My Trading Adventure

GLCs : Should we avoid them?

CP TEH
Publish date: Thu, 30 Aug 2018, 06:03 AM
CP TEH
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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.
Following Message


morning ... I slept off early last night. Tired. And didn't watch S&P up above 2900 ...

S&P500 closed at NEW HIGH 2,914.04 ( +16.52)

DOW30 closed at 26,124.57 ( +60.55 ) ... we have another 500plus points to go ... and

Nasdaq at NEW HIGH  8109.69  (+79.65)    

Yesterday there is some selldown in certain stocks ... as profit-taking seeping in and also some due to bad QR. The most actively spoken about was ARMADA.


Armada : Going back to 50cents level due to losses (QR) ... down some 21% to closed at 52.5cents. The importance of cutloss WAY BEFORE it came down so much ... should be emphasized but most only talk about their profits, leaving many newbies STUCK up there.

Armada (owned by AK) was a KLCI-linked previously ... and abandoned. Reminded me of Sapnrg(SKPetrol) ... and MHB, all such a huge IPO ... going down so much, losing billions of market-cap. Many still stuck up there with local funds supporting and losing too ... EPF and Khazanah ... ASB too. Tabung Haji ... LTAT ... those local-funds, somehow 'obliged' to support these GLCs ... which managed by incompetent people with personal interests. We all read how much they paid Shahril (Sapnrg) for ...well, job not well-done.


Sapnrg : Sapnrg breaks all support ... and if one is still holding, you may need to go thru the right-issues (put in more money to a losing companies is ridiculous way of holding to toxic-portfolio ... a  sin in portfolio management and investment). Now ... Armada going to go thru rights-issue too ... will you dump in more money into such companies, HOPING they will recover? SERIOUS?

In Armada (at 52.5cents) and Sapnrg (at 35cents) ... do you know how many retailers (you, me and friends) stuck up there? Not forgetting more pain in many O&G such as THHeavy(ex-Ramunia),
Sumatec, Perisai, Velesto (ex-UMWOG) and so on.

AVOID the whole sector is the best advice ... do not listen to those analysts claiming O&G rally is possible in 2018. They have no idea ... or perhaps they want us to believe in those short rally ... so that BANKS could distribute to us? Too bad ... that is how stock-market works.


MHB was KLCI-linked too ... for your information. Those newbies may not know that it peaked at RM8 plus ... and now a penny-stock, with many retailers still STUCK up there. Perhaps ...just avoid
 those GLCs in total ... unless you are buying ... say, Maybank? Well, MHB closed at 65.5cents.


FGV : moving away from O&G ... we have this one more giant-IPO at HIGH level, and yesterday it gapped down due to losses reported in QR. FGV is such a huge company, assets-rich ... but so badly managed. With corruption in BN-level as one of the highest level crook in the world, these companies bleed to those greedy politicians and gang. So ... no matter how much cash or assets they owned, I guess ... we as retailers should just avoid such companies.

Those above are four giants ... GLCs and were KLCI-linked. Sad to see such large companies ...listed just to suck out funds from capital markets. Yet, many retailers dived in without any comprehension and lost/losing their investment funds.

From O&G and Plantation ... let us check UEMS (property-sector) and STAR (Media ... you should check Utusan being in PN17).


UEMS : This was KLCI-linked too, for your info. From RM3 plus ... now trading at penny 85.5cents


STAR  (at 95.5cents).... used to be the darling-of-MCA. Well ... we all knew so well how MCA is performing in GE12 onwards ... and being abandoned by own-mom-party, BN. Yet ... without
dignity, MCA still stick on like a leech. Somehow ... I do not want to get into writing aout politics. It is still sickening to know many Chinese leaders still suck inside the dino-MCA.

We still have many GLCs which bleeding so badly, and without BAIL OUT, they would have been de-listed. Without favour from Bursa, I do wonder how they could get to be listed. Well ... many companies showing 'good health' of financials before being listed, only to be mis-managed by many unscrupulous management personals.

One of the rule in investing : NEVER buy into badly managed companies. Check their Annual Reports ... check their management teams and track records.

With that ... I m done ... it has been a while I didn't blog. haha. Woke up 5am do help ... mind still fresh.

Good morning. Off.

Note : TM bad QR too ... watching TM today.

TEH













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