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Borizon

Issue 1 | Sep 2012

Contents 6

Editor’ s Notes 2 Borizon: Why Borizon?

Market Update 4 Biweekly Review: High beta stocks outperformed the market under the third round quantitative easing; Cash is trash

People

Companies & Industries

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6 Company Focus : Swire Properties — an industry leader in complex development

Career Coach

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10 Career Planning: First step: self-assessment 15 Insider: KPMG internship

“...focus on preparation as you never know when the chance comes..”

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─ Nelson Yip, the Hong Kong representative for 2008 Paralympics Equestrian event

Columns 20 Book Review How to make money in stocks


Borizon

Issue 1 | Sep 2012

Editor’s Notes

Why Borizon? “I want to bridge the gap between classroom and industry, letting students from all majors to have a better insight into the industry.�

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By Louis Pang

he idea of publishing a business magazine arose when I was having my exchange study in UK. A business newspaper specialized for business students was distributed in Universities in UK. When I first encountered that newspaper I was a second year student .

me and continues to be. The newspaper gave me a lot of industry insight, clarified my questions and provided me At that time, I was so innocent with advices on career planning. Literally, the about the industry: from finance lessons, I learnt how newspaper changed my life. to plug in figures into DCM to I believe that there are many value a projects; I knew how students who are unaware of the importance of career to calculate the price of a planning and lack commercial bond which is so unrealistic awareness as I once was. that it only occurs in examinations. What I did not Having benefited from the newspaper, I want to share learn in the classroom are: this with my peers. the job duties of an Nevertheless, published in investment banker; career UK, the newspaper may have prospects of being a finance student; how to better equip content that is not applicable myself; what career planning to us in Hong Kong. And, hence, making a similar is and etc. I was just not publication in Hong Kong has prepared to step into the been my dream since I was industry at all. back. It was under such circumstance that I encountered the newspaper which has been influential to

I have to say: it is easy to think big and to generate great ideas but it is

formidably difficult to put ideas into actions. Realizing this publication is an example. From searching members to moving things forward, from designing the magazine to finding distribution channels, it has taken my teammates and I half a year to turn my idea into reality. In this academic year, students under the 334 scheme and those under the old academic structure are admitted to universities at the same time. With more students but barely increased resources, freshers are bound to be given less attention. I do hope that through this magazine, we will provide some guidance to our fellows in terms of career planning and boost their commercial awareness.


Borizon

Market Update ◆

Market flies freely attributed to QE ‘free’

High-beta stocks outperformed

“Cash is probably trash now. Try your very best to discover strong performer.”

Heng Sang Index soared, closed above

By Joseph Lau

MARKET RECAP

4

Q

uantitative easing of the Federal Reserve and economy stimulating policy of European countries and Japan immediately boosted global equity market. The major US indexes Dow Jone Industrial Average and S&P 500 broke historical high this week, driving Hang Seng Index to surge to recent high ground. The best performer of the index constituents came from the most common short sell target such as cement sector and resources group. CNBC (03323), Anhui Conch Cement (00914), Jiangxi Copper (00358) rebounded about 20% from the recent low. Other strong performer included Zoomlion(01157), PetroChina(00857) and China Coal & Energy(01898). The strong buying power mainly existed in the index constituents. Hence most stocks fall behind the market these two weeks.

HSCEI roared, approaching 10,000 level

WHAT NOW? Our market timing model for both HSI and HSCEI shows a ‘BUY’ signal. Due to the active interfere of governments, the global equity market is expected to keep moving along its current direction. Cash is probably trash now. Try your very best to find out strongest performer in the market and convert as much cash as you can into stocks.

What is BETA? Beta (β) of a stock or portfolio is a number describing the correlated volatility of an asset in relation to the volatility of a benchmark that the asset is being compared to. This benchmark is generally the overall financial market or representative indices, such as the S&P 500.


