3 Key Highlights on Kawan Food Berhad

(Source: Google Image) Human nature desire for convenience has continued to drive demand for Frozen Food. This has further boosted by increasing pace of life and participation rate of women in workforce. According to alliedmarketresearch.com, global Frozen Food market is expected to reach USD 306 billion by 2020, with CAGR of 4.1% from 2015 to 2020. That…

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Value Investing and Finding Value Deals

Professional fund managers may have more extensive resources than individuals, yet they still fall victim to the very behaviours exploited in Value Investing approach, such as overconfidence and extrapolation. In investment, don’t get distract by big dream and big fancy word (IOT, Artificial Intelligence, Smart City/Home, Robotic Manufacturing, Moon Tourism, Bitcoin, Advance Technologies, etc). Instead,…

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Speculation

Investment vs Speculation

“An INVESTMENT operation is one which, upon thorough analysis, promises safety of principal and an adequate return.” Graham writes. Speculation operation meets none of these. On the question of Investment vs Speculation, I turn to Graham because he addresses the differences between them on the very first page of his book, The Intelligent Investor. The above…

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What is Gross Domestic Product?

(Source: BusinessWorld) GROSS DOMESTIC PRODUCT represents the BROADEST measure of the value of economic activity within a country during a period of time. Gross Domestic Product (GDP) measures the market value of all final goods and services produced within the economy in a given period of time (output definition) or, equivalently, the aggregate income earned by…

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Economic Growth & Sustainability – Part 1

Source: TimesHigherEducation.com Economic GROWTH has always been the key focus of many authorities and government. As with the environmental concerns, it is more crucial to consider Economic Growth & SUSTAINABILITY. Economic growth is important because rapid growth in per capita real GDP can transform a poor nation into a wealthy one. Even a small differences…

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The Truth on Investors

Truth is that MOST Investors CAN’T see the macro future better than anyone else. Thus trying to FORECAST the future WON’T make them successful investors. There are two classes of forecasters: Those who don’t know, and those who don’t know they don’t know. Most investors act as if they can see the future. It is…

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Inflation Rate: Trust the Computation of Bank Negara Malaysia?

INFLATION RATE computation by Bank Negara Malaysia is done on an overall manner for a COUNTRY, while each one of us on INDIVIDUAL level, will still experience different inflation rate. YES, we can trust Bank Negara Malaysia computation of inflation rate as it is done based on basket of goods changes in price for a COUNTRY.…

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Inflation Rate: The Construction of Price Index by Authority

OUR central banks have their ways of computing the inflation rate. Can we just pluck-and-use the numbers? Following our article on Inflation Rate, you would now know what is inflation rate and why it matters to investors. But still, the question lingers, “how did the central banks (including Bank Negara Malaysia) compute their inflation rate?…

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What is Inflation Rate?

“Perception is real, even when it is not reality” ~ Edward de Bono Inflation refers to a sustained rise in the overall level of prices in an economy. Economists use various price indices to measure the overall price level, also called the aggregate price level. The inflation Rate is the percentage change in a price index—that is, the…

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6 Key Highlights on Fu Shou Yuan International Group

Having loss someone close to you can be a traumatic experience. Anyone who has gone through the hassles of funeral and burial arrangement will understand the difficulties during those period, including having to make quick decision on how to handle your loss ones within tight schedule. It is during such emotional period that we as…

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4 Key Highlights on Taokaenoi Food and Marketing Public Company Limited

Taokaenoi Food and Marketing Public Company Limited (Bloomberg Code = TKN-R:TB) is incorporated in 2004 and listed in The Stock Exchange of Thailand in November 2015. The main business is processing, distributing and selling seaweed snacks under its own brand to consumers. The company offers seaweed products in several flavours, which include “Original”, “Tomyam Gung”,…

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Capital Cycle-Part 1

The above chart illustrates a typical capital cycle phenomenon, showing how attractive profits tend to attract excess capital and eventually lead to underperformance of the industry, and vice versa. Example 1: Commodity Supercycle Commodity Supercycle happened in the period of low interest following the dotcom burst of 2002. It was fuelled by China consumption, whose…

