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Stocks To Buy Recommendation
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musicwhiz5
Senior |
08-Feb-2007 01:11
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Hi all, Stock prices are dictated by the profitability of a company, which in turn is determined by the long-term prospects of that company, as well as its competitive advantage relative to its competitors. The "up" and "down" cycles you notice in stock markets are characteristic of human emotions rather than the fact that stocks all have an inherent up and down cycle. In fact, if a company and business is profit-making, and grows profits by 25% CAGR, there is nothing to stop the share price from going higher and higher. Buying a share of a company makes you a business owner of that company, and it is the business we must observe in order to determine its value, and not its price. Price is simply a reflection of the intrinsic value of a company, but most people tend to assume that value is reflected in the share price. This is untrue because share prices are dictated by human emotions such as greed and fear, whereas valuations are determined by the fundamentals of the company and its long-term prospects. A simple analysis of any company whose profits have dipped and fallen will demonstrate that this is true. Speculators tend to over-react on bad news and stay muted on good news. It is important to review businesses based on their value, instead of trying to catch the best price. Timing techniques have never proven to be 100% reliable and remember, brokerage costs will always eat into profits if one trades too much. Thus, I am recommending a value investing approach advocated by Warren Buffett to value companies and to uncover their intrinsic value. This is opposed to the method of price analysis or technical analysis which swing and momentum traders use. I use this analysis to analyze companies to determine their long-term prospects, and assign a value to them based on P/E, ROE, net margin and other ratios. In addition, Management strategies, usage of cash and other aspects of a company are also important. I feel that if one uses this method, it will leave a margin of safety for your investments and you will lower your risk of losing money. Keep for the long term and you will see the value of the company, and correspondingly your shares, grow. |
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Simonloh
Member |
07-Feb-2007 23:04
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Dear Readers,
Below are my Reply to your Request !
ShareJunction ( Request & Review ) ? 4 ( Wed )( 7 Feb 07 )
?General Reply?
1. Forumer ?idesa168? à Thanks for your beer treat offer but I don?t drink beer. Maybe a COKE were do ! Or wait till if you can make ?
2. Forumer ?ZhouYu? à CNA Stock Trend, can be found on any RSI Charts. The recommendation based on the below Study and Observation :
a. The RSI looks low, and if it is low, means next stage, it?s has a higher chance of going up !
b. It has also formed an Inverted ?Head and Shoulder? pattern on the RSI Charts to date 7 Feb 07. An inverted head & shoulder means it?s most likely to go upward soon !
c. The volume & other indicators also showed similar sign that it is in it?s low cycle mode !
d. The drop period is also ?Short?, at only 3.5 weeks or 23 days and the ?drop magnitude? is also reasonable at about 26% from a cycle high of $0.745 to a cycle low of $0.555. Also there is already ?BLOOD ON THE STREET? ! Logically speaking, it should do a ?rebounce? after so much ?blood? lost for the past 3 weeks or so ! ( Note : A down trend should only be called if it continues to drop more than 2 ? 3 mths onwards, in my own definition ).
Though I may not be 100% right but the chances of going up is higher and hence the recommendation. However, if you disagree, you may also follow your own instinct and make your own investment decision from there ! In the investment world, ?NOTHING IS GAURANTEEN?, it all goes by analysis, study, prediction and forecast. As long as the chances are high for us, it is good enough ! However, if we predict wrongly, we should also be swift to ?Cut-Loss? and change ! Be ready for that any one time ! A decisive decision is vital for any success in the investment world ! May profit be with us !
?Review Reply?
Forumer 11 ? ?Stevenkoh1981 ? :
Magus à
You bought ( Magnus Stock )( S$0.205 )( Mid Jan 07 )( 5 Lots )( S$1,025 )( CPF ).
Currently ( 7 Feb 07 )( S$0.195 )( Dropped 5% in 3.5 weeks )( Hence, drop per mth 6% ).
Your Losses = $10 X 5 Lots = $50 ( Ex Comm ).
Your Intention à Hold for future for at least 3 yrs !
