Tuesday, September 27, 2016

One of the company that I put in my winning list is Scientex. Many people don't really understand why I create this winning list. See, the thing is simple, in the investment world, the stock price always move with momentum, or what we call it, trend. Hence, understand the trend is very important before invest the money into it.

In this case, we want a company that keep on growing in profit. This is important, because if the company can sustain this momentum in last two year, last year and this year, the tendency to make profit is higher. If most of the investor have a strong believe and they think that this company have a good reason to invest, all will rush in to buy it.


Scientex yesterday announced the quarterly report, the profit increase 10.7% compared to previous quarter. The earning per share is 23.54 cents, this making the whole year's earning per share 105.88 cents or increase of 52.3% compare to previous year.

As I always like to make the investment in simple way, buy those company when you notice their profit keep on increasing for continuous few quarters, the better if the profit increase compare to previous year. One more selling point is, their new polypropylene film factory going to operate this month end, which will increase the chances of making higher profits in next few quarters going to come. If one have nothing to invest at the moment, Scientex (RM6.30) is one of the few company that worth to take a look,

p/s: I am not holding any unit of Scientex at the moment, this is just one of my personal opinion for my investment group. I may or may not invest in Scientex in next few months.

Tuesday, July 19, 2016

Stay with the winner

When the trend is down, one should stay short until the trend change.

The reverse also work fine, when the trend is up, one should stay long until the trend change.

In other word, the successful trader always stay with their winner and getting out of their losses asap.

This week, our winner stock look like below:




Thursday, May 19, 2016

Local Stock on the move: 3rd week of May 2016

For this week, we take out 2 stocks from our wining list, they are Eforce and Vivocom where they showing price reversal of more than 5% from all time high price.

At the same time, we add AJI, LPI, Padini, Suncon & Bursa into the list. Below are the latest update of the winning list:


p/s: on 10 Aug 2016, Scientx give bonus issue of 1:1, hence the stock price going to divide by 2, after ex, the stock price will update as 6.30+.

Friday, April 29, 2016

When you should not buy a Stock?

When a stock price go down, should you go and buy or not? Is it an opportunity or a trap?

If you are Warren Buffett follower, you will follow investor style, buy when market crash! However, this come with condition, you must only invest in those company that are solid with some sort of monopoly in their business, where the business will still grow in the next 10 years. If you have identify those five star companies, then yes, market crash is opportunities to buy them. (Some of those company in local Bursa include Ajinomoto, F&N, Heineken, Panamy, Carlsberg, Nestle, Dlady &,,,) In fact, you will hardly find them drop in price.

Other than those solid five star companies, there are many others in the market, and once a while you will find something interesting like below chart:


One no need to have Degree/ Master to read the chart, the kindergarten kid can tell you, currently this is down trend stock! (the above is daily chart, the stock name is Gtronic, listed in Bursa)

Last few days, a client want to "average down" this stock and he ask my opinion, as his average price was $5.05, that day the price was $4.50.  Then I told him, this is NOT a good idea to buy more when the price still falling, but he told me, first he want to average down, second, he want to buy the "weakest stock" or falling most in terms of percentage, with the hope they could go up the most!

I feel sorry for this guy, yesterday's closing price was $3.80! Today, the price drop some more to $3.50. (while I am writing, market still not yet closed) How can one buy a stock and "hope" that stock price will move to direction where he hope. I really hope he can learn the lesson, one should only buy a stock when he see the direction up (up trend stock) instead of jump into a stock which still go down and hope it will turn up immediately. (how can!)

Of course, on that day, we did not know what happen when this stock fall to $4.50. We only came to know next day when they released their quarterly result where the profit fall by 78%. The news causing more investors dump the stock. Technically, on the 1st day when the stock price start to fall, one should immediately get out of the losses immediately. (act first and find out later, this is what trader do) Because if you don't get out, it would potentially double/ tripple the loss and it will take months to recover it.

My theory to all investors, try to buy variety of stocks which are at or near all time high is safer than wasting time on down trend stocks. Then monitor those stocks, let the profit run, once it start to move away from their record high, sell and take profit immediately!


Wednesday, March 9, 2016

What Stock to Buy?

Somebody told me, he don't know what to buy, when the market down!

If one buy a stock by listen to the rumours or 'hot tips', it's only 50% of changes for them to make money, as you might only have 50/50 chance to get it right. In fact, in today's advance tech environment, one can just depend on internet to get the news (no need to listen rumours), and one of the official news for Bursa is Bursa Market Place. (http://www.bursamarketplace.com/) There are many research and analyst report can be found here.

Another way of getting those information is from CIMB Research report. If you are CIMB's client, just sign on to iTrade and retrieve Daily Research report as per the below example.
(1. Click on “Research” button, you can find latest report from all the region.
2. Just click on “MY” button if you want to read only Malaysia’s related reports.)


In this case, at least you can know what to buy when the market price is right! Most of these reports are base on fundamental analysis. These reports are mean for investors to study it, the investment research team already extracted it from the financial reports of the company, usually, they will try to find out which are the potential stocks with greater potential to increase in stock price over time.