Market Update

es industri 5 t s e g Stron g ld minin o G ) 1 ent 2) Cem l retail a 3) Loc l ta 4) Me ble m 5) Ga

Winners of this week— Gold Mining

Issue 1 | Sep 2012

Weakest 5 in dustries 1) 2) 3) 4) 5)

Zhaojin Mining (01818) benefit from gold price

Personal ca re Electricity Highway Communica tion Semiconduc tor

INDUSTRY COMPARE Attributed to the QE3, the price of global commodity surged. Related industries group such as gold mining and metal boosted significantly. Zhaojin Mining(01818), Zijin Mining (02899), Lingbao Gold(03330) rises over 20%. CHALCO (02600), Maanshan Iron&Steel (00323), Angang Steel(00347) rebound strongly. The other strongest industry group is the high-beta groups such as cement, infrastructure and machinery. CNBC and Zoomlion are the represtative.

Vinda (03331) kept sliding against market

Although market performed well, there were some stocks falling behind the market. Defensive group such as personal care and electricity are the top loser. Vinda International (03331), the famous brand of personal care, loses 20% from the recent high. Electricity companies such as Huaneng power (00902), Datang International (00991) keep diving. Investors are highly suggested not to purchase any stocks from those defensive group in order to protect your capital from potential loss.

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Borizon

Companies & Industries ◆

The industry leader in complex development

China will be the new profit engine

Swire Properties

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roperty companies have always been the favorite of public investors, not only for its stable dividend distribution and solid fundamentals, but also for Hong Kong people’s obsession with properties. Many property companies in Hong Kong are Hang Seng Index constituents, including Cheung Kong Holdings, Sun Hung Kai Holdings, New World Development and etc, reflecting the popularity of property companies among investors. In this issue, we will have a look into another property company — Swire Properties, which just got listed by introduction on Hong Kong Stock Exchange in January and has gone up for around 40%, compared to the 9% return by HSI. Back in May 2010, Swire Pacific intended to spin off its real-estate arm to raise capital through IPO. However, the plan failed at the last moment due to poor market condition. Swire Pacific eventually satisfied its need for cash by selling its shopping mall, Festival Walk, for HK $18.8 billion to Mapletree which is a real estate investment arm of Temasek.

However, it seems that Swire Pacific is determined to get rid of its property business. In mid-January, Swire Pacific eventually spun off Swire Properties and had it listed by introduction on Hong Kong Stock Exchange. Is Swire Pacific that hungry for cash or does it hold a pessimistic view of the property market?

Company Fundamentals Swire Properties has its operating business divided into three parts - property investment, property trading and hotel operations. Property investment comprises the largest proportion of its portfolio with more than 90% of income generated from it. However, when it comes to operating profit, it is the valuation gains on investment properties that drives number, meaning that the company’s operating profit largely depends on the property market conditions.

What is listing by introduction? Listing by introduction is one of the ways for company to list its shares on Hong Kong Stock Exchange (HKSE). Contrary to Initial Public Offering (IPO), there will be neither issuance of new shares nor raising of capital in listing by introduction. Instead, only the existing shares are listed and traded on HKSE. Then, what’s is the purpose of listing by introduction? First, it could raise the popularity of the company among the public. While such strategy allows investors to learn about the company, the learning curve is less steep than that is required in IPO. Second, as time passes by and the liquidity and public confidence build up, the company could tap the market immediately once the market conditions allow.


▼ Some of Swire Properties tenants in Pacific Place

Issue 1 Sep 2012

Property investment portfolio As of 30th June 2012, the group’s total portfolio has 29.7 million square feet of aggregate gross floor area (GFA), of which around 85% belongs to its property investment portfolio. As the graph shows, around 58% of its total property investment (both completed and under development) is for office use while around 28% is for retail use. It can be concluded that the performance of Swire Property largely hinges on its income from office and, to a lesser extent, retail premises.

Resilient office portfolio As shown in its financial report, around onethird of Swire Properties office area is occupied by tenants from banking or investment-related business. It is reasonable to anticipate a poor performance of its office portfolio in the wake of global market turbulence. Even though the poor economic outlook softened demand for office space, the downside effect was partially offset by the supply shortage of Grade A private office, especially in Central Business District (CBD). Since February 2011, the Hong Kong Grade A Private Office Rental Index, which is compiled by Rating and Valuation Department, has increased by around 18% to 192.3. This indicates the demand for Grade A office, still exhibits an upward trend. In the first half of 2012, the occupancy for Swire Property’s office portfolio remains exceptionally high, with its flagship development, Pacific Place and Taikoo Place, being 99% and 98% occupied respectively. These two properties, which contribute around 18% of the group’s total GFA, guarantee a stable future rental income for the company. It is anticipated that with the office lease market being on an upward trend ▲ Hong Kong Grade A Office Rent continues to grow and its stubbornly high occupancy rate, Swire despite financial market turbulence (Source: HKRVD) Properties’ office portfolio will continue to have a good performance.

