Improve it instead of destroy it.

  After peace day event, I was facing some mental-block problem which dragged me down into depressed emotion. I was seeking some guidance to escape from it. Unfortunately, I failed to do so.

  Few days later I was informed that I had become PTC of Acad A---such a great thing could not make me happy, even worst, I was more depressed. Nobody I can trust at that time, even myself was not exception. People said I should try chanting more. When somebody doubt on or losing faith in something, it is meaningless to do it.

  One night, Some YMD and I gathered and had dialogue with each other. I did not expect anything initially, just hopefully I can speak with somebody. Conversation began smoothly. We talked a lot, from animals, aliens, history, and humanity. Suddenly, my doubt was starting broken during the conversation which took us about 6 hours---change the world.

  I felt some passion inside my heart when I heard we could change the world by ourselves. This was the thing made me woke up from unnecessary-doubtfulness-mind. After knowing the world is controlled by those extreme capitalists, I had a dream o break up the system to save people up from it. There was nothing wrong with that until I knew that the financial world is full of darkness.

  Sensei never mentions to break whatever system or idealism, he just keeps on emphasizing we should be more concerned others around us and never be selfish people which bring harm to others by benefiting ourselves. What we can do is to improve the things or make things better.

  Capitalism is the worst system ever ? I don't think so, at least people can get their wants by putting as much effort as they can to achieve the goal without too relying on others. Sometimes I see those "equally socialism" country face financial problem when people just want money without working too much. Is this the real fairness?

  Improvement should be made on the system to be more humanistic, as now we are advancing.
 

疑心病重

  我天生敏感，也比较容易起疑心，对很多事情都看得很重或什么的。结果这样的缺点在研究公司时让我吃尽了苦头---尤其是在研究之前提起的食品工业公司时，因该公司在报告中多次声明容易受到政府的津贴政策影响其盈利，结果我顿时信心大失。

  可能是我对该公司有所期望，所以才会有所失望吧！就好像之前的jobstreet那样，原以为它会是我的第一选择，怎么知道发现该公司总裁在处理现金方面不符合股东利益，放弃了对它的追求。后来跑去研究金融股，因为有太多看不懂的东西，再加上当时忙于展览会的事情，又放弃了。

  就这样来回几次，总是三分钟热度的就放弃了，是不是意味着我真的不合适投资股票呢？这可是非常懊恼的事情。明明就有兴趣但是却又没有耐性去读下去，只要读到一些因素长期困扰该公司盈利的事情时，我就提不起兴趣读下去了。即使研究数字，也无法令我信服。

  怎么办呢？

Basis of Life

  From the perspective of history, there are somethings that essential to human community life. We could refer it as the "basis of life" in human world although the world has changed a lot. In mandarin,  we summarize it into 4 words 衣(clothing)食(Food/drink)住(living place/ property/convenience goods/land/ )行(transportation/ petroleum/banking services).

   Any kind of human society needs those things and they are all consumable. Each time people use up the resources, businessmen have to manufacture and sell the products and services. People's desire to consume is hardly avoided and scarcity always happens.

  In stock market, there are a lot of services companies which seems like profitable and demanded. Unfortunately, what we can see is that the "basis of life" companies are always the winners in the market and some of the companies manage to survive more than 1 century.

  Basis demand would not change easily. As long as those companies exist, there is no reason for people not demanding the products or services.

  Needless to say, I have started researching about this kind of companies. They are all great companies where they have been here for a long time and maintaining low profile style. The possible researched companies : Oriented Food, Ajinomoto, Hup Seng, PPB, Padnini, Berjaya food, Parkson, NTPM, and Muda.

Advance along with the world

  Classical Economics Theories founder Adam Smith assumed everyone in the world can make decision rationally which they would only choose or buy or sell things on behave on their own benefit.

  This theory has been the core of the economics and never changed or challenged for a long time. Needless to say, the world has changed---many theories no longer suitable to be used and applied even some of the economists admitted that we should restructure the economics theory and come out the most suitable one to replace the out-dated theories. 

  Sometimes people are fear to change. Without the courage and common goals, changes of theories never happen. We are still studying the classical economics although we should have come out a new one. Mathematical method still be the priority way to solve the economic problem---the problem is that the complexity of human is out of range of any kind mathematical calculation. 

  Adam Smith might never think of that human would change quickly, which his assumption would never change as long as the people no change. The cruel truth is that people change all the time, in unbelievable way. What should the economists do?

  In many occasions, I always tell people something very "extreme" (for the listeners) , even surprised them. 

  Humanity---this is the thing has been omitted by economists all the time. Instead of emphasizing those GDP, CPI, we should focus more on humanity which I called it "humanity quality". No more index. It is something immeasurable. Ridiculous? Of course because this has out of the economics which more people-oriented.

  During old time, production and growth are the priority things. People having simple life. Nowadays, the society becomes more complex and specialized. Traditional values are vanishing. People tend to be pessimistic. The thing that unacceptable is that economists still applying the something like what they did during old time.

  Education System should be focusing on value-creation of every person. If people can find their own goal and create value for the world, society or even surroundings, it should be strongly encouraging. Like what Martin Lurther King did for the black people in America. How much impact he had brought? The influential persist until now. 

  I will share more next time. 

     

Who control the world?

  I think a lot recently. Until I can't even support my initial stand which I wanted to be an investor. So far I have not decided yet whether I should continue my investment analysis since I lack of patient to do so.

  Anyhow I have done some random-searching from the internet to know more about the world especially financial market. There is no direct relation about the investment but about how THE BANKS OR CENTRAL BANKS CONTROL THE WORLD. This require some macro-mindset which is called global view to figure out.

