Monday, 21 March 2016

0.60 is a good start

The recent news flow has excite the market somewhat.

This guy has my trust for putting my money into his company stock

From a ACE stock to full fledged main board stock, it is certainly has come a long way. Recently the company has done another right thing - reward its shareholders with its maiden dividend.

For those who just come to know this stock recently will thought this is just another temporary hype that will fade away just as fast as it came. But the thing is, I enjoy this kind of feeling. It's nice feeling even though it is once in awhile. It's all boiled down to the fact that I know this company has been doing all the right things in managing the company on the back of solid business model. Recap. My first taste with this stock was some time back in mid 2013 when I first purchase the first tranche of shares at RM0.55. Here. And I first talked about this stock here in March 2014. Here. This stock had went through a bonus issue and right-with-attached-free-warrant issue corporate exercise since then. Consider the price adjustment for these two corporate exercises, the total portfolio value based on current price has actually tripled as compare to the price at the time of my first tranche of shares was made (There was also private placement exercise for selected investors along the way. Imagine the profit these investors had made). No doubt it took two and three-quarter years to achieve this result. I believe many people don't mind though. That is why it is called long term investment. On top of that, I don't have any worry investing my money into this kind of stock and I have good night sleep every night. I don't know about you but that's very important to me. Furthermore, dividend has started to flow in. Investing in stock market supposes to be a healthy endeavour experience and not a stressful mental workout.

Good luck.

Its price closed at RM0.835 on 18.03.2016

Tuesday, 15 March 2016

To buy or not to buy

To buy or not to buy

Or rather to invest or not to invest.

I believe most people have this predicament when comes to invest their money into stock market or into any particular stock for that matter.  Sometime we asked this question to someone, sometime we asked this question to ourself silently and in more extreme situation, we asked someone upstairs for guidance. There are many reasons why this question is asked.

Why is it so. If one has done their homework, had done the homework on the financial numbers, had researched the company profile, their businesses, and even analysts have also given their outperform outlook, then why are we still asking this basic question - to buy or not to buy.

What are we really waiting for?

There seemed to be few reasons and some are rather perplexing. For example, I have a friend who do not buy or invest any stock even after he had done all the necessary homework. In the end, he bought a totally different stock altogether. When i asked him why. His answer was "I was about to buy but last minute my friend said this company cannot invest. My friend said this company has this and that problems. So better don't buy". "So what about your time doing all those researched", I asked further. "I was scare when my friend told me that", was the reply.

Another reason i noticed is there are too much information and this overload ourself. Wealth of analyst's reports, financial data, company information, gossip and whatnot and this make us confused on which stock to invest. Not that the stocks are not good but it is simply too many of them. Most people have limited fund to invest and this make us want to get the ONE stock that could give us the fastest capital returns in shortest possible time. And i see this as major hindrance to train ourself to survive in stock market in the long run. Many do not realize they actually end up as stock trader instead of stock investor.

When one decides to invest their money into stock market, the first question to ask is not "to buy or not to buy". Never. It is also not the question of "is time to buy now or not". Don't. The one question should ask yourself is "can I buy or cannot buy".

Can or cannot is related to capability to do something. Therefore, can buy or cannot buy is related to whether one could afford to do it. But be careful too. Can afford to do it now doesn't mean one can afford the same in the future. For example, one may afford to buy a car now but does mean one could afford to continue to own it in the future.

Once the question of afford(ability) is settled, then lets talk about objective. The objective must be about long term investment. If the objection is about quick bite and run, what you just read is irrelevant.

Many people asked me this question of "is it time now to buy". I have very simple answer if I asked myself this question. But my answer to myself might not be acceptable to the next people simply because of the above question has not been settled just yet.

If one has 100k to invest doesn't mean one could afford to invest in stock market because, first, the mindset is different which, in turn affect your objective. Second, could you afford the same, say, a year or two from now. Put it another way. If one has 100k to invest but needs the money to do something else in a year time. One could afford to invest the money now but when needs the money later, he or she may not able to get out in time. Worry will start to set in. The mindset will be clouded with uncertainty. One will be worried that the stock might not go up. Worst still if the stock went down then he or she is force to sell at a loss when the money is needed for something else.

But if the 100k is without any foreseeable plan to use, I believe the mindset is very much different. Time factor to get out from the stock market is not there to force you to make critical decision.

But how many people have the luxury of 100k sitting idling in bank or under the pillow waiting to invest in stock. Never mind. What you need is a correct mindset to start with. It works the same even you have only 5k. Once you have the correct mindset, you wouldn't worry too much of the current fluctuation of price because it is just emotional play caused by market players. And you wouldn't worry too much of the company itself because the company is as solid as hardrock. Ofcourse you must have done your homework well enough. Therefore, if affordability issue is settled, mindset is clear, company is solid, then it is THE time that will help you achieve your objective. And the time i am talking here is long term.

Good luck.

Monday, 7 March 2016

Will anyone loves this stock

"Barring any adverse developments, the Group will endeavor to achieve a commendable performance for 2016"

"The Group's Construction division is expected to perform satisfactorily as the progress of work moves according to schedule"

Snapshot of its Construction division's quarterly revenue and profit:-
Q2Y2015 : RM51.2 million & RM4.8 million
Q3Y2015 : RM45.9 million & RM5.2 million
Q4Y2015 : RM84.8 million & RM14.3 million

Will anyone loves this stock ? No. Nobody loves it but only UncleZ ..... initially.