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Borizon

Companies & Industries Synergetic complex

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Swire Properties is outstanding for its comprehensive development plan. Take Pacific Place as an example, Pacific Place is a multi-purpose complex, consisting of office buildings, an upscale shopping mall, serviced apartments and hotels. The white-collar at Pacific Place generate stable foot traffic for the shopping mall while the hotels above the shopping mall provide excellent accommodation for businessmen. Besides, Pacific Place is also designed as a cultural complex, with cultural events such as fashion campaigns, exhibitions and etc to be held regularly. This creates a synergy effect within the business units of the group’s portfolio. The company completed its HK$2 billion contemporisation project of Pacific Place in 2011. the complex continues to be a business and entertainment hub for multinational companies, business travelers, tourists and shoppers. With the success of Pacific Place, the company reuses the strategy in other firsttier cities in the mainland, including Guangzhou, Beijing, Shanghai and Chengdu. Taikoo Hui is the flagship development by Swire Properties located at the CBD of

Guangzhou, the third largest city in China. Taikoo Hui is positioned as a “large-scale multi-faceted complex”. Similar to Pacific Place, Taikoo Hui also comprises a shopping mall, two Grade-A office towers, service apartments and hotels.

▲ A fashion campaign is being held at the mall’s centre stage, exhibiting pieces from Harvey Nichols, Jean Paul Gaultier and Roberto Cavalli.

▼ An organic mix of shops generates strong foot traffic


Issue 1 Sep 2012

Company Focus — Swire Properties China — the new profit engine The China investment portfolio contributed HK$ 652 million gross rental income, 15% of the total income, in the first half of 2012, reflecting the improved performance of Sanlitun Village in Beijing and the first contribution of Taikoo Hui. With the completion of four more projects in the next four years, including Daci Temple in Chengdu and Dazhongli in Shanghai, the gross floor area of the China portfolio will more than double to 13.5 million square feet. The supply shortage of commercial property in first-tier cities such as Beijing, Shanghai and Chengdu led to a 3-percent increase in office rent in August, according to Centaline Group. With the continued rent growth in China and its quality property management service, Swire Properties will be able to charge higher rents and create more value for shareholders. China, will be the new profit engine of the company.

Financials Swire Properties released its interim result in mid-August. Excluding property revaluation, the company’s underlying profit for the first half of 2012 rose to HK$ 2.44 billion from HK$ 2.35 billion a year earlier. Whereas, due to a lesser gain from property revaluation compared to last year, its net profit tumbled by 50.7% to HK$ 9.86 billion, leading to a deterioration of its earnings per share for the 1H from HK$ 3.52 last year to HK$1.69 this year . The company distributed dividends of only HK$ 0.22 per share, or a payout ratio of 13%. The conservative dividend payout ratio is probably due to its capital commitments in the next two years. Its capital expenditure for 2013 and 2014 is forecasted to be HK$ 8.16 billion.

▲ Shopping mall of Taikoo Hui was almost 100% leased, contributing to the rental income growth of the company

Along with the completion of several developments in mainland China over the next few years, it is expected that Swire Properties will maintain its growth momentum in rental income such that the value of its asset will be realized and the discount gap will be closed. The company’s rental revenue has been steadily increasing for the last five financial years at a CAGR of 11.6% while its EBIT excluding unusual items has been growing at a 9.7%. Its EBIT margin has maintained at a high level for the last few financial years. For the fiscal period ended at December 2011, Swire Properties achieved a EBIT margin of 66.7%. However, the gearing ratio of the company increased by 0.8% from 15.7% at the end of December 2011 to 16.5% at the end of June 2012.

Swire Properties has been aggressively extending its business in mainland China such that its capital commitments will be enormous and yield-seeking investors should not expect to see a high dividend payout ratio for the next few years. However, with the solid fundamentals, heated property market and excellent management team , Swire As of September 23, 2012, Swire Properties Properties is definitely a good choice for long Ltd. (1972.hk) is trading around $5.3 its 2011 -term investment. earnings and a discount to its NAV of 25%.