  Now there has been some international organisations have been said that they are controlling (supervise and monitor) the flow of the world capital.
 
  World Bank, an international organisation which monitors the worldwide economic and offers special loans to developing countries. It seems like this bank was set up by good, actually it is controlled by United States. Whatever U.S wants to do to the world, the bank would eventually do it for that purpose.

  IMF, International Monetary Fund which acts similar like World Bank but it serves every country around the world and monitors  the currency flowing around the world.

  Bank for International Settlement, a "mystery" and extreme low profile international organisation that set up for serving the world central banks to "stabilise" the worldwide economic.

  As seen above, those financial institutions are set up for "stabilising" and "monitoring" purpose but actually did they do it right?

  They have been making this world more complex and more uncertainty as all of them are controlled by the EU and US for benefit of themselves.

  I still find no real evidence to prove it. Perhaps I would find it until I work as an Insider of those organisations.

Review my choice

  About a month ago, I was determined to choose some good and undervalued companies which I thought some of them might be good enough for me to put my money in.

  As a human kind, I knew I might make mistake due to near-zero experience in choosing and investing companies. "Fortunately", it happened. I found out that Jobstreet is a good company, indeed. There is something I don't buy is that the management of the company seems like has no idea in utilising the company's cash.
 
  When I read the year 2011 annual report, it makes me disappointed that Jobstreet has invested nearly RM 11 million in Singapore listed Reits companies shares. As a growing and expanding company, every spending single sen should be looked like a big planet. I wondered if there is no other good choice for jobstreet to invest in which the REITs has neither direct nor indirect interest to the company business.

  Maybe, just maybe, from the view point of Mark Chang (Founder and CEO of Jobstreet) investing in REITs could bring infinite value to the shareholders and increase the side income of the company (an employment website company gets side income from property rental?). Or the action is just to avoid tax?

  Jobstreet has no further explanation against its investing act. This is the thing for sure he (Mark Chang) doesn't want to talk so much to avoid controversial. I doubt on his action that choosing unrelated business field to invest while the company still needs cash to maintain operations and improve technology over year-to-year.

  In case, he explains in details or otherwise this company should not be considered as my choice.

  Now I should focus on other companies.

Jobstreet is a good choice?

  As a beginner I know there are a lot of thing I need to learn especially when it comes to the real practical, I may not able to follow the target or rules that I have set.

  Being independent in thinking becomes the most necessary element in investing. I admit that I can't even ignore others' opinion when I say I want to invest in Jobstreet. It might be due to the characteristics of the company that is sensitive to worldwide economy---highly depends on the economy up-and-down. World economy deeply influences Jobstreet performance.

  Ok, I am not going to invest for now and observe it for some time to make decision. Good choice?

   This is what I have done. The main point is that ROE is  keep on decreasing every year. ROE means return on shareholders' equity---How much of the return for each dollar shareholder invests in its shares. Profit increasing and the peak time shall be from 2004 until 2007. Never forget that the company intends to pay dividends out of 50% of net profit start from 2011.

  Now I am not going to talk about the figure information (your can look at it by yourselves). Let's have SWOT analysis apply in this company.

  Strength : No doubt Jobstreet is the leader of employment website in Malaysia. Malaysia continues to be the major revenue contributor to the company. Also it is expanding the business across the region in India,Japan, Hong Kong, Philippine, Singapore, Indonesia, Taiwan and Thailand. Diversification has indicated that the Management has the ambitious to become the region champion in this business.
Beside that, the brand of "Jobstreet" has been the famous name among the jobseekers who always seek for the jobs through Internet.
Branding decides a company profit sometimes, the best instance : Coca-cola has the best ever brand among its competitors, even an american is given coke and pepsi, he or she would choose coke although those drinks have not much different from taste.

  Weakness: Obviously Jobstreet is a employment website that depends heavily on technology which comes out some uncertainties in its future. Perhaps by strong branding, Jobstreet continues to be the biggest player but never forget that the company invests heavily on its technology year by year in order to maintain or improve its service. Providing services by technology is risky due to rapidly changes in technology which could impact the company investment. Since it is still in growing stage, somehow cash flow needs to be retained for technology.
Those who expect high dividend payment from Jobstreet should reconsider and think twice before you really put money into this company. Since they less borrow from the banks, the best way to raise fund is through share market.

 There is another weakness which the company could not get into the region market easily especially in Hong Kong and Taiwan, Jobstreet formed partnership with local big players by buying shares. It means that Jobstreet faces some problem of presence in those areas, it may due to their very competitive market. Also they have founded new services which is the autoworld.com where has yet to make any profit (could be dragging cash flows)

  Opportunities: Southeast Asia is one of the most fastest growing economy region among the others. Jobstreet expands its business into Southeast Asia could be the insight of the CEO. Indonesia has over 200 million population and it is still increasing, online users too. Since the young people are getting into job market, more and more demand on jobs could spur the presence of jobsteet. Also, more and more western companies are shifting their focus to Asia especially Southeast Asia. Investment in those company is keep on increasing and more branches are established, jobs are created.

Threats: No sector has little competition. In employment website sector, the services providers are increasing. This has created highly competitive market. Threaten by the increasing number of competitors, Jobstreet could be affected by "war of price" which services providers compete each other by price cutting. Profit would be affected most.
Also, the company is very sensitive to world economy as its profits showed that it is highly depending on world economy up-and-down. Please beware that this company has its own cycle which follows the trend of world economy.

In fact, no company is perfect. Indeed Jobstreet is good company but still needs times to prove its own strength whether it delivers value to shareholders and clients or not.