read the many views here. think there'll be a year end rally. vested heavily in Sino Grandness, CAnimalHealth and Gallant Venture. also dumped all cpf into Fidelity America utrust. Buy when there is fear and pray hard for there is hope...
read the many views here. think there'll be a year end rally. vested heavily in Sino Grandness, CAnimalHealth and Gallant Venture. also dumped all cpf into Fidelity America utrust. Buy when there is fear and pray hard for there is hope...
this kind of bear market provide attractive valuation for those good fundamental stock. I personally prefer those who have strong share buy-back at this period of time.
this share buy-back signal that the company management feel that the price is at bottom, and they have enough CASH to support the price. this is good news for investors like us.
many expensive stock now looks so cheap, and you can buy 1 get 1 FREE when you compared it to end of last year.. woohoo..
currently i looking at Sunvic, strong buy back since 2008. and you can see all share buy-back are done at their lowest points.
This market volality has made me learn a few hard lessons.
1) Cut Loss mechanism should be adhered to even if the reasons for buying might not have changed. I always ask myself, if the fundemental of a company has not changed, but the price has been bashed down so much that it hits your loss limit, should you cut loss, of should you wait. Answer is cut loss.
2) There is a difference between accumulating over weakness and av. down. If you have side aside a sum of money each month to invest in stock, you may wish to accumulate whenever you feel that the market is overselling your counter, but if you are averaging down to reduce loss, you should wait at least for the counter to fall more that 30% and not be trigger happy. IF you plan to average down more than 2 times, you are actually accunulating over weakness and might not be be able to effectively average down.
3) Third, patience. Price of a undervalued and fundementally strong counter might remain depressed for a long period of time. If it did not hit your loss limit, be patience and not switch out to sexier counters for fear of losing out on opportunity costs. YOu might jump out when the tide is just turning.
If i think of the small caps & S-chips, the lesson I learnt is that there is no support from funds (boutique or otherwise) in a market downturn, even when the dividend yield is strong. The big boys cannot buy the small caps like Qingmei (less than S$50 million market cap) whereas the bigger companies will get their support when the valuation is really cheap. So, the small caps just simply languish and are sold down further by retail investors who throw in the towel. However, the stock price can shoot up in high % terms when the market recovery comes: we all know small caps that became multi-baggers in the 2009 boom.
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