Icon8888 Gossips About Stocks
(Icon) Why I Increased My Stake In Jaks By 200% Despite Its Recent Huge Losses
1. Nasty Surprise
I bought some Jaks at end of 2016 at approximately RM1.03 per share. The group has a huge overseas construction contract in full swing. It is very likely that profit will be strong in 2017.
Since the beginning of this year, Jaks' share price has been going North. By mid February, it has reached approximately RM1.40.
At around the same time, Mr. You Know Who announced that he has become a major shareholder by acquiring more than 5% stake. The market went crazy and many investors jumped in to ride the bandwagon.
As we drew closer to end of February, I waited nervously for Jaks' result. I expected result to be good, and share price could continue to move upwards.
To everybody's surprise, Jaks announced a huge loss. The company explained that profitability was depressed by deferment of revenue recognition of certain works completed. There were also some kitchen sinking.
I hold the belief that the proof of the pudding is in the eating. Namely, I don't believe in PLCs' sweet and flowery words, I judge them by their ability to deliver. If your result is bad, I don't like it, irregardless of what you said.
My initial reaction was to dispose of my entire shareholding the next day. After all, my cost was low and I should be able to escape relatively unscathed.
However, after a good night sleep, with a fresh mind, I began to doubt my original decision. The whole episode sounded very familiar. Few months back, a similar thing has happened to Gadang.
2. Gadang's Negative Surprise
Gadang had been doing well in 2016, and everybody was anticipating strong performance going forward.
Few weeks before announcement of result, Mr. You Know Who announced that he has acquired a majority stake in Gadang (more than 5%). To everybody's surprise, Gadang released a set of horrible result. Many investors, including me, dumped their shares in a panic. Gadang subsequently became an outcast, everybody was pessimistic about it.
Few weeks after result, Gadang listed its free Warrants. Nobody bothered to buy. The warrants together with mother shares, traded at depressed level. But in the subsequent quarter, Gadang announced a sharp reversal of fortune, with earning back to all time high. The stock shot up, dragging the warrants up with it.
Whoever bought the warrants earlier on laughed all the way to the bank.
3. Conspiracy Theory
Whatever happened to Gadang, there was not sufficient ground for me to start suspecting. It could be just a coincidence. There is a very fine line between intellect and paranoia. I can't simply jump into conclusion every time things don't go my way.
However, if similar thing happened the second time, my alarm bells started ringing. Maybe I shouldn't be selling after all ?
On that fateful morning after Jaks announced its lousy result, with one hand holding a coffee mug and another hand my mouse, I went against the crowd and started buying aggressively while others rushed for the exit. At the end of 5 minutes frentic buying, I tripled my shareholding at average cost of RM1.04.
My decision later turned out to be correct. Jaks' share price went all the way back to RM1.25 at the time of this article.
4. Concluding Remarks
I don't write this article to boast about my contrarian move. I wrote it to discuss my perception of how certain events had transpired. I don't expect everybody to subscribe to my view. But I do wish that this article can sow a seed on my readers' mind such that in the future if similar thing happens again, they will be aware of the possibility that it might not be as straight forward as it looked. Hopefully, this will help them in their decision making.
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Discussions
7 people like this. Showing 50 of 142 comments
obvious answer, yes.
but only for winners, not for you.
silom > Mar 4, 2017 07:44 PM | Report Abuse
manmy, what type of business can help uncle to make so much money as in
share market ? Is share market some form of business to him ?
2017-03-04 19:46
silom
grow up or you will always be in the loser category.
I don't need 100% record to be where I am, I only need 90% record.
2017-03-04 20:14
bro icon888, many of my investment strategy & decision are inspire by your articles & comment. u are one of my most respected sifu . i owe u a roasted tilapia.(^-^)
2017-03-04 20:37
All should have bought Jaks at 40cts.
See
Posted by calvintaneng > Dec 16, 2014 03:00 PM | Report Abuse X
Whoa!
Top boss bought at 44 cents and above, millions of them. Anything below 40 cents is a bargain!
So don't wait or else Jaks jump Jump JUMP Up And Away!
All who bought at 40 cts already made 200% when Jaks touched Rm1.20
Tell you 2 great stocks to buy now:
1) MUI BERHAD
2) DUTALAND (In year 2006/7/8 DUTALAND Up 200%)
I also bought Jaks in year 2006/7/8.
Since Jaks has already moved up So Much While DUTALAND Still A Great Bargain
IT IS TIME TO LOAD UP KAW KAW ON DUTALAND!!
2017-03-04 21:02
hello, co K is KNM right ?
why no one say KNM
is that mean Knm no people care
pitty knm
2017-03-04 21:48
calvintaneng
no offend
just ask why you keep promote dutaland
this Duta even when they were net profit time also no any dividend
like that how to invest
TDM and MHC better got bonus got dividend for MHC and TDM
last time I also see Duta but find out this Duta really like shit ?
2017-03-04 21:53
Posted by ivan9511 > Mar 4, 2017 09:53 PM | Report Abuse
calvintaneng
no offend
just ask why you keep promote dutaland
this Duta even when they were net profit time also no any dividend
like that how to invest
TDM and MHC better got bonus got dividend for MHC and TDM
last time I also see Duta but find out this Duta really like shit ?
Calvin replies:
Same could be applied to Jaks when I promoted it at 40 cts
So is Berkshire Hathaway. Warren Buffet never give any dividend at all
So why he promotes Berkshire?
