Technical views provide a “hypothesis” of what is going on in the market. They are like notes taken by scientists studying some phenomena. Each one makes a set of assumptions based on what has been observed, and involves a prediction. If the phenomenon behaves as predicted, then the hypothesis would be correct, but if not, [...]
Archive for October, 2007
I’ve been getting a lot of mail recently asking me what is going on in the market. To that I always say: look at the price.
If you’re a short term trader, any which way you look at the price action for any indices in Asia, a top has formed. It doesn’t matter if you [...]
Popular Myth #2: Buy Malaysia. Stocks here are trading at a discount compared to similar counters elsewhere and are hence undervalued
Published by October 26th, 2007 in Investment Notes. 0 Comments Here’s another one. Let me give you a recent quote from a global investment bank on Bursa to illustrate my point:
“We note that Bursa’s valuation remains attractive vis-a-vis regional peers at 25.4x (HKSE 75.6, SGX 51.0x, ASK 25.6x)”
One of the questions I always ask when comparing companies is: “Why is the market discounting such a [...]
Popular Myths #1: Trade High PE Companies - They Have High PE For A Reason
Published by October 16th, 2007 in Investment Notes. 0 Comments Today we start a new series in our Investment Lessons section called “Popular Myths” where we try to dispel notions we feel to be incorrect, whether it be due to faulty logic or just because it’s the way of our Malaysian stock market.
#1 - High PE Companies have high PE’s because they are being rewarded [...]
Sometimes I like to compare stock picking to say, dealing in art or precious stones. When you’re not looking for that special unique feature of something which makes it rare and sought after, you’re looking in places where you can pick the damn thing up for cheap. This is why real merchants in gems [...]
I don’t usually post up scorecards of companies which don’t make the grade because I find them a bit pointless really. It’s a bit like picking up a newspaper and reading a bad review of a new CD by some musician-or-other. If the CD was so bad, then why bother drawing our attention to it [...]
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Due to a death in the family, I have not been able to post recently. We saw this coming but yet, we were not prepared for it. I supposed one is never ready to accept the death of a loved one. However there were many things which I should have said and done, but did [...]
