Here's another posting about chasing down the beaten down stocks.

Petdag's profit report was just released......



Petdag last traded today at 20.50.

First posting in July. post #1624



See also post #1953

See also post #1960

chase the stock down?

Here's the updated chart..........

This is exactly why you do not want chase something down.

The downside force is strong, really strong (though I have to say, I do not quite fully agree with the current movement)........


......... and the USD again moved much higher against RM................

*whistle*

Try look at those postings links.....
see the date of those postings.........

the issue on Petdag is not caused by current oil prices 'drop'.....

why rush to buy?

I do remember our last 'chat' on this stock.

post #2811

As it is, you have to admit that your earlier decision to jump in this stock was rash.
Too soon.

Topping up now.... means one thing....
you are attempting to correct that previous buy....
so you top up more...
to average your price....

But if your earlier decision to buy at 380 is to be considered a mistake...
then.... what you are doing now...
is basically....
buying more of your mistake !!!
You are doubling down on your earlier mistake !

Wise move?


Never mind..... let's consider other issue...

What's the current risk now?

Well it could retest the infamous low of 316.

that's a possibility.... right?



If someone were to ask me to describe the above chart...
what would be my description?

A stock facing incredible downside pressure............

and this factor....
is driven clearly by the plunging oil prices..........

and for me....
clearly this momentum is strong........

yeah back to the initial risk assessment...

yes.... it does likely the stock retest its recent 316 low and maybe we might even see some support and the stock bounce back..... it's possible...

but would this price hold if we factor in the plunging oil prices factor?
what if 316 doesn't hold? Not possible?

the bigger chart.................



what's the next levels? 3? 280? 260?

what's the next strategy?

Buy a bit more at each level?

Do the math........
Such strategy will require incredible lorry loads of ringgit.....................................

how?

are you willing to take this risk?

Why cannot?

read this piece this morning....

http://www.thesundaily.my/news/1217955

Nope I think it's not that weird.

Look the stock had rallied strongly since that 'brief correction' and was actually trading higher (before yesterday's fall).....
That's the simple sign of pure strength for me.

However, as you know, the plunge in the oil markets, has traders getting nervy.
Hence, for me, it's understandable that some would want to take some money off the table.

That the stock fell 5% is ok.... for me.

Having said that, normally I tend to disregard research reports.
And I certainly wouldn't pay too much attention to them boys/girls playing for EPF.....

But the report from Maybank has a valid point.
Strength in the MYR against the JPY is a positive factor for BJAuto.

And the currency pairing chart does show the strength ultra weakness in the JPY.....



And the chart of BJAuto...



Well waiting for the next quarter profit report next month sounds a good move........
but you might want to put a 'stop/cut' position at 3.40.

All the best.

LOL!

Felix, I cannot advice what to do laaa....
I am not a PRO.



Having said that, you might want to go over the old posting links I posted last night (esp comments made to you)......
Yup, in the first place, I would NOT have purchased the stock as highlighted since July 2014...............

As it is..... some facts for your consideration....

with the lower EPS, the stock is still trading at a pe multiples over 31x!
And current FY total dividends for 3 quarters is 38 sen vs 52.5 sen.





p/s OT a bit....

Sadly, everyone is programmed to think that all plunging stocks means bargain hunting....

The danger/RISK in that thinking is........

THERE'S NO WRITTEN GUARANTEE THAT ONE WILL MAKE MONEY 100% WHEN THEY BARGAIN HUNT!!!!

Yup, if one buys a stock whose earnings is deteriorating rapidly.........
one could get whiplash by investors cashing their chips out of that stock....
and what used to be a bargain.... could get a whole lot cheaper !!!!

Possible but before assuming, you need to read their profit notes....
Check for possible hedging (hedging on wrong prices wouldn't benefit them at all)



Side note...

Nissan cars....... errr ............
Toyota......... not much excitement lately, yes?

Mazda? It seems so fashionable currently.....

I hope this is another example that highlights why I do not particularly like to bargain hunt trading............

sorry for the ramble then.....

Yes man............... right at the previous support (or thereabouts)

So faster....

Fast hand fat leg....

drive your lorry there...........


and buy, buy, buy ...........................................

Bicyle pulak!!!!



ps: you think the global oil will bounce back up when SKPet hits 3 bucks ah?

*whistle*

..... this means.... you are implying that it is because of the US election that the global oils are falling......

Of course, I can and will support your arguement...

for example...

there are several indicators showing how badly screwed up the market is (against norm la)

can you name any?

*whistle*

See if you are a noobie, you should avoid complex choices like TRYING TO BET ON A OIL STOCK.

As you own self said, it appears manipulated....

Well if it is manipulated, then what if the manipulation is on a much, much larger scheme....
which means some parties out there....
wants the oil price to relatively low for a longer period....

Why longer period?
Well... would you say that it took a huge current effort to press the oil prices down to current level?
If the effort was indeed huge.... why on earth would these parties release back the oil prices up just like that?
Wouldn't they want to keep the prices low for a relatively longer period of time?

Now....

IF that's indeed the case........

ie... with oil prices remain depressed....

than fundamentally .... it would do companies like SKPet no good....
cos with lower oil prices...
companies worldwide....
aren't going to spend more money in the sector......
which means....
contracts might dry up for SKPet...
would we even see some cancellation of projects?

No easy answer.... yes?

Pretty everything much is speculative....

weighing it up....

don't you think the bet is much riskier????

Now if the bet is riskier....
why.... oh why..... insist on betting in the Oil and Gas sector?


Is there no other logical and relatively less risky bet in the stock market?




ps: I love less risky bets...... *whistle*

The main objective here is to make money.

it's a rather serious business here....

you adopt the fun trading way....
trust me....
in no time.......
you will end up losing money....

cos stock trading turns into a game....
a game of fun....

when it is fun....
you will never be serious....

and when you are not serious....
losing money is easy.
damn easy.

It's a good ruling really....
cos basically it says....
if you want to be Shariah compliant....
one of the requirement is.....
you need to manage your debts......





This post has been edited by Boon3: Nov 5 2014, 11:32 AM