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Borizon

Career Coach ◆

Plan your career path from today

First step: self-assessment

Career planning What is career planning? What is its purpose? How important is it to one’s career? Borizon gives you facts.

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H

ey guys! This is the very first time Career Coach meets you. In every issue of Borizon, we will provide you some tips or guidance on career. Today, we will have a look on career planning.

What is career planning? Generally, career planning is the process of identifying one’s career goal and preparing himself in terms of education and personal skills to achieve the career objective. Sound simple, huh? However, career planning is not as easy as it may seem. There are several steps involved in career planning, namely: self-assessment, career exploration, goal setting and preparation.

Why is it important? Here is a real story: A friend of mine obtained brilliant public examination results and he was admitted into university smoothly upon graduation from high school. Like many others, he enjoyed his freshman year to the fullest. Living in the dorm, having fun with friends at school all the time, being a committee member of several student societies, his school life was colorful. He did everything a university student is “supposed” to do except studying. Having too much fun consumed him both mentally and physically so he fell asleep

in almost every lecture. Unavoidably his GPA is disastrous. Time flies. He did not realize the problem until he started to search for a graduate job: he wanted to become a management trainee (MT) in the banking sector upon graduation! Nevertheless, MT programs usually admit graduates with at least a lower second-class honor. With his unsatisfactory academic result, he stood no chance of achieving his goal. He tried his best in his final year to strive for better grades but it was too late. Eventually, he graduated with a third-class honor. Three months has gone since he graduated and he has not secured any job offer yet. I do believe that he will eventually get a good job with his talents. However, if he had realized his career goal and started preparing for it earlier, things would have been totally different. From the above story, I think you have already realized the importance of career planning. The earlier, the better. Don’t wait until the last minute!


Issue 1 | Sep 2012

Start your planning today Knowing the importance of career planning, we would better start preparing today. But, how? There is no quick and easy way to do so. Career planning is an ongoing process which no one else can do it for you. But, with others’ help, you could have a better idea about career planning and save a lot of time and effort. I sincerely hope that you would find Borizon a guidance. So, let’s get started.

Understand yourself As I mentioned above, career planning involves several steps and the first one is self-assessment. We have to understand ourselves thoroughly before setting our career goal and prepare for it. You may ask: I am who I am! Isn’t it a bit stupid to waste time understanding myself? Wait! The fact is more often than not, we are not fully aware of our talents, potentials and abilities. After all, goal setting is a key step of career planning and the career we choose is largely based on our personal qualities and attributes. Imagine a person, who is a born salesperson, becomes an accountant facing financial statements every day, wouldn’t it be pathetic? Spending time reflecting on your interests, personality, values and other attributes is essential. There are several aspects of ourselves that we should assess: interests, values, personality and skills. No clues? Don’t worry. I will guide you through these four aspects one by one.

11 DID YOU KNOW?

the average number of days students take for finding a job after graduation


Borizon

Self-assessment ◆

Four key elements to our career choice

Build up you skills to reach your goal

Interests

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Getting a job that you are interested in would make you feel happier. It is the first step to success at work as your passion for the job will bring you job satisfaction and you will be more productive. To determine your interests, you may list out the accomplishments you have made which make you proud. It could range from getting your letter to the editor published on newspaper to starting up a new student society, and from building an app for smart phones to winning a marketing competition. Most of the time, our interests lie in where we do well. Taking myself as an example, one of the accomplishments I have had and I am proud of is setting up Borizon, which I hope to turn into my career. From this I can see that being an entrepreneur is my interest.

Values What matters to you most? What kind of life do you want? You could lead a totally different life with different jobs. Some jobs are well-paid but requires long working hours such that you need to sacrifice your time with family and friends. Some jobs give you international exposure and you will be assigned to other countries for work. But this could be a headache, especially for those who already have their own family. Salary, fame, health, family, job satisfaction and spirits are things you have to consider. In a speech to university freshmen, Brian Dyson, former CEO of Coca Cola, described life as a juggling game of five balls. Those five balls are work, family, health, friends and spirit respectively. All are made of glass and would irrevocably be damaged if you dropped them except one, which is made of ▲The juggling metaphor was given by Brian rubber. Which one? Google Brian Dyson and find Dyson in a speech to university freshmen. out the answer. Do you agree with him?