Normally, the research team will also advise on those companies which started to turn from good to bad, usually come with decrease in sales, decrease in profit and weak stock price.

If you still have the question of, what make the stock price to go up in long run? The answer is simple, only those company with potential growth in their business and profit (of course, usually those investment bank will write in the report), it's stock price will have high priority to rise over time!
 





Thursday, February 25, 2016

Invest to build Wealth!


Someone told me, stock market are mean for the Rich people to make money, but not for small investor. The problem is, why can't we invest like the rich since we know how the rich make money. You can say, "I have no money to start investment". Then, that is for sure you will not become rich forever.

The basic is, at least you need to have a lump sum of money to start the investment. If you are not born with silver spoon, then you may start to save some of the hard earn money, at least a small snow ball to start. Over the year, the snow ball will keep rolling and become bigger and bigger.

That remind me one of the famous quote from Warren Buffet: "Life is like a snowball. The important thing is finding wet snow and a really long hill.

For years, I not really understand what this mean and how to relate it with stock market. After years of experience, everything look simple and easy. Just imagine if few years ago, one bought XYZ stock at $6, then today the stock price become $50, what this means to you. How many people can hold this stock for the share price to reach $50 and never sell it? Only the rich can do it, that's why, invest like the Rich is important.

Unfortunately, many people believe displaying high social status is much important than building wealth. So, you see a lot of people driving big car, stay in big house but come with financial burden. Again, it's up to your choice, be it succeed in building wealth or is it more important to displaying high social status?

Friday, January 29, 2016

Share Investment Had Two Types Of Incomes

Share investment had two types of incomes:

·         Capital appreciation

·         Dividend income

Every investor has their own method of investing that suits them the most. For youngsters, normally they are more to risk seeker while for elder person they are more to risk adverse. High dividend yields are attractive to investors who desire current income and stability with lower risk. This yield is then reinvested. This process of reinvesting repeats itself for as long as you own the stocks. As the interest on your investment is compounded, it will greatly increase your return over the time.


Dividends are money in your pocket, and after they’re paid they can’t be taken from you. The share price movement of a company is mainly affected by market sentiment and the company earnings. However, dividends are mainly affected by company earnings itself only. No matter how bad the market condition is, as long as the company is still making good profit, they will still declare good dividend regardless how low is their share price! Unless the management is not generous or they want to retain for expansion, then that’s different story.

KLCI index had dropped about 5.13% till Dec 2015. Many shares had dropped below their support line and some had broken a new low. I not sure whether the market will still going down but investors may start to collect some good undervalue stocks. There are many good fundamental companies with cheap price in the market. Heavy drop in made those high dividend stocks more attractive. So, for some investors, it is a good opportunity to collect, isn’t it?

High dividend yield is one of the powerful tools which can help us to achieve financial freedom.  For example, if you invest RM1million in REITs by retirement age, with average D/Y of 6% after tax, you will get RM60k annually, which equivalent to RM5k passive income a month! By that time, you do not need to do anything, to get RM5k a month. This is what we called financial freedom.

Before I stop here, I would like to share some good consistent earning company and REITs with D/Y more than 6% (as at 28th August 2015).

No.
Stocks
Price
D/Y
1
Tasek
15.000
11.33%
2
Media Prima
1.050
10.48%
3
SEGi
1.400
9.29%
4
Rexit
0.400
8.75%
5
Perstim
4.210
8.31%
6
Magnum
2.600
7.69%
7
Atlan
4.560
7.68%
8
CCM Duopharma
2.450
7.55%
9
YTL E-Solutions
0.535
7.48%
10
Padini
1.370
7.30%
11
BJToto
2.950
7.29%
12
CYL
0.700
7.14%
13
Star
2.540
7.09%
14
JCY
0.640
7.03%
15
Classic Scenic
1.150
6.96%
16
Uchi Tech.
1.450
6.90%
17
Deleum
1.080
6.48%
18
Yi-Lai
0.805
6.21%

No.
REITs
Price
D/Y
1
Atrium
1.04
8.94%
2
Quill Capita
1.04
8.06%
3
YTL
1.04
7.67%
4
AmanahRaya
0.83
7.52%
5
Amanah Harta Tanah
0.97
7.42%
6
UOA
1.50
7.37%
7
Amfirst
0.78
7.14%
8
Hektar
1.51
6.95%
9
IGB
1.31
6.39%
10
Axis
3.27
6.04%
11
Sunway
1.49
5.86%
12
Tower
1.10
5.82%
13
Alaqar
1.34
5.71%
14
Pavilion
1.51
5.44%
15
Capitamalls
1.33
3.47%
Note: Atrium had just disposed one of its properties and it is giving out higher dividend from its gain on disposal. On the next quarter and onwards, its earnings income expects to b drop and will not be able to pay high dividend. YTL had proposed private placement which expect to be done on beginning of next year. By the time, the company earnings will be dilute and investors will get lesser dividend for each share.
Feel free to comment. (Some of the above points taken from theedgedaily.com)