kcchongnz blog
“Golden Rule” or “Chart won’t lie? kcchongnz
Like others, I also like to share my opinion in the stock market, and hence this article.
I read an article appearing in a popular investment website, i3investor about a couple of weeks ago. The title of the article was, “Hengyuan is dropping continuously” in the link below,
As usual, this article, or any article written by the same author always appears as the top article in i3investor for a long time.
What is so great about all the articles written by the said author?
First and foremost, I think this article, and also other articles written by him, was popular because it provides great entertainment value for readers.
For those who are not familiar with the author, he has been the biggest “contributor” in i3investor, one who has written and published the greatest number of articles in i3investor, and I believe he has the most readers, easily exceeding 10 million reads for his articles in i3investor. He is, at least was, the richest “investor” and the most famous one in i3investor, at one time, with multiple appearance in the media of investing, being the major shareholder of a number of public listed companies in Malaysia, with hundreds of million Ringgit invested. He also professed to be having the Holy Grail in investing, his “Golden Rule”, which he argued everyone must follows in order to make money in the stock market. He also claimed to be founder of many public companies, and a great philanthropist.
The above credentials make the articles written by him popular, and more interesting.
Let’s dissect the article and see why the above article is so interesting.
The writer starts with the first sentence as below,
“Mr Ooi Teik Bee has warned me that he would break his friendship with me if I posted any article to depress the share price of Hengyuan further. That was why I wrote to the admin of i3investors to withdraw all my previous postings on Hengyuan.”
I have not been posting or commenting much in i3investor nowadays, but I still read articles and comments in i3investor for some stock investment ideas, and often to be entertained with all kinds of comments posted by others there. That includes all the articles posted by the writer, as well as the comments. I find myself highly confused with many articles written by him, one time like this and the next time totally different. Hence, here are my confusions and I hope someone can help me to clear all those confusions.
Those articles are highly entertaining indeed, but I can’t see how any article by him has any impact on “depress the share price” of Hengyuan, or any stock as intended as stated in the article. In the comments section, I can see were all negative comments, mostly were so bad against him that I wonder why the writer wants to continue writing and get ridiculed so badly. Any fun with that kind of sharing? Why would one wish to continue getting his reputation dented further?
Was there a need for the person to write to the administration to trouble them to withdraw all his articles for Hengyuan, especially from someone so famous?
So, he really values his friendship with the other guy so much as claimed?
Why should the administration of i3investor entertain such request?
Then comes the next phrase below,
“Introspect (?) I should not have withdrawn all my postings to encourage readers to sell as soon as possible to save their hard-earned money.”
Well, the recent article on Hengyuan written by him had been missing. But as I have said, I do read most of the articles written by him for entertainment purpose. All I can remember was the most recent article which has been withdrawn was trying to justify the drop of share price of Hengyuan was not justifiable. The article went on to say sellers had erred by selling and they shouldn’t have done so. I seriously don’t remember reading on encouraging readers to sell in the withdrawn article. It was an article agreeing on the holding of Hengyuan because the next quarter results would be great. Correct me if I am wrong.
However, since when the writer is so kind to have the interest of readers unknown to him, their interest in mind in the stock market?
How much money his readers and followers had lost in his relentless promotions of Subur Tiasa at about RM2.50 most recently? What about other relentless promotions in steel companies, Alcom, Dayang a couple of years ago, Jaks and Sendai a few years ago, etc.? Which stock he promoted had made money for his readers, instead of losing like no tomorrow?
Here is another one,
“In fact, just a few days ago, on 11th June Mr Ooi sent out his circular letter to encourage all his subscribers to hold on to their Hengyuan shares to win big or to make more money. All his subscribers have been misled. I am one of the victims. That was why I delayed selling all my holdings. Now I regret that I did not sell all my Hengyuan shares earlier. If I sold earlier, I would save some money.”
The writer declared he was misled by the other guy for not selling his Hengyuan shares, and he is regretting like hell now. For a big-time stock market player with hundreds of million Ringgit to dabble in the market at one time, one claimed to have the Holy Grail in investing, now blamed that he was misled! How could it happen? Hasn’t he carried out his own analysis and made his own decision? Why didn’t he apply his formidable “Golden Rule” of sure-win strategy?
In fact, I was wondering whether he was asking for tips from the other guy and the tip didn’t turn out well and he started the blame game? Well, knowing the on-and-off close relationship of him with the other guy, you can’t blame me for suspecting, can you?
Next,
“The price chart cannot lie. It is a record of the daily trading. Down trend can only mean there are more sellers than buyers every day. I should have followed the price chart which is showing down trend instead of following the advice given by Mr Ooi.”
So, if you made a big mistake, whose fault was that, Mr. Ooi’s, or yours? Who should be blamed? How long have you been in the stock market? You invest with millions, but you follow other people’s tips?
What about this,
“Its next quarter result ending June might be fantastic. But the result will only be announced before the end of August which is about 2.5 months’ time. At the meantime, every day there are more sellers than buyers to support the share price.”
