Ultimate Stock Tips

Thoughts of the Week: First Week of Nov 2021

Publish date: Sun, 07 Nov 2021, 12:46 PM
Unique content created once in a blue moon to increase the quality of articles of klse.i3investor.com. (used to be weekly)


Nothing specific this week. 



My target for the KLCI at year end remains unchanged. Once Mr. Market digests the news of the impending Cukai Makmur and increase in stamp duty for stocks, Mr. Market will look past these bad news. As Malaysa opens up its economy gradually to full force, Mr. Market's future outlook for Malaysia should improve. Added with potential window dressing at year end, KLCI at 1600 should be achievable. 


2) Jekyll & Hyde year for investors  

10 months of 2021 has passed, with some enjoying incredible gains, some modest gains, while some are bruised and battered after investing in glove companies or Mohd Abdul Karim-related companies. While the downside of glove shares seem much more limited compared to few months ago, the same can't be said for the Mohd Abdul Karim-related companies as Mr. Market is very unconvinced with the credibility of the latter. In my limited years of investing, great companies on Bursa seldom get suspended for weeks. 



The concerns on HUPSENG seems to have subsided, with MOH Malaysia and Singapore's food agency giving assurance on HUPSENG's products. 


4) Transportation & Logistics stocks

Such stocks corrected after a huge rise. I apologise if anyone had bought such stocks at the high after reading my article last month, thinking I was calling for a buy. My observation is that, when an industry has favourable factors that would lead to improving financial performance in the near future, stock price would rise, then rise further upon confirmation of quarter results & vice-versa. Such events can last quite some time, e.g. glove shortage last year, chip shortage this year, commodities price surge this year, etc. I don't think high freight costs would drop drastically yet. 



A loss-making timber company becomes a profitable IT company. Stuff of dreams, isn't it? Many commendable profitable quarters, yet they have a rights issue to raise cash now. Analysts avoid this company. Should retailers follow suit? 


6) Alcohol companies

Bad news keep coming. From limiting the time to sell liquor, to TIMAH debacle. HEIM & CARLSBRG share price fell even more. Such stocks take a longer time to recover.



Whether one profited tremendously, or lost substantially, try not to make the same mistake in future. The next year should be better, although GE 15 might unsettle Mr. Market. 

Dow Jones Index (DJI) broke new highs, while KLCI languished sideways. DJI has always had an impact on the global stockmarkets, whether bullish upward trend or bearish downward trend. It might be wise to collect your favourite stocks on a dip on local stockmarket due to correction from the DJI. (if any)


Disclaimer: This article is not tailored financial advice, but mere general stock sharing / observations. Please do further due diligence. The author disclaims all liabilities from readers. The author may have interest in some stocks listed above.

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