Posted by kiasutrader1 > 2015-06-18 15:56 | Report Abuse

NOBY,

Thank you for your comment no. 2

I said above : "Also do we use our experiences to invest?"

Last year I was admitted into a KPJ hospital on 25 March 2014, discharged on 26 Mar 2015 as I was quite sick on 25 March 2014. I had to wait 3 hours or more in the emergency room before I was allocated a room because they told me the hospital is full and I have to wait as someone was checking out later that day. As I waited in the Emergency room, I saw that it was full and people did not even have a place to sit.

This shows that it is a very good business that is "printing" money for its Investors. A good businessman will want to get into such a business.

I have never invested in KPJ shares before and later after I was discharged, I had a look at the KPJ chart and was amazed that it was falling like a "Waterfall". I was wondering why, is it because they have some very bad results because of bad management or did something crazy?

On checking, I found out that Analysts were writing bad things about them because they took a lot of loans to build new hospitals in Rawang, etc, causing the usual financial guidelines to appear to be bad. This I cannot understand why a company that is taking loans to grow its business is treated as a bad thing. If it took loans to buy luxurious cars and villas, I can understand. If the financials are bad, then it should only be temporary.

If one check the charts, one can see that a base was formed at the RM2.99/3.00 level between 26/3 to 8/4 and volume increased from 01 April 2014 with the share price, not able to fall further. This gave a good signal that strong support is present and the share "should" rise from there. From 9/4 onwards the share rose and never looked back, reaching RM4.42 on 8 June 15.

That is using your 5 senses to invest together with understanding TA. FA is important but at that stage I felt that the growth prospects of the company is far more evident than short term financial numbers.

Posted by NOBY > 2015-06-18 17:42 | Report Abuse

Thanks. Looks like you are more of a scuttle butt type of investor like Phil Fisher. Yes, sometimes the best time to buy is when the company is undergoing a rough patch or investors sell down due to some one-off negative event.

Posted by kiasutrader1 > 2015-06-18 17:51 | Report Abuse

NOBY,

Sometimes, there are opportunities I buy when I see the stock cannot go down anymore. I am more of a range trader between support and resistance as I am "kiasu". Currently the market is sideways and I am looking for opportunities like that but now because of the headwinds of our economy and USD interest rate normalisation, I got to be more careful as support may not hold

Posted by kiasutrader1 > 2015-06-18 18:20 | Report Abuse

Apologies, my KPJ check out date was 26 Mar 2015 not 2015..1 day stay not 1 year!