Thursday, 25 September 2008

Potential investment opportunity in Myanmar

I've received a news letter from "DAILY WEALTH".
The military government's macro economic policy really look like swing door. If you push it in and get inside right away. Otherwise. it will hit you back with more risk.


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How to Make Millions Investing in a Hard-Line Military Dictatorship
By Tom Dyson

I opened the metal door and walked into the embassy. The interior looked like the waiting room of a small-town Greyhound bus station. It was shabby and hot. A plastic clock hung over the room, ticking loudly. The people sitting on the benches had a resigned look on their faces. It seemed like they'd all been sitting there a long time...
There was no queue at the ticket counter. I went up to one of the windows and pushed my nose between the metal bars. There was a man behind the counter in a worn brown uniform. He was taking care of paperwork...

"Excuse me," I said. "Is this window open?"

He grunted, irritated I'd interrupted him.

I'm in Thailand. Myanmar is the country just west of Thailand.

India Bombay Stock Exchange 30 Sensex Index

I wanted to visit Myanmar while I'm in the area. So on Monday, I went to the Myanmar embassy in Bangkok to ask about tourist visas.
Myanmar is run by a hard-line military junta. It's held power for 46 years. Inept leadership has made Myanmar one of the poorest countries on Earth. Last year, Myanmar made world headlines when military gunmen killed 31 anti-government protesters in a peaceful march organized by Buddhist monks. The government cut the national Internet connection so no one would find out. Then it organized a pro-government march and paid people to participate.

Earlier this year, a gargantuan hurricane struck Myanmar's southern tip, killing 150,000 people and eradicating all civilization there. The junta refused international help.

Here's the thing... Myanmar is also a wonderful investment opportunity. It has 2,000 miles of glorious tropical beaches. It's loaded with oil, gas, minerals, gemstones, and metals. The land is so fertile that Thailand – with a similar climate – is the world's largest exporter of rice. It's also in a fantastic location to trade with China and India. This is why I'm so keen to go to Myanmar.

Doug Casey introduced me to the idea of investing in Myanmar last year. Here's what he wrote about it in his newsletter:

"My first choice for high potential has been [Myanmar]. It's very cheap, very beautiful, lightly populated, and right next door to Thailand. The ruling generals, who make it a political pariah now, will be gone at some point.

But, in the meantime, a clever entrepreneur can make deals with them, because they all want to feather their nests. Property here will go up 10 or 20 times over the next generation. Want to make millions while having fun? Go to Rangoon"...

Then I met Jim Rogers in Singapore last month. He told me Myanmar is one of only four Asian countries investors should be looking at right now.
I can think of two ways to invest in Myanmar. First, you could go there and buy property. Set up a youth hostel on the beach or buy a hotel in Rangoon. The visa process is easy. You fill out two forms... pay $25... and leave your passport and a couple of passport pictures. The visa is done in two business days.

There are daily flights from Bangkok to Rangoon. The flight takes less than an hour. To give your investment the best chance of working, you'll have to live there to keep squatters off your land.

My second idea for investing in Myanmar is unusual, but you wouldn't have to live there to make it work. I got this idea from a mutual-fund manager I met yesterday. He loves Myanmar and thinks there's going to be a great investment boom there someday. So he sponsored two students from Myanmar to go to university in England. There's no education system in Myanmar, so these kids are almost guaranteed to be successful Myanmar businessmen in the future. "They'll be my business partners someday," he said.

Unfortunately, I won't make it to Myanmar this time. My itinerary won't allow it. But if you're looking to make a fortune, you've got an adventurous streak, and you don't mind cutting a deal with a corrupt general... you should consider visiting Myanmar and looking for business opportunities.

Good investing,
Tom

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Source: Daily Wealth; "How to Make Millions Investing in a Hard-Line Military Dictatorship ", September 24, 2008.

Friday, 19 September 2008

SEC list on NO-SHORT stocks

Due to the financial crisis in recent days, SEC release the list of the stocks which are not allow to Short. The partial socialism activity seem to be replace in US's financial market.

List of NO-SHORT

Friday, 12 September 2008

Warren Buffett


Warren Buffett interview program from CNBC is one of best in recent day. I admire WB and I'm trying to gather the valuable information about the financial and stock market. So far, I've very few info and it make sense in the consumer market.

THIS IS A LIVE BLOG ARCHIVE OF WARREN BUFFETT'S APPEARANCES ON CNBC'S SQUAWK BOX

Saturday, 9 August 2008

P/E ratio and stock research

The following letter was received from investmentu@investmentu.com.
I was check it out for more details. Obviously, it's one of the important consideration.

Floyd include in the email with the following message with the subject : " Favorite Ratio for Evaluating Stocks" Date: Wed, 16 Jul 2008 .

