Posted by kakashit > 2014-09-14 21:01 | Report Abuse

unfortunately, short-selling is prohibited in Bursa. If not, I will short these lemons as recommended by KC

Posted by inwest88 > 2014-09-14 21:48 | Report Abuse

KC, you never fail to amaze me with such enlightening articles. I especially like your "reasons" why people chase after hot stocks like investment banks are buying etc so it's safe to follow etc.

Posted by bigFAT > 2014-09-15 08:08 | Report Abuse

Splendid... I hope people will dump all the above stocks before it is too late

Posted by Pika Chan > 2014-09-15 08:19 | Report Abuse

KC, thanks for your lightening. I like your word "Show me the money!"

Posted by lcwin > 2014-09-15 10:19 | Report Abuse

KC very good report I would say.Going by the amount of goreng going on the top stock most of which are rubbish I guess punter don't mind. It is like going to genting knowing damm well they will lose. Another thing is the Crony companies that get all sorts of Gov contract but never make money.The listed company is used as a banker to siphon off the profit leaving crumps for the listed stocks. Of course these stock will be goreng when they get these contract. Yeh Goreng ikan bilis !!

Posted by AyamTua > 2014-09-15 10:20 |

Post removed.Why?

Posted by Kevin Wong > 2014-09-15 11:10 | Report Abuse

Investing is win-win for all.
Punting is for you lose - i win game.

Posted by valueguru > 2014-09-15 13:39 | Report Abuse

KC, I always enjoy your write ups as they are supported by facts & not sentiments.

Posted by Ivan Lim > 2014-09-15 20:48 | Report Abuse

knm share 1.2b receivable?y i can see only 681m?1.3b intangible asset?y i can see only556m?

Posted by chenwei > 2014-09-15 22:12 | Report Abuse

KC, admire your skills in stock analysis. Mind to share some idea on Allianz or AMMB?

Posted by kcchongnz > 2014-09-16 06:21 | Report Abuse

Posted by Ivan Lim > Sep 15, 2014 08:48 PM | Report Abuse

knm share 1.2b receivable?y i can see only 681m?1.3b intangible asset?y i can see only556m?


As an investor, a user of financial statement, one must know what the terms such as "Intangible" means; what contribute as "intangible assets". Similarly for a construction firm, what "Receivables" are and what are the things contributing to "Receivables".

That is why I think you need to learn about the art of financial statement analysis and interpretation.

Posted by yong888 > 2014-09-16 06:26 | Report Abuse

Good morning to you All,

Knm , my fair value is below 0.50000,

For Sumatec, another penny Goreng stock, its fair value is near 0.200000

Happy trading

Posted by kcchongnz > 2014-09-16 06:29 | Report Abuse

Posted by chenwei > Sep 15, 2014 10:12 PM | Report Abuse

KC, admire your skills in stock analysis. Mind to share some idea on Allianz or AMMB?


Alliance and AMMB are definitely good companies with durable businesses which will last for a long time.

However knowing that it is a good company is not good enough for investing as good companies may not present a good investment. It all depends on the price you pay. A simplistic PE ratio, in my experience, to gauge if a company is a good buy or not may not be enough.

I can't just tell you if they are good price to buy now as I don't follow them; and I need to spend a lot of time studying all those things before I can give you a factual comment.

That is why you need to learn about the art of financial statement analysis and interpretation, and valuation.

Even that is not good enough yet. You must also be aware the behavioral finance which I also deal with in the course.

Posted by yong888 > 2014-09-16 06:31 | Report Abuse

kcchongnz ,

a very good morning a beautiful day to You all.

happy trading

Posted by chenwei > 2014-09-16 21:56 | Report Abuse

KC, thanks for the explanation. I understand I cannot expect to be spoon fed.

Please send me the details of your course, wongchenwei86@gmail.com

Posted by Kannibu > 2014-09-16 22:54 | Report Abuse

If you hang on to Lonbisc, you will die faster

Posted by Frank Soweto > 2014-09-16 23:35 | Report Abuse

Kannibu If you hang on to Lonbisc, you will die faster
16/09/2014 22:54
same conclusion if you hold KNM :(
Kc should be a stinking longkang pic next to the shining star pic :)

Posted by kcchongnz > 2014-09-17 10:00 | Report Abuse

I can tell you guys, few people knows KNM better than Frank Soweto, including me.

Posted by bursawise > 2014-09-18 12:15 | Report Abuse

long term is good....return higher...

Posted by godbless88 > 2014-09-18 12:18 | Report Abuse

kc, pls comment on what you think of Sumatec, thanks :)

Posted by kcchongnz > 2014-09-18 12:21 | Report Abuse

Posted by godbless88 > Sep 18, 2014 12:18 PM | Report Abuse
kc, pls comment on what you think of Sumatec, thanks :)


One of the most important thing when you want to build long-term wealth is to avoid rubbish, hypes, rumours, fads, hope etc, just like what I am talking about in this post here.

JUst from your this question, It is utmost important for you to learn the fundamentals of investing before further dabbling in the market.

Posted by godbless88 > 2014-09-18 12:24 | Report Abuse

@kcchongnz - yes, I agreed. Hype and rumours are there for a reason, to cheat people to chase high when higher or to trap you.

No offense, I just wanted to listen to ur expert opinion on this counter tho, to see if it has any future since you usually do a lot of analysis on numerous counters. :)

Posted by kcchongnz > 2014-09-18 13:14 | Report Abuse

Posted by godbless88 > Sep 18, 2014 12:24 PM | Report Abuse

@kcchongnz - yes, I agreed. Hype and rumours are there for a reason, to cheat people to chase high when higher or to trap you.

No offense, I just wanted to listen to ur expert opinion on this counter tho, to see if it has any future since you usually do a lot of analysis on numerous counters. :)


godbless88, I am no expert. I don't know all. In fact, I don't know a lot. Furthermore, I am just a small time retail investor, an investor following fundamental approach in investing.

A fundamental investor stays within his own circle of competence. He invests based on understanding of the business, the durability of its business, read its financial statement and annual reports and its performance in the past as the past rhymes, how is its management etc. Future is more important, no doubt about it, but few people including myself knows much about the future. Also have a feel of how much the company worth before paying.

So let me ask you back, why are you interested in Sumatec? For me I know nothing positive about it.

Posted by godbless88 > 2014-09-18 17:55 | Report Abuse

Yeah agreed, I'm mainly investing in fundamental stocks too.
Am only interested in Sumatec as a side investment, due to:
a) I brought b4 they exited pn 17, with the expectation the company will grow after they exit.
b)tapping potential of penny stocks.
However, there comes a time when you doubt ur investment, it's better to ask around for opinion. No investment in the world will 100% go up, you make some, you lose some. It's alright, thanks anyways.

Posted by kcchongnz > 2014-10-29 14:28 | Report Abuse

Posted by valueguru > Sep 15, 2014 01:39 PM | Report Abuse
KC, I always enjoy your write ups as they are supported by facts & not sentiments.


Glad that you enjoy this write up. But the interest in this thread seems to dwindle. I am trying to reignite it again. Why?

In Bursa, there are so many traps for small and naive investors. Call me kepoh, or doing social justice, or whatever you like. Without knowing what is a stock lemon, and how to avoid it, the small time retail investor is doomed to lose money, like what happened to me before too.

You know what. Of all the 9 lemons I mentioned here since a year ago, all except one made losses, most of them lost heavily. Average loss is >40%, while the KLCI has gone up albeit not that much.

The only one standing is KNM, and that is provided the market does not make a big correction, and as long as the right issues is not completed yet.