Tag Archives: investment

Seamico Expands Investments, Diverts Attention From Brokerages

Seamico Securities Plc (ZMICO) is diverting attention from their stock brokerages to focus on investments in consumer healthcare, lifestyle goods, food, and drinks instead.

Competition in stock brokerages have been intense lately but Seamico wants to direct its investments on other funds. According to sources, the company wants to increase income and acquire attractive capital gains. Four to five deals are already in the table with the possibility of pushing through this year. For the first quarter, Seamico’s goal is to close at least one.

The Chief Executive of Seamico, Chaipatr Srivisarvacha relayed the news, explaining that each deal will cost an average of 50-200 million baht.

In a statement, Mr Chaipatr expressed how the success of Seamico in 2016 has enabled the diversification. He said, “After announcing impressive earnings in 2016 with almost 300% growth from the previous year, the company’s business plan for 2017 is focused on direct investments in companies with growth potential from high value-added products and services offered to young people.”

Seamico currently has stakes in various companies including Advance Finance Plc and Finch and Partners Asia Co Ltd. These two companies are in the field of marketing and branding. Advance Finance may be listed on the Thai Bourse anytime in the coming two years. Despite successful ventures in these investments, it has not been all growth for the financial securities provider. Seamico has recently exited from an investment in Beacon Offshore Co Ltd. late in 2016.

2017 had a good start for Seamico, however. It had closed a deal to get a 46% stake in Scentimental Thailand Ltd., a company which is famous for owning the exclusive license to develop, sell, and distribute perfumes that are named and sometimes created by Thai celebrities.

Scentimental Thailand is expected to expand into other branches of the health and beauty industry. One such expansion includes skincare cosmetics. The company may also grow to establish businesses in other countries.

Seamico will remain in the brokerage business despite these new investments. A proof of this is its recent joint venture with Thailand’s second largest bank in terms of asset, Krungthai Bank (KTB).

4 Times Dividend Stocks Will Fail You

Dividend stocks are investments that return either cash or additional stocks that companies pay to their shareholders for simply owning a share in the company. This translates to regular income or constant share increase for the shareholders. It definitely sounds mighty swell, right? To get profits by simply owning a share is a great way to earn a living indeed. However, it’s not always the case as the following instances will tell you. Owning dividend stocks is apparently not always beneficial and works best only during certain times. Read on and get to know why dividend stocks are not always a good part of a portfolio.

1. During Interest Hikes
One of the most anticipated market events this year 2016 is the Federal Reserve’s interest rate hike. It’s decidedly going to be a game changer as it’s effects will be felt by everyone in the market. And the impact it has on dividend stocks are negative. While it’s good during times of low interest rate, even beating returns from savings accounts in banks, during rate hikes, dividend stocks’ return rate significantly decline.

2. If Your Interest is Growth
Although dividend stocks provide a great source of income, it doesn’t do much for growth. Depending on your investment needs, you should seek the ones that are suitable for you. Dividend stocks are commonly for veteran investors that have diverse portfolios and established assets. For young investors that need growth more than income, they have to look harder to build their foundation.

3. When the Company is Not Performing Well
Getting payments quarterly can be a very attractive thing but you must always look at the details. Is the company strong enough to offer these dividends instead of investing the money on businesses, expansion, or acquisitions? As an investor you must do your research to know if the company has the power to offer dividends. For example, an upcoming technology firm is probably not the best company to offer dividends. Another issue is the company’s capital. Check out the company’s financial capabilities, it’s balance sheets, and audits and see if it has any loans or how it funds itself. It may cause trouble if, for example, the company is in debt. It may cut down your dividends to compensate for such loans. Lastly, check for the company’s dividend growth. A historical performance will give you an idea of what your future might look like if you invest in the company. Make sure it’s healthy and well for years to come.

4. If It’s Too Pricey
Dividend stocks as defined is a quarterly payment to you by a company because you are a shareholder of that company. This definition is appealing because you get paid but the devil is in the details. You must first know what the specifics. How much will you pay for the share and how much will you get paid quarterly? Know the yield percentage and know the company before committing yourself to anything.

Investing in dividend stocks can be very advantageous if you know how to research and incorporate it to your portfolio. If you can do that then it won’t be a problem.

Do Not Trade In These Situations

Normally, jobs require you to do more, be persistent, and put in effort. While this is true for most jobs, trading is not one of them.

Trading is actually all about timing. And despite the truth in the phrase, trading more means more opportunities, it depends. To expound on these points, you must first understand that not trading is also a trading strategy. By not trading you are preserving your assets which you can trade when there is a better opportunity. Every trader must know when to trade and when not to trade. Here are some examples when it is recommended for you to sit back especially if you are a beginner at this.

