Monday, November 23, 2009

How to judge the actual value of a company in stock market

In stock market, in order to know the actual value of a company, 3 elements can be the criteria of assessment of it which are Company Income, Market Current Situation, and Properties of Company.

1) Company Income
  • Value of a company is judged by its current value and future cash flow. Future cash flow is the share dividend, profit, and cash flow quantity.
  • Normally, many shareholders will hold this kind of share because it will give the satisfactory dividend to the shareholders despite of the on-going stock market situation.
  • In most of the time, the value of share in such company shows a stable trend in stock market. The effect of current stock market trend is insignificant to this kind of share/company.
  • Applicable to companies in which the consumer will use the company's product continuously.
  • Examples: Instant noodles, milk powder, canned food, soft drink
  • The company will give significant dividend to the shareholders which is the profit from their sale of product.
  • It is quite advisable to buy this kind of share at anytime because the risk is lower and the price is stable all the time even thought the economic crisis occurs.
  • In judging this stock, we more focus on the future aspect and vision of company, rather than the effect of current stock market situation.
  • In easy words, even the economic is not good, we need to eat, drink, and deal with our daily necessity. Hence, these kind of company will not just wind up just because of economic crisis. Therefore, they can provide good dividend to shareholders if their product is good and sale is stable.

2) Market Current Situation
  • Applicable to companies which the profit depend on the current economic situation of country.
  • Examples: TM, TENAGA, MAYBANK
  • In these kind of shares, although dividend is given, but the share price is mainly depend on the current economic situation.
  • Many term need to be known and calculate to estimate the current value of the shares.
  • The time of buying the share is important, to make maximum profit, we need to buy the share at the time when it is at lowest price.

3) Property of Company
  • This is the least significant criteria among the 3 elements.
  • Example of property: land property, building, and other fixed assest.
  • A company will not easily sell their property to get the cash in market normally
  • When we buy a share of a company, what we will concern the most is the future cash flow quantity of company, instead of the income of company from selling the property.

Wednesday, November 11, 2009

My Final Year Projects

Well, after the last paper of advance water resource on Monday, finally, my horrible period of 3 consecutive semesters are really over! And one thing i should give it a "horray~~", the following sem is really a honeymoon semester for me as i will be taking one subject in whole sem before end up my uni life~. Hence, i cannot imagine how free will i in the coming sem and it is the time for me to plan my next sem schedule. Or else, i will make this free yet precious time in vain without coming out anything memorable and valueable.

Basically, in next semester, academically, other than the only subject i will take (either Adv Structural or Adv Highway), i will only have a quite challenging work to do which is my acedemic Final Year Project. My title is "The effect of Palm Oil Ash Concrete Exposed in The Elevated Temperature". It is quite a interesting topic for me because i am used to be interested in dealing with the concrete thing and its behavious. Palm Oil Ash is a waste material and it is useless if we r not fully utilized it. Hence, if my project really works, it can be some contribution to the engineering field. Furthermore, one thing that really make me passionate to the project it, one of the lecturer of me, Dr Syahid Kabir have much interested in my topic and he is willingly to help me in this reserach, and perhaps the journal of me can be successfully published if possible. It is really make me excited because i never expect that i can actually publish my thing with my name in the engineering field. Jus wat Dr Syahid said:"USM students jus underestimate themselve althought they hav much potential in it, so jus go on!". With this words, i will say: GO ON YC!

Of course, other than acedemic, i hav much more thing to do during my last semester as it will be my last schooling time since i will sure not going to take master after graduated at the moment. So, i must fully use this time for me. The first thing i should deal is the friendship in the uni. There are many frens i know along these 4 years time. And the 1st prior stick up together with me along this 4 years are sure my fellow coursemates. All of us coming from diff places and diff states, being the coursemates is really a blessed fate for all of us. However, people changing (yet i am changing), recently, there are really a lot of barrier among all of us and our relationship seem getting divergence although we know one annother longer. So, now it is really the time for us to catch our frenship back for this moment (of course sure for those who r willing to do so together). Basketball, futsal, gyms, badminton, squash, trips.... all come come!!!!

The second thing will be the dancing life for me in uni. Dancing catch up frenship as well as thru this, i get to know few pals who are really passion in dancing. Alex Poi who are my coursemate as well, is my pro dancing teacher. Although he din join our coursemate activity much, but thru dancing, we get closer becoz of same interest in dancing. Another one is Meng Aik who are my best dancing pal along my dancing life here. We stick thick and thin thru several dancing performance and teaching in uni. Whenever i need any help from him in any dancing session, he certainly say OK to me without any futher thought. Two of them, are really true dancing pals that can willingly to come out and dance even there are only 3 of us~~ Well, next semester, Alex suggested that we r conducting a dance performance in CNY celebration. If it success, it is sure a best performance ever for all of us before ending up our uni life! CHEER FOR DANCING!!

Of course, there are still many things i want to do next sem, like participating in any squash tournament(if possible), buddhist club activities, inverstment career and my future enginnering career. I hope i can really accomplish them one by one and leave no regret for me. Again, i hope my youth will not in vain. 青春不要留白!