Trading With A View
(Tradeview 2018) Buy on Weakness, Sell on Strength (Hengyuan, PetronM, KSSC, MediaC, VS, Uchitect)
tradeview
Publish date: Thu, 19 Apr 2018, 05:55 PM
tradeview
0 209
Author of Once Upon A Time In Bursa : The MONEY Equation. A corporate strategist, lawyer & avid investor who has two great passion in life: Financial Markets & Real Estate. A true fundamentalist and financial writer motivated to tip the scale in favour of retail investors. Believe the stock market can be force for good.
Contact for update : tradeview101@gmail.com
Telegram: https://telegram.me/tradeview101
Contact for update : tradeview101@gmail.com
Telegram: https://telegram.me/tradeview101
Dear fellow readers,
Once again, these writings are just my humble highlights (not recommendation), feel free to have some intellectual discourse on this. You can reach me at :
Telegram channel : https://telegram.me/tradeview101
or Email me to sign up as private exclusive subscriber : tradeview101@gmail.com
_____________________________________________________________________________
US and China trade war took centre stage for the past 3 weeks creating huge market volatility across the global markets. US market alone corrected close to 15% from its high. SP500 drop 11% from a high of 2872 to 2581 and Dow dropped 12% from 26,616 to 23,533. There is a saying that the modern warfare of today is the war of economy, no longer arms. If so, tariffs would be the main weaponry. On top of that, Malaysia's Parliament has dissolved and the country will be facing the GE14 on 9th May. This may appear to be main theme for the next 1 month for KLCI and of course some of the concerns include Syria airstrike by the alliance consisting of US, UK and France. This led to the rally in safe havens and the oil price as well nearing almost 70 USD per barrel.
Many asked Tradeview how come we are not recommending as many buys as we did in the past? Are we taking a prudent stance hence the reduction in recommendation? Actually we did reduce but we have been calling a number of stocks especially in our private group. We do this very carefully and based on our specific FA metrics. Most importantly, we time our buys, meaning we only choose to buy if the market is weak and sell when the market is strong. Some stocks we buy and hold until the true value gets realised. Usually this are mid to long term stocks. However, there are those where the opportunity to buy is so good and we get such a good price, then it moves within a short span of time as it rebounded strongly. Today, we would like to share with all the very basic concept of buying on weakness and selling on strength.
Usually, most people understand but few have the ability and foresight to practice such investment method. Even long time fundamentalist or FA investors, they find it hard to do. After all, who can time the bottom? Who can time the market so perfectly? It is extremely difficult to find the bottom what more time it to precision. Hence, we usually advocate this rule too our readers, if the stock price fall below our Tradeview FA metric and the levels is attractive enough with the right margin of safety, then you can consider. However, always wait for the price to stabilise before making the call. We will show some of the examples of the calls we have made recently during the buy low sell high period.
1. Hengyuan
Our initial valuation for Hengyuan was around RM10. When it went to a high of RM17 last year, many asked us repeatedly why we didnt call Hengyuan and arent we bullish with the prospect. We are conservative and prudent. Since we missed and the valuation was too high, we said can wait for opportunity to collect on weakness. We called at any price below RM6.50 for Hengyuan on 4th and 5th April as per the above chat group message. The rest is history. Hengyuan rebounded shortly after that when the trade war concern subsided a little and went up to as high as RM9.50. This is close to 40% return in less than 2 weeks.
2. PetronM
Similarly for PetronM, our initial valuation for will be RM9 and we called on 4th and 5th April for any price below RM7.50 was good to buy. This is our prudent estimation without taking into account of the full year growth. PetronM reboounded to RM9.60 in less than 2 weeks.
3. VS Industry
Our initial valuation for VS would be around RM2.50. When the share price fell to RM2 and slightly below, we knew this was the opportunity and called a buy on 5th April as well. VS rebounded to as high as RM2.40 in subsequent days and became among out top gainers that week.