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Long Term Runway & Value Investing

For top-down/market-timing investors, Malaysia’s economic growth prospects for the next 12 months remain positive, as shown by Malaysia’s leading index. At the same time, such investors should be mindful of the double- edge impact of a stronger Ringgit and the 2018 general election. Externally, we are remain convinced that China’s economy will perform well and…

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The trap of value investors

Richard’s Observation of the fallacy and trap of value investors: I have noticed that there are too many retail investors that are so engrossed in the numbers of value and price and finding the ‘holy grail’ of valuation and the exact number of fair value and the exact hit of margin of safety.., that they…

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Volatility and the Value Investor

As cited above, volatility is the tendency of a security’s market value to fluctuate sharply up or down in the short term. For traders who want to sell off their portfolios at a moment’s notice, volatility and risk are roughly equivalent. But for value investors, who don’t have the urge to liquidate their portfolios any…

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China’s Banking Transformation-The Untold Story by James Stent (Part 2)

Continuing from Part 1: 5) Chinese goverment as a whole cares more on the solution and development outcomes, and less on the terms in office. The structure of Chinese government is decentralized (having local authorities), yet unified under state government. Such structure allows Chinese government to pursue long term objectives (due to unified body), while…

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Few Words on Rich vs Poor

Recently I read article which address importance of mindset. Given a scenario where you noticed an apple tree’s apple does not looks nice, what we will do? Well, most of the people in rational way which may be digging, watering, fertilizing in order to yield a big and juicy apple. This principles apply to rich…

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China’s Banking Transformation-The Untold Story, By James Stent (Part 1)

This article will be published in 2 parts, with part 1 describing the author background, along with several key points. Remaining points will be elaborated in part 2. Who is James Stent? -specialize in economic policy, governance, market entry and financial communication. -was a senior executive vice president in Bank of Asia in Thailand -continue…

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Artificial Intelligence Application – DeepText

DeepText: Facebook’s text understanding engine Purpose of Develop DeepText Understanding the various ways text is used on Facebook can help us improve people’s experiences with our products, whether we’re surfacing more of the content that people want to see or filtering out undesirable content like spam. The community on Facebook is truly global, so it’s…

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Valuation Tips

What is a valuation, especially valuation for a listed company? Google definition for valuation is “an estimation of the worth of something, especially one carried out by a professional valuer”. Can the valuation be done by a commoner like anyone on the street? The answer is YES. “The price is on increasing trend, should I…

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Artificial Intelligence 101 – Part 5

  Deep Learning is stemming from neural network. Neural network is an algorithms that try to mimic how the brain functions. This topics was extensively studied in the 90s and moderate success due to lack of sufficient computational power and data. Here is the history of neural networks: 1950-60s: Simplest Neural networks (Rosenblatt, etc) 1970’s:…

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Elements of a CEO

Are CEOs born or made? According to entrepreneur-turned-top venture capitalist Ben Horowitz, most of the tricky skills needed to excel are drummed into leaders through years of experience. Likening critical CEO capabilities, such as giving difficult feedback, to learning the unnatural motion of lifting your back foot first in boxing, he claims “it generally takes…

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Head of the wolfpack; The Alpha; The Director; The One.

  Why companies grow immensely large quickly? Why do so many investors want to invest in them? Why do so many employees want to work for them? Why do so many customers want to buy their products? Why as an investor do I look at a company growth potentials, business model and founder-led companies? Business…

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Teamwork

Teamwork is completing a task in collaboration with teammates. It’s simple, yet often disregarded when it comes to credit taking. People usually wants every credit to themselves, but naturally reluctant to perform the tasks required by themselves. So what makes a good teamwork? Mutual trust and coordinated collaboration. Trust seems simple in its 5-letter words,…

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Health is Wealth.

