Showing posts with label IFCAMSC. Show all posts
Showing posts with label IFCAMSC. Show all posts

Friday, 19 June 2015

News by media, view by myself (part 1)

It is interesting to see how media influences the market sentiment, by "releasing" a particular news "just at the right time". The original purpose of media is to disseminate news to the public. While this may still be true at some time, financial news are highly manipulated. Here are some examples:

Example 1: Stock -- IFCAMSC
(this stock is too hot to ignore, and yea... everything written here and now is in hindsight..again)

This stock was crowned "The world's top software stock"(Bloomberg!) by having a 1321% return in just 12 months. The date of the news was 13 April 2015, trading at RM 1.35. The stock topped at RM 1.87 on 21 May 2015, just over 1 month after the news was released. Now it was trading at RM 1.13.



Something worth noting is that 21 May 2015 is the day just after the release of quarterly report, that the profit jumped 22x YoY. Because of the implementation of GST in April 2015, everybody knows that it is going to be a promising quarter. Yes, it is. And everybody just hoping that it will either gap up, or at least increase a lot after the quarter report. The opposite has happened. In the stock market, things just wouldn't go the way you think it would when everybody else thinks the same. 

Retrospectively, the message given by the media is obvious: the world best performing stock, luring investors to buy the stock. "They" want you to buy the stock, as if there is still a huge return waiting ahead.

My own view: sell on news. Think about this: can the "best performing tech stock" not listed in NASDAQ, London, Hong Kong or Tokyo but listed in KLSE? Why did the news released in April, not any other time? The stock has been climbing for sometime since last year, this is not a coincidence.

[to be continued]