Showing posts with label SHH. Show all posts
Showing posts with label SHH. Show all posts

Saturday, 11 April 2015

About long term investment

This is my 5th year of involvement in KLSE. While surviving KLSE in this period is nothing more than ordinary, I am still glad that I have made it, with a capital growing at a satisfactory rate.

In retrospect, the way I "handle" KLSE is by intraday, short term (<6 months) and medium term (<3 years) tradings.

Intraday tradings were extremely rare, simply because the energy and time spent is too much to bear. Some examples, MAS and CYBERT(don't learn this). All have gone to holland by now.

Short term (<6 months) trading is something that I prefer more. INGRESS, SBCCORP and PRLEXUS are typical examples. Mostly use chart to look for entry price, seeking a return of 10-30% in less than 3 months. Sporadically, there will be chances to earn "fast money" in a few days, i.e. playing rebound, e.g.  PHARMA and TAKAFUL. When this occurs, if you are bold enough, ALL IN.

Medium term (>6 months <3 years) can be torturous at times. But good things come to those who wait. INARI, PNEPCB and SHH are my old buddy now. Return has been very satisfactory. 6 months - 2 years is a period that I am more comfortably to hold a share, because they always end up good return.

Where is my long term investment?

I understand that my current investment style will not last long. When the capital becomes large, so does the stake. At some point, I will like to invest long term -- in the sense to hold a share for at least 3 years.  This is where your "skill" is tested, to see how well you can spot a good counter, as if PBBANK and GENTING in the 1980s, DIGI in the 2000s and DLADY in the 2010s. What type of companies should I look for long term investment?

Are they companies that I really like? For this, I look no further from AirAsia and AAX. It is the airline that enables me to fly between PEN-KUL and KUL-SYD. But sentiment cannot help making decision in the stock market. AirAsia has been dropping for a while, since it hit a top of RM 4.00 in 2012. If you buy AAX since IPO and hold until now then you would have lost a lot. Perhaps there are just too many uncertainties in the airline industry.

Are they companies that I don't like to involve as an individual? This means health care and pharmaceutical industry. Nobody likes to go to hospital, yet everybody needs to go there at some point. Examples include KPJ, PHARMA and IHH.

How about companies that are needed in daily lives? Consumer products. NESTLE, DLADY and others.

At this stage I wouldn't buy any of these securities. I don't look for long term investment now. Long term investment does not make sense to me if the capital is not big enough, e.g. RM 500k. Until then, I can use a portion of this capital to invest "long-term". For now, the first task is still to grow my capital, which is what I have been doing for 5 years.

Friday, 3 April 2015

2015 Q1 Review

The total transaction for this quarter is very low, which is a good thing. I just hold on to whatever in my portfolio. My capital has started to "recover" to the level of Oct 2014, which I couldn't be more grateful for.

Sometimes I would think that if I hold on to my FBMKLCI-HB that I bought in Oct 2014 until Dec 2014, I would have earned a lot. I sold at a loss after 1 week. Inexplicably, in that period of time, even one day seems to be forever, for which I long for my return to "come back" instantly.

Anyway, I thought that SHH may have second round, but then I read a news about HEVEA eyeing SHH resources published on 30 Mar 2015 in the morning. "Coincidently", this is the day where SHH gap up to open high at RM 1.56. Even more "coincident" is that the share started to move one week prior to the news. The old market adage has it that "Buy on rumours Sell on news". While I certainly don't have any rumours beforehand, it now seems that my selling time is just right for "sell on news". And because this round of shoot up is "obviously" due to the news, I wouldn't hope for a second wave. So no more SHH for me. What a pity, I still plan to earn for one more round.

The investment return will remain undisclosed.

Monday, 30 March 2015

KLSE: Sell SHH

I started collecting SHH since May 2014. This process went on until September. I once said that SHH is another INGRESS. This is why I can hold it "tightly" even during the "adjustment" (some people called it small bear) in Oct and Dec 2014, because I have confidence in SHH.

The waiting has paid off. All returns comes in 2 weeks time. But the money has stuck there for 10 months. Maybe I shouldn't ask for more. Considering the whole period, the return is still stellar.

I actually wanted to wait for "open flip" (i.e. 100% return). But the price shot up too abruptly, causing the candle to be out of the upper BB band. This always followed by a pull back, with no exception to any stock.

SHH


Today SHH opened high at 1.56, reached a high of 1.58 and closed at 1.44. A clear adjustment sign is coming. I didn't watch the market at the opening, but soon after the market opened I realized that maybe I should have a look at SHH. It opened high, and I know that I should sell it no matter how. I sold all my shares between 1.50-1.53 in the morning, a decision that looks to be correct at least from now.

This does not mean that SHH will stop like that. A typical trend would be adjusting for a few days (which nobody knows), and then continue its uptrend. Depending on the situation, perhaps I will buy back at a lower price.

I am delighted to have made the right decision. The main reason is, of course, a pull back is inevitable and imminent. The second reason is, I've found another share to buy.

Thursday, 17 July 2014

2014 Q2 Review

Return: +9.9% vs KLCI +0.8% (3 months)

Transactions: 4

1. Top up CHHB. details here
This was a mistake.

2. Sell CHHB
I need to use money. I am grateful that I picked the right share to sell. Easy: just sell the one which is losing money. Don't hope for a break even, it may come after you lost your patience. 

Lesson learnt: a 3% loss in 2 months. Not a big deal. But it serves to remind me in the future, that I should have sold it at the right timing.

3. Buy SHH
This should be the one like INGRESS last year, the same reason that I bought INGRESS last year. I am going to hold this share until it brings me huge return. I believe it wouldn't be long.

4. Involuntary trade due to a one-lot transaction.

Dividend: 1

INARI 2.0 cent


Review: The power of compound interest

I am still very focus on KLSE, although I start to keep an eye on US markets.

My strategy is still the same for this quarter, very simple: buy and hold. Nothing more.

I start to feel the power of compound interest, that even a 9.9% gain comes in as a considerable amount. This is the power of compound interest. Interest on top on interest. This is how rich people gets richer. This is how money brings more money.