Stocks market watch
Prominent investor buy call analysis - Gadang, Liihen, Focus Lumber and XingQuan example
Recently prominent investor getting greedy and asked his readers to buy his recommended shares which he has huge holding at all time high (recently Gadang and Gamuda-WE). Besides that, he also like to encourage people to use margin financing. This kind of action is very irresponsible and his main motive is just to get richer faster. He don't care about the consequences of his buy call to newbies. They just follow him because they respect him but they may lose out because of irresponsible greedy prominent investor. This prominent investor also informed Bursa very late when he disposed his shares in Latitude and VS. If shorting of shares is allowed in Malaysia, then I would say this prominent investor is good. Buy high sell low still can make money. But this is not the case. Those who are thinking to buy his recommended shares should think twice. He recommended good company but the timing is not right. There are many other good companies in Bursa which you can invest which is not subject to just an individual speculation. Based on his recommendation, his percentage of failure rate is quite high. So its advisable that you get the right guru to learn about stock market and can teach you about value investment.
Do remember this statement "Be fearful when everyone is greedy and be greedy when everyone is fearful".
Some people ask why I do this. My intention is just to remind others do not simply trust prominent investor buy call without proper homework. It's everyone responsibility to expose a crook so that there will be no other victims. It's not lay blame. You never know if someone close to you may get trapped by this misleading old man.
Below are some of the buy call that the prominent investor made over the years. Of course there are more, but I pick a few examples. Many other failure call and betray those who believe him which are not covered in this article. Example Jaya Tiasa, Muda Jaya, Geshen and Latitude.
This prominent investor has caused many trapped in Focus Lumber, Canone and Geshen. The fundamental of the company looks great on those companies at that time. But when this prominent investor buys, everyone just follow blindly. They forgot that the company may not do well in the next quarter. Those who chase high will lock their money there.
Gadang: Look at Gadang chart below. The prominent investor only shout when its at all time high. Will this be cup and handle or double top as seen in Liihen? Shouting buy call when at all time high is very irresponsible. Do remember another term. Margin of safety. Potential upside and downside of a particular share. First question to ask before investing is not how much money I can gain. But is how much money that I potentially will lose. Sometimes, there is a reason for low PE for a particular stock. Of course Gadang is known to bid for mega projects. But bidding of projects announcement is just speculative to give hope. And bidding does not guarantee that they get the project. Even if a company gets the project, the profit is not realized yet until the project completed. The market will not give that high valuation just based on getting big projects but didn't compute the cost and whether they can deliver or not.
Focus Lumber: This is an example of don't follow blindly when prominent investor buy certain stocks. They could be right and could be wrong as well. If you happen to take profit early and don't be extra greedy, then you will be safe. But this prominent investor like to encourage people to bet on the quarterly results and hold longer term. The reason for this is very simple. Its for him to get richer faster by encouraging people to chase high for him to sell. See what happened to Focus Lumber after missed earning expectation. It gapped down 10% the next monday opening session.
A bad quarterly result is enough to send the share price lower. Those brought at more than RM2.00 will be trapped forever if this company earning does not improve in coming quarters. The major resistance is at RM2.15.
Liihen: This prominent investor said Liihen at RM3.30 is still cheap. If PE can be a main indicator, then everyone will be rich. Why some shares has low PE but don't go up much but some company has PE number of more than 50 the share price still going up strong. PE number is just an excuse or story created for people to chase high on certain stocks without looking into reason behind it.
Look at Liihen chart. Liihen share price has been moving sideways. The sideways could means accumulation or distribution. More likely it is distribution as there are many directors selling their shares. If next quarter earning less than RM20 million, gap down of share price may happen as it has increased a lot. This kind of gamble is what the prominent investor encourage you to take. Of course if the quarterly result is good it may send the share price higher but what if its bad? Can you afford to lose around 10% in one day? You will be wiser to judge yourself. Beware during the last 2 weeks of August 2016 for the next quarterly result announcement.
Liihen share holder must pray hard that this coming quarters must beat the earning expectation of at least RM20 million. If not, gap down could happen. For those who can't take this risk, its adviseable to take comfortable profit. Remember, a red quarterly result may send the share price lower.
Xingquan: As I mentioned before, prominent investor can be wrong. So do your own homework before investing your hard earned money. This prominent investor give many reasons for buying XingQuan, but unfortunately the share price from 60 cent dived to 15 cent recently. So cut lost early is important. Very irresponsible prominent investor giving RM3.00 as target price for this kind of red chip share.
