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?

What I am really trying to suggest to you is that you can easily improve your buying.

I am a trader and let me say this....
there are ways to actually improve one's buying....
it's not that difficult....
and the very first step is be patient....

For a CLEAR FALLING SHARE.....
it does one no good by trying to be early in buying...
be patient....

For now...
Ask yourself.....
What if you didn't start buying at 3.80?
So your initial buy was at 3.80.
Yesterday you bought more....
and you bought more today.....
( Gee.... how much more did you buy? I guess you must have put in a lot of money into this stock already. )

and now your cost is only 3.28.

Compare to the other alternative (which I do not agree cos I feel the downside risk is very great), one who waited could use the support line as a buying guide.... ie one could bought the share at 3.16 today.

See how much lower the alternative cost compared to your 3.28?
Well, do take these as the alternative opinions.....

This one?

ECS = ...... everything can sell.



With a name like that.....you know it's gonna be a rojak company.
Which means low low profit margins.
This is what the company is all about.
Sellng mostly all kind of IT stuff/gadgets...

So if you are a longie player....
This might carry it's risk....

Would next coming quarter br good?
My bet would also be YES...
Cos mostly and historically Q4 is the strong quarter...
So if one is a betting person...
Logically one would play the odds and bet that it would register a good set of numbers.....

Having said that...
Our local market is fickled...
And choosy...
So a good set of numbers might not mean the stock will fly...

Also...ECS does not have a strong profit track record....
Nothing suggest that it is a good profit growth company...

Timing problem lor

Why u no learn more TA from Ah Boon?!
I'm also in the same predicament as u (though it's quite a good predicament to be in, means we are quite cash rich ), why not u rekomen me something to buy?

The only stocks that I watch closely but not already in my portfolio are...Daibochi, Nestle and Scientex. But I think I won't be adding them anytime soon. Most likely gonna top up Hovid and PPB, when valuations and/or quarterly results are encouraging.

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