Posted by kcchongnz > 2015-03-30 18:18 | Report Abuse

Posted by ks55 > Mar 30, 2015 05:35 PM | Report Abuse

Mr KCChong. What message do you try put forward?
Will appreciate if you can summarize and highlight the selling points for all to learn. Tq.

We all can learn many differrent things I worte about here from others about the stock market.

The power of the wisdom and Whims of the Collective.

You would certainly be a big contributor here.

Posted by CCCL > 2015-03-30 20:23 | Report Abuse

the 97's have plenty of big sharks ( few Datuks some still around ), KLSE rules too loose, short selling, T+7, George Soro's, reformasi etc.. Is a PERFECT STORM ( TWISTER Category 5 ).

Posted by CCCL > 2015-03-30 20:27 | Report Abuse

Thanks KC for recalling back old memories.. :)

Posted by Kevin Wong > 2015-03-30 20:49 | Report Abuse

Second Board, second to none!!!

Posted by calvintaneng > 2015-03-30 23:19 | Report Abuse

This is an interesting articles indeed! I went through this terrible time.

Repco was a Company with Warehouse in Kepong. The Boss cornered Repco scripts up to RM200 I think he pledged it to some sucker bank as collateral for 90% loan (My Friend Randy went to tender Repco cars under receivership)

I drove to Batu Pahat to have a look at Hwa Tai Factory in Outskirt of Batu Pahat. To my surprise Hwa Tai factory looked so deplorable & dilapidated that it doesn't even looked like anything more than RM200,000. It's stock was traded at Rm200,000 a share. Really unbelievable indeed!

There was this TTB of ICapBiz. He smiled & told all to buy Second Board shares only.

2nd Board?

I was buying all the Company Jeeps & Cars from Espirit. When Espirit was listed around RM2.00 its share price went limit up to RM9.00.

Espirit subsequently crashed back to below Rm2.00.

Interestingly, the day I bought the very last Mit Pajero from Espirit the Share went limit up to near RM3.00

I was so excited as I told the Director of Espirit that his Company share went limit up!

Ha! To my big shock and surprise this was what he said, "Mr. Tan, I am number 3 or 4 in the Company. My 2 other brothers are also Directors. Today is my last day. I have just lost my job. We are closing shop for forever."

But I protested, "Espirit Shares Gone Limit Up Today!" How is it possible?

You just watch the next few days, he warned. {The chicken's head already cut off. How long will the chicken last}

I wish I could warn everyone out there chasing Espirit blindly.

Eventually, Espirit went bankrupt & delisted.

This is a very emotional period for me as I saw one by one of my close friends gone bankrupt & went into hiding,

But as God saw it fit to deliver me. I went through 1997/98 completely out of the market.

To be continued....

Posted by bohmiah > 2015-03-30 23:27 | Report Abuse

wondering what will be the next black swan :)

Posted by kcchongnz > 2015-03-31 03:39 | Report Abuse

Posted by CCCL > Mar 30, 2015 08:23 PM | Report Abuse

the 97's have plenty of big sharks ( few Datuks some still around ), KLSE rules too loose, short selling, T+7, George Soro's, reformasi etc.. Is a PERFECT STORM ( TWISTER Category 5 ).


One of the sharks started with "I" and without an "r" and still strong with the recent Kenmark saga.

Posted by kcchongnz > 2015-03-31 16:43 | Report Abuse

Posted by ks55 > Mar 30, 2015 11:45 PM | Report Abuse

I totally agree "Stock market has been providing good wealth to those who know, but it is not very forgiving to those who are ignorant". Just look around and you may know who are the winners and who are the losers.

No one can be an 'expert' in stock market, but surely one can be better equipped with knowledge, skill and peritus than others provided he is willing to put in more effort. With the slight edge over the commoners, those better equipped will always at the upper hand. It is immaterial whether you are market operator/driver or merely a passenger. It also doesn't matter if you are KYY or ks55.

To invest based on FA coupling with TA and with sound buying strategy will make one stand a better chance to make profit most of the time. Another ingredient for successful investor is ability to overcome greed of oneself. Make decision to buy is easy, but to sell will be difficult.

For value investment, I just follow one simple principle on DY: 生平無大志 只求八巴仙



Good wisdom.

The only super investors I know of are those of the school of Graham and Doddsville.

http://klse.i3investor.com/blogs/kcchongnz/50988.jsp

Sorry that I don't know of other schools as I only have limited knowledge of merely the value investing.

Appreciate others can share their schools of taught and provide evidence that they can work consistently.

Posted by kcchongnz > 2015-03-31 19:41 | Report Abuse

calvintaneng

Thanks very much for your input here.

Yes Espirit is a classic example of over-emphasis in growth resulting on heavy gearing and over stretching its resources in its civil engineering and property development works. I remember it was doing a land reclaimation work in Malacca which failed miserably. When the credit squeeze came in 1997, it was just helpless and had no way to hide. Bankruptcy was so predictable.

If a public company couldn't stand the results of its high leverage when a black swan event which seems to happen quite often, what do you think about an individual borrowing large amount of money for investing and speculating in the stock market?

Posted by kcchongnz > 2015-03-31 19:44 | Report Abuse

calvin,

I was actually very surprised of your statement that TTB, a self-proclaimed value investor, advocates the speculation in the Second Board in 1997.

Posted by calvintaneng > 2015-04-01 22:39 | Report Abuse

Kcchongnz,

Yes, in those GoGo Years of 1993 to 1997 TTB appeared on TV3 smiled wryly and told all to buy 2nd Board Shares.

He was very extreme then.

In year 2006 I learnt that he started ICapbiz. Surprisingly he has very good selection of great stocks.

But later he again he tangent off to another extreme by "Keeping to Cash" and expecting a market crash.

I think his behavior could be due to the reckless years before the crash. Once he was too careless & now he is too cautious.

That's why I call him Turn Turn Boo. Turning from extreme left to extreme right.

Posted by calvintaneng > 2015-04-01 22:44 | Report Abuse

Kcchongnz,

One more thing. I too, have gone through quite an experience which caused me to go "off course". I shall relate it in your next post in Part 3 how I escaped the Crash of 1997 During The Terrible Asian Financial Crisis.