I do not really see the logic of the phrase here. If the results will be fantastic, and if you are playing on the “Golden Rule”, based on quarter-to-quarter result, why would you think there should be more sellers than buyers now? Don’t you think investors should start buying now as the next “fantastic results” will be published in just 2 months’ time? Isn’t 2.5 months a short time that you should capitalise and buy big now, instead of buying it later when the share price has gone up?
I really don’t understand his implementation of his “Golden Rule”. More so, I really don’t understand why such as article comes from a self-proclaimed “super investor”.
The writer finished his post with this,
“Is my friendship with Mr Ooi more important than saving hundreds of investors’ hard warned (?) money?”
Once again, from all the articles I have read, not only this article, I found no evidence that he has the interest on saving hundreds of investors’ hard earned money in mind. As I can see, he speculates in the market with hope of making quick money with his relentless promotional articles, and everybody should know speculating is a zero-sum game. What he makes other lose, and vice versa.
The next day, a new article appeared, “Hengyuan: investors must follow the chart” as below,
And here is his declaration of his noble intention again,
“My sole purpose for writing this piece is to prevent my readers from losing their hard-earned money or lifetime savings.”
Nevertheless, if people speculate in the stock market and lose money, they should take responsibility of their own greed. You don’t need to “save”” them, do you?
Meanwhile, after his articles above, Hengyuan share price spike up by 8.3% the next day!
What a great transformation from the “Golden Rule” to “Chart won’t lie”!
But what happened a few days later?
Here is a new article, “AYS has profit growth and is undervalued”.
Let’s look at the chart of AYS below,
(How to insert a chart?)
So, what does the chart tells you about the share price of AYS?
Uptrend? Chart won’t lie?
the “Golden Rule” takes precedence over the “Chart won’t lie”, again?
Or is it because there is a little kink in the chart just before the above article is written, signifying a change in trend?
What would other chartists here say? A trend reversal?
I am confused.
But in the next few days, maybe someone can manufacture a nice chart for AYS as the small amount of shares outstanding can easily be manipulated.
Were the results of AYS so great as described in the article? Well, everyone has his own opinion.
If you only know how to see “earnings” alone, you would have missed the forest from the tree, just like for all your previous stocks.
This is purely my opinion, which may be wrong.
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Discussions
1 person likes this. Showing 31 of 31 comments
before senile itself the fellow is a symbol of mutated human without the integrity gene, even his kids dont trust him
at this age, he is as good as garbage with the only use to attract attention since he has money
good to use him and throw like OTB does
2022-06-26 17:37
The current market preception is when KYY start to promote, it is time to sell.
So his promotion articles on HY need to withdrawn to stop the selling.
Watch out for tomorrow, AYS will drop like a stone.
2022-06-26 18:45
Insas is called value investing because Insas market cap now is below its net cash.
AYS too much borrowings, high inventories and receivables, it look like another subur.
qqq3 are feel to chase high on AYS for KYY to make some money
2022-06-26 19:16
Welcome back KCChong! great article as usual! calling a spade a spade. Not only KYY, same applies to Calvin Tan. Sounding noble in wanting to help you achieve your financial freedom by selling you a dream to easy money while front running orders and skimming off poor unknowing retailers
2022-06-26 19:26
Posted by arv18 > 4 hours ago | Report Abuse
Hi KC. Long time no see. Some thoughts.
I wouldn't devote any time or an article to validating the Great Con.
I am also having this "Noble intention" to share my thoughts so that newbies can have an opposing view to evaluate, rather than being bombarded non-stop and flip-flopping propaganda.
2022-06-26 21:51
Posted by qqq3333 > 2 hours ago | Report Abuse
ays is call value investing....kcchonv favourite way
You have never learnt thes few years, have you?
2022-06-26 21:53
Posted by Sslee > 2 hours ago | Report Abuse
AYS too much borrowings, high inventories and receivables, it look like another subur.
qqq3 are feel to chase high on AYS for KYY to make some money
Somehow engineers seem to have much better analytical mind than accountant.
Oh, sorry, I mean certain accountant. No, in general, engineers not necessary have better analytical mind in accounting and finance matter than accountants.
2022-06-26 21:56
Posted by sherlockman > 2 hours ago | Report Abuse
Welcome back KCChong! great article as usual! calling a spade a spade. Not only KYY, same applies to Calvin Tan. Sounding noble in wanting to help you achieve your financial freedom by selling you a dream to easy money while front running orders and skimming off poor unknowing retailers
I bet to differ. Calvin Tan has his way of investing. In fact, it has been proven that his deep value investing worked. It is ok to share each individual's investing strategy. He may have bought the shares and then share his promising thesis on the stocks. But it is okay as he actually believe in it, and never flip flop like someone.
2022-06-26 21:59
Hi KCChong,
What amazes ne is despite the amount of negative comments and to some extent hate among the comments towards KYY, he still continues to write. I wonder if he is oblivious to the comments or his ego is just infallible? I am truly baffled!
