I haven't come across Duit's handout. About six months ago I came across Calvin's write up on Insas. Having read it I did my own research and concurred that at around 66 sen it was indeed very undervalued. Once in awhile he gets it right. :-)
Posted by TheContrarian > Feb 4, 2017 07:24 PM | Report Abuse
I haven't come across Duit's handout. About six months ago I came across Calvin's write up on Insas. Having read it I did my own research and concurred that at around 66 sen it was indeed very undervalued. Once in awhile he gets it right. :-)
Calvin thinks the time to buy is when no one else is interested.
However, this goes against human nature.
Our human nature behaves logically in real life but when it comes to the stock market our human nature is our enemy and our undoing.
If in the super market we see for example, Anlene Gold milk powder selling below Rm29.95 (Usual Price Rm37.00?) we will buy.
If Anlene milk powder drops to Rm25.00? We will buy even more.
And if Anlene Gold milk powder crashes below Rm20 a kg? Say Rm19.95? We will be very happy to load up even more!
So in real life we buy more as bargains get cheaper & cheaper.
But in the stock market we are irrational.
Insas was Rm1.00. People were bullish. Insas dropped below 70 cts & Calvin called for a buy? People were bearish.
Ha! Insas dropped to 65 cts? People panicked and dare not buy. If fact people posted negative comments instead.
So the time to buy is when price is down but people were afraid.
And price goes up? People started to get bullish & chase?
This is how more than 80% of the people finally lose monies in the stock market.
We are bearish at the wrong time when stocks are cheap. And conversely, we are also bullish precisely at the wrong time when stocks are expensive.
I called for a buy on Jaks when it was cheap at only 40 cts. I also called for a buy on Prestar when it was 46 cts.
Now that both Jaks & Prestar have gone up 100% to 200% only then people turn bullish? This is foolish behaviour indeed.
Just imagine?
Anlene Gold retails for Rm37? We buy some.
Anlene Gold doubled in price to Rm74?
Rush in to buy? Of course not! Anlene Gold tripled in price to Rm111? Everyone gets bullish rushing to buy Anlene Gold at Rm111? Are you crazy?
Exactly for people who chase high flying stocks of the passing moment like Hibiscuits. So many have gone mad. All will suffer the consequences when next quarter result show big disappointment for those who blindly chased hibiscus!!
It could be too early to pocket profit. PER has dropped to 7.7x after taking into account this quarter results. I am expecting RCECap to record another good QR 3 months later. lol
The Group registered a pre tax profit of RM23.7 million for the third quarter ended 31 December 2016 against preceding quarter of RM25.5 million , mainly attributed to RM2.2million higher allowance for impairment loss on receivables moderated by RM0.7million lower interest expense applicable to revenue.
remember that their tax bill this quarter was only 8% because they had quite a lot of deferred tax. i suspect this is one-off. their tax bill is normally 24-25%. be careful.
Sales for government loan ahead 2017 not looking good compare previous..bcos 2016 government staff have some salary increament..I predicted sales volume will drop incoming quarter..
Did you missed buying RceCap when it was 78 cts after consolidation?
To day RceCap is in headline news because of increased earnings.
When up more than 100% the market sit up and take notice?
Time to buy is when market still don't know.
Now let Calvin tell you a secret
ANOTHER RCECAP IN THE MAKING:
Islamic Pawn Shop!!
Where?
Joint Venture between Bank Maumalat & POS OFFICE. Both owned by DRB! Wuhu!
GIVING OUT MONEY LENDING THROUGH ISLAMIC PAWN SHOP!
Very safe just like RceCap got Govt load deduction.
To pawn something you must have collateral like Gold, expensive watch or other items of Value. If can't redeem pawned items? POS/Bank Maumalat can sell it off by bidding.
And times are bad due to inflation & GST!
So more people will need to borrow monies. The margin of profit in pawn shop is very good. Almost like "Ah Long" rates!!
And there are 700 POS OFFICES THROUGHOUT MALAYSIA.
Group of borrowers from government sector now they stuck to get loan bcos their salary deduction exceed the entitlement to get the loan, most of the staff borrow loan with mbsb previously the package loan installment started deducted from their salary now, it was the main reason their salary dedyction now became higher n difficult to get loan..it absolutely effected in this industry coming time..
Won't see much big price movement. February many companies releasing QR reports & giving dividends. Very competitive as investors cautious & money diluted over many counters.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Up_down
4,362 posts
Posted by Up_down > 2017-01-05 17:59 | Report Abuse
Already quiet for so long. Time to break out before announcing QR next month.