My Trading Adventure

The risk in speculative stocks

CP TEH
Publish date: Sat, 27 Oct 2012, 07:58 AM
CP TEH
0 2,918
All the writings in this weblog are mainly for PLEASURE reading purposes. I am in NO position to recommend a call(BUY/SELL). Please check with those know-hows before you make a decision. Yes, I am just a learner, with only five years experiences in KLSE. So, please BEAR with me.

I do have my RISK talk on Thu night ... it was packed and for two hours plus, I kept talking .. about RISK. Wonder all will be bored to death? Haha ... Nothing come first in market than to understand that market is risky.

Learning Corner



Linear (code : 9504) : A monthly chart to show how RISKY the buy-n-hold. The PEAK was at RM7.50 ... well, guess what the price is today? It is traded at 1cent ... correct, it is ONE single cent. How low could it go? half cent and de-listed, right? Virtually, one could lose EVERYTHING.

Is it really possible to lose everything in markets? Well ... yes, actually. If the counter we bought de-listed and we are not compensated. Annother obvious one would be buying into call-warrants, which expired(of coz it will not be in money). So, the risk is VERY high if we do not think logically and without the needed informed-knowledge.

I have never traded Linear but it was in my stock-list in my initial years. Some counters which in my list went into PN17 or de-listed. For example : Stamford College ... as I am in education line. It went into PN17 and failed to re-structure.

Another counter I remember I was checking is NguiKee. It is just a shopping emporium counter. Well, it is because I was in KK and NguiKee is a 'large' shopping place, so I thought.



BioOsmo : It was IPO-ed when I first came into KLSE ... I thought of apply for it, 33cents. Well ... luckily I did not. It went to 20cents ... lower to 4cents ... and gorenged recently. Unless it is not de-listed, we can buy to hold till it is gorenged again? When? We could never tell ...

I have traded LCL and Evermas before ... phew, you will be lucky to get out of such speculative stocks. You lost lots of money in it ... you learned the mistakes and how to check on fundamentals.  I can mention more such cases, where IGNORANTS and NEWBIES, those gamblers will be buying into such counters as it is so so ... attractive. Every aunties-uncles talk about it, all newbies interested and asked about it in forums ... and you bet, it attracts many gamblers!! KLSE-casino is the largest casino in Malaysia ... we could legally BET and try our luck!!

I think we all should advise those ignorants and newbies to get out of these stocks while can ... sell all for huge losses and then, start all over again with GOOD trading habits, good mindset ... and start to learn to trade or invest the right way ... and sleep well.

If you do not know which counters considered as speculative(all are, just matter to extent)
, then do ask those HONEST ones ... the experienced one. I do not mind answering that as it could save MANY from being sucked into these shark-infested counters!

Have to go again ...

Good Trading

TEH






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Discussions
3 people like this. Showing 34 of 34 comments

lotsofmoney

In all my comment, my last word is always TAKE PROFIT. It does not matter how speculative the counter is, if you take profit, you cannot lose. If you go in too high, then cut loss. There is no rules that you cannot buy back the shares later.

2012-10-27 09:39

yungshen1

hi cp teh.what do u think about knm share.for yr opinion to investor.can invest this bad fundamental and high debt stock or not in next 10 years.

2012-10-27 11:41

CP Teh

dear yungshen

i hv personally replied your e-mail when it was at 90cents? I have asked you to sell, cut loss ... and we DO NOT use the term INVEST in not good fundamental stocks. We certaily dislike a company asking more money(if u know about the rights issues) for non-growth purposes. Hence, it short ... NO ONE should be investing in lousy speculative stocks.

Can we trade? Yes ... we can, for experienced ones. For some punters, but please DO NOT even hold for one year. If it continue to bleed fundamentally, it will be de-listed one day. It is not easy for a company to turn-around unless in Malaysia-bolehland ... you need some connections.

Good luck in your investing. I have no comment in such counters.

TEH

2012-10-27 19:05

Fat Cat Tim Buddy

is this a fake cipet teh?

2012-10-27 19:29

fatty_tang

Fat Cat, I can see why you're asking that question

2012-10-27 20:12

yungshen1

cp teh let us talk about oil @ gas couters alam, perdana , knm ,thearry.this four courters which one is the best counters among four.and y is the best

2012-10-27 21:10

rogerlim

hi yungshen,

if you wana talk about oil & gas counter,the four counter that you mention is not the best in their sector.. in my opinion,alam is the best among them because of the strong and solid company background

2012-10-27 21:25

yungshen1

alam not the best among four.cos earning lost profit in this year

2012-10-27 21:36

rogerlim

ya due to the slow E&P activity in the sector.. then you should include skperto,armada,mhb and dialog... they all are well-known in this sector...

