Saturday, November 27, 2010

DOW down 100 points.

Top 100 companies

1. Maybank - 16.6
2. CIMB - 20.9
3. Sime - 72.8
4. PBBank - 17.7
5. Maxis - 19.5
6. IOICorp - 36.6
7. MISC - 48.7
8. Axiata - 20.5
9. Genting - 36.2
10. Tenaga - 11.8

These are taken from The Star. If the data is reliable and we only look into P/E, we wont buy SIME(recommended by the panels during The Edge's investment forum). And the laggard is Tenaga with P/E less than 12. Theoritically, lower P/E is good.

11. PPB - 14.0
12. PLUS - 18.8
13. PetGas - 23.4
14. KLK - 34.8
15. GenM - 14.9
16. DiGi - 19.9
17. YTLpower - 13.9
18. AMMB - 18.0
19. RHBCap - 14.3
20. YTL - 17.1

So, from the list above, it is easy to understand why I do like YTLPower. Its P/E is the lowest the list there. This is a cash-rich counter which gives good dividends. Some do not like YTLPower giving away cash for YES. I do like the management team too. With many plus points on her, it is a good buy-n-hold counter. KLK at P/E 34.8 is certainly not cheap but she is still attractive with CPO expected to go high and the demand increases. PPB is another counter I like but the recent no-so-nice news from Wilmar affecting its stock prices. Buying her during correction will be a good strategy. Check out the dive of GenM.

Stock market - illogical gambling-den

PETALING JAYA: Loss-making Stone Master Corp Bhd's share price increased by a whopping 117.24%, or 34 sen a share, to close at 63 sen on rumours that the company would be involved in a merger and acquisition exercise with a foreign company.

There were 1.7 million shares traded yesterday at prices ranging from 26 sen to 67 sen. The stock's year low was 13 sen on June 29. On a year-to-date basis, the stock is up 293.75%.

Stone Master produces marble and granite products

TEH : Rumours are spread by syndicates or insiders who want to dispose their holdings. Rumours are spread through mouth, through e-mail, sms, brokers/dealers, through internet and many more channels. I warned my students(6 of them) yesterday ... if you want to remain my investment-students, DO NOT buy into any very speculative counters through rumours. One of my student's someone bought BJCorp due to gaming-licence rumours. She bought at 1.30+(today below 1.10). She said it went all the way to Rm1.80+(as if I dont know!) but it dived. Not knowing anything about markets, she did not take profit at RM1.80 or cut loss when it went below RM1.30. That is mainly WHY I wont allow any of them to buy into rumours in speculative counters.

Fundamental stocks are safer(risk is still there, of coz). If you are going to gain real money, you need to be a fundamentalist with longer time-frame. If the fundamentally strong stock prices going lower from your cost-price, be glad to buy more. On this point, I agreed with Pauline Yong.

Hence, those trade blindly on TA MUST make sure that their TA skills are good(I am NOT, I m a novice) and be very discipline.

Scomi :KUALA LUMPUR: SCOMI GROUP BHD [] reported net losses of RM166.48 million in the third quarter ended Sept 30, in contrast to the net profit of RM22.97 million a year ago.

Remember the uncle who bought scomi-wa at 0.195? THINK again if he has cut-loss. I doubt he know what is cut-loss(from the way he speaks and acts).


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