Portfolio_17sept

Between 11 September and 15 September, I have invested / held the following counters:

1. 500 shares of superlon@2.86 (increase 1 cent from the inception of 2.85)
2. 500 shares of penta master@ 4.64 (decrease 16 cents from the inception of 4.80)
3. 300 shares of Hai-o @4.57 (increase 19 cents from the inception of 4.38)
4. 300 shares of Padini @4.37 (decrease 21 cents from the inception of 4.58)
5. 500 shares of VS @2.60 (increase 15 cents from the inception of 2.45)
6. 1000 shares of SSteel @2.30 and 1000 shares of SSteel @ 2.39 (Note: Average price is 2.345) = New investment is RM 4,690
7. 1000 shares of Masteel @.1.55 = New Investment RM 1550

Investment carried forward = 7258
Total Investment for the week = 6240
Amount spent: 19,738.

**Please refer to last week's portfolio for verification
**Please take note that I won't calculate realised gain until I have made a sell. In other words, I am in the second week of updating my ideal portfolio. No sales has been triggered, so no realised gain has been recorded.
**The above is my ideal counters. I may own or may not own the above-mentioned counters.
**The writer does not bear any unfovourable consequences if the investors follow the writer's  portfolio to purchase the above counters.
**I am buying stocks as my hobby.

Avoid the following stocks

Through my investment career, I have found out the following. -
winning in the stock is about probability.
You should not invest in the following counters because the chances of winning is lower than 10 percent..
l. Lost making companies. 
2. The latest quarter's growth rate is lower than 20 percent.
For example
a. Oceancash drops from 78 cents to 70 cents with net profit growth is negative 17 percent.
b. Johotin drops from 1.52 to 1.36 with net profit growth is negative 26 percent.
C. willow drops from 1.52 to 1.20 with net profit growth is negative14 percent.

3. Inconsistent profit.
For example
a. Solution. Even though net profit increases for more than 150% for the recent quarter but the net profit for the previous quarter was at the negative territory. 
b. AAX. Net profit drops 90 percent in the previous quarter. In the current quarter, net profit increases 4500 percent but the share price drops from 0.40 to 0.39.

4. Low trading volume companies.
a. Fareast
b. Toyoink 
c. UMSNBB

5. companies that issue right.
a. Eversendai
b. Aeon Credit. After the announcement of right issues, the share prices drops dramatically but it crawls back slowly. 

6. Never get into any counters with share price that is lower than R.M. l unless you are cold eye or you have the insider information.

7. Never buy blue chips because
you can't earn huge amount of money.

8. Bear in mind that stock market
is not like buying items with discounts, You should never accumulate dropping stocks or the more you buy, the more you lose.

My Approach - Fundamental Analysis

Before I purchase any stocks, I will go through a few procedures:

Step 1: I will eliminate the following counters:

1. All lost making companies. No matter how good analysts say, you must not touch the counter.

2. All companies with a growth rate of less than 20%.
I have analyzed for years. Less than 10% of the companies with growth rate of 20% or lower outperform the market in a quarter.
** Super growth companies must have growth rate of 40% and above or the share price drops dramatically.
E.g 1. IQGroup. Net profit reduces 60%. Stock price drops around Rm 4.80++ to current (around RM 3.30). It is so scary.
E.g. 2. Magni - Net profit reduces 17%. Stock price drops RM 7.30 to RM 6.20.
It is extremely scary.
E.g. Tunepro. Net profit drops 50.90% but the analysts keep saying good buy. At the end, the share price drops from around RM 1.70 to RM 1.20.

Portfolio_10sept

After hiding for more than 3 years, I am back to the stock market again.
I have learned lots of techniques for investing. I would like to share with all of you from time to time.
I start with my initial capital of rm 30,000. I will invest gradually based on the situation.

Between 5 and 10 sept 2017, I have invested in:-
1. 500 shares of superlon @2.85 = Initial Investment is RM 1425.
2. 400 shares of penta master @4.80 = Initial Investment is RM 1920
3. 300 shares of HAI-O @4.38 = Initial Investment is RM 1314
4. 300 shares of padini @4.58 = Initial Investment is RM 1374
5. 500 shares of vs @2.45 = Initial Investment is RM 1225

Will update all of you again next week.
Net spend for this week: RM 7258
Net sell: 0
Amount that can be invested is RM 7258. 

You must follow the trends when you invest in the stock market.

Today, I have logged on to my portfolio (Luckily, I still remember my password), I realise that something. 

My Scenario 1: - 
All counters have been kept for more than 3 years since the last day I bought.

My Scenario 2: - 
I don't manipulate the stocks, neither do I top up any shares in more than 3 years. 

My Scenario 3: - 
All counters I own are blue chips. 

8 Stocks that I have possessed for more than 3 years. (Please bear in mind that some of those have been held for more than 10 years) 
 
1. F&N 
2. Public Bank
3. QL
4. Top Glove
5. Harta
6. Kossan
7. MKH
8. Digi 

I conclude that most of the stocks have slight changed since the last day I bought. Seriously, I don't recall the exact price three years ago.  I make a close assumption.  

Take an example, 
1. F& N - From RM 18 --> RM 24++
2. Public Bank  - RM 16++ --> RM 19.90++
3. QL - RM 4.20 --> RM 4.70++
4. Top Glove - Cannot recall --> too many bonus issues 
5. Harta --Cannot recall --> few bonus issues
6. Kossan -- Cannot recall - few bonus issues
7. MKH --> RM 3.5++ --> RM 3--
8. Digi --> RM 4.40++ --> RM 5.10++

I skim through as much news as possible in few hours. I conclude that: - 

1. You won't earn much if you buy blue chips with high PE. (F&N, Public Bank, Digi, QL) 
2. You continue to hold the stocks with negative growth, the share price will slump. (Shares price of Kossan, Top Glove and Harta have dropped substantially) 
3. Worst still, you continue to hold cyclical industries, you will make a lost. (MKH)

Needless to say, I don't know whether I have made a profit or lost for the 8 counters I have owned. 

I quickly read more articles about the latest hot topics: 

All furniture companies have surged at least 100% in last two years. (I missed the boat because I don't buy any stocks in three years)

All automation companies have surged at least 50% in 2017 since January. (Pentamaster, Willow and etc). I miss this boat also.

Needless, If you want to invest in the stock market, you must do adjustment from time to time. 

PE must be lower than 10 times. 
ROE must be higher than 10 times. 
DY must be higher than 3 percent. 

DON'T CHASE PENTAMASTER, WILLOW. Those stocks have been increasing for more than 50% even though there are the hottest counters lately. Worst still, PE for the above counters are higher than 10 times (which is higher than my criteria)