2012-10-27 21:39

cmchin

KNM is more worse among that four counter. High debt, financial bad and management lousy.

2012-10-27 21:43

yungshen1

now i talking 4 lausy counters.which one is the best among them

2012-10-27 21:45

rogerlim

then i think should be perdana...

2012-10-27 21:49

yungshen1

i dun think knm is the worse.u go to check anual report every year from 2003 to 2011.every year earn profit excapt year 2011 lose profit.tq

2012-10-27 21:49

KC Loh

LOL....

2012-10-27 21:54

yungshen1

is true dun laught kc loh

2012-10-27 21:57

cmchin

Don't see long period, just refer to 2008 until now. The price at 2008 is $3.10. From $3.10++ drop and drop non stop until $0.69++. What a worse share!

2012-10-27 21:58

yungshen1

then next year 2013 reach to 1.500. is no problem.any thing can happen.who knows.something share can be higher sometime can be lower

2012-10-27 22:07

KC Loh

yungshen, you still hold scomi or not? that is also high risk now. internal fighting already!

2012-10-27 22:13

yungshen1

kc loh. i never hold scomi share. i hold knm share

2012-10-27 22:14

yungshen1

i am looking for revenue and earning profit every qurter

2012-10-27 22:20

KC Loh

Posted by yungshen1 > Sep 29, 2012 02:56 PM | Report Abuse
KC LOH got bought scomi share recently. what do u think scomi this share
what is yr TP

sorry i thought you hold scomi share from this posting. but of course, the sentence cuts both ways! :)

2012-10-27 22:26

yungshen1

my mention make u mistaken.sorry ya kc loh

2012-10-27 22:28

KC Loh

no problem. you are really into one share all the way. Good luck! :)

2012-10-27 22:29

tonylim

cp, was in linear but quickly came out after hearing some noises. was it during the second board bull run.

2012-10-27 23:16

tonylim

yungshen i withdraw from the market when knm prices was pumped and dumped with Hugh daily volume. hahaha that was when i also sold of aeoncr. darn!

2012-10-27 23:19

yungshen1

u guys say knm was lausy company and high debts.y the jcy share drop almost 55% from 1.500 to 0.650 . the jcy company is very good y the price drow very fast.explain to me

2012-10-28 09:40

fatty_tang

@yungshen, thats because the semicon industry is not doing well at the moment.

2012-10-28 09:43

yungshen1

i tell u guys some investor dun want to hold jcy share.when they see the situation price drop very fast that y they make disposed quickly.tq

2012-10-28 09:47

yungshen1

i dun think so fatty_tang . first and second quater got earning profit what.

2012-10-28 15:28

Abudance

Yungshen1 if you want is steady and vidionary management, give profit 4x a year, share go up, up, slow, slowly... Go check AXREIT. gives 6-7% every year. Put in money and collect and if got more money, Buy on weakness. NO headache counter! Can go to sleep! LOL. It's the best REIT on Bursa at the moment. It's excellent defense stock for uncertain economic times as rental is usually tied 3-5 years before a review.
MAXIS also pay 4x. RM80 x 4 quarters a year. But not sure if can pay next year as they have done before cos of stiff competition.

2012-10-28 15:56

fatty_tang

@yungshen, this is caused by the market sentiment. Everyone is expecting HDD sales to slump due to all the negative news. Past earnings do not necessarily reflect future earnings. Extraordinary earnings from the past 3 quarters might be due to Thailand flood resulting in high HDD prices. Nowadays Global PC sales has becoming slow and investors are not keen into semicon counters. If you read news then you should know. If you can prove everyone wrong and buy in now, then you should be able to earn from it, provided if coming reports show better than expected results.

2012-10-28 16:57

fatty_tang

any sifu please correct me if I'm wrong. thanks.

2012-10-28 16:58

yungshen1

fatty-tang HDD got a lot of market in world .some company must use pc to do their work.it wun say no customer to buy HDD.dun worry

2012-10-28 17:15

fatty_tang

hi yungshen, you dont read much news do you. semicon industry is directly related to world economy. nowadays PC sales have slowed down nowadays. It is not as easy as 'I think sure got people buy 1 la'.

2012-10-28 17:24

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