As for Dutaland we are buying ahead of all others
1) El Nino will propels CPO higher & Dutaland/CBip will do very well
2017-03-04 21:58
As for MHC & TDM they are both good but not spectacular
Warren Buffet used to say,
IF I AM OUT LOOKING FOR A 7 FOOTER - A 5.5 FEET GUY WON'T DO
In other words Calvin looks for the Very Best of the Best
1) Jaks as the best for water theme play (now long over, don't chase)
2) MyEG as the best of GST theme
3) Pohuat as the best in export furniture
4) RceCapital best among all banks
And so Dutaland/Cbip will be Best Among CPO
Got it?
2017-03-04 22:02
This low life con man purposely tune the 2 story to justify his stake in company J. Both case is different. I also can have my own conspiracy theory below.
Company G case, he did not have as big stake as in company J. He never a substantial share holder. When result is not as expected, he can easily run and remember his cost is very low. The price run up had been some time, plenty of margin for him to run and profit big time. He just play with the flow. Once offloaded, he change his change plan to bash down the price to collect warrant. most likely it is now in distribution phase for warrant.
Company J case, he had a big stake and cost is not low enough. he can't run, the only choice is to support the price. If not he will get stuck. remember he collect high before the result announcement. if bad result is part of his game plan, why should he collect during high. also, releasing the bad result just to collect 20 sen cheaper? doesn't make sense. if want to press he will press big time like company G case. Somemore, company J now have private placement, why not he take private placement and get discounted price if he know it earlier.
low life con, only know how to create story for your stock punting.
2017-03-05 09:12
what did KYY do?
he made a substantial shareholder announcement according to the law.
and you start calling people low life con.
...and this is what we are dealing with here.
2017-03-05 09:25
the moral of the storey here is somebody make profit,some lose and some just watch only...my 2sen
2017-03-05 10:06
KYY could be just a damned good trader and a damned good investor. ...a practitioner of Dynamic Investing. Someone who loves the stock market, lives and breathes the stock market and been successful at it over decades.
KYY is also someone who has mastered the Art of Sailang from a young age.
Just send me a message that Sundays are so boring because Sundays got no stock market. ...no wonder he is successful while others are not.
2017-03-05 10:27
Congrates....managed to get in contact with koon directly after all the plp hardworks...ops sorry its good biz sense...
2017-03-05 10:45
Suggest to drive down to ipoh eat dimsum with him n pretended to be very exciting to listen to his recycled winning stories....who knows he may give u rm1m to manage....
2017-03-05 10:47
Dont hv to bother on those sour grapes...at the end u make money they dont...
2017-03-05 10:49
Haha......a coin has two sides. Which ever side you are in you are also right. My frens, let's move on. You expecting the Market to be fair just because you are fair. Dun allow this to tear you down.
2017-03-05 10:57
There r many ways to make money from stock mkt besides trading in shares...
1) mack chong-selling training courses in 2018 but collect cash now
2) cpteh-cohort n teaching basic TA (well not so successful)
3) somebody i forgot his name - selling tips for rm5k
4) biz sense-finding rich man n plp them in order to manage their $$
5) many more...
2017-03-05 10:59
your objection is to make money.
every thing else are just distractions.
2017-03-05 11:09
You mean someone who bought UMW OG at 75 sen?
Posted by silom > Mar 4, 2017 08:18 PM | Report Abuse
those said ppl loser, in real life they are actually loser you know
2017-03-05 11:13
curious
The beauty about Dynamic Investing is that you do not need a 100 % to make money.
90% record will do.
Fear of losing should not stop you.
2017-03-05 11:18
Ah Koon invited Ahcon8888 inside his house...I am jealous...I never step inside Ah Koon fully aircon house and enjoy free coffee and biscuit...Ah Koon only allow me to stand outside with no fan or plastic chair....Ahcon8888, can you teach me how to PLP Ah Koon?
2017-03-05 11:46
I keep Ah Koon photo next to my bed...dreaming of PLP him like Ahcon8888 and Stockmammy....so lonely without Ah Koon affection
2017-03-05 11:50
Open my stooped eyes...bought Xinquan.....can you write on Xinquan? I dont know how to PLP and Jaks up price like you
Posted by Icon8888 > Mar 5, 2017 11:53 AM | Report Abuse
Open your stoopeed eyes to read my article again. My article is to alert readers of trap to avoid, not to PLP him
2017-03-05 11:56
Charles Bro. we are waiting someone to prove this investing theory is practical.
Posted by CharlesT > Mar 5, 2017 10:48 AM | Report Abuse
Good biz sense + plp= yr winning formula in stock mkt
2017-03-05 12:03
Still stuck with many Ah Koon recommendation....you can check my portfolio here http://klse.i3investor.com/servlets/pfs/53120.jsp
2017-03-05 12:09
I admire Ah Koon...I style my hair, eat like Ah Koon, even drive same car...my wife call me Ah Koon too
Posted by CharlesT > Mar 5, 2017 12:17 PM | Report Abuse
When u write abt koon's stock,u tend to find more interest on koon than the stock...lol
2017-03-05 12:24
I like Jaks prospect, but remember, this was the guy who asked to sailang CSC at 2.38
stockmanmy you can sailang Jaks.
05/03/2017 11:47
2017-03-06 11:24
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
CharlesT
Stockmanmy confessed not long ago that he has good biz sense in finding rich mentor or rich sugardaddy n collecting free tips from i3
2017-03-04 19:05