Broker Commission Typically, when you trade a stock, your costs include broker commission, exchange clearing fee, stamp duty, taxes on these fees and sometimes custody fee for overseas stock exchanges. This trading cost typically ranges from 0.2% to 0.25% of transaction value, with significant part of the cost coming from the broker commission. If you … Continue reading Trading cost
One broker shared with me this joke: Broker: Hello Mr Smith, I have this fantastic undervalued stock doing technology. It has high growth potential and trading at only $1. Our team rate it a strong BUY. So, I recommend to you before other investors jump in. Investor: oh really? Ok. I'll put in $5m. Broker: … Continue reading How to manipulate the market?
One of the advantages of being an analyst is that you are invited to attend those IPO luncheon. Some luncheon are being held in large hotel's conference room with more than 20 tables, some in a private (expensive) dining room in restaurants. I'm not a big foodie, but some of the food is really quite … Continue reading IPO Luncheon
No, I'm not writing a list of things to compare them generally. I'm just sharing one key difference when I was in sell-side and buy-side. When I was in M&A, I made powerpoint presentation to show the valuation of the company. You did it the first round based on some assumptions. Then assumptions changed. You … Continue reading Sell-side analyst vs buy-side analyst
First Resources is in palm oil business (upstream and downstream). Upstream: it plants the oil palm trees, harvest the fruits and mill them to produce Crude Palm Oil (CPO). Downstream: it refines the CPO to produce refined CPO products (un-branded, hence earning a small margin of 3-5% for refinery process; branded refined products, e.g. branded … Continue reading First Resources
"Where is the palm oil price going?" someone just asked in the room. Others chuckled. This question was asked in nearly every meeting. The CEO of the company proceeded to explain the factors that are affecting the palm oil price in short term. Seasonal supply factor. Fluctuating demand. Potential weather risk. Substitution by other edible … Continue reading Where is the price going?
My previous post on a F&B chain with more than 10 outlets sound depressing. Alright. Let's talk about something brighter. This business sells BBQ chicken at food court in a very popular shopping mall. Cost per meal is at least $6. The first time I tried it, I fell in love. No wonder the queue … Continue reading This food court stall, among the best