Sunday 7 August 2011

Another opportunity come??

I have started clearing some of my shares since last week in order to keep the cash for blue chips shares. When i was started buying shares, I was making a mistake in choosing the right share. Furthermore i have told to myself that if losing money, then i will not sell that share and keep it till break even.  But i am not sure whether this is good way to practice or not.  In my portfolio got one technology stock share has made me loss more than 70%!!  That is a painful experience!!
 Even though losing money but i think it's a good experience in learning.  At least i have taken the courage to move in rather than talking only. Just like my slogan " NO RISK NO GAIN"!

Friday 5 August 2011

Fund managers say investors should wait for selling to subside

By TEE LIN SAY
linsay@thestar.com.my


PETALING JAYA: Fund managers and analysts are mixed in their view on the market following a 513 point drop in the Dow Jones Industrial Average.
They felt caution was still the predominant theme of the market and it would be better for investors to wait for the selling to subside.
Some are worried that demand destruction from developed markets will hurt exports especially the electrical and electronics and crude palm oil (CPO). More than 20% of CPO goes to Europe. Net exports account for about 25% of gross domestic product.
Hong Leong Asset Management Bhd executive director and chief executive officer Geoffrey Ng said the sell-off in the United States and the market rout in Asia which collectively erased in excess of US$1 trillion in capital value was similar to panic selling in May 2010.
“The selling that is occurring now is orderly. Unlike the flash crash in May 2010 that severely shook confidence in the market itself, today's selling is met with sufficient liquidity as to not result in dramatic price falls, although a 5% retracement in a day is dramatic enough,” said Ng.
Two things may occur from here.
Firstly, Ng said that markets could be overly pessimistic of the recently reported economic numbers from most countries which have been below expectations. This may be a possibility due to severe supply chain disruption resulting from the massive earthquake in Japan in March.
“Manufacturing output was severely curtailed in the following months, with far reaching implications to manufacturing activities around the world. The lack of production activity and consumption thereafter may be blamed for the poor quarterly GDP numbers that is scaring the markets today,” explained Ng.
Secondly, if markets are proven right, and the global economy is decelerating faster than expected, then the risk of recession increases dramatically. This may force the governments to act again to inject liquidity into their respective monetary systems in order to keep the pace of economic activity from failing further.
“In the near term, this will help stabilise markets and hopefully mend frayed consumer confidence to motivate consumption again,” he said.
“Yes, the sell down that we are experiencing now is unnerving.”
Ng said the events unfolding could be a continuation of the rebalancing of world consumption that started with the Global Financial Crisis in 2008.
“Emerging economies that are rich with population, commodities, national savings and consumption ability are now refocusing their efforts toward building their own consumer base by normalising wages, improving infrastructure and moving up the value-added chain. This rebalancing is not in a straight line, and will have times of immense volatility such as recent times,” he said.
Meanwhile, OSK Research Head Chris Eng feels the market is in a “touch and go” situation, and he will be closely looking at how the Dow Jones closed on Friday night.
“If the Dow Jones rebounds by 2% in its Friday closing, then there is still hope. If however it does not rebound, then things will start getting a little iffy. We would then downgrade Malaysia to a neutral, and suggest switching to defensive stocks,” said Eng.
He acknowledged that Malaysia was still a very defensive market, but however this won't prevent it from falling.
“Looking into 2012, we are going into an environment of subsidies increasing and interest rate normalisating. Fundamentally, everything will be more challenging,” said Eng.
Another research head felt that there was not much to look forward too. “Look at the problems happening in Europe. You have four to five countries facing difficulties to raise money because their credit worthiness is suspect. So, we're going to see borrowing cost increase in an environment where interest rates are also high. Things can only get more difficult.”
A trader from JP Apex Securities said: “Don't buy now, as people are still in selling mode. But perhaps in one to two weeks time, things will die down. Look at the strength of the US Dollar today. It has rebounded back to RM3.01 from RM2.90 last week. This shows that people still see US as a safe haven.”
He added that Malaysia was not affected as there were hardly any foreigners in the market.
“The Malaysian economic fundamentals are still the same and have been priced in,” he said.

Thursday 4 August 2011

Focus on stock earnings, fundamentals, investors told

Take note on this commets for long term investman.
 
KUALA LUMPUR: After Catcha Media Bhd, another ACE Market-listed firm was in the limelight yesterday as news that Tun Daim Zainuddin's son has become Sanichi Technology Bhd's substantial shareholder.


The counter was the most actively traded until it was halted at 4.05pm at 10.5 sen, up 1 sen with over 76 million shares exchanging hands. Trading is to resume today.

