Or you could say 2012 was just one bad year.

But then from 2010 onwards, we see profits go from 130 mil -> 122 mil -> skip 2012 -> 121 mil....

What's now your description of this company then?

One thing I notice is many here have a tendency to base their investments on actual real life observations.
They see a business or a product, they see it well sold, they tend assume the company is a good investment.
Or they deal business with a plc, they assume the company is a good investment based on their observation (like payments/purchases etc)
Or they have a relative in a plc or they actually know the ceo, they assume the company is a good investment.

Sometimes it works but sometimes it won't.
Which means this isn't a fail proof strategy.

Why? Because one is basically judging a book by its cover.
What we see must be backed by financial numbers.
Like said yesterday, sometimes we can see a good business.
But that good business might not as be as profitable as it looks.
For instance, some good looking might be highly leveraged.
We can only see this by looking at its numbers.
Or we can see a good business, good profit too....
but whatever good is hindered by simple issues like EPS, making the stock investment highly expensive....
or sometimes there could huge mitigation lawsuits against the company we might not know unless we read the financials....
or even sometimes the business and good profit we see, is one without any growth... ie... year in year out, company profit is just constant and from market pro view point, such company's profits is unattractive due to the lack of growth......

better stop here........ for now.....

Yeah, I should start write a blog on how to sell popiahs.

On second thoughts, maybe I should become a stock salesman.

You want to promote stocks, that's a business la....

You want to make big money!

Sending people to holland?
Siao ah?
That's bad for business yo!

he's too buys busy playing candy crush!



This post has been edited by Boon3: May 8 2014, 10:05 AM

Where's my tip?

Typo is it?

More by 2?

So what type of popiah do you like?

What you want us to do?

Post tips ah?

This is why I said "What we see must be backed by financial numbers."

Agree, reports only tell us about the past, but for financials
, for the really good companies, their future performance is reflected by what they had and can achieve in the past.

For example, take a construction company.
If this company found it difficult in turning their big past projects into profits, then we have an indication that the management isn't up to par.
If that is the case, would it make sense to be heavy into the stock, hoping it can turn future projects into big money?

Yes, I also agree most businesses follows trends.
But I would add by saying, there will always be exceptions.



This post has been edited by Boon3: May 8 2014, 04:56 PM

I said stop because I needed my beauty sleep last night.

Also needed to go chit chat with Uncle Chow!

Which Uncle Chow?

He's the one that gives me stock tips.

Miss me souch ah?

WHAT???????

GAB profit up or down got what relation with me?!!!!!?

Don't always drag me into the water maaa......

My whole life, I have yet to trade one single share of GAB.
Some more so, I am not a dividend player.

Regarding the profits, are you not missing the bigger picture?

This is the 4th consecutive quarter where the profit trend had been lower, which is clearly reflected on the one year chart.

1. This is why I had kept on saying repeating that profits is always more important than dividends - NEVER chase a stock just for its dividends.


2. Mentioned few times before, reading the financials is more important than observations.

Posted other day...

Also posted last year.

There are two warrants.
One dies in 2015, another dies in 2017.

Exercise price is an expensive 35 sen.

There are many VALID reasons why to avoid china man stocks.

If you discount out the man with oil and the wok, using financials data and logical reasoning, it's pretty clear to avoid china man stocks.
Only if you are interested, we can always chit chat these stuff again.

spring onion

Some interesting to see.....

Remember or have you heard one of the popular thinking/saying/teaching in the market is to 'buy stocks at their support'?

Take a look at the zoomed in XDL chart.



Does the XDL chart shows it had form a 'good' support around 23 / 24 sen?

Stock held firm that position for slightly more than 10 trading days.

That would easily viewed as a support, yes?

Look at what happens next.



See the positive movement on 24/4 and the surge in volume?

Breakout from 'strong' support, riding on good volume...
Some more... they might use the comparison (personally I don't like such comparisons) of recent high vs current price, where the recent high was 44 sen vs price of 23 sen. Big discount wor....
Many would buy the stock....
Right?

People who had bought at the support or bought at the breakout of the support would be grinning ear to ear.

However....

this is what happens next....



Stock breakout turns out to be a trap...
And the 23/24 sen 'support' did not even hold....
Stock hit a low of 20.5 sen.....

Point?
Buying at supports is not a 100% sure win strategy.....

Overall, the XDL chart is not looking nice.

In fact, some might even describe this as a head and shoulders chart pattern.





This post has been edited by Boon3: May 10 2014, 08:45 AM

buy at support, sell at resistance is quite common, isn't it?

Yes, that's the common teaching....

But what did that example says to you?

Did buying at support work?

What can you conclude from this?

Been tinkering around with different strategies but like you said, anything is not a sure thing,

Like I said before, there's no HOLY GRAIL in the market.

Which is why you need the FAKE TRADING.

You need to trade years and years and years.

Learn and practice before you go to war.

Don't be silly and go to war and learn when you fight.
You will sure end up mati-ing in no time.

Find out what strategies works best for you.
Find out what strategies you are good with.
Know how to cut your losses small.

DO your own homework!


Outsiders have limited resources to know the bigger pictures.

Outsiders is still ok one laaaa......
You don't have to play the 'popular' or 'current' game in town...
just concentrate on stuff you are good at....
stay away from rumors and .................... tips.