XingQuan share price chart. If you brought XingQuan and believe prominent investor during Dec 2015, then you are in deep trouble if you don't cut lost early. It lost 75% of its value from end of Dec 2015.
A note to his supporters, if the stock is good, you should just continue to hold tight tight. Any bad news or rumours out also still hold tight tight or even top up more. This prominent investor will give you hope. Very good hope that Gadang maybe can go up further. He will definately be happy to those supporters like you helping him to achieve the target price.
More articles on Stocks market watch
Gadang - Prominent investor asking you to chase high again. For him to sell?
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Liihen - Prominent investor ask you to chase high. Will you follow his advice?
Created by ah_boon | Jun 05, 2016
Prominent investor now using Facebook to share his advice and hinting Liihen at high price
Created by ah_boon | Jun 04, 2016
Will Canone have same fate as Focus Lumber? Prominent investor buy and you also buy
Created by ah_boon | May 24, 2016
Follow blindly when prominent investor buy. What will happen to Focus Lumber on monday?
Created by ah_boon | May 21, 2016
Do you think these shares will rise so much if prominent investor don't promote it?
Created by ah_boon | May 07, 2016
Untimely disclosures and secretive actions by prominent investor - A challenge to Bursa?
Created by ah_boon | May 07, 2016
Discussions
6 people like this. Showing 50 of 61 comments
I want to create a blog page to share with you my stories
may not help you to make more money
but
sure can bring you a lot of laughter
anybody kind enough to teach how to do ?
2016-08-14 11:54
oh,... i didn't notice ah boon has published a chart of gadang
please take a look at the volume transaction
is it enough for a rich man like KYY who has a big stomach
compare it with flbhd, liihen, xingquan, VS , Latitude....
what do you see?
GADANG is just at he beginning stage of uptrend , approaching it fair value at 3.++ higher and higher
whereas others are coming down from high towards its fair value at low
you are calling people not to chase high
what sort of high is that ?
you have block people way to HUAT
you still hope to get good karma ?
2016-08-14 12:12
do not be misled by ah boon charts
he is just showing a 6 months period
expand it to 2 years ( 2014 - 2016)
then you see ah boon actually main hentam buta or buta hentam
2016-08-14 12:27
English translation,
cpng,
he is not well intended
he is dreaming a crook fighter
a savior of a free market
why dance with this mad dog
2016-08-14 12:43
What I want to mention to remind newbies and readers are already in the blog posts. It's up to the people to believe it or not. I can't control that. But what I mentioned in my blog is a fact based on historical analysis of the prominent investor buy call. It maybe right or wrong this time. So readers you may decide on your own. It's your own money and you may decide on your own destiny. For those who like to flood my blog posts with jokes and laughter, you may continue to do so to waste your weekend. My weekend is very precious to me and I will continue to enjoy my good lunch now. Have a great weekend.
2016-08-14 12:55
Does deep throat identify himself so fast when he exposed the Watergate scandal. Don't be silly, this is how whistle blower works.
2016-08-14 13:04
Dear ah boon can u recommend good stocks to buy - those not moved yet ?
2016-08-14 13:14
this is a free market, fair or not fair is not you say or I say
but the price is determined by the rich man
follow a rich man call is nothing wrong as long as you know when to buy and when to sell
being in the market for so many years.......
if a good stock like gadang can't attract the interest of a big player, do you
think it will move sky high to achieved your target price?
riding with the wave is much easier than fighting the wave
but you must manage your own risk
nobody can help you except yourself
if you don't, the who to blame ?
KYY ? ah boon? Murali? OTB ? KC ? Icon8888?
surely not me !
I am pisanggoreng, open a blog also don't know , where got standard to help you
2016-08-14 13:18
To be fair, gadang and liihen are performing well due to their strong fundamental.for FLB , its profit was decreased a lot in the latest quarter due to loss of double tax deduction benefit and forex loss.furthermore, the director Loo family disposes flb everyday.for xing quan, it is a China company,so no need to say much on it.as long as the fundamental of company is keeping stronger,the share price will up accordingly.
2016-08-14 13:20
it is a piece of good advice but can't just blame directly on people who recommended it.
he did not put a gun point at you. you take responsibility on your decision.
2016-08-14 13:41
a good thing when over doing is no more good already
you see for yourself what he is doing
WRONG , HENTAM!!!
RIGHT, ALSO HENTAM !!!!
asal KYY , HENTAM !!!!
this hentam buta or buta hentam do anybody good ?