4. KSSC
Till today KSSC remains as one of our under the radar favourite gem. I remembered when we chose KSSC as our 2017 value pick, many were upset as the share price did not reflect. Until this year, it shot up all the way to 75 sens before retreating gradually. It is a significantly undervalue but it was a short span of time. Later on KSSC management declared dividend of close to 5% to reward shareholders. We maintain our initial valuation for KSSC to be RM0.65. When the market fell the other day, it fell to as low as 38 sens. That was a no brainer. Today it is hovering around 47 sens with more upside intact.
5. Uchitect
Our initial valuation for Uchitect is RM3. This was even before the capital repayment to shareholders were announced. When the market was weak, it fell to as low as RM2.30. We advocated to all our readers to consider buying on weakness. It remain was one the big gainers and rebounded strongly from Rm2.30 up to RM2.80 in less than 1 week.
6. MediaC
MediaC goes without saying is one of our solid and safe buy. Many would have known by now the reason for the surge is due to their separate listing in HKEX, One Media Group's 10% stake in Most Kwai Chung which saw a 2000% over subscription for the retail portion during a recent IPO in end March. While this is a valuation play, the fact is also because we believe MediaC is undervalued with only upside, not downside. We believe buying now on weakness is an opportunity for when it is time to rebound. There are many factors to consider, one of it is the assets of the company surpass its share value, and whilst the earnings are indeed dwindling, the group may receive bumper earnings from election period.
https://www.bloomberg.com/news/articles/2018-02-07/buying-the-dip-works-nicely-a-30-year-history-of-routs-shows
There are definitely others to the list of stocks we have watched, observed, consider, and called. Mostly with the market continuously being volatile, May is coming, election is soon, earnings season fast approaching, there is no doubt that we will see opportunities like this appear in the market. Hence, when the time comes, opportunity knocks, and value surfaces, what would you do?
________________________________________________________________________________
Email me to sign up as private exclusive subscriber : tradeview101@gmail.com
Food for thought:
More articles on Trading With A View
NST Business x Tradeview No.3 - Adam Yeap, Owner of 212 Hospitality and co-founder of Wonderbrew
Created by tradeview | Oct 18, 2021
NST Business x Tradeview No.2 - Muzahid Shah, CEO of SteerQuest Sdn. Bhd.
Created by tradeview | Sep 28, 2021
News Straits Times Business x Tradeview - Sharing Stories of Retail Investors & the Stock Market
Created by tradeview | Sep 15, 2021
Tradeview (2021) - Peterlabs Holdings Berhad Long Term Value Stock (Update)
Created by tradeview | Jun 01, 2021
Tradeview Commentaries - The Glove Surge, A Mirage or A Path To Oasis?
Created by tradeview | Apr 08, 2021
(Tradeview 2021) - Are Research Analysts' Reports Worth Their Salt?
Created by tradeview | Mar 17, 2021
Discussions
2 people like this. Showing 3 of 3 comments
Tradeview, you need to check your record for PETRONM again. 4th March is a Sunday. And it was traded between 9.72-10.56 on 5th March. Just saying.
2018-04-24 15:30
thanks for pointing out our typo. we have amended. The above 6 stocks entrys are all between 4th and 5th April as per the telegram message photo.
2018-04-24 21:09
Post a Comment
Featured Posts
Apps
Top Articles
1
2
RHB Investment Research Reports
Technology, Property, and Construction - Penang- Silicon Hub of ASEAN
3
4
5
AmInvest Research Reports
TRANSPORTATION & LOGISTICS - Our View on of Air Asia’s Restructuring
7
Follow Kim's Stockwatch!
THIS ANOTHER GEMS READY TO SKYROCKET!!! - MAJOR DEVELOPER IN PENANG
8
save malaysia!
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
MQ Trading Signals
Stock
Time
Signal
Duration
Stock
Time
Signal
Duration
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
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....
zhangliang
Thanks for writeup!
2018-04-23 18:59