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Tuesday, 31 March 2015

Kaypoh at AK's 3rd chit-chat session


I just came back from attending AK's 3rd chit-chat session and I didn't come home empty handed!

I enjoyed myself - and that's the most important!

Since I am not a bleeding heart like somebody, I expect to get something in return. I'm a taker.

I wasn't disappointed.

During the interactions, one guy shared his kicking the tyre knowledge on one particular stock based on his day job in the air-force. Another man working for big daddy also shared on what he knows on this same company from his day job. Yup, this company got backing from big daddy's sovereign wealth fund.

No.

I'm not going to tell what stock they were talking about. Told you I'm not a bleeding heart!

These 2 gentlemen have an edge over you and me.

Just like I have an edge over you when it comes to shipping and port related stocks  - once upon a time I was acting Transport Manager and have worked in Supply Chain for more than 7 years....  


What's your edge?

If you have no clue, pause and reflect a bit next time you buy a stock. Try figuring out who is selling to you? For your sake, you must be hopping the counter-parties on the other side of the transaction are clueless retail investors who are selling on a whim! 

How to make an educated guess? Next time you make a buy or sell, see the trades done on your platform. Most platforms will reveal who are the counter-party brokerages' codes.

I always feel better when the opposite side are made up of several brokerages with tiny lot counts.   


Start from your own backyard

Duh?

If you are now working in one of the 3 local banks, how?

I know you may not be working in the "right" department, but there's such a thing call networking.

There's a Treasury Department in my ex-company. You think where I asked questions on hedging currency risks?

How about minimising the tax a company pays? Where did you think I learn about transfer pricing and related parties transactions? And what are the common financial engineering tricks of the trade? Not all companies have a legal department, but I'm sure your company have a finance department or at least a Financial Controller?


Do have dealings with suppliers?

I did share my experiences as a purchaser before. 

Just as long you have "buying" duties, you would know that some suppliers are very "atas". Can "suka suka" raise prices but your company still "LL" will continue to buy from them. 

Place order must 30 days upon receipt of invoice. If you try to negotiate 90 days, they politely tell you to "F" spider.

The worst is deliver late and not in the quantities ordered, you don't even dare to complain since you have been told off before: "Not happy don't order lor!"

What would you do when you have such an experience? 

Check whether the supplier is listed in SGX!!!


Got work with customers?

You are working at a shipping carrier as sales executive. This customer of yours normally books 5 x 40' containers per week. Interestingly, you noticed in recent weeks, this same customer is now booking 10 x 40' containers!?

I mean Singapore non-oil domestic exports have been declining in recent quarters, yet this customer is going against the general market trend with more and more exports!? What gives?

And if this customer is listed in SGX, do you have an edge over other retail investors? 
 

What was my take away?

Stay away from that company! (This applies to me and me alone)

I know there may be people in this chit-chat session will get excited and start to buy because the 2 gentlemen I mentioned above have given their "insider" stamp of approval. And plus that bleeding heart also vested.

But that's because they know more than me on that company which they are already vested in.

And if I follow them blindly without doing my own homework, I would be no different than from buying on tips - and that's not investing.

I'll stick with those stocks that I know more than the average retail investor riding the SMRT train.

Wink.




15 comments:

  1. I have mentioned before a quite number of my colleagues suffered large losses in Liang Huat especially burnt a big hole in their CPF investment account. At that time , Govt didn't control the amount to invest before AFC. How come? Insider news man!

    One of the big losers has an uncle as company director and part business owner.

    Insider news?

    Watch SGX announcement of substantial shareholders buying and selling better?

    ReplyDelete
    Replies
    1. CW,

      There's a difference between listening to "insider" tips or other 3rd person opinions (analyst reports) and having an edge by having intimate knowledge of the industry or company ;)

      We are all "insiders" if we are working inside or having corporate dealings with listed companies.


      But human nature is such that doctors and nurses will punt on the latest Oil and Gas darling stocks while those working in the O&G industry will speculate on the hottest biotech stock of the season.

      Delete
  2. so it is SMRT? very little dividend leh
    u 'selling official' 卖官子

    ReplyDelete
    Replies
    1. Jimmy L,

      No lah.