I have been attending a seminar recently which talked about life longevity and how to overcome the sickness of death. In this seminar, the professor claimed that death is a form of sickness instead of something inevitable, which meant that death can be cured. During the talk, there are various discussions on how it can be…

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Leadership

Leadership is less about your needs, and more about the needs of the people and the organization you are leading. It should be adapted to the particular demands of the situation, the particular requirements of the people involved and the particular challenges facing the organization. There are many different leadership styles. In this piece, we’ll…

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Mean reversion- what really drive return

Investing Insight Mean reversion (what really drive return) is the theory suggesting that prices and returns eventually move back toward the mean or average. This mean or average can be the historical average of the price or return, or another relevant average such as the growth in the economy or the average return of an…

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Artificial Intelligence 101 – Part 4

  Natural Language Processing (NLP) is a maintopic in AI where it is an active and interactive fields that’s at the intersection of computer science, AI and computational lingustics. NLP involves languages as text. In fact, most of the data is actually in text form, and estimated we have about hundreds of thousands of petabytes…

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One-off Gain/Loss in Financial Analysis – Addedum 1

Continuing from where I left off previously on one-off gain/loss, this round I’ll touch on: 1) Trade Receivable Written-off/Impaired Trade receivables consists of monetary value generated through core business activities that has yet to be receive from customers. Usually, it comes with with aging analysis, which shows how long does the receivables take to be…

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NLP in Business

Do you value excellence in business? One definition of NLP (Neuro Linguistic Programming) is the study and replication of excellence. As such, it has many applications in the business arena. NLP was originally developed in the 1970s by linguist John Grinder and programmer Richard Bandler. They created a language for decoding the communication skills of…

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How to value your time

Have you ever wondered how to value time? Especially YOUR TIME? Actually, time can be easily valued. It involves a few inputs. What are your current monthly salaried income, after deducting all the fees eg. taxes, annuation, etc? (ACTIVE INCOME) What are the growth in income for your industry sector (for business)/company (for salaried workers)? (%…

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Artificial Intelligence 101 – Part 3

Search algorithms are designed to explore spaces systematically. Real world problem are more complex. We can use iterative improvement algorithms and local search. The objective is to find best state according to an optimization function. Examples such as: Integrated circuit design, telecommunications network optimization. Idea: Keep a single “current state”, and try to improve it.…

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Law of Attraction

In recent months, i’ve been repeatedly exposed to words like “Neuro-Linguistic Programming (NLP)”, “Law of Attraction” and “Focus”. Little did I know that they are actually related! NLP is an approach to communication, personal development and psychotherapy created by Richard Bandler and John Grinder back in 1970s (refer to Wikipedia). In essence, it’s an approach…

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[Investing with Margin of Safety – Easy to Know, Difficult to Practice]

When the federal funds rate is at almost zero level, the tide rises and a rising tide lifts all boats, junks, sampans, etc. But tides ebb and flow: when the federal funds rate rises, the tide ebbs. When it ebbs or goes out, we get to find out who is swimming naked. If that is…

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The Technology “Startup” Bubble.

Being a growth investor, I am always interested in the tech startup scene. However it is recently that I start to notice a worrying trend about the world of startups. Here are my insights: Students, schools, and practically everyone now are “inspired” to build a startup, for the sake of building one. There are no…

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Artificial Intelligence 101 – Part 2

  Image Source: http://artint.info/html/ArtInt_51.html   In artificial intelligence, an agent is an entity which perceiving its environment through sensors and acting upon environment through actuators. You can consider agent as independent unit who serve as thinking mind. Thus, the cycle consist of perceive, think and act.   So, what is agent? The agent is a combination…

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TEXCYCL (0089) Company Analysis (Bursa Malaysia) Summary

Business Description Tex Cycle Technology (M) Berhad is primarily engaged in an environmentally friendly Waste Management Business which provides professional services preferred by companies from the various industries, mainly of the Electronics, Engineering, Automobile, Oil & Gas and Printing industries in accordance with Environmental Quality Act.  Their systems and procedures are technologically advanced and upgraded…

