Many people have asked me what they should do today.
In the last 3 trading days, the price of Hengyuan gained 72 sen, Rm 1.45, and 71 sen respectively, totalling Rm 2.88. The price jumped from 6.15 to close at Rm 9.03.
I have openly posted articles to tell everybody that after I was forced by the Authorities to sell all my Hengyuan, fortunately at much higher prices, because I am a strong financial supporter of the opposition political parties, I started to buy back Hengyuan when it hit the rock bottom, Rm 6.15. I told everybody that I had been buying in the last 3 trading days.
If you look at my favour stupid critic calvintanemg’s comment below you can see that he has sold all his Hengyuan and Xinguan to me. My average price for Xinguan is about 10 sen and I was willing to take the risk of buying more than 50 million Xinguan shares at 4.5 sen on the day just before the company was suspended.
In the last 3 trading days, whenever I posted article to tell everybody that I was buying Hengyuan, calvin would have sold his Hengyuan to spite or to hurt me. Ha! Ha! Ha! I am badly hurt and laughing all my way to my bank. I have never made so much money within 3 days in my entire 85 years old life.
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Posted by calvintaneng > Apr 10, 2018 01:02 AM | Report Abuse
Hi guys |
As I said before that I was only partially responsible for its rapid price rise. The share price of Hengyuan often fluctuate quite wildly. It can go up and down by Rm 1.00 within one hour. This is a rare opportunity for day traders to make easy money.
The average volume changed hands in the last 3 trading days was about 10 million shares per day. Only rich Funds have so much money to buy so aggressively.
Many people have asked me, what they should do. Today I will trade. I will sell when the price goes up and buy back when the price come down.
Calvin commments:
I was driving in Booming Iskandar happily when I saw this post from Uncle Koon
If you look at my favour stupid critic calvintanemg’s comment below you can see that he has sold all his Hengyuan and Xinguan to me.
I stopped my car at the roadside & really bei tahan leow!! I laughed and laughed at this comical post saying Calvin sold 'all his Hengyuan and Xinquan" to Uncle Koon?
LET ME STATE HERE CLEARLY. I ONCE BOUGHT 10,000 SHARES OF XINQUAN AT 40 SEN AND SOLD IT OVER 50 SEN FOR A NICE RM1,000 PROFIT (THKS UNCLE KOON) IF YOU COME TO ISKANDAR I WILL BELANJA YOU WITH ALL THIS PROFIT I MADE FROM YOUR GREATER FOOL TIP
AS FOR HENGYUAN I DIDN'T BUY ANY AT ALL!
SEE WHAT SIFU DR NEOH SOON KEAN WROTE ABOUT GREATER FOOL THEORY
'THE GREATER FOOL THEORY By Dr Neoh Soon Kean (Excerpts from STOCK MARKET INVESTMENT)
This is an excerpt from STOCK MARKET INVESTMENT In Malaysia And Singapore by Dr Neoh Soon Kean, the Benjamin Graham of Malaysia. Year of printing 1985
THE GREATER FOOL THEORY (Page 67 Last paragraph)
This is a theory that is usually very popular during the immature phase of a stock market's development. More of the followers of this theory are not aware that the trading system which they believe in goes by this peculiar name. From the stock market's behaviour during the past three booms, we can say that many Malaysians/Singaporeans appear to be strong supporters of this theory. This theory was very popular in the US during the 1920s but since then, it has fallen out of favour even though pockets of true believers still appear from time to time.
In essence, believers of this theory hold that stock prices are not dependent on anything tangible but rather dependent on the continual appearance of more people who are willing to purchase the stocks at an even higher price {these people are the so-called 'greater fools'). Thus, it neither matters what price one buys a stock nor that the stock's price is ridiculously high by any normal standard of measurement. Thus the believers of this school of thought hold the view that whatever stock one buys can always be sold at a higher price because there will always be greater fools than themselves. Thus, it is fine to buy MUIB at $24.00 because there will be another person foolish (or brave) enough to pay $26.00 for it. Believers of the greater fool theory never for a minute think that the supply of fools will be exhausted and that they may be the final purchaser before the crash.
