Posted by gohkimhock > 2017-08-13 22:51 | Report Abuse

This is why i always emphasize on buying only stocks with good fundamental and not speculative ones. We should also avoid stocks with high volatility in earnings too.

Posted by stockraider > 2017-08-13 23:13 | Report Abuse

U must understand the power of bear is 2x more power than the bull mkt power loh....!!

If stockmarket or a stock can takes 6 mths to rise 20%, it may only take 3 mths to fall 20% back mah....!!

The above is applicable to systematic risk of investment loh...!!

But if u invest in a stock based on valuation....if u buy the stock rm 3.00 when it is actual worth rm 7.00...u r protected by margin of safety over long run loh...!!

this is provided ur computation of valuation is correctly done loh...!!

So u do not worry about short term fluctuation, if u done proper valuation & determine margin of safety loh...!!

U MUST UNDERSTAND WHAT IS OVERVALUE LOH...!! GOOD EXAMPLE PET DAG

In this type of mkt condition. u must understand what is overvalue loh...!1

If u have pet dag PE 24 Share price Rm 24.00...earnings stagnant for last 5 yrs, it very difficult to justify undervalue loh...!!

Pe is one of the method of valuation...just like a good basket ball player usually they are tall. A tall basket player give him the inherent advantage mah...!!

Of course, this does not mean short players cannot be good players, but they need to overcome the additional disadvantage being short loh..!!

Raider do not do not recommend u use Pe as only criteria to value stock loh....!! But it is an obvious important criteria loh...!!

Come back to 3iii, he cannot be honest to say Pet Dag is undervalue whereas others similiar trading a much much lower PE is overvalue loh...!!

It cannot be for example like Petchem and Petron should be more overvalue than Pet dag unless 3iii is dishonest in his assessment loh..!!

The reason why 3iii attack raider integrity, bcos he know cannot win the arguement of Pet Dag Pe 24x is overvalue loh...!!

Posted by stockraider > 2017-08-13 23:20 | Report Abuse

HOW PEOPLE SELF DENIAL WHEN STOCK OVERVALUE LOH..!!
A GOOD EXAMPLE HOW A CONMAN WILL MANIPULATE

HE WILL START WITH BAD MOUTHED THE COMPETITOR COMPANY LOH..!!
Certain companies are easy to value.

These companies have consistent and growing high quality earnings and free cash flows.

HE WILL QUOTE SOME TECHNICAL MUMBO JUMBO LIKE DISCOUNTED CASHFLOW & MENTIONED SOME LEARNED SIFU
Intrinsic value of an asset is the discounted present value of all its future cash flows (Warren Buffett).
BTW PETDAG IRR IS ONLY 5.5% OVERVALUE IN W,BUFFET STANDARD.


THEN HE WILL END WITH SAYING HIS OVERVALUE STOCK GOOD LOH..!!
e.g. Petdag is an easier company to value.

Posted by stockraider > 2017-08-13 23:33 | Report Abuse

WHY PET DAG IS OVERVALUE ??
IN 2014 PET DAG CRASH FROM RM 30.00 ALL THE WAY DOWN TO AS LOW AS RM 15.OO LOH....!!
WHY LEH ?? BCOS MKT SEE PET DAG NEVER EPS ABOVE RM 1.OO HISTORICALLY, SO IF IT IS ABOVE RM 30.00 ITS PE IS ABOVE STAGGERING HIGH LOW, THUS MKT SELLOFF ALL THE WAY DOWN TO RM 15.00 PER SHARE IN 2015 LOH...!!
A DRASTIC FALL OF 100%, WITHIN A PERIOD OF 1 YEAR LOH...!!

WHY A FINE STOCK LIKE PET DAG CAN CRASH 100% IN A PERIOD WITHIN A PERIOD OF 1 YR LEH ??
IT IS ALL BCOS OF UNSUSTAINABLE PE 30X LOH....!!

PET DAG HAS NO GROWTH IN EPS FOR MANY YEARS...ON TOP OF THAT WITH PE 30X SURE A RECIPE FOR SELLOFF DISASTER LOH...!!

EVEN TODAY PET DAG AT PE 24X ALSO APPEAR OVERVALUE WHEN COMPARE WITH PETRON PE 8X LOH...!
BUT UNLIKE PETDAG, THIS PETRON HAS SHOWN ABILITY TO GROW EARNINGS WITH Q1 RESULT, WHILE PET DAG EARNINGS WITH NO GROWTH AND FLAT FOR A FEW YEAR LOH...!!