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One-off Gain/Loss in Financial Analysis

One-off gain/loss is non-recurring profit or loss made by a company, through various channels such as selling/writing-off Property , Plant and Equipment (PPE), sales of investment properties, inventories writing-off, sales of financial instruments, etc. Identifying one-off gain/loss would need one to understand the business model, so as to separate the core earnings and non-core earnings.…

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Return On Equity – Mother of Ratio

Return On Equity (ROE) examines how the capital fund for the business’s asset and how the asset generates return based on your capital. If each $ of asset only generate each $ of earnings, it means the company is just merely cover its cost of capital. This indicate that the company at competitive disadvantages or…

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How to build a business that lasts 100 years.

I recently chanced upon this interesting speaker talking about how companies can last for 100 years. In fact, the statistics ring from the video ring so true. Companies are “dying” younger over time (disruption, internal chaos, over-leveraging, and many other reasons). In fact, the speaker referenced to nature as the perfect way to find a…

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Artificial Intelligence 101 – Part 1

AI is an interdisciplinary field and each field being contributed to its progress which including philosophy, mathematics, economics, neuroscience, psychology, computer engineering, control theory, linguistics, and etc. Philosophy: The first AI contributer formulated AI with consider mind as a machine Mathematics: Provided tools to formalize and manipulate logic, algorithm, theory of probability Economic: Formal theory…

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Comfort Zones and Pit Stop

Comfort zone, as defined in Google, means “a place or situation where one feels safe or at ease and without stress“. Throughout the history of various inventions, there are evidences that adversaries spur progressions and innovations. For example, Archimedes discovered the method of using displaced water to estimate density at the time when King Hiero II…

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Money Management After Marriage

What do you do with money after marriage? Do you and your spouse merge your finances together? Planning carefully and communicating clearly are important, because the financial decisions that you make now can have a lasting impact on your future. What are your financial goals as a couple? The first thing to do preferably is…

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Pioneer of Dedicated IC Foundry Business Model

  Perhaps you have been know of Apple, Samsung, Huawei, Qualcomm, Nvidia. But, do you know that there is one company serve as major foundry fab for these company?   In old days, there is a lot of companies who design and manufacture chips themselves. This is what we call as integrated device manufacturer. At…

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How to spot good investments

It is a common misunderstanding that investments have to be difficult, with complex finance theories and bombastic sounding financial words. In fact, it is a known fact that all these “gimmickry” are intentionally done to make retail investors think that investing is difficult, and it is better to rely on “financial planners” and “fund managers”. Nothing…

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SUPERLN (7235) Company Analysis (Bursa Malaysia) Summary

Business Description Superlon was set up in 1992 and listed on Bursa in 2007. The company acquired its first factory in 1996 and bought its second factory in 2004. The first factory sits on a 2.9-acre parcel with a built-up of of 60,000 sq ft while the second factory sits on a 3-acre parcel with…

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Snowball Effect

We have always wondered why certain people are capable of turning small and limited amount of resources available to them, to a significantly enlarged pool of resources. A good observation during winter, where people would build snowball, will give us a glimpse into how they achieve it. Though the process of making a physical snowball…

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Conventional Industry Transformation – Futuristic Toilet Seat

There is statistics comparing toilet seat penetration rate across China, Korea, and Japan. The result is surprising: Country Toilet Seat Penetration Rate China 2% Korea 56% Japan 87%   Why is the statistics differ so much? If you being travelled to Japan or browsing the web, you will see toilet seat looks like this: A…

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The magic of compounding

Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously-accumulated interest. Let’s play around with…

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Spritzer (7103) Company Analysis (Bursa Malaysia) Summary

Business Description Disclaimer This report and its contents contain the opinions and ideas of the authors. It is not a recommendation to purchase or sell the securities of any of the companies or investments herein discussed. The report is distributed with the understanding that the trainers, analysts and their associates are not engaged in rendering…

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The Fear & Greed Pendulum

In the investment world (as with all worlds involving the act of buying & selling something), there is a term called the Fear & Greed Pendulum. The acts of fear and greed persist over the ages of time simply because humans are susceptible to volatile emotional changes. In order to understand about the emotions of…

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Double-edged sword

Congratulation to new French President Emmanuel Macron who won at 7May Second French Election. While France is celebrating and Europe starting to focus on coming Germany Election, there is comment from famous Economist that Europe is experiencing fragmentation of countries and governments all due to failing economic systems. Will new French President able to make…

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Are you Cheap or Frugal?

