morning ... DOW up 287 points after lost 1300 points in two days. So, it is merely a technical rebound.


KLCI rebounded sharply yesterday with CIMB and Maybank rebounded too.

Yesterday ... started to buy some stocks again after I exited all by Monday. So, coming Monday, I will add in more in my positions if it sustain. for those didn't sell prior to the selldown (and stuck), nothing to do but HOPE it will rebound back to your cost or profit for u. good luck for those fully invested and averaging-down strategies.

Learning Corner

I have placed 200 plus stocks NOT TO TOUCH in 2018 as if you do not know how to trade them, you will get stuck for years to come ... and unlikely to recover to your cost price. If you are newbies, heed my advice to avoid them. You can be discipline.

Let me give few examples : high PER and Negative PER


AAX : closed at 24.5, down from recent peak 52cents level. Half priced. (PE 40.4 and NTA 23cents).

One of the criteria I placed was those negative PER or very HIGH PER companies. Simple ... if you are not in position, AVOID. You definitely can do that ... not taking positions. But, say you are STUCK inside AAX (IPO was RM1.20 level) and went thru the right-issues etc etc, holding for years ... you may think of SELLING (cutloss) when each it rebounds to reduce your losses.

Seriously, there are times when market bullish ... and our stocks perhaps going higher and higher. That is the time you CUTLOSS.


WCEHB : peaked 1.68 , closed at 66cents (PER 46.39 and NTA 0.7078).

This was previously known as KEuro .... builder of West-Coast-Expressway (WCE) and I just checked.

So, if we are stuck up there, what can we do? At least do not average it down ... with new PH-gov, we don't know if there is change of policies in those toll-highways and such. And if one is not in position, AVOID is the best advice. WHY choose the new-low stocks (unless it is 'cheap').


UMW : previously a giant, index-linked ... and being thrown. Closed at RM4.40 (PER -19.50 and NTA 2.7207)

website : http://www.umw.com.my/

Not falling in love with UMW or any stocks is the rule in investing/trading. No ... it has nothing to do with the Toyota you are driving or many Toyota cars seen on the road. Charts do not lie ... we also should not lie to ourselves when it comes to investing. No emotion needed ... negative PER is bad, ok?

By loving a stock and keep averaging down (in order to lower our average with a hope the stock-price recovers) is seriously ...flawed.

How about those low PER (below 10) but downtrending?


Ekovest : closed at 51.5cents (PER 9.61 with NTA 0.8857)

Do not buy (or averaging down if you are STUCK up there) simple because the PER is low. It is downtrending and the sector is also downtrending. AVOID if not in position ... once 50cents broken, we shall check Ekovest at around 35cents level next ...

Downtrending stocks tend to go lower ... and continue its downtrend. That is how trend works, anyway.

if you do not want to lose further in your STUCK stocks : you should not average it down as it is downtrending.

You should not buy into speculative counters ....high PER or negative PER. Simple. Why bother about those counters, right?

You should not choose downtrending sectors too ... as they will stay depressed for long period of time (O&G, Properties, Constructions ... now add in Plantations).

The choice is yours ... you decide.




Have a nice weekend.

TEH