Analysts said the heavy trading of the otherwise low-profile stock was mainly due to investors getting overly excited over Datuk Md Wira Dani Daim's investment in the precision plastic injection mould maker.

"It's just a knee-jerk response and the fact that he is Daim's son made it even more dramatic," said one.

Sanichi had later in the day, filed a statement to Bursa Malaysia, updating that its memorandum of understanding (MOU) with a German party will be going through a due-diligence process between now and September.

The MOU, signed in June this year, was with Projektarbelt Technische Beratung Venretung International (Protev) for a one-stop plastic injection mould fabrication solution centre.

Under the MOU, Protev had expressed interest to explore the possibility of taking up a strategic stake in Sanichi.

Whether it is the MOU or Md Wira's entry into Sanichi that is steering up the stock, analysts opined that investors, especially retail ones, should be more cautious when buying.

Mercury Securities head of research Edmund Tham said investors should always buy on fundamentals and earnings.

"However, many punters or retail investors tend to buy on exciting news or rumours, irrespective of the earnings," he said.

TA Securities head of research Kaladher Govindan said in investing, fundamentals come first while personalities "come into play only if they can really add value on their own accord (not through connections) or have a clearly stated plan when they acquire the company".

He added that even if these young corporate persons have a specific plan, there is still no guarantee that it will materialise if the major shareholders cannot reach a consensus.

He cited several cases or situations in the past, whereby, the entrance of new shareholders did nothing to the companies they bought shares into.

Govindan said when the Naza group brothers took a controlling stake in Kumpulan Jetson Bhd, things did not work out and when they left, the share price nose- dived.

There was not much excitement either at Petra Energy Bhd when new shareholders from Sarawak's Datuk Bustari Yusoff's Shorefield Resources came in or when KFC's Datuk Ishak Ismail came into Kenmark Industrial Co Bhd, he said.

News flow like new shareholders, he added, should be taken with a pinch of salt and can only be useful for short-term traders.

"For real investors, it is worth every penny to really look into the fundamentals of a stock first before investing than being excited about the entry of a new shareholder," said Govindan.

Tuesday 2 August 2011

Is bear coming ????

US stocks fell creates panic selling in global shares market . So will you hold or sell or keep buying???
May be it's good time to accumulate blue chips shares . I will be monitoring fews blue chips stock and buy them when reach my price target!
.....................................................................................................................................

KUALA LUMPUR: Asian markets tanked on Wednesday, Aug 3, extending their losses as US stocks fell steeply overnight after the wrangling over the debt ceiling eased off and investors turned their attention to the stalling economy.
The FBM KLCI fell below the 1,550-point level as investors cashed out from blue chip stocks, spooked by the developments across global markets.
On Tuesday, more weak US economic data fuelled concern about the economy even as Congress passed a debt-cutting measure in time to avoid a default, according to Reuters.
US consumer spending fell in June for the first time in nearly two years and incomes barely rose, signs the economy lacked momentum as the second quarter drew to a close, it said.
That followed Monday's weak manufacturing data from the United States, Europe and China and last week's disappointing second-quarter US GDP estimate, which reinforced fears that slowing economic growth could dampen oil demand, it said.
The FBM KLCI fell 13.33 points to 1,541.52 at mid-morning.
Market breadth was negative as losers thumped gainers by 457 to 51, while 155 counters traded unchanged. Volume was 203.91 million shares valued at RM234.54 million.
At the regional markets, Japans’ Nikkei 225 fell 2.21% to 9,627.11, Hong Kong’s Hang Seng Index lost 2.34% to 21,897.12, Taiwan’s Taiex down 2.51% to 8,369.23, South Korea’s Kospi tumbled 2.99% to 2,057.87, Singapore’s Straits Times Index lost 2.04% to 3,112.13 and the Shanghai Composite Index shed 0.76% to 2,658.88.
Among the losers, Nestle fell 60 sen to RM47, BAT down 44 sen to RM46.24, DiGi 22 sen to RM30, Petronas Gas and HLFG down 20 sen each to RM13.24 and RM13.02, Genting 18 sen to RM10.74, Tradewinds 17 sen to RM9.41, MISC 15 sen to RM7.40, Top Glove 13 sen to RM5.22 and Jaya Tiasa 11 sen to RM6.51.
TMS was the most actively traded counter with 18 million shares done. The stock added half a sen to 8 sen.
Other actives included Sanichi, MBSB, KNM, Jotech, Catcha Media, AirAsia and Bumi Armada.
Meanwhile, gainers at mid-morning included MNRB, Catcha Media, Tien Wah, Kretam, Sarawak Cable and SCIB