      You be patient. Wait for the official minutes from AK's official media partner.

      I dare not pressure him - he is my blog aggregator, the ring that rule us all bloggers ;)


      I got tired of using the average person on the Comfort Delgro bus so switch the SMRT train lor - like woman, must change shoes OK?


      Come to think of it, SMRT and Comfort Delgro - they increase price, have breakdowns, we pretty much "LL" too...

      Hmm.... I think I must network with people who work inside these companies ;)

      Delete
  3. Hi SMOL,

    You talk what in your blog until so abstract I also blur... -.-"

    However, I understood very clearly all the stuff you shared last night at the event. You are very much a giver also lor. Don't say simi taker lah. It is all give and take mah. ;)

    Kamsiah you plenty plenty. :)

    ReplyDelete
    Replies
    1. AK,

      Last night I spoke in "bai hua" mah.


      This post I revert back to my "gong simi?" mode ;)

      LOL!

      Clear as mud is good!!!

      Delete
    2. Haha just don't start writing 甲骨文。

      Delete
    3. SMK,

      When I write slowly, its 行书. When I write normally, its 草书.

      My teachers like to poke my handwriting: "Jared, I don't know whether to fail you or pass you. Your handwriting like doctor; don't know what you writing...."

      I'll shoot back: "Teacher, must pass me! If not, we'll lose a future doctor!"

      LOL!

      Delete
  4. https://www.youtube.com/watch?v=JJ0n4ZSs570

    saw this yesterday, i'm still laughing today haha..

    ReplyDelete
    Replies
    1. just in case you were sleeping, malaysia is implimenting 6% GST from today.

      Delete
    2. coconut!!!

      That's fantastic and super funny!!!

      Thanks! It made my day :)

      Good vocals and creativity!

      Delete
    3. hahaha...

      just wondering is it a exiting song that fill in the words or a new creation? never heard that before.

      Delete
    4. coconut,

      Ha ha! You know the older songs but not songs from the 80s and 90s!

      It's from HK's Beyond: https://www.youtube.com/watch?v=TIeTcFgdd_4

      Hope one day Singapore will have a rock band that can sing and write songs that reflect the angst and dreams of their generation.

      We had that generation in 新谣 during the 80s; but although I like folk music, somehow when sung in rock, it feels different...

      No Chinese rockers in Singapore?

      Delete
  5. SMOL,

    I ask myself what "inside knowledge" or local knowledge I can have after I read Peterlynch books. It seems teachers are too shield to know what the future money spinners will be.

    But I do find healthy food caterers lacking. Maybe because the market is not big enough, but I think it can be a niche market. Trying to find a caterer to provide healthy food for my mum, really quite cannot make it la, if u look at the menu.

    I think I would customize menu for cancer recovery patients, diabetic patients ettc, it would be a good deed,
    Although I am not sure if it is a good market.

    In case u thinking I am just yeow, her blood sugar when we cook is 6, when she go outside to take healthy vegetarian fried rice before admission to hospital, it shoot up to 16!! Hospital meals of brown rice etc, blood sugar also hover around 9.

    ReplyDelete
    Replies
    1. Sillyinvestor,

      There are some education related stocks in SGX.


      You brought up a very interesting point.

      If you ask most Singaporeans, do they know any healthy food caters, they would probably suggest vegetarians outlets.

      This is class outside industry and "no edge" linear extrapolation thinking.

      Vegetarian only means no meat. Oil, salt, and sugar are still used liberally at vegetarian outlets...

      Healthy eating is indeed a niche market.

      Why?

      It costs more and need time.

      Just pop into any supermarkets that sell organic vegetables and fruits. The poor can't afford them.

      As for healthy food preparation, those into healthy eating often have to cook these meals themselves. This require time. And when people are busy seeking financial freedom, where got time?

      See? You cooking is even better than hospital food when it comes to lowering blood sugar! (One swallow does not a summer make)

      Of course it can be an opportunity. You set up a centralised kitchen and convince the hospitals to outsource their meals to you.

      Like what SATs provide food for the airlines ;)

      Delete

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