plane too! Its so crazy until I can address Taiwan as Hello Kitty Land!  Traffic 1st thing I notice about Taiwan is their traffic. The driver seat is at the left side of the vehicle and they are driving at right lane instead of left lane.  2nd thing is their traffic...