Normally, what methodology u guys practise when looking for individual stocks to buy??

omg is the market really that good ?
i just called my broker wanted to place an order for the new call warrant on MPLANT which is only open for sale today, and heck, it was over-subscribed by lunch time

Speculation in the making.

hey i thought you cannot trade ?

We can but have to disclose every transaction to internal audit

I never buy share before, but I think is like this:
The share must be active.
Study the financial statements, know about their profit, liabilities, liquidity, EPS and PE.
Look for the dividen distribution history.
Look for the future plan of the company.
Get know well about their current activities and news.
Study the share price to determine its over valued or under valued.

Several criteria are the key in analyst a company for share trading purposes, generalise only.

1. Its management
2. Earning aka PE ratio (forward PE)
3. Asset or NTA of the company, some company did hold a lot of assets which is undervalued in paper (like KLK)
4. Prospect of the company especially its core business
5. Dividen yield
6. Liquidity of the share
7. Healthy cash flow, a company may earn/profit a lot but huge and pro0longed negative cashflow will bring down the company also, the better exmple is TNB, profit a lot but facing serious cashflow problem.

A share is active or not is less important since if you are talking of investment rather than speculative, the trading volume won't be so important unless you buy a lot. Some quality counters only trade a few each day but bare in mind if the liquidity is poor, it is easy to be manipulated, also can't attract fund to buy it.

This post has been edited by cherroy: Nov 10 2006, 01:13 PM

All,

1) "Trust but verify". Remember Enron.

Please noted that even in USA, you have accounting scandal. And, sometimes the numbers reported in quarterly and annual reports are lies. So, do not be so confident that the numbers you see in those reports are REAL.

2) Remember UEM.

Before anyone buy stock in Malaysia, they need to remember and study the whole affair about UEM reverse takeover of Renong. They need to ask themselves whether this can happen again. Please noted that 50+% of KLSE is owned by GLC and GLIC. Government is the majority share holders of most companies.

Dreamer

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This post has been edited by lipkhin: Dec 1 2010, 02:36 AM

Above mentioned are quite good company also but one need to mention is Bjtoto although giving out high dividen yield, its management previously has previous bad track of record using bjtoto's huge cash flow to financial its parent company debt through inter-company loan while Bj-toto get none from interest from it. (if not mistaken in the range of RM800mil). Although it is not against law but is totally unfair to the minority shareholders.

Bj-toto now basically is a 'empty' company after 2 round of capital repayment but fortunately its business nature generate huge pile of cash every year which support its high dividen.

@mod,

I would like to suggest this thread be split to:
1. Investment -General (Comparison between instruments & Strategy)
2. Investment - Unit Trust
3. Investment - Stock

There are lots of good discussion here, but at the later post its too much on focus stock.

Just my 2 cents...

I STRONGLY agree...if this thread can be separated to more specific categories, it's easier for LYN forumers to follow the discussions. Hope the admin or moderators can do something on this...

How bout property investment?? Suggest to move the Property Investment Tread at http://forum.lowyat.net/index.php?showtopic=346639 to here also.

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This post has been edited by lipkhin: Dec 1 2010, 02:37 AM

I support the suggestion that Admin can open a specific forum to discuss about finance and investment. I think maybe Dreamer or Cherroy can be good advisers in investment topics...

open new subforum better la cos all discuss here very hard

i suggest http://invest.lowyat.net lol

OK...i just buy up this domain. If lowyat interested can buy from me.

Moved to a new home

Thanks to admin and moderators for moving this thread to the new subforum...We can continue to share our experience and opinions here, even with more specific topic.