To keep or to sell?

I think many who invested earlier will encounter this question. With the bull run wildly in May, its normal for any stock to increase more than 20%. Within my portfolio, out of the four stock- Cscstel, Panamy, Presbhd and Supermx, only left Supermx increase less than 1% because of my entry price which is quite high.

Another good new -the dividend coming soon as below:

(i) Presbhd RM0.025 ex date 5 June 2013,
(ii) Supermx RM 0.03 ex date 5 June 2013,
(iii) Cscstel RM0.07 ex date 26 June 2013,
(iv) Panamy RM1.72 ex date 9 September 2013.

To prevent regret on selling too early, I will wait and see whether some of my stocks can continue the run.

Party is over?

This two days we observed most of the stock start to consolidate especially those that run too fast after election. The feeling good moment of earning easily with any stock come to a halt all of the sudden. This for sure wake a lot of people especially for those newbie from their dream of earning easy money through stock market. Those who enter too late will probably grab a falling knife if the stock is of bad fundamental. This usually happen to those penny stocks and cheap enough to lure greedy newbie that wish to earn extraordinary return.

The return of an investment in stock market  is always only two namely capital gain and dividend. Although the market is now in red, there are still some counters with low PE, high cash level, good dividend history and well performing company. Their price may be quite steady and slow moving but they are the gems in the stock market.  Just remember cheap stock may not be good, expensive stock may not be bad. My brother always told me that there are definitely reasons for the stocks to be cheap or expensive. To say for an example, slipper nowadays have cheap and expensive too. Crocs can sell for hundreds and still got people wanna buy for their quality and confort while  there are also market for those cheaper one like those from China that only last for shorter life span and less comfortable. Therefore, it's up to you to choose what you want? You want higher risk or steady return? Stock market is always risky for those who just follow what ever other mentioned. Remember to check by yourself since the money you invest is the hard earn money that you save for a better life tomorrow. Other people can always recommend but you should be one who make the call. In the end of the day, I wish everyone acquire good return and have a great experience in this bull.

Start cashing out

After some time of considering, i think it's time to change a little bit on my portfolio. The first stock I sold away is Daya at 27 cents and gain around 18% after two years of holding. Although Daya is a well performing company, I think the supply of stock is simply much more than the demand that limit the stock price to continue in the up trend.

The second stock I sold is prestariang berhad and the reason is because there are quite a lot of insider selling recently. The stock had consolidated at RM1.8 for quite some time  and sending signal that its waiting for the next quarter financial report to break through. Conincidence or not, the few major share holders choose to dispose at large amount which normally around 1.5 millions share each time. This definitely show some negative signal to the investor while the quarter financial report is still pending to the public. Therefore, I sold 75% of the stock leaving 25% that is free stock since I already achieved capital gain of 27%. This 25% will serve as souvenir to remember this stock since its indeed a good one with great dividend. However, I believe huge capital investment into new university will definitely reduce the company cash level and thus reduce the dividend unless the company is able to achieve higher revenue and profit through gaining large number of enrollment and contract with government or O&G sector. Lets wait and see what happen next.

The bull in KLSE

Today's early trading still show bullish with a lot of counters showing uptrend.  This is definitely exciting for those who already in the market. I wonder if more newbie will be lure to join into the stock market. It's always wise to be alert when more novice who usually didn't talk about stock suddenly change to be discussing about this topic. Although invested in klse for more than 2 years, this is also the biggest up trend I ever saw in just few weeks. At the same time of being happy with my return, it's time to get alert and see when the bear will turn up. Always remember Warren Buffet's famous quote "to be fear when everyone is greedy and be greedy when everyone is fear."

MBA finally

Today will be a memorable day after I finish my final exam and presentation for my mba course. Along the two years, I have used most of the weekends attending classes, doing assignment and preparing for examinations. Now only left my thesis project that need some more time to improve before submit by early of next month. What a relief!

Along the two years, I was exposed to economy, finance and management. Although everything just touch a little bit, I am more confident on these issues compare to the past. After my studies, I will focus more on my investment to increase its return and save some money to start up my  own business. I believe working is just to accumulate some capital and definitely not the way to spend the rest of our life.

Mistake shall not be repeated

As a Maths teacher, I always advised student to try on the exercise and should not fear of making mistakes. What one should do is to avoid such mistakes again. Same goes to my investment, along the two years since I have entered stock market, I did make plenty of mistakes. The worst mistakes I made was to exit the stocks too fast. Out of the record, most of my stocks were sold too early before they develop into larger return. Some of mistakes I made are below:

Stock.               price purchased       Price sold
Mahsing                1.82.                        2.52
Tambun.                0.58.                        0.68
Ytl                          1.52.                       1.58
Panamy.                 20.80.                     21.50
Cck                         0.88.                      0.94
Harta.                      4.62.                      4.89

Frequent in and out just made me lose even more and fell so bad when these stocks shoot super high. So I wanna change strategy that only sell my stock when their fundamental is no longer worthy to keep. Currently, the stocks in my portfolio are Panamy, prestariang, cscstel, Supermax and daya. Hope the bull will continue to run and let's ride the wave.

Timing the market

Haha....Again I think many had made a wrong prediction toward the KLSE last week. While many had thought that election will slump down the stock market like 308 last time since BN had the worse record ever, it turn out to be totally the other way round. Not only the index shoot up high, most of the stock especially government link counter achieved superb gains as well.

I myself had made the wrong call to sell off harta and prestariang at much lower price before the election compare to today's closing price. This wrong decision had cost me to lose 2k that should have gone into my pocket if I just let them be in my portfolio. Today, I bought back Prestariang at much high price.

Although this is the not the first mistake I made, I keep on repeating the same mistake where I always fail to control my emotion. Before this, I was very firmed about impact of election that normally just temporary. However, my confidence start to reduce after keep on reading about the high probability of changing government.  I finally realise that its hard for us to time the market and fear normally play a huge role in our judgement. Therefore, I made a conclusion here that we should always buy when we fear the most while sell when we are happiest with our portfolio. This is much easier compare to making prediction on stock fluctuation.