huaan plummeting lol

Waiting at 20sen 

we shall be greed when ppl fear 

The economics of trading?

Actually, I want to understand more on the logics of the traders here.
In the last few months we have seen shares dropping 30%+ of the top

If so, why would people keep selling their shares? Assuming some sold their shares at 30% discount back then, the buyers of those shares SL at 5% and so on, we can safely say that sellling shares now or at further discount will result in the law of diminishing return for the profit takes and further losses for the sellers.

In such a case, it's illogical for trades to continue is it not? As warren buffett says, the brokerage fees for certain counters is higher than the total annual net profit that the company makes.

We're paying 1 billion in brokerage fees, for a company that makes 1 million.

For example, one of those counters would be huaan I assume. The volume of trading is huge, but I doubt the entire net profit is equivalent to it.

Strangely odd, but there u go..

We do not earn comm by sharing info here.

We only got the blames when someone is losing money. Just wonder how they trade ?

People buy and sell because they wanna profit - lah.. simple.. we are capitalists otherwise why else
doing here. rite?

Ok.. I will predict DJIA will be green tonight.. bargain hunters jump back in to grab more shares.

He's just saying how they trade, I find no offense in that.

Which is exactly my question itself, trade = making money off each other.

Instead of investing to earn a piece of the companies's net profit?

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Added on November 7, 2008, 12:12 pmKLSE is crazy man, we may go green if this continues

Why Sg and HK markets up , bro ?

Adam is right, commodities shares up in Europe.

huaan sell coke? at first i tot coca cola = coke.

I odeli retired as a spokeman for Huaan. Just hold 100 lots only.

Trade at your own risks.

20sen,  buy orders.

I managed to catch IOI at rm 2.95 ( 2000 shares only  ) , so leave Huaan aside first.

Personally, comparing the P&L from the same quarter last year isn't too helpful IMHO if the core business isn't very seasonal. If you compare against last quarter, the results are very mixed. Revenue growth is about 2.1% which isn't bad, but margins on resource manufacturing (by far the largest revenue segment) is down. Will be interesting to see if they can pass on higher costs to constomers and recover their margins.

Ok.. so r they considered like blue chip stock or second board?
how stable r those MESDAQ stock?

Perhaps you've forgotten that we still have domestic market, and i see the people around supermarket, hypermarket is still there, so our local people still have quite strong purchasing power despite economies downturn.

Of course, there is no credit crunch at this moment. The time lag for the effects to be felt in our local economy is 6 months.

The credit crunch will only come if NPLs starts pouring in. When NPLs starts growing, the multiplier effect will go backwards resulting in reduced lending n shrinkage of the economy.
I could recall that up to Dec 1997, consumer spending has still not weakened. Hence, the state of denial of the then Mahathir administration. The hurricane was felt in 1998.

Most likely, our interest rates will be cut next year. But this is a double edged sword. Those depending on FD interest to survive will suffer.

With FD rates down, the government will hope that people will plough their hard earned savings into the stock market or buy snake oil from those unit trust sales people. But how many would dare to take the risk. The government would borrow those savings to spend to starve off a recession.

It must noted that Warren Buffet bought the shares on favourable terms which an ordinary investor is not able to get. Lee Kah Shing bought Bank of East Asia shares to show that he has confidence in the Hong Kong economy.

I remembered in 1997, my friends bought UEM related shares which plunged from RM25 to RM6. I asked him the rationale for buying this share. He said that there is no need to worry as the share had fallen enough. Eventually, this share dropped below RM1-00.

In my opinion, we are seeing a replay of the events that took place in 1997/1998 but maybe this time around the slowdown will not be that severe.

LOL.....sorry i can't. All i can say is; long commodity stocks. 

Unfortunately, many people i know is going to long commodity futures and speculate that oil and crude palm oil will head north from here. We might see oil heading to high 80s.

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Added on November 9, 2008, 10:12 amToday's meeting at KLCC starbucks from 12 pm - 2 pm.

This oil cuts and increases r kind of laughable, in a span of 1 yr we have experience extreme lows and extreme highs on oil prices.

When Opec steps in and start cutting oil prices, price of oil rocket (for abit). A few more cuts here and there, more cuts here and there...

In Opec's mind they see oil prices low means cut production, rather than to stabilize the price deemed reasonable and according to market demand.

conclusion?

You have Opec either cutting to much during oil demand is "high" or for that matter very high (and vice versa)... and causing prices to sky rocket to insane levels again. There wont be price stabilization any time soon rather than a flactuating yo-yo..

I believe the current low in Oil prices is due to the effects of supplies kicking in when oil prices were at USD 140 a barrel. When everyone was screamin for more oil productions.