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.