Issue 1 | Sep 2012

Personality

History of MBTI

To be the right guy for a job, your personality should align with the nature of the job. For example: being extroverted and confident is essential for a salesperson; getting along with children well is essential for a kindergarten teacher. Working in a job that does not fit your personality is torture. Not only will you find no job satisfaction at work, but also you will not perform well. There are many tools for assessing your personality. One of the most popular ones is Myers-Briggs Type Indicator (MBTI).

MBTI is a psychometric test designed to measure how one perceives the world and makes decisions. It was Katherine Cook Briggs and her daughter, Isabel Briggs Myers, who developed this indicator during World War II for the sake of letting women identify their personality preferences and helping them to enter the industrial workforce.

MBTI identifies one’s psychological type according to four dichotomies. By assessing your preferences according to the four pairs of dichotomies, you will be identified as one of the sixteen psychological types, which is represented by the initial letters of each of your four preferences, for example, ESTJ. Generally, people of the same psychological types have very similar preferences for career choices. But, of course, MBTI does not guarantee success for any occupation. It just provides you suggestions for possible career directions. Anyway, MBTI test can help you understand yourself more.

The indicator was first published in 1962. The past forty years has proven the success of MBTI. Since its first inception, MBTI has been taken by millions of people worldwide.

How to take MBTI? Like other psychometric assessments, MBTI requires test takers to complete a lengthy and in-depth questionnaire, which comprises at least 93 questions. A full MBTI assessment is not free as it requires professional interpretation. For more information of MBTI, visit http://www.myersbriggs.org

The commonest type ISTJ (Inspector), ISFJ (Protector), ESFJ (Provider) and ESTJ (Supervisor) are the most common psychological types. They comprise over 40% of population in U.S. â–˛ The four dichotomies of MBTI for assessing your psychological type.

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Borizon

Self-assessment

Skills

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Identifying the skills you have helps you know what career options are available for you. Figuring out the gap between your skills inventory and the requirement of your dream job also helps you work out what shortcomings you have to improve. On the right-hand side, there is a list of some examples of transferable skills that are essential for almost every job. Check if you have these skills and qualities and see what you can improve.

Next Issue Rome was not built in a day, so is our career. It takes time for us to plan our career path, equip ourselves and steer towards our goal. Remember: Chances belong to those who are always ready. Do not wait until graduation! Start preparing today! This is our very first issue, I sincerely hope that you would find this section informative and helpful. Should you have any comments regarding our magazine, please feel free to tell us. Or if you are seeking for career advice, you are also welcome.

Wanted!

In the following issues, we will present you information of some popular industries. Follow us!

New members are needed If you are: 1.

Interested in business/finance &

2.

Aspire to be different from others Come and join us!

Reward: Excellent CV Enrichment


Borizon

Issue 1 | Sep 2012

Insider ◆

Internship Experience at KPMG

What is it really like to work in Big 4?

“...we all sincerely hope that a name of any big company on our CV would be an asset.” By Kelvin Sham

WHY KPMG? Sure, everybody wants to intern in a reputable firm because we all sincerely hope that a name of any big company on our CV would be an asset. We hope it can get us another nice job afterwards or we can fortunately get a return offer. Such thought is so common and I am a believer too. That’s why, during my college time, I have been busy finding jobs in big firms. In my sophomore year, I applied for the Winter Internship in KPMG’s Audit Department. There is no doubt that KPMG is big and prestigious. It is one of the Big 4. How could I not fall for it!

The application The application process was quite standard like most big companies. First, you fill up some questions asking about your leadership experiences, career ambitions, achievements, past internship experiences and etc. In fact, I do not understand the point of these questions. They

cannot actually eliminate those incompetent applicants as even mediocre candidates can pass this section with fabulous answers to the questions. If nothing goes wrong, you will then be invited to an aptitude test session to complete one verbal and one numerical test. The tests are the most memorable section along KPMG’s application process because they are more difficult than those of other companies, even investment banks. Generally, people cannot finish them within the given time. But, no worry! Most candidates who are eventually given job offer could not finish the tests. As far as I am concerned, the tests emphasize more on accuracy than completion. One of the best things about the application process is that there is no interview after the tests. You like it, huh?