During an Upcoming Speech
It is generally ill-advised to trade on a volatile market. The erratic movements increases the chances of loss for the trader. And one of the most common causes of volatility is market speeches. You can prepare yourself for these events by keeping updated with forex news portals. There articles and announcements will be made if there are upcoming speeches, especially if it’s going to be made by a leader of a central bank. These important people include the US’ Federal Reserve Bank head, Janet Yellen, the president of the European Central Bank, Mario Draghi, Bank of England’s governor, Mark Carney, and Bank of Japan’s leader, Haruhiko Kuroda. These are just some of the important heads of central banks which you should pay attention to so know which heads you should be wary of. It is crucial that you avoid volatility, especially if you’re new at trading. Instead you should anticipate the market’s movement after these turning event as it will usually pave way to a clearer and more predictable price movement.

During These Times
Predicting when not to trade can sometimes be tricky as you have to first do some research and get a feel of the market mood. However, there are definite times that are highly recommended for you not to trade and they are regular occurrences throughout the year. The first one are holidays. During bank holidays, you are not allowed to trade so you can really do nothing about it. If the holiday is overseas then it is advised that you not trade the currencies of the banks affected by that holiday. The reason behind this is because banks are the biggest contributors in the Forex market so their absence will create a big impact on the trading volume thus causing a probable volatility to the market. Another time that is ill-advised to trade in is during the opening and closing times in the market. The same logic follows as these times are where trading positions are closed or opened which causes volatility. Yet another time when it is not recommended to trade is during the month of December and Summer Holidays. This is because these times are when most bank staff, private traders, and market participants take their holidays. This means that there is a slow down in the market due to fewer participants.

During Emotional Times
Being a emotional trader is one of the best ways to get bankrupt in this profession. One of the most essential traits of someone in this industry is their capacity to control their emotions. Because if you let your emotions get the best of you then you are headed for your doom. For example, you lost in a trade and to compensate, you immediately trade again in the hopes of a better outcome. However, because of you traded just because of your desire to get back what you’ve lost immediately then chances are you’re gonna lose that too. What’s more is when you trade while in an emotional turmoil. For example you’re having a bad day or something unfortunate happened such as breaking up with a partner or family issues or getting in a fight with someone. Whatever it is, if you trade with your mental health not in the best shape, then you’ll lose more than you can afford. Trading requires all of neurons working especially because it is done with split-second decisions and well thought-out strategies. Again, never trade emotionally!

In general, what you need to remember in trading is that it’s not always more and more. It’s also about moderation. So trade with care and be smart about your decisions.

2016 Investment Strategies to Consider

The year 2016 has begun and this means changes are abound, especially in the financial world. One of these changes will affect investors and all other market participants across the globe, namely the Fed interest rate hike.

For seven years, the Federal Reserve or Fed has enforced the zero interest rate policy. This year, that policy is ending. And with this looming development on the way, market participants are adjusting accordingly. Here are some portfolio strategies that might just want to consider this 2016.

Welcome Aboard Abroad Assets
As a new year begins, investors are facing a more difficult market environment. Current valuations are above average and experts are seeing a strenuous year for the US markets. Fortunately, market experts are seeing the exact opposite outside of the US. Stock prices abroad are looking healthy with emphasis on Europe and Japan. Abroad, valuations are steadier and central banks, still implements monetary easing.

Become More Active
The market is set to be more volatile this year while equity returns is set to become moderate. This means that traders and investors only have two choice, face head on the volatility and take greater risks or ride the equity moderation and just accept that this year is a year of lower returns. However, the basic goal of trading and investment is to generate revenue so the instead of accepting lower returns or taking greater risks, why not just become more active. The strategy is to find active managers and source portions of their returns.

Long-Term Bond Diversification

The looming changes that will set off this year’s financial storm can be weathered using the good old help of years of experience. Diversification is a product of years of standing through numerous financial problems, market crashes, and general negativity. It is one of the best approach to prepare for a tough year. And with all the news and wayward predictions this year, you should immediately turn to diversification as your hedging with special attention to long-term bonds. Long-term bonds are able to withstand unexpected events and situations geographically such as political unrest, unexpected growth or shrinking, and economic instability.

2016 is going to be a demanding year for the financial industry and it is best if you enter it ready. Research your options and know what your strengths and witnesses are. And no matter what this year throws at you, you will be ready to take it on.

Eight Ways You Can Invest Outside the Financial Market

Having an investment is one of the growing trends in the recent decades. Whether you have money lent out through bonds, or you buy and sell stocks, or you have a mutual fund, or any other common kind of investment, it is surely something to be financially be assured about. However, there are people who have invested time and money not on the traditional investments but on things that surpass the desire of financial security. These investments were made not only because of money but also because of passion. And like conventional investments, these things increase value over time and might even be better for your savings. See the different kinds of investments beyond what is on the financial market and maybe you too can hit it big with these.

