WANT EARN FAST MONEY, DON'T ASK COLDEYE. Coldeye not like that, cant teach you fast. If listen to me, buy and hold, dont be affected by politics, we cold eye watch by the side. Retailers got not much say, only can first ask, if change government, how does it affect this industry and business? If not effect, ignore noise and use fundamentals. Use figures and facts , not imagination or opinions which are unreliable. If want ot buy, still don't know how. Then, use Coldeye new Book Ultimate Formula before investing.
TECH STOCK HIGH RISK? I won't comment on this, coz I got big rule. Don't understand, don't buy. Old age, drawback is insufficient knowledge on tech. But don't use my view to view stocks, because economy growing, tech industry is fastest growth. Sometimes, tech stocks can be overlued lah. But if can fulfil expectations, got some will fulfill, but not all, so must be careful in selecting, be strict, don't have blind optimism. "
GLOVE STOCKS HAVE TURNED COLD? Why glove make so much money, but share price drop? Bcoz glove is good growth industry. 1985, within few years, from 10+ companies increased to 250+ companies. The bigger it grows, the more people do. This industry's competition is not what you think- good sales can earn big money. Not like that. From that time, small glove companies graually bankrupt. Later left around 50+ companies, remaining are the strong ones like TG, Harta, etc, so they earn big money bcoz got big capital.
Now glove industry earn big money, a lot of people see, many people join. Now demand is normalising with pandemic situation, expecting glove demand will return to last time. Follow last time history, growth is 8-11% growth.
Annother important factor is CHina, see businesss opportunity keep expanding. Now got TG, Harta, Kossan, also expanding, supply should slowly be more than emand. Profit may drop back to last time. Now share price don't move up make sense. Using business viewpoint, can it create value for shareholders? Listen carefuly, can it create value? If can, share price will rise or dividend will rise. If cannot, then be careful.
Rough translation of Coldeye Fong Siling's PRICELESS video above:
Disclaimer at 19 seconds. 21 seconds onwards:
"HOW TO CHOOSE GOOD STOCKS?"
Coldeye: "You want to make money in stockmarket, good way is to be contrarian. People dare not buy, you buy. Now pandemic like more & more serious, a lot of people worry, many stocks nobody buy. Those that buy, (some ) are speculators, they want to earn fast money. This kind of method can't make money.
If you want to use in stockmarket, can capitalise now those low priced stocks all along fundamental strong type. Then buy at low for long term. What's long term? Long term is 1-3 years. Wait until pandemic over, share price go back. This is steady investing method. You want good dividend, now also good chance, but company must be able to recover. Wait until company slowly go back to pre-pandemic, then you can earn this money. I believe a lot of company has good fundamental, pandemic hit, no profit, even loss, but can make back in future. Some companies cut cost like retrench worker. One to survive, another to be leaner. If company make more money, dividend more in future. Share price recover is realistic prospect.
But this way can not be fast. You want this month buy next month profit, no way. You must hold 1-2 years. Wait until company bcome stronger, get back on track. So, you now buy, make money chance plenty. This is solid way., but not the type to earn few x your money. If want earn few x your money, it's esp in tech stock, but that is another question".
"POLITICS DESTROY STOCK PRICE?" "Now political instability, I think people got wrong idea. Affect stocks is its economic value, not politics, in long term. Unless the law change fundamental aspects of business, affect profit, then no effect. Look at Filipina or Thailand, always change government, but stockmarket no crash. If got value, share price will come back.
Macam oil palm stock. Now per ton 4000, price 5 year high. What is oil palm cost? Look at efficienct. Cost around 1500 per tanne. Last 2-3 years, palm profit no good, why not good? Price of palm low. Cost 1500 now sell 4000 , then palm company profit sure good. How it can sustain such business, no one know. If share price havent reflect fundamental, now is buy chance for long term hold. Wait 1-2 years profit out, share price up. If no up, dividend up. Now put bank FD only 2%, if any company future give you 8-10% dividend, why not? Ofc can't bring sudden wealth, I can use oil palm as example, change government no effect. BN lost PN win, stockmarket no effect. Why worry? On other hand, pandemic cause business cant do, then jialat, consequence is big. Then share price will reflect. WHAT STOCK CAN BUY, WHAT CANNOT. VERY EASY, FUNDAMENTAL STRONG, GOT RECOVER ABILITY, BUY AND PUT. NOW IS VERY GOOD OPPORTUNITY. World no end, pandemic will someday end, now nearing end. Don't feel bad.
Don't ask me stockmarket will turn out how. Me not good this. My book "Thousand Mountain I Lonely Travel." mentioned, I no dare predict share price. No one can guess share price. We use contrarian mindset. People scared buy, we buy.
BUY BANKING STOCK STILL NOT LATE? bANK stock slowly rise, bcause people now how to calculate. Now why cannot buy bank stock? Dont look at 10 year chart for up or down, use to check pre-pandemic share price, PE ratio. If bank is good, can earn more, can go back to last time level, yo ucan ca;cu;ate. Now you buy wait 1-2 years, no need 3 years, you might even earn 50%. Who is government, bank still need store debt, no need to pay back ah? Worst is over for bank. Now still not too late to buy good bank, not those high risk type, not those depend on political to determine loan. Buy normal steady bank, calculate, buy and hold.
"The next step is to wait for the performance to stabilize, the selling pressure ends, and the stock price ends its downward trend and enters a sideways trade, which may usher in a real turning point."
Glove shares dipped again today. However, they fell in tandem with the general stockmarket.
If you bought glove stocks in 2021 & holding at a loss now, these questions might be your answer to BUY, HOLD OR SELL?
1) Do you need the money for urgent use now? For food, children's fees, rental, bills, etc? You should never had invested in the first place if the money is for immediate use. Convert to cash for urgent use.
2) What are you cut-loss plans? Fix a percentage & cut when target is met.
3) Without stop loss, you must be 100% confident. Hold glove stocks. Stop staring at price charts. Leave klse.i3investor.com. Wait for 2 years to recover.
4) If you decide to ditch gloves, what alternatives offer higher returns?
Today is 14 Aug, 140 days before 1/1/2022. Hence, the idea to post a list of 140 stocks deemed by me to have favourable potential upside due to the stocks own characteristics.
Perhaps some observant netizens would notice that, almost all the KLCI components are inside. With political uncertainty looming, KLCI is poised for further correction. But what happens to KLCI upon regaining political stability, perhaps after these 140 days?
P.S. In one hour after posting, 120 views was recorded.
Let's see what are the possible reasons: 1. Too long & hard to read. 2. No stock tips like last week. 3. No label for any stock. 4. People hate me for alternative views against Tradeview. 5. I don't promote my article incessantly like Calvin Tan. 6. No clickbait. 7. I'm not as credible as KYY, kcchong, Tradeview, Philip, etc. 8. Article not in Chinese. 9. Wrong timing in publishing this article.