Koon Yew Yin, 22nd Aug 2024

On 21st Aug 2024, I posted my article with the title “90% of investors lose money in the stock market”. Now I will tell you how to make money from the stock market.

The surprising truth is the stock market as a whole goes up over time. Why so many investors lose so much money?

The stock or share I select to buy must pass both the technical and financial analysis.

Technical analysis is a trading discipline that uses past trading activity and price changes of a stock to evaluate investments and identify trading opportunities. It seeks to predict price movements by examining historical data, mainly price and volume.

Financial analysis is the process of evaluating businesses, projects, budgets, and other finance-related transactions to determine their performance and suitability. Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to warrant a monetary investment.

KSL share

Let me tell you why I have bought KSL shares. I bought it because it passes both the technical and financial analysis.

KSL technical analysis:

As I said earlier, the most important criteria for share selection are technical analysis and financial analysis. The price chart below shows that KSL share price has been going up from 88 sen to above RM 2.13 in the last 12 months.

Price chart is a daily record of the last traded price. If there were more sellers than buyers, the last traded price would be lower than the previous day. In the case of KSL, there were more buyers than sellers. As a result, the price chart is showing an uptrend. Always buy up trending stocks because it is most likely to go up. Never buy down trending stock because it is most likely to go down. Price chart cannot lie!!!

You could have made more than 100% profit if you had bought KSL one year ago.

KSL financial analysis:

KSL reported 9.93 EPS for the quarter ending March 2024 with a net tangible asset per share of RM 3.75.

2023 annual net profit was 40.8 sen EPS.

2022 annual net profit was 17.6 sen EPS.

KSL’s 2023 profit is more than double its 2022 profit. That is why its share price has increased more than 100%.

It is still the cheapest stock based on PE ratio among the top 10 property developers listed in Bursa Malaysia.

Bursa Malaysia crash

On 5th August 2024, Bursa Malaysia crashed amid massive global equity sell-offs and mounting fears of a looming US recession. Similar sentiment was also seen in regional markets, with Japan's Nikkei 225 Index dropping over 4,000 points, or more than 12 percent.

At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) plunged 74.57 points or 4.62 percent to 1,536.48 from Friday's close of 1,611.05.

On the broader market, losers outnumbered gainers 1,658 to 83, with 131 counters unchanged.

KSL also plunged but it is recovering slowly.