1. Becoming a Collector
You’ve heard of toy hobbyists, connoisseurs for antiques, and of course, stamp collectors. All of these are people who invest on things that can be collected given, of course, that such items are proven authentic and rare. Collectibles can prove to be profitable because their worth only goes up through time. It takes skills to be a collector because many people are out there that want to profit even at the cost of fooling people. That’s why if you’d like to try your hand at investing in collectibles, then be sure you know your items well.

2. Devoting Your Money to Good Old Stamp Collecting
Perhaps the most famous (and not to mention lucrative) form of collection is that of postage stamps. It has a high potential of profit if you know what to look for in these little rectangles. The value of postage stamps come from their historical significance and geographical aspects. Learning the craft of it and a sharp eye for detail is also a must if you plan to make it a living.

3. Investing on Classic Cars
If you’re one of those people who’s got the time and especially the money to find and invest classic cars, then consider being a car collector. There is a large market for car enthusiasts that are out to find the rarest and most classic cars. There are even markets for other cars such as micro cars, brand specific cars and muscle cars. If you have a passion for cars then try your hand at car collection. It has the potential to give high rates of return.

4. Owning a Racehorse
Horse racing is one of the oldest sport in history and it has stood the test of time. A lot of people consider horse racing as one of the best betting games despite the allure of cards and slot machines. As an investor, owning your own racehorse is a great potential for profit because of the high returns on winning races and studding fees.

5. Locating War Memorabilia
People are, apparently, highly sentimental. One of the most active markets out there are dedicated to war memorabilia. It is understable, of course, because owning a part of history entitles you respect and idolatry. Despite the activeness in this market and the promise of high returns, locating such items, especially rare and significant ones are quite difficult so if you’re up for the challenge then go for it.

6. Appraisal of Precious Stones and Other Gems
Owning precious stones and other gems is similar to owning stocks. While they maintain their value at a usually high price, it fluctuates depending on market conditions. This is why owning them and waiting for the right time to appraise them is a game of patience and strategy. You can get high returns from them if you play your cards right.

7. Finding Rare Literature
The quest for the rare and classic also extends to literature. Books and comics have their own active markets respectively, the former sought for scholarly purposes while the latter for entertainment. Finding first edition of books and classic comics in mint condition can yield a fruitful revenue.

8. Pursuing a life As a Wine and Spirit Connoisseur
While it is common belief that aged wines and whiskies stored in casks are tradition and business that only prominent families can afford, modernization has allowed this investment to become a formal investment business with investors putting money in private wine funds. Although it promises luxury and of course an exquisite glass of wine, experts say that the guarantee of high returns for this investment has not been as lively as other investments on this list.

The key to investing in non-traditional things is to find an item that is rare and which is in mint condition to be sold to the right market. Anyone can invest even if it is not in the financial market as long as he or she has the time, the skill, the will, and the capital.

Five Risky Investments to Put Your Money On

Every trader knows that all transactions, all investments, and all endeavors in the financial field involves risk. And that usually, the higher the risk, the higher the promise of return is. This is why there are all kinds of traders around the world. Some are willing to take on that risk while others are satisfied in their safe and steady growth. Regardless, risk is an inevitable part of trading that’s why all traders must be prepared to accept that truth. The only choice they have is to choose what kind and how intense a risk is.

This article will focus on five of the riskiest investments out there in which you, as a trader, and risk taker, can take part of for hopes of a substantial profit and be warned off.

1) Emerging Markets
Emerging markets appeal to a lot of people because of their potential for growth. As relatively new markets still accumulating trading traffic, emerging markets are one of the riskiest as well. Although there is the potential for growth, there is also the potential for failure due to its instability and sensitivity to the Developed Markets and other market events. Moreover, international companies and their stocks are vulnerable to foreign taxes, unreliable information, and global movements.

2) Options
Options are one of the riskier financial instruments in the market due to its uncertainty for buy and sell as it entitles the buyer nor the holder the obligation for transaction in all types of options. Another thing is its feature which makes it very vulnerable to sudden changes resulting in quick gains and losses. If you are ready to face that kind of volatility and take on the risk and stand a chance of losing copious amounts of assets or gaining an incredible amount of profit in a short period of time, then options are for you.

3) Future
Futures are very similar to options in their characteristic of changing in a very short period of time. It’s like gambling, you are just betting. And the same as options, futures involve a certain amount of risk that will subject you to instant riches or quick bankruptcy if not handled correctly. If you are not an educated nor a professional trader, chances are you’ll get the latter option of quick bankruptcy.

