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Showing posts from November, 2013

It's a bull market, why investor lost money?

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We all know, the stock market all over the world is currently in the bull run (up tread) for more than 3 years since 2009. However, still we found many investors not making money, some even lost the money during this period. What's the reason? . In the bull market, not all stock are in the same up tread. The reason is not all the business are making profit, some with good profit but some of them with profit decline, or even continue to make lost for few quarter. As an investor, don't forget when we buy a stock, we are actually buying part of the business. If you buy a business that was making loses, even the stock market continue to climb up, you may end up losing money. . Predict the market. Many investor think that they can predict the market, they buy when stock index near 1,000 point, sell when the stock index hit 1,300. That's was 30% profit and hope to wait it come down to 1,000 point again. But the market is not going down, it when all the way to 1,500 poin

Barakah - Can you make profit of 40% or more from this stock?

Barakah is RTO company just list on Bursa on 6 Nov 2013, for details of the company, just refer to below Maybank Research: http://research.maybank-ib.com/pdf/document/Barakah_Petroleum_IC_20131101_MKE_5275.pdf Right now, the share price is around RM1.00, in the best case scenario, as per above research, they give the target price as RM1.40. (I think RM1.20 is reasonable). Since the stock already jump up from 60 cents to RM1.00, investor might have missed the boat. However, there's a RCULS (Barakah LA) which now trade at around 62 cents. This RCULS can convert into Barakah share at 1:1 after one year (next year 2014 Nov). If 2014 the stock price for Barakah remain at RM1.00, investor can convert RCULS to Barakah stock and make a profit of at least 40% for one year. If Barakah stock price trade at RM1.20, then investor can make profit of about 100% for one year. The risk is, what happen if Barakah stock price drop by 40% next year? (This will only happen if their profit drop

What happen to Insas?

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In the stock market, sometime you may find something look "cheap" but yet to discover by others. Due to some good news, stock X have been moving up by more than 100%, from the low of 31 cents to $1.30 recently. The question is, how can one take advantage of this, since you already miss the boat? One of the way is to find out who is their major share holder. Sometime, if you are lucky, you may noticed company A hold 30% of stock X, however, company's stock price is yet to pick up... Don't need to think twice, one can just buy into company A stock and wait for the magic. Recently, we have similar case happen in Bursa Malaysia again... this time, company X is Inari, whereas company A is Insas. The time when we spot Insas was 55 cents, and today it's share price give a big jump again close at 78 cents... The question is can Insas go higher from this level? This stock is fundamentally strong, profit is increasing every year and no need for me to elaborate f