Greed Kills -- News Report

Teacher in $130,000 debt over World Cup bets

By MAUREEN KOH

HE was thrilled when Germany beat Australia 4-0 in the Group Stage match at the World Cup last month.

In just under two hours, the first-time bettor made $6,000 - the equivalent of two months' salary for the secondary school teacher.

But by the time Brazil suffered a quarter-final defeat by Holland, John's thrill had turned into shock and fear.

He had chalked up nearly $130,000 losses in bets with three different illegal bookmakers.

The only way for him to pay off his debts was to sell his car.

He started with "small bets between $2,000 and $4,000" for the first two matches, but upped the stakes to as high as $10,000 for each bet.

At his request, we are not using his real name as he risks losing his job.

In the hour-long interview with The New Paper on Sunday earlier this week, John, 28, who has been teaching for two years, pleaded repeatedly: "Please, please don't name the school too.

"I can't afford to lose my job now - my future will be gone."

Novice investment fund outperforms big guns

A testament to prudent fundamental investing.

Guess I got a lot more to learn from then... especially the sentence

'Benjamin Graham said you buy a company at two-thirds its 'net net working capital'. It's very stringent,' Mr Wong said.

Student on winning stock market streak, then he loses dad's life savings

It's an article by New Paper in 2007, but I think it is appropriate to post it out again:



BURNT BY STOCKS
I LOST $700,000 IN 3 MONTHS

Student on winning stock market streak, then he loses dad's life savings

• OCT LAST YEAR: Just a student in Australia, he makes $80,000 from trading

• DEC LAST YEAR: Back in S'pore after exams, he role-plays trading & makes an imaginary $100,000 on 1st day & $110,000 on 2nd day

• DEC-JAN: Convinces dad to give him life savings of $300,000. But he loses it & the $80,000

• Feb: Girlfriend dumps him. He stops trading for 2 weeks.

• FEB: He puts money on stocks of 9 companies when market reopens after Chinese New Year

Bloomberg News Summary from EW International

Asian stocks are due for their “largest correction” since rallying from their March lows as the region’s major indexes complete “intermediate tops,” according to Elliott Wave International Inc.

The benchmark MSCI Asia Pacific Index has climbed 62 percent from a more than five-year low on March 9 on speculation stimulus packages and lower borrowing costs will revive the global economy.

Australia’s S&P/ASX 200 Index looks “bearish” because it has advanced for three-consecutive waves, according to Elliot Wave International’s monthly Asian-Pacific Financial Forecast report released on Aug. 28. “That puts it most at risk of a deep retracement.”

China’s Shanghai Composite Index and South Korea’s Kospi Index are “breaking down,” according to the research company. The Chinese gauge was the world’s best-performing major index until it peaked at 3,478 on Aug. 4, after a five-wave rally that began in October. The weakness in the Kosdaq index signals a decline in the broader market, it added.

“When secondary indexes weaken, it often signals that the market’s speculative ‘animal spirits’ are waning,” Elliot Wave International said in its monthly Asian-Pacific Financial Forecast report. As in South Korea, a similar trend is developing in China where the Shenzhen Small and Medium Enterprises Index has fallen below the “lower channel line.”