2016-08-14 13:47
some people like to hide behind the name newbies
they claim they are the savior
they do not know the newbies are actually shadows of big kaki
without the big kaki where is the newbie
the newbies are stupid meh.....
no,no.....
there are smarter than you and me
they know riding with the wave is much easier than fighting the wave
to save the newbie ?
i think the one that need to be saved is you not newbie
2016-08-14 13:55
teach me lah ... how to open a new blog
so that i need not have to occupy so much space here
a lot of stories to tell you know
2016-08-14 13:57
ah boon ,
I hope a lesson from now
everything has a limit , over doing will bring adversity
you do it again and again
you can't blame us to be skeptical that you have a hiden agenda behind
2016-08-14 14:02
What I want to mention to remind newbies and readers are already in the blog posts. It's up to the people to believe it or not. I can't control that. But what I mentioned in my blog is a fact based on historical analysis of the prominent investor buy call. It maybe right or wrong this time. So readers you may decide on your own. It's your own money and you may decide on your own destiny. For those who like to flood my blog posts with jokes and laughter, you may continue to do so to waste your weekend. My weekend is very precious to me and I will continue to enjoy my good lunch now. Have a great weekend.
2016-08-14 14:12
Ah boon has a noble intention - to educate newbies without getting any benefits.anybody trust ah boon ?
2016-08-14 14:13
Whether newbies or experienced investor , nobody is 100% correct. Even OTB said confidently Insas will double the price 2 years ago , in the end what happened ? Then OTB also said hevea suffered losses few days before quarter result released and told everyone to sell hevea. It turned out quarter result was very good
2016-08-14 14:16
if you want to be successful in the share market
never fight with the big kaki
learn to live coexist with the big kaki
they are the ones determine how much more the price still can move up
not you or me
lagi bukan newbie ....
don't get it wrong
2016-08-14 14:17
There are also many stocks OTB recommended his subscribers to buy . Some are actually stock that did badly
2016-08-14 14:17
I3 here is like a jungle, which consist of lion n of course full of paria jackals which is more cunning n danger than the lion because they may hope to feed their hunger which left over by the lion without compassion to the victims. U are here to enlighten the victims still blinded by their greed.
Ah Boon ur write up is good enough! Don't be discouraged by the jackals. May good karma come to u.
2016-08-14 14:23
Nama pun pisang goreng. Main goreng sahaja. Ok, I going to buy some pisang goreng now. So delicious to enjoy it during weekend. Haha...
2016-08-14 14:23
moneyface,
i am not otb subscriber, please fair to him . please be more rational in your comment
2016-08-14 14:29
hercules,
do not think the evil always has less followers than a saint
the evil can not claim he is actually the saint
ah boon have come out with any valuation or evidence that Gadang is overpriced at the current level?
nothing !!!!
he is more interested in pisang goreng and hoping to come back buy at the price he can sleep well
you and ah boon are actually belong to same category of people , dare not take risk, even a good calculated risk
i dare bet with you , you do not have any successful story in your investment to share with us
if you have , just share it here to prove me wrong . the readers here are the judges . I will tender my apology and disappear form i3 then
do not try to challenge me to show first before you can show
just do it and i know what to do next
the readers here are the witnesses.
2016-08-14 14:45
This article assumes all public investors are stupid other than the writer. :)
2016-08-14 16:27
TQ all bloggers for sharing their hard work ..
Do your homework and don't follow blindly.. what they said
2016-08-14 16:39
this 1 ask me to buy, then i buy. that 1 ask me to sell, then i sell. seems like both of u want to control newbies like me. like that i so no faces lo.
2016-08-14 17:21
One has to be very careful whenever buying into stocks at "all time high" ?
set your stoploss before enter..
2016-08-14 18:05
When i bought lii hen, i never bother if kyy bought or not, kyy follow me to buy as i bought at around rm2.50. Kyy bought higher than that. Pls go bursa website to find out.
I sold gadang to lock in profit before kyy sing song for gadang.
To me, who is kyy? He's just a old man with lots of money, whatever he did got nothing to do with me, why want to follow him when come to invest?
2016-08-14 18:38
Just ignore the old man & do your homeworks, you can do better in investing.
2016-08-14 18:40
Newbies need to pay some prices in acquiring more knowledge and experience. No doubt. Ah Boon is just helping them to grow faster. Keep up, Ah Boon.
2016-08-14 18:47
Anyone can give a possible explanation on why he (KYY - despite holding lots of stakes) did not promote FLBHD at current pricing despite its good fundamental..and he can divert attention on other stocks?
Anyone can give a common sense explanation why some FA investors can decide to dispose FLBHD just because one of the director is disposing...and others are still strongly holding onto it?
these are very simple questions....with very simple answers...
but nobody has the rational mind to figure it out...rather they like the herd mentality of idolizing 'sifus'.
