Life Term Strategies

1. Huge Gains in Long Term
- Receive significant capital gains
- by investing in corporations
- (with wide economic moat & average peers’ net margin)
- In very very long term

2. Strong Periodic Cash Flow
- Maintain self-sufficient monthly cash flow
- Through dividend, gains on derivative & short term trading
- For re-investment to item # 1 mentioned above

3. Mind for Risk Management
- Ensure strong cash position
- Maintain low risk by continue monitor, analyze & feel:
economic trend & environment,
market condition & investors emotion
corporate performance & outlook
asset allocation & direction

4. Be a holy Christian investor:
- Invest in wisdom & varies ways, but consistent & not over nor under of what the Holy Bible expects a Jesus follower should be
- Keep regular & long term spiritual growth
Continue experience God @ finance market
Aim for life transform opportunities
- Even though it may not teach Billy & Bilibala what stocks to invest nor how to make more, more & more $

12.23.2010

Top holding in Canada 12/23/10

1. Manulife Financial (MFC) CA$31.38 STRONG BUY
2. TD Bank (TD) CA$82.19 => CA$83.84 HOLD
3. Imperial Oil (IMO) CA$47.82 BUY
4. Shoppers Drug Mart (SC) CA$ 42.7 HOLD
5. TransCanada (TRP) CA$41.10 HOLD

TD Bank to buy Chrysler Financial for US$6.3B, the auto leaders with 1 million customers, net assets of US$5.9B by its internal funds (existing shareholders not being diluted). I think this deal is good given the following fact:
1. Strong 2010 auto sales in USA (thanks to Toyota’s “collapse” & slow economy recovery)
2. Auto loan default rate normally lower than bank card loan & mortgage loan at 1.77% which improved by 77 bps compare to year 2009’s average & even it is still 15 bps higher than pre-financial crisis
3. Given TD Bank can use its strong deposit base to support this auto loan business, the interest spread TD Bank will be higher than Chrysler
4. Purchase price of $6.3B or 7% higher than book value looks low (normally, the average is about 2 times book value)
5. Risk of minimal or even negative earning if the prime rate continue to remind low while bond rate are all up cuz auto loans are based on prime rate
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The information provided in the entire blog is not intended to provide legal, accounting, tax or specific investment advice. The information presented was obtained from sources believed to be reliable; however, I cannot represent that it is accurate or complete. I assume no responsibility for any losses, whether direct, special or consequential, that arise out of the use of this information. This information is subject to change without notice. Stock performance are not guaranteed, their prices change frequently and past performance may not be repeated. Please do your own investigation, or contact your own professional advise, before investing.