Let’s get started

▲ KPMG, one of the Big 4, is a dream company for many students.

working, you will have your own interpretation of it. My interpretation is “excel editing and checking” and I think it pretty much summarizes at least 90% of the job description. During the internship, I followed my team to the our clients. All I had to do was to assist them with the excel work. The purpose of doing it? I had no idea at all! It is so tedious and tiring. I thought I was getting blind everyday after work. Fortunately, all interns could leave at 17:30 sharp. Trust me, 1730 will be your favorite number once you work there!

Finally...

Though I have made it sound like it is one of the worst jobs ever, there is also a bright side to this job. People in KPMG are very nice and they will give you a hand whenever you need help. Besides, you can get into the of the clients’ and ‘Identified the final interview directly if you risks of material misstatement of applied for a graduate job at financial statements” is the KPMG upon graduation. official answer to the responsibilities of an auditor. However, once you start

Before I started working, there were a few days of training, introducing KPMG, work ethics, responsibilities as an auditor and so on. “Validating the internal control

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Borizon

People

“We learn not so much by reading, but by doing” Nelson Yip

16 Nelson Yip Siu-Hong CEO, Entrepreneur, Volunteer, Sportsman Current Position ● CEO of EP Power, EP Venture and Appetizup Co. Career ● Co-founder of Hong Kong Rehabilitation Power ● Research Assistant, Prince Wales Hospital Education ● Master of Business Administration ● M.A. in Quantitative Analysis ● B.Sc. in Statistics and Computer Science Honors ● Hong Kong representative for 2008 Paralympics Equestrian event ● Honorary Fellow of City University of Hong Kong ● Champion of the National Dressage Championship by RDAA

Imagine that you were born with cerebral palsy, a condition that affects your muscle coordination and therefore, your mobility, what would you do? Would complain all the time, or would you face your adversity with positive and optimistic attitude? Yip Siu-hong, Nelson, chooses the latter. He followed his intuition and founded three company he envisioned. And more, he chased his dream of becoming an Olympic equestrian in 2008. His determination and focus is a true inspiration to us.


Issue 1 | Sep 2012

In his navy blue suit with his signature smile, Nelson sat with our editor TK Lo and shared his stories over a coffee.

What does your business do? EP Power is in electronics. We sell LED light bulbs and batteries. We also leverage on our expertise in lighting to provide energy saving solutions. It was an idea initiated by some of my classmates who had the know-hows in electronics. Appetizup does e-commerce, we work with Alibaba and do B2B trading in Hong Kong.

Your business is doing well. Was there any adversity on your way setting up your own business? For sure there were many challenges. I had to deal with failure many times before I got to where I am. But I do not believe failing a business is a waste of money and time. I see value in failing. For example, do you know what is demand and supply? (Editor: yes, perhaps?) Well, you will know what exactly is the mechanism behind demand and supply, you will feel the power, if you work hands-on your own business. It is a battle, you will see the demand shift if your price changes. That is a learning process.

How did you have to idea be an entrepreneur? I do not always know I was to become an entrepreneur. I was studying in university just like you and everybody. I was not especially ambitious. But my advice is, focus on preparation, you never know when the chance comes or when the idea just clicks in your head. Learn about yourself, your strength and weakness, your experiences and skills. Always focus at the present, if you have an idea, don’t wait till you get this or that, do it now, start learning and it builds your confidence gradually. I always want to emphasize this to young people, do not be calculative, do not always weight the reward you get. A lot of times, the reward comes long after you realize.

“If the idea keeps coming back to you, go for it.”

Do you have any advice to future entrepreneurs? If the idea keeps coming back to you, go for it. It is probably a good one. I am not talking about an idea coming back to you in one hour or two hours, but a week or two weeks, go for it. One more point, we learn not so much by reading, but by doing. Think about that.

◄ Nelson was a torchbearer in the Olympic torch relay of the Beijing 2008 Olympic Games.

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Borizon

Nelson’s Steps

Nelson received both his undergraduate and MBA degree from CUHK.

Hong Kong Rehabilitation Power is an organization aiming at rejuvenating the disabled and unleashing their potential.