==> Professor Siegel's findings, which are the product of years of academic research, captivated the audience. Take a look at some returns that caught my eye...

His research proves that over time, stocks are a superior investment to all other asset classes. Over the long term, stocks have returned 6.8% per year after inflation. Whereas gold has returned -0.4% (failing to keep up with inflation) and bonds have only a 1.7% return. After taxes, the outperformance of stocks is even greater.
The P/E Ratio... With a Twist
Professor Siegel said that his favorite ratio for evaluating stocks is the expected rate of return. He calculated this with the formula 1/PE (Price to Earnings Ratio). For example, with General Electric (NYSE: GE) trading at a PE of 12.78, the expected return would be 1/12.78, or a 7.8% return.
Moreover, Siegel suggested buying high-dividend-yielding stocks. His research shows that much of the returns of the market are the result of compounding dividends. His example of a quality dividend paying stock was Philip Morris (NYSE: MO). It was an original member of the S&P 500 when it was created in 1957. And it's the best performing stock in the index since inception...
Thirty-three shares of Phillip Morris, bought in 1957 would be worth $8 million today. It goes to show the power of dividend reinvestment.
He argued that given a sufficiently long period, stocks are less risky than bonds. After a holding period of 10 years, the worst performance for stocks was -4.1%, and –5.4% for bonds.

With a holding period of 20 years, stocks have never lost money according to his calculations.
So as the major indexes continue to touch multiyear lows, hang tight. No one can tell you when stocks will move higher again, at least not with precision. But history shows us it will indeed happen.
In the meantime, just be sure to mind your trailing stops to protect your wealth. Here's how they work.
Good investing, <==

Sunday, 3 August 2008

The story of Stock Market Fraud



This is an idea to raise the stock price which is illegal. The same activities can apply when the people want to short their stock. The trader necessary to read analyst's news and their hot pick.
Here is a story from The Newyork Times,
"
February 25, 2001
Jonathan Lebed: Stock Manipulator, S.E.C. Nemesis -- and 15

In Sept. 20, 2000, the Securities and Exchange Commission settled its case against a 15-year-old high-school student named Jonathan Lebed. The S.E.C.'s news release explained that Jonathan -- the first minor ever to face proceedings for stock-market fraud -- had used the Internet to promote stocks from his bedroom in the northern New Jersey suburb of Cedar Grove. Armed only with accounts at A.O.L. and E*Trade, the kid had bought stock and then, "using multiple fictitious names," posted hundreds of messages on Yahoo Finance message boards recommending that stock to others. He had done this 11 times between September 1999 and February 2000, the S.E.C. said, each time triggering chaos in the stock market.

The average daily trading volume of the small companies he dealt in was about 60,000 shares; on the days he posted his messages, volume soared to more than a million shares. More to the point, he had made money. Between September 1999 and February 2000, his smallest one-day gain was $12,000. His biggest was $74,000. Now the kid had agreed to hand over his illicit gains, plus interest, which came to $285,000."

Thursday, 31 July 2008

Olympic and World's Markets


Asian markets rebounded Wednesday, with the major tech exporters such as Canon Inc. and banks such as HSBC Holdings advancing on the back of Wall Street gains overnight. The airline and automobile stocks across the region climbed after a pullback in crude-oil prices. Source ( http://money.cnn.com/news/newsfeeds/articles/djhighlights/200807300040DOWJONESDJONLINE000010.htm)

Pre-Olympic Games buying looks the trend analyst in favorable from mainland China. The Chinese eat more pork than the rest of the world combined. The country consumes seven times as much as the No. 2 consumer, the United States and consumption is increasing. According to the USDA, Chinese pork consumption rose 22% between 2002 and 2006. There's a big opportunity for America and Canada to export pork to China. the slowing U.S. economy has already gutted the profits of low-cost Chinese electronics, toy, and furniture producers who employ millions of workers.
This why Chinese Premier Wen Jiaboa met with U.S. secretary of State Condoleezza Rice this week, to (1) to outline measures it was taking to safeguard its own economic development and (2) outline their own efforts to boost the U.S. economy.

Their plan will not only create greater growth between both countries. China its economy is growing like a weed. Its standard of living is on the rise. And its people now have the means to not only lift themselves from a dirt-poor, country existence, but also to one of a much richer lifestyle, filled cell phones, big screen TVs, and cars. The jobless rate clime up and many financial and other industries meet with obstacle in US. China was keep growing and the citizen growth in their income.
And many facts and figure by all accounts “China’s growth is dead,” Wall Street’s analysts are not only missing this story but also U.S. investors are missing out on huge profits that are headed this way.(Robert Hsu Editor, China Profit Strategy)

Wednesday, 30 July 2008

Shorting in bear market

Shorting is popular in recent days as far as I read in the financial market news, discussion and analysis reports.