Questions and Answer : Shares Guidelines
Q01 : How does this blog work??
If you are searching for guidelines on how to invest in shares or shares that represent a company, this would be the nice place to start with. However, there is no recommendation on any shares as it depends on each individual preferences. After introducing some topics or some guidelines, you may know that you have gained something from this learning process.
How people invest in shares to reduce and minimize the Risk?
a) Checking those Companies with dividend, does 90% of them make money?
Companies with Dividend really means Profit Making Companies article
* Check yearly net profit before taxation : Example : Distribution of Dividends in Accounts
b) Checking Major Shareholders list, probably
A list such as EPF Shares Investment Portfolio
Top shares holder list could be found under Annual Report. Such as, IJM Plantations Bhd
c) Checking Chart
A price that is showing graphically understandable low, such as CIMB
d) Checking Company Financial Performance and Condition
A guideline to show how company's control over their business.
|Description 描述||Latest 最新财务报表|
| Current Assets more than Fixed Assets |
流动资产 超越 固定资产
| Current Ratio more than 1.50 流动比率超过1.50 |
|Net Profit before Tax 除税前溢利||Yes 是|
|Fast Cash Flow Positive 正面快速现金流转||Yes 是|
|Share Price 股票价格||少过 Less than XX.XX|
|Loans and Borrowings over Current Liabilities 贷款及借款占总流动负债||少过 Less than 30%|
|Retained Earnings 保留溢利||Yes 是|
| Biggest Turnover (Stock or Creditor or Debtor)|
最长周转率时期(存货 或 债权人 或 债务人)
|All item should|
less than 4 months
e) Checking Corporate News
Everybody mostly into this section, for example, the company is awarded with projects, this information would not be reflected in the Annual Report or financial statement yet, as it is consider forecasting the future revenue of this company is good. However revenue doesn't actually means Profit, as it has Costing, Expenses to be handle.
f) Checking Investor / Buyer Difference
You may find the article of Buying or Investing
Buying does not require to study how to make profit, as you get one item at a time.
Investing is normally means investing money in order to get profits or loss at the end. A person should and would be holding few kind of shares at the same time, if investment shares prices is high, it would be sold to somebody that consider the price is low, which might be you, and you would consider what price to hold or sell at the end. If you are considering 100% profit, I guess there is no such case in Investment.
g) Checking Value of Movement
The share prices must move, you may find the article the Movement of Activeness, if the share prices not moving ups or downs during a period, let say 6 months, it means nobody is interested to invest. In contrast, if the share prices is flying ups and downs tremendously, it means everybody is interested to invest, but too short term. If the shares prices up and down slowly with big volume, normally big investor is involved, as each prices of shares means a big volume for them.
h) Checking Value of Attractiveness
You may find the article of the Value of Attractiveness, after reading this, you may find the attractiveness value in decimal point of the shares might bring such attractiveness to profits, as well as losses.
Q02 : Do you provide any services?
Yeap, identify business weakness in the production flow, business flow, cash flow and costing, which is the core function on a business on how to generate profits, to cover raw materials cost, overhead costs, expenses, and monthly installments. Once the profits is guaranteed, then would recommend towards the investment guideline. If you are operating a business, kindly get some idea from listed companies. Or you may contact me : firstname.lastname@example.org
Q03 : After analyzing corporates accounts, what do you find?
Of course yes. 当然有。
a) Selling Fixed Asset. Perhaps restructure. 出售固定资产。或许重组。Hovid Bhd
b) Bonds into Fixed Assets or Borrowings. 债券转换为固定资产或借款. Unisem (M) Bhd
c) Bonds into Cash. Perhaps next Fixed Assets. SP Setia Bhd
d) Biggest Turnover (Stock). 最长周转率时期(存货) Ekowood International Bhd
e) Change a lot of Directors. 改变了很多董事 Malaysian Airline System Bhd
f) Extreme Business Model. 极点商务模型 GMG Global Ltd (Singapore)
g) Business Sudden changes. 商业的突然变化 Ingenuity Solutions Bhd
h) Cost and Sales does not meet expectation. 成本和销售额出乎意料之外。 Transmile Group Bhd
i) Low or Thin Gross Profit Margin. 低或较微薄毛利率。 Malayan Flour Mill Bhd
j) Changes of Business Nature. 业务性质易变化 .Elektromotive Group Limited （Singapore)
As listed below, company deems to be have little changes due to nature of business.
a) Industry that must have a lot of Inventories. 须存货高 Poh Kong Holdings Bhd
b) Need fixed assets a lot. 需多样固定资产。AirAsia Berhad