My Review & Advise :
If you planning to hold for the long term, it?s better you look at the financial health of the company ( Magnus ). They are per below ( Consolidated Profit After Tax ) :
Jun 2002 à - S$1.21 Millions ( Loose Money )
Jun 2003 à - S$29.06 Millions ( Loose Money )
Jun 2004 à - S$1.00 Millions ( Loose Money )
Jun 2005 à - S$7.20 Millions ( Loose Money )
Jun 2006 à S$0.24 Millions ( Profit )
As you can see from above health data, it?s quite ?volatile?. Jun 2006 data was better ( or improved ) from it?s previous yr. It only came into profit form the last 1-2 yrs ago till now. What is going to happen for the next few yrs ? we don?t know ! Stocks move in cyclical nature ( sine waves up & down ), the idea here is to make use of every up & down cycle to ?make profit?. This up & down cycle can be in the long or short term. Personally, I think it?s better to do in short cycles as it is MORE PROFITABLE and SAFER that way. However, if you are those busy executive & have no time to monitor ?., then you may also park your money there for the long term ! As long as the company remains to be profitable and have no pther major issues in the local and global region, your stocks should still make for some money to come ? but NO GAURANTEEN whether you will be profitable in the long term ! However, if you do have the time and don?t mind doing some work, I would advise you to go for the short term cycle ! Since you use CPF money, you should know it can?t be taken out in the short term future and also note that after every sale, you have to wait about 3 ? 4 working days before you can re-use the money to re-invest again, you can check with your investment bank on the timing details ! You make your own decision fom here ! Good Luck !
1. NOL à
You bought ( NOL Stock )( S$2.44 )( 25 Jan 07 )( 5 Lots )( S$12,200 )( CPF ).
Currently ( 7 Feb 07 )( S$2.98 )( Up 22% in 2 weeks )( Hence, gain per mth 89% ).
Your Gain = $540 X 5 Lots = $2700 ( $2.7K )( Ex Comm ).
Your Intention à Hold for future for at least 2 yrs !
My Review & Advise :
The financial health data of NOL are per below ( Consolidated Profit After Tax ) :
Dec 2001 à - US$55.26 Millions ( Loose Money )
Dec 2002 à - US$327.70 Millions ( Loose Money )
Dec 2003 à US$434.24 Millions ( Profit )
Dec 2004 à US$946.36 Millions ( Profit )
Dec 2005 à US$811.53 Millions ( Profit )
The stock for this company is quite a ?volatile one?, clear up & down long cycles. Dec 2005 data was DOWN by about 17% from it?s previous yr. The company made some ?good profit? since Dec 2003 financial announcement till now ( Approx. for the last 3 yrs ). With the good profit result, from 2002 End to Early 2005, the stock has been sky rocketing gaining some 605% from a low of $0.595 to a high of $4.20 during that 2.5 yrs timeframe. That is about 20% gain every mth or 242% gain per yr. Quite a fantastic performance ! However, good time doesn?t last long ? what goes up must come down ! In Mar 2005 to Jun 2006, it dropped drastically from a high of $4.20 to a low of $1.62 loosing some 61% during that 1.3 yrs timeframe. That is about losting 4% per mth or 49% lost per yr. As you can see, stocks have up & down cycles, may be long or short cycles depending from stocks to socks. As long as you know when the cycle is going to end or start, it?s good enough for you !
Currently, the stock is still in it?s ?long term? up trend mode and will probably carry on for another 6 mths to 1 yr timeframe I estimated. This assumption is logical & possible if the company continues to be profitable with no bad news LOCALLY OR GLOBALLY ! However, there is NO GAURANTEEN for all this.
Since you have already made quite a ?handsome profit? on paper, I would encourage you to take profit soon and go for the short term cycles gain as there are more money to be made from there ( If you have the time ) and it?s a safer stagedy too. Also not to forget about the ?TREMENDOUS COMPOUNDING EFFECT? that comes with it. By then, your CFP account may have millions already for you to retire ! By then don?t forget to call me to join you along ? ha ha ha ! You make your choice ! Good Luck !
__________ END ___________
My review stops at Forumer ?Ed88ks? dated ( 4 Feb 07 )( 1522 hrs ).
Will carry on Forumer ?ZhouYu? request dated ( 4 Feb 07 )( 1522 hrs ) on ?
The review will come on a ?first come first serve basis? !
