How should we judge a government?

In Malaysia, if you don't watch television or read newspapers, you are uninformed; but if you do, you are misinformed!

"If you're not careful, the newspapers will have you hating the people who are being oppressed, and loving the people who are doing the oppressing." - Malcolm X

Never argue with stupid people, they will drag you down to their level and then beat you with experience - Mark Twain

Why we should be against censorship in a court of law: Publicity is the very soul of justice … it keeps the judge himself, while trying, under trial. - Jeremy Bentham

"Our government is like a baby's alimentary canal, with a happy appetite at one end and no
responsibility at the other. " - Ronald Reagan

Government fed by the people

Government fed by the people

Career options

Career options
I suggest government... because nobody has ever been caught.

Corruption so prevalent it affects English language?

Corruption so prevalent it affects English language?
Corruption is so prevalent it affects English language?

When there's too much dirt...

When there's too much dirt...
We need better tools... to cover up mega corruptions.

Prevent bullying now!

Prevent bullying now!
If you're not going to speak up, how is the world supposed to know you exist? “Orang boleh pandai setinggi langit, tapi selama ia tidak menulis, ia akan hilang di dalam masyarakat dan dari sejarah.” - Ananta Prameodya Toer (Your intellect may soar to the sky but if you do not write, you will be lost from society and to history.)

Monday, March 16, 2015

Why I refuse to advise people on shares

Not that I am qualified to do so, but in the land of the blind, the half blind rules.

A year ago, I helped a friend to sell his rights to buy shares based on his shareholding. It was all his decision and I accompanied him just to go through the procedure of selling via his remisier. He had not dealt with him for years. It was over within minutes and I could have waited for him in the car instead of his paying Rm3 per entry at the car park.

Now that the share price has gone up substantially, he loosely commented about having lost out Rm20,000 for having sold his rights! It was an exaggeration based roughly (mental calculation) on 5 lots x Rm4 which is way above his entitlement of 3600 shares and the current price of Rm3.75. He did not take into consideration the cost of taking up the shares plus the proceeds from the sale of rights at all! Not a nice feeling on my part, is it?

I had to work out how much he actually lost out so that he is not unduly affected by misconception.

Foregone: Sale proceeds from rights to subscribe 3600 shares at Rm1.00: Rm3,600;
Cost of taking up 3600 shares @ Rm1.80: Rm6,480; Total costs Rm10,080.
Compared with Rm13,500 (3,600 x current price Rm3.75) it shows a loss of Rm3,420 for not taking up the rights.

This brings to mind the thankless task of remisiers when they call up their clients to ask if they wanted to buy or sell shares. Sometimes, a client might be busy and did not bother checking share prices daily and it would have been such a pleasant surprise to know a share price had risen beyond his expectation. But because his remisier called, he could have been tempted to sell instead. Then when the share price rose substantially soon after, he would comment (not blame) that if only his remisier did not call he would have made much more!
 

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