Posted by Tom > 2016-10-14 21:34 | Report Abuse

thanks for sharing

Posted by ronnietan > 2016-10-14 21:46 | Report Abuse

In companies with earnings, and PE of say, 7x, a split often takes the PE to say 10x.
This occurs in virtually every case, eg contrast price performance of Lii Hen and Hevea, with splits, and Latitude, without.
Theory defies the experience. If we follow the scientific method, where there's conflict, it's not evidence and the actual that's wrong, but the theory.

Posted by maomaochong > 2016-10-14 21:55 | Report Abuse

good sharing.tq.

Posted by buddyinvest > 2016-10-14 21:59 | Report Abuse

KC didn't play the game the market wants. KC, this is an art not a science as you always say.

Give u an example. A woman wears two half cups. Accordingly to math, Half + half = 1. If we insist mathematic to prevail, we can actually suggest to her to display 1 full boob and hide 1 full boob. But that is not happening in western country, let alone Malaysia.

Posted by buddyinvest > 2016-10-14 22:00 | Report Abuse

Swim with the wave, not against it.

Posted by sosfinance > 2016-10-14 23:31 | Report Abuse

For every 10% who know, 90% who either don't know or don't care. This is a stock market, there is always 90% who don't care or don't know. Otherwise, there will be less opportunity.

Liquidity is also a culprit. Let just said, they give very low borrowing cost for share margin, don't you think the market will go higher?

More than 20 years back, people buy property for their own stay. 5 years ago, due to "easy money", more people we talk to seems to "invest in property", i.e. for capital gain or rental yield.

Posted by Ricky Yeo > 2016-10-15 05:43 | Report Abuse

@ ronnietan you are correct if theory defies experience then we should examine theory but in your case, it is likely you are having recency bias, grabbing near term memory evidence to prove a theory to be wrong. And by the way, things with splits is sort of a self fulfilling prophecy. Because others knows others will take advantage of the splits to make penny return thus that cycle feed on itself, but we are talking about irrationality here, which will hardly make you any money in the long run. If you need to disprove a theory, start with 1000 random samples.

Posted by Ricky Yeo > 2016-10-15 06:30 | Report Abuse

@ buddyinvest market is part art part science. You have provide a perfect example. The utility of a bra is to provide comfort and safety. From an utility point of view, your idea will fail miserably, no one wants to make one boob comfort but not another, despite how artsy you might think it is to have one full cup. If you look it from the law of art, anything that is symmetrical, being both side the same, looks more beautiful than asymmetrical. And symmetry falls under the field of geometry, and yes, geometry is a sub field of science, so it is still bounded by the law of science.

Posted by SALAM > 2016-10-15 15:59 | Report Abuse

KC, 40% of retailers are punters, 40% are pun-vesters(partly punters and partly investors), the rest are genuine KC followers/disiples who are FVI.
The examples given by KC above suits the majority who might have made their money and run...
What is your comment on VS, Gkent, Hevea then ??

Posted by BLee > 2016-10-15 17:11 | Report Abuse

Thanks kcchongnz for "warning" on share splitting. I being following Pmetal splitting exercise and did not know what to do. Finally I sold off all my holding with a handsome profit including "free" warrant. Agreed with this article, the warrant is "free" only you sell and make the profit. This is not an advise to sell Pmetal as it has great potential..

Posted by andy87 > 2016-10-15 17:42 | Report Abuse

kcchongnz, how about gkent case? gkent share price going very stong after bonus issue. any learning from there? TQ.

Posted by donfollowblindly > 2016-10-15 17:48 | Report Abuse

Do M'sian like freebies such as BRIM or free food? If the answer is no KC Chong is right.

Posted by choop818 > 2016-10-16 01:52 | Report Abuse

Lay Hong just did the bonus, split and warrant exercises. After the adjustment in price, what now? If you were to look at its current p/e you would not hesitate to say that it is well over priced. What if it defies logic (fundamentals) and continue to rise (meaning to be sought after)? As andy87 mentioned in GKent's case, its price remained strong - post bonus issue. We have to be careful not to tar all freebies with the same brush.

Posted by DoraCuties > 2016-10-17 14:49 | Report Abuse

All Vivocom supporters gone already. I also want to sell now.

Posted by axejay > 2016-10-17 22:37 | Report Abuse

oh please.....laugh die me.... you don't even mention about Price adjustment! hahahahahahha....who say vivocom's share price "dropped" from 0.31 to 0.195???? hello....it's price adjustment after bonus issue ex-date! brainless comments...
@kcchongnz.....speechless on your analysis!

Posted by kcchongnz > 2016-10-18 15:27 | Report Abuse

Posted by zul > Oct 18, 2016 02:54 PM | Report Abuse
kcchongnz why Vivocom is even more “terror” than eah ?


Zul,

EAH incredibly had 5 corporate exercises in 5 years.

Vivocom more terror because it had 6 in a span of 4 years.

Posted by kcchongnz > 2016-10-19 15:52 | Report Abuse

Posted by zul > Oct 19, 2016 12:15 PM | Report Abuse
kcchongnz sifu you got experience can explain what this means,I don't understand this ?
vivo share issued 3.23 billions is bursa listed company most damn heavy counter,big holders selling a lots of shares to market , make vivo shares flood in market float 1.69 billions shares.When PENNY STOCK share issued 3.23 billions the futures fate will same as sumatec


I detest the management of the company I have share with spending most of their time and effort trying to push up their share price, rather than focusing on doing business. They go everywhere promoting their stocks. They spend huge amount of money every year getting investment bankers doing all those useless corporate exercises, and they take advantage of them.

Already got big jobs from Chinese contractors and developers? I don't know the eventual outcome but I am just gauging what the management has been doing in the past, and now. There are simply too many doubts in my mind.

I won't touch this type of company with a ten foot pole.

Well I am not condemning anything. It is just my personal opinion.