Regards
Simon Loh
( Wed )( 7 Feb 07 )( 2245 hrs )
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limkt009
Veteran |
07-Feb-2007 14:37
Yells: "Watch your front, grab $$$$$ at your own time" |
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Charts look good. Bought 20 lots today. |
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limkt009
Veteran |
07-Feb-2007 14:37
Yells: "Watch your front, grab $$$$$ at your own time" |
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Charts look good. Bought 20 lots today. |
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davecsh
Member |
07-Feb-2007 13:32
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I bought 20 lots of FabChem also ! Chiong huh ! |
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davecsh
Member |
07-Feb-2007 13:26
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http://www.chinadaily.com.cn/bizchina/2007-02/07/content_803264.htm What stocks will go from here? AdvHlgs? |
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ed88ks
Senior |
07-Feb-2007 04:46
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odoraemon
Member |
06-Feb-2007 22:56
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Hi Simon, Took your advice of entering Fabchem. Took a punt of 10 lots at $0.56 today. May the punt be fruitful in 2-3 weeks time! |
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soonchew
Member |
06-Feb-2007 20:50
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Hi Simon, I like to know what do you think of Aqua-terra? is it time to buy? Thanks a lot for providing us with so many good posting. |
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iPunter
Supreme |
06-Feb-2007 20:09
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["Forumer ?iPunter Elite? à Thank you for your good compliment for having a huge following soon ! Regarding the suggestion of setting up a Website, I am not familiar with that and don?t have the resources too ! Perhaps you could recommend somebody who knows how to do it and willing to help out. That way I can continue to provide this free service to help others too ! "] |
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davecsh
Member |
06-Feb-2007 19:19
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Hi Simon, Thank you for your much needed boost on my confidence for this counter "Digiland". Will hold on to the stock then as I dun mind planting some funds in a potential stock. Thanks again. |
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Simonloh
Member |
06-Feb-2007 00:07
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Dear Readers, Below are my reply to some of the earlier request ! There is quite a lot of review request coming in, and I am still finding time to cope with it, those who request later may have to queue a bit and wait a little longer for their turn to reply .... I will reply on first come first serve basis for those who have requested earlier. Hope you don't mind the long waiting time ! Thanks ! Simon Loh. ShareJunction ( Request & Review ) ? 3 ( Mon )( 5 Feb 07 )
?General Reply?
?Review Reply?
Forumer 10 ? ?davecsh ? :
1. Digiland à This counter is penny of the pennies ? ! Very small in price, currently only S$0.01 ( 1 Cent per share ). You asked me if this counter has potential to go further than $0.015, my answer is YES and DEFINITELY. It is just a matter of time, exactly when .. . ? I don?t know either !
This counter has been existing for about 5 yrs since 2002 and drop all the way till now ! From my analysis and observation, it bottom out on 14 Dec 04 ( 2 yrs ago ). Big volume seemed to came in on 23 Mar 06 ( About 10 mths ago ). The biggest one day volume was on 16 Jan 07 ( 3 weeks ago ) for 345, 513 lots closed at $0.015. This is slightly more than S$5 millions in value. Since the BIG volume has came in, it showed that there is interest in this counter. If there is interest, it is just a matter of time that it will TAKE OFF very soon !
I don?t know what is your holding timeframe, but if you can hold on for long ( 2 ? 3 yrs ), very high chance of going up ?much much? from now ! Good Luck __________ END ___________
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maxtwl
Member |
05-Feb-2007 22:39
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Thanks ed88ks, so which counters are you looking at? |
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ed88ks
Senior |
05-Feb-2007 18:05
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maxtwl Member , Tiong Woon is great lifting company, world class, and the whole world is short of crane now, the margin will grow, together with tat hong .. next few years will be great |
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njpang
Member |
05-Feb-2007 13:25
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Hi Simon I need your advice on China Kangda. I just bought 20 lots at 0.41 this morning but the price kept dropping. Profit warning coming? |
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maxtwl
Member |
05-Feb-2007 11:52
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Anyone has views or comments on Tiong Woon Corp. They are in cranes and engineering business and if construction shld do well, I think they should do well too. Recently entered the Saudi Arabia Market... |
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chaihock
Member |
05-Feb-2007 10:27
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Hi ,kovan8 I still holding 50lots of PineAgriTech @.64cts this is able to cheong-up to .88cts.Good luck to all thank you. |
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kovan8
Member |
05-Feb-2007 05:54
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Hi Simon, Can you plse give your views on Pine Agritech. I have loaded at 0.65 Really appreciate your earlier sharing. Thanks |
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ed88ks
Senior |
05-Feb-2007 04:09
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may we have your email address simon? |
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jackjames
Elite |
04-Feb-2007 22:31
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davecsh, that's only 0.01 cents difference, no points to do averaging now. |
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