There’s a fine line between being frugal and being cheap. Frugal people understand that paying more doesn’t necessarily mean better value. People who are cheap wouldn’t pay more regardless of the value. Those whose all of his or her belongings were purchased at garage sales, are probably cheap. Here’s how to save money, but avoid…

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How to Invest

Make informed decision Proper research should be done about the company/stock before money is placed in it. Very often, this is not the case with most retail investors. The average investor (or rather gambler) just invest based on gut feeling alone. A company/stock should be analysed from both quantitative and qualitative aspects. This may involve…

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Layman’s Guide to achieving financial freedom – Part 3.3: Money is not Real Money

Hello again everyone! Today I will be a writing part 3 of my 10-part discussion on the topic on Achieving Personal Financial Freedom, titled: Money is no longer Real money. As this is a very long post, I will be splitting the post to 3 parts for easier reading. This will be part 3 of the post. The…

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Layman’s Guide to achieving financial freedom – Part 3.2: Money is not Real Money

Hello again everyone! Today I will be a writing part 3 of my 10-part discussion on the topic on Achieving Personal Financial Freedom, titled: Money is no longer Real money. As this is a very long post, I will be splitting the post to 3 parts for easier reading. This will be part 2 of the post. The…

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Layman’s Guide to achieving financial freedom – Part 3.1: Money is not Real Money

Hello again everyone! Today I will be a writing part 3 of my 10-part discussion on the topic on Achieving Personal Financial Freedom, titled: Money is no longer Real money. As this is a very long post, I will be splitting the post to 3 parts for easier reading. This will be part 1 of the post.…

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Back to Basics of Financial Responsibility

What does it mean to be financially responsible? Simple; you spend less than you make. Save First Before You Spend Does being financially responsible mean that you have to live frugally and save? Maybe, but only if that is what it takes to live within your means. For most people, the concept of saving is…

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GREATNESS

For most people, work is hard enough without pushing even harder. Those extra steps are so difficult and painful they almost never get done. That’s the way it must be. If great performance were easy, it wouldn’t be rare. Which leads to possibly the deepest question about greatness. While experts understand an enormous amount about…

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Spirit of the craftmen- 匠心

Can you imagine you are using an umbrella which cost you few hundred dollars at street during rain day?   Today, China is the largest world of umbrella manufacturer that occupy one third of world annual umbrella production. At China, a typical umbrella may cost RMB 20 while branded umbrella which imported from foreign country…

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Layman’s Guide to achieving financial freedom – Part 2: Job security is a myth

Hello again everyone! Today I will be a writing part 2 of my 10-part discussion on the topic on Achieving Personal Financial Freedom, titled: Job security is a myth. As this is a continuation post, do make sure to check my previous post about: Time is Money   I am pretty sure you have been exchanging your time for…

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Layman’s Guide to achieving financial freedom – Part 1: Time is Money

Good day everyone! Instead of posting about investments-related articles, today I will begin a 10-part discussion taking aim at the key word of the day: Achieving Personal Financial Freedom. This may be a rather mind-boggling and sensitive post, so if you are not open-minded about achieving financial freedom, DO NOT read on. Actually, the words…

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Welcoming 2017.

    2016 came and went off with a bang. 2017 arrived, coinciding with the birth of our website, LucentAsset.com Welcome to a world of infinite possibilities. Lucent Asset Management is an investment consultant group, advising our multitude of clients on investments with high potential growth AND low risk. Our observed portfolios includes varying investment…

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