2022-06-26 22:08
Sherlockman,
I am as puzzled as you do. Imagine such a well respectable, with high standing (previously) elderly person who has so much money that he will never able to finish using it, writing flip-flopping articles, enticing the uninformed to buy his shares, so far, none is good and I don't know how many water fish were there. After that laugh at them for losing money.
Making more money, for what?
It is definite not some kind of noble intention.
What is the results? Reputation dented beyond repair.
2022-06-26 22:40
Why does KYY still write despite being consistently wrong in his recent stock calls and being savaged by readers? I think he has nothing else meaningful to engage his remaining time. He also craves the attention writing stock articles garners. He may have lost so much money following his own calls there is little left for charity. Like many previously successful stock speculators, he went up the mountain once too often and finally met a tiger. Welcome back, kc.
2022-06-27 09:07
HI KC, The whole intention (KYY) very simple. He want to sell his "death" that stuck for quite some time. How to sell when the chart is down trend, golden rule cannot apply ? then go back to various fundamental value of the company. Does he care his reputation. I think he think more about money. Reputation talk only for show.
2022-06-27 10:23
If one evaluate the share price relationship to the fundamental value of company. There are more than 100 counters one can choose from that consider "cheap" Obviously AYS is not in the top 100 counters a smart investor will choose. Why AYS , KYY money stuck there
2022-06-27 10:30
Posted by Berlin > 2 hours ago | Report Abuse
Why does KYY still write despite being consistently wrong in his recent stock calls and being savaged by readers? I think he has nothing else meaningful to engage his remaining time. He also craves the attention writing stock articles garners. He may have lost so much money following his own calls there is little left for charity. Like many previously successful stock speculators, he went up the mountain once too often and finally met a tiger. Welcome back, kc.
Sharing his own investment thesis and getting wrong all the time I think is okay if the writer is sincere. But if the motive of the writing, and leveraging his "reputation", is to benefit himself at the expenses of the poor guys, that is a little too much. Actually, I don't know why he doesn't understand, at his age now, the reputation is worth a lot more all the money he made.
The way he flip-flop clearly can gauge his motive, so much so none in the public forum has any trust in him now.
Why want to get himself at this stage of life?
It is okay to write and share your investment thoughts. But sincerely, most people should improve themselves. That the sharing will benefit others.
If you only know about earnings, and earnings growth, without bothering and knowing how to read the balance sheet, and also the cash flows statements, you won't be able to evaluate a business well enough to be successful. That was also why hundreds of million Ringgit of value has been destroyed.
2022-06-27 12:09
@kcchongnz; That's why I have respect for you but not for KYY whose self professed good intentions and veneer of philanthropy hide much darker motives. The man is no super investor; more of a snake oil salesman. Past painful experience has taught me that much.
2022-06-27 12:33
I think all the readers or investors in this forum should avoid getting carried away by a certain writer and commenter who seems to been constantly giving conflicting ideas of how to invest successfully in the stock market.He has been around for some time now.Until the recent past,he was a paragon of virtue in extolling the importance of a stock's fundamentals as against relying on technical analysis as an investment decision tool. His litany of mantra to investors is to constantly pay attention to NTA,P/B value and profit margins as some of the most important criteria in investment decisions.As a matter of fact in order to give credence to his calls,he will produce charts to compare the price appreciation or depreciation of his favourite stocks with its NTA,P/B value and quarterly earnings.And recently to my utter surprise he seemed to have migrated to technical analysis as the better indicator when making decision to buy or sell.
2022-06-27 13:58
Tiger62
HI KC, The whole intention (KYY) very simple. He want to sell his "death" that stuck for quite some time. How to sell when the chart is down trend, golden rule cannot apply ? then go back to various fundamental value of the company. Does he care his reputation. I think he think more about money. Reputation talk only for show.
Your argument sounds very logical, passing the hot potatoes to the naive and uninformed. So does it make sense that he claimed that he wanted to save the hard-earned money of small time investors?
2022-06-27 15:38
many comments have pointed that KYY's calls are often very good contrarian indicators and has proven to be correct again this time with Heng Yuan
2022-06-27 17:13
Aiya, enough with this old man lah, many said what he writes has influence on the direction of price, the fact is he is nobody lah, just a senile old man that doesn't know what he said or written yesterday. That's why all the conflicting articles. Make sense boh
2022-06-28 02:49
While I also have personally been misled before by uncles flip flop articles, I hope readers show some kindness and avoid bad mouthing uncle. If zhuge_liang say is correct, uncle also loose a lot of money, sometimes loose money make people desperate and not think logically
2022-06-28 13:07
not follow uncle die. but bursa is dead now. been how many days or month continuously drop.
2022-06-28 13:09
save the money for purchase property more better. things you can see and touch at least.
2022-06-28 13:11
KC Chong, I3investor forum is a free platform for anyone to publish their idea/suggestion/opinion/etc. It is no good to bad mouth on anyone even though you dislike his writing. Peoples who read his articles will judged by themself what next course of action and they themself take the responsibility. You couldn’t blamed others for your own action.
I still believed you are a good investor but not a great one.
Take good care.
2022-06-28 15:03
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Post removed.Why?
2022-06-26 17:33