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Born in 1968, Yip contracted cerebral palsy as a result of high fever when he was eight months old. The condition leaves him on crutches and wheelchair for the rest of his life.

Yip completed his primary education at the Princess Alexandra Red Cross Residential School before he went to a technical school for his secondary schooling.

Despite his adversity, Nelson won a place at The Chinese University of Hong Kong through his diligence and perseverance, where he studied statistics and computer science in 1980s. He graduated from CUHK in 1991. Right after graduation, he worked in Prince Wales Hospital as a research analyst.

In 1995, Nelson founded Hong Kong Rehabilitation Power, with an aim of empowering the disabled to develop. With his personal experience, Nelson truly knows what the disabled needs to integrate into society.

1968 1970s 1991 1995


Issue 1 | Sep 2012

2005 2005 2008 2011 Nelson founded EP Power, EP Ventures and Appertizup in 2005. He is currently the CEO of the three companies. “EP” stands for Exceptional Performance, expressing the philosophy that making profit and betterment of society are not mutually exclusive.

Nelson was the champion in freestyle and musical dressage in the Australian Riding for the Disabled Association’s National Dressage Championships.

Nelson represented Hong Kong in the equestrian events of the 2008 Paralympics Games. He was also one of the torchbearer in the Olympic torch relay. Although his result in equestrian events was not satisfactory, his perseverance and spirit made him a legend of Hong Kong.

Nelson was bestowed Honorary fellowship by City University of Hong Kong for his distinctive contribution to the University. Nelson obtained a Master of quantitative analysis from CityU in 90s.

EP Power is a specialist in LED lights, LED components as well as batteries.

His championship in Australia was a gateway to Beijing Olympics. EP Power was awarded in the 1st “Capital Entrepreneur Green Enterprise Awards 2010”, for its consideration of environmental factors when formulating business strategy.

His resilience and perseverance exemplify the spirit of Hong Kong.

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Issue 1 | Sep 2012

Borizon

Book Review An excellent system drives you succeed Start from now! Book: How to make money in stocks (4th ed.) Author: William J. O’Neil Publisher: Mcgraw-Hill Borizon ranking:

A 20

purchase price, you will need a 33% growth to cover the loss. If you let your position fall 50%, you will need a 100% growth. The later you cut loss, the harder for you to recover your loss! 7% loss in a stock is the maximum you can The first thing an investor should do is to be open bear for you to recover easily and switch your -minded. Try to embrace new concepts and capital to other potentially fast-growing stocks. trading systems. Learn the strength of other Learn from your mistakes! trading systems and improve your own. Let’s see if you can accept the concepts below?

successful investor should adopt a trading system rather than trading randomly. This book introduces a unique trading system with investment philosophy. Reading this book, you will discover the reason for the failure of most investors. Furthermore, You will find the way to financial freedom.

Focus on earning accelerating stocks

Buy high, sell higher!

Rule#4: Buy stocks with strong fundamentals

Rule#1: Follow the trend Rule#2: Breaking new high is a good sign

Sometimes you can earn money from buying penny stocks. Nothing is impossible? When you consider the success rate, you will find it is not worth betting at all. In order to boost your portfolio, you should always focus on the companies with strong earnings. It would be better if its annual growth is higher than 20% or even higher. With such strategy, you will soon discover the next Tecent(00700.HK) or HKEx (00388.HK).

The strongest stocks will consistently reach new high due to strong fundamentals and technical signals. Those are the stocks you want to buy rather than sell when they are making new high! You won’t want to sell APPLE just because it looks too high when it rises from $10 to $100. (It’s $700 currently) . If you are holding a future star (its strong performance and consistently high growth), just wait patiently for significant sell signals. Buy high and sell even higher.

7% cut loss policy

Avoid mistakes of so-so investors and do not follow Herd Instinct

If you want to be a winner, you need to avoid making common mistakes. Never buy a stock Rule#3: If it drops 7% from purchase price, sell! because it looks cheap. You should have your own Everyone makes mistakes especially when trading philosophy and system. Treat trading investing in volatile stock markets. As a successful stocks as your own business. For details, please investor, you must admit your mistakes and learn refer to the latest edition of the book. from them. The key to success is to minimize the loss when you make a mistake and cut loss as soon as possible. If a stock drops 25% from



Borizon Issue 1