2016-08-14 18:53
Kyy bought Liihen since 2014 before share split and bonus, I calculated he used about Rm 20 millions to own about 10% , with the dividends received over the period, at current price level,he should profit not less than RM 30 millions
2016-08-14 18:57
"Liihen: This prominent investor said Liihen at RM3.30 is still cheap. If PE can be a main indicator, then everyone will be rich. Why some shares has low PE but don't go up much but some company has PE number of more than 50 the share price still going up strong. PE number is just an excuse or story created for people to chase high on certain stocks without looking into reason behind it."
I think a responsible and good investment advisor, mentor or GURU "should not have written " a statement like this to remind newbies...if PE is not one of the indicators we are looking at ? what else ? if I am not mistaken, ah-boon did give lessons on basic investment knowledge on stocks to newbies sometimes ago.
2016-08-14 19:13
Many workers sometime don't realize that the Major shareholder of the company they are working for also held stakes on their competitor company.
When one becomes bigshots...and great politician...feud among them are just drama to mask the real face from the spectators.
they are a team behind.
2016-08-14 19:15
I am back from dinner now. Wow, pisanggoreng, I really salute you. Bark from early morning until night still non stop. I really amazed at your stamina. Your comments really full of jokes and laughter. You may continue to do so to waste your weekend. If I were you, I will learn how to create blog post to tell people how good Gadang is. But you choose to continue to bark on my blog post instead and I would like to thank you to make this post more popular. Since, you are confident that Gadang is good, you should just continue to hold it tight tight regardless what people said.
2016-08-14 22:16
What I want to mention to remind newbies and readers are already in the blog posts. It's up to the people to believe it or not. I can't control that. But what I mentioned in my blog is a fact based on historical analysis of the prominent investor buy call. It maybe right or wrong this time. So readers you may decide on your own. It's your own money and you may decide on your own destiny. For those who like to flood my blog posts with jokes and laughter, you may continue to do so to waste your weekend. Have a great weekend night. http://klse.i3investor.com/blogs/marketcheck/102074.jsp
2016-08-14 22:17
Oh, I didn't know that my comments offended you, pisanggoreng, as I didn't read any of the comments in the comment section. Please re-read my comments again.
I put down my comments when I read the heading of this article, I didn't really go into reading whole article.
I just don't like the idea of too emphasizing on individual's influence when come to investing in stock market. It would be better if we think & study carefully what they are doing. Not just follow or against blindly.
As there are over hundreds of shares waiting to be explored, famous people buying the shares that you already have are good plus points. But, I will never buy just because those people have bought. I will study all reports & look around to see what they bought are suitable to me or not, then only decide what next to do.
2016-08-14 22:46
To be frank, I earn quite a good sum of profit in Gadang. Also, my current largest investment is Lii Hen, more than 60%.
So, just buy if you feel comfortable & sell if you think it is time to go. Freely to decide as these are your hard earned monies.
2016-08-14 22:52
Pingsagoreng, I know you have been with Gadang since long long time ago, even since it was about RM1.40 something, if I am not mistaken, not sure if it may be even lower.
My stock selection criteria is Low PE, improving profit & dividend records, so Gadang is in my watchlist.
In fact, I choose Lii Hen due to reason of my bet on US economy. I will go in again for Gadang if Gadang confirmed of winning MRT2 project.
I don't mind to go in after the news as even I earn less then, I am still able to earn some later, I feel more comfortable this way. This is the lovely part of stock market.
2016-08-14 23:13
Agreed
Posted by pisanggoreng > Aug 14, 2016 11:02 PM | Report Abuse
I do not actually follow whoever blindly
you know very well, common sense tell us, excluding those exceptionally cases, a stock, no matter how good it is , the price is difficult if just depend on the small kaki play.
2016-08-14 23:18
If the stock is good, you should just continue to hold tight tight. Any bad news or rumours out also still hold tight tight or even top up more. This prominent investor will give you hope. Very good hope that Gadang maybe can go up further. He will definitely be happy to those supporters like you helping him to achieve the target price.
2016-08-15 15:45
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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....
pisanggoreng
ah boon,
your kind-heartedness is well received
nobody will blame you if they lose money
many will blame you if they can but can't because of you
GADANG is a good example
belum fairly priced , you already bising
1.90 - don't chase high
2.20 - don't chase high
2.50 - don't chase high
2.80 - don't chase high
........................
........................
........................
4.50 - don't chase high
5.00 - tak boleh tahan, ALL IN...
DIE......
end of the story
2016-08-14 11:42