4) Junk Bonds
Junk bonds are bonds issued by companies that have intention of raising capital quickly because they need it to fortify their company due to takeovers, mergers, bankruptcy, etc. Because of this, it is a very high risk investment with also very high returns if it succeeds. The fact that these kinds of companies aim for instant success makes them also very vulnerable to flopping because they are unstable. This transition phase of jumpstarting the company means that companies offering junk bonds have unstable income and vulnerable to defaulting.

5) Penny Stocks
Penny stocks are just that: stocks that cost less than a dollar. Penny stocks carry a high risk in that they are very volatile and unpredictable. However, if you find the right company, you can really earn a lot for less.

Taking risks is an inevitable part of trading and there is no way you can avoid it, only reduce it through proper research and analyzation.

Banking 101: Selecting the Right Bank

Selecting the right bank for you is the first step to financial security. You may be tempted to just go with which bank is the most famous or the biggest or the most talked about. It is true that the big banks got to where they are because of years of development, however there is more to it than popularity.
History tells us that it doesn’t matter how big or small a bank is, every one of them are at risk of bankruptcy. That is why when selecting your bank, don’t simply go with the tide. You should consider the reputation of the bank but you should also factor in your preferences.
Here are 5 factors to consider in selecting your bank.
Before anything else, you should consider a bank’s Legitimacy and Reputation. In order to ensure the safety of your hard-earned money, you must make sure that the financial institution you are entrusting them to is legal and trustworthy. There are ways that you can do this. One of them is looking up your prospective bank on the list of Federal Deposit Insurance Corporation of legitimate banks. You also have a slightly safer choice with banks that have reputation.
Once you’ve guaranteed the legitimacy and reputation of your prospective bank, its time to consider your preference with the Location and Size of the bank. You must consider if you need to be close to your bank or not and whether there are ATMs available near you for your convenience. Sometimes you are better off using a local bank if you’re not keen on travelling. The size of the bank is important as it indicates accessibility. The bigger the bank, the more the branches it has internationally.
Another factor you should look at is the Charges. Banks vary in this sense as they have different charges and policies depending on the kind of savings you want to have. That is why you must do your research before entering into a transaction with a bank. You must know what banks cater to your needs whether you will be saving up long time or be proactive in your finances.
Your needs is another factor with the Accessibility of the bank to be considered. What kind of client are you? There are people who want personalized banking service while others are okay with impersonal but instant transactions such as online dealings. Make sure you are getting what you want depending on your banking needs.
The last factor to consider is your Savings Capacity. Some banks were made specifically for clients that have large amounts to deposit while other banks were customized to cater to clients that have small balances. Some banks were made specifically for different kinds of clients such as employees, trustees, etc.
Taking into account everything above will not guarantee you of a 100% risk-free banking experience but it will make sure that your money is at the safest place it can possibly be. Do your research, select your bank, and begin securing your financial future.

Banking 101: Importance of Banks

The Importance of Banks
Banks are financial institutions that are licensed to keep your money through withdrawals and deposits which may be owned or regulated by a central bank or the national government. They are vital institutions for the nation and the economy to function properly.
However, other than the essential part it plays to regulate the regulation and distribution of a nation’s money, banks are also important for the individual citizen. Here are three reasons why banks are important.
1) Banks are secure.
When you were a kid, you probably stashed the extra cash you had under the bed or in a piggy bank or in the corner of your underwear drawer. However, all these mentioned places are vulnerable. Your home, however safe you may think it is, is prone to disasters, natural and man-made. The cash under your bed could be left behind during a fire and burned to a crisp. Your piggy bank could be smash opened and your cash be stolen. Your underwear drawer could be drowned in a flood or hurricane. Worse, you could just altogether forget where you hid your money. Basically, the home is not an ideal place to keep your money.
Banks were made for the specific purpose of keeping your money for you. The key is to choose a legitimate bank protected by a legal insurance company. For example, in the US, banks under the FDIC or the Federal Deposit Insurance Corporation proved to be reliable despite times of financial crisis. Your money is really just safer in a bank.
2) Banks are convenient.
Banks provide convenience and practicality. With the rise of the internet, banking has changed forever. Aside from the thousands upon thousands of ATMs or automated teller machines that you can access anywhere there is available, online banking has also become available, allowing you to transfer money, pay bills and purchase stuff on the web. You can also keep track of your finances online, on your laptop, tablet, or phone.
3) Banks offer saving and investing.
Besides keeping your money safe and accessible to you, banks also offer the opportunity for your money to grow. By simply depositing money on a bank, it accumulates interest. There are also options for time savings, where you agree to keep your money in the bank at a specified time for increased interest rates. Investing is also an option to make your money work for you.
Banks have long stood the test of time as the keepers of wealth. Take advantage of the opportunities they provide. Save and invest.