During every stock market boom, there are usually a large number of believers of the greater fool theory and some of them actually make a lot of money on the way up. Some of them get out in time by finding some greater fools to take over their hot potatoes in the nick of time but many find that they themselves end up as the greatest fools because there is no one else willing to bid up the price anymore. Needless to say, the Greater Fool Theory is a much discredited one among academics and most professionals. But it still finds many adherents. Why is this so? Everyone is having too much fun, (that is, making so much money) on the way up that they do not want to leave the market. George Goodman, writing under the pen name of 'Adam Smith' has this wonderful parable to explain how people are caught up in the web of the Greater Fool Theory and do not know when to get out.
We are all at a wonderful ball where champagne sparkles in every glass and soft laughter falls upon the summer air. We know, by the rules, that at some moment, terrorists will burst in through the terrace doors, killing many and scattering the survivors. Those who leave early will be saved, but the ball is so splendid that no one wants to leave while there is still time. Everyone wants to enjoy one more dance and sip one more glass of champagne. So everyone kept asking: "What time is it? What time is it?" We look around and find that all the clocks have no hands.
This may be a surrealist's way of describing the stock market but Goodman's parable has a great deal of truth in it. Of course, we know that in every speculative boom of the past, the 'terrorists' did come when most of the guests were still enjoying themselves at the ball. As 'Adam Smith' implies, nobody knows when a speculative boom will end but end it must for that is the rule. At every speculative boom, not many of the small speculators escaped with their gains made on the way up. Most of the smaller speculators known to me eventually lost all their gains and much more than what has been gained.
Some even lost a large part of their original capital. Thus on the next occassion when you happen to find yourselves at this type of a ball, try to leave early. The problem is that once one is caught up in the fun and games of the party, one is apt to lose touch with reality. Chances are that believers of the Greater Fool Theory will hang on to the bitter end, only to be slaughtered. It is better to miss a few dances or a few glasses of champagne than lose one's life.
In concluding this section, an anecdote about Bernarde Baruch, generally acknowledged to be the greatest stock traders of the 1920s is related. He was once asked how it was that he remained so rich while many of his contemporaries had declared bankrupt. This was his splendid answer: 'I always sold too early.'
Calvin comments:
This greater fool theory could be applied to stocks like IFCA, Sumatech, VSolar, XOX & others
I have people telling me I missed IFCA on the way up. Calvin does not go gambling in casino Greater Fool Type of Stocks. And how they missed a fortune on the way up due to my warnings. And how they finally lost all their 'profits and all their capitals' for overstaying. Now I am not here to tell you how to punt or gamble. I am here to warn of a Greater Fool Stock.
All will have to be responsible for your own actions in investment.
Calvin comment further:
ON 10TH APRIL UNCLE KYY POSTED THESE WORDS
Hengyuan - Logical Discussion - Koon Yew Yin
Author: Koon Yew Yin | Publish date:
Remember what I said in my previous article quote “ I cannot find another good respectable company share selling at such ridiculously low P/E. I strongly believe the company will start making increasing profit next year and 1 year is not too long to wait. I will buy and wait.
As I said, 3 months ago the price was Rm 18, if I buy it at around Rm 6.??, I can afford to wait 1,2 or even 3 years for it to recover back to Rm 18. Even if it takes 3 years, I will get about 300% in 3 years. What is wrong with about 100% return per year? “
THE ABOVE WAS POSTED ON 7TH APRIL 2018
WHEN UNCLE KYY SAID
I can afford to wait 1,2 or even 3 years for it to recover back to Rm 18. Even if it takes 3 years, I will get about 300% in 3 years. What is wrong with about 100% return per year? “
JUST 3 DAYS LATER ANOTHER CHANGE OF MIND?
SEE
Many people have asked me, what they should do. Today I will trade. I will sell when the price goes up and buy back when the price come down.
LET ALL I3 FORUMERS DECIDE
WARM REGARDS
Calvin Tan Research
Republic of Singapore
paperplane
price very volatile.
2018-04-10 11:38