V19, a new phase for stock market.

REPORTING

checking in

Today Saturday, a bit late into office. haha.

Whenever company directors or substantial shareholders selling stock into the market, 99% is advisable to stay out.
They knew and had the most inside details and how the company business situation.

Nobody wants to sell their stocks if company's prospect is bright and going to have good earning and dividend unless some special circumstances.

sigh.....you guys are so energetic, even in such a pathetic market.
I am so listless already, even Dow up I feel numb. Dow up, our market still bearish. Imagine Dow down, our market will trend even worse...!
Our stock market volume is so poor, no volume means lower chances of recovery. Worldwide, fund managers' cash are lacking, I don't think when global recovery takes place , they are going to invest here first, we will be one of the last, just like 2 years' ago's boom, KLSE was always playing catch up . So, this time when worldwide recovers, ours will catch up lagging behind 2 years. I need to prepare myself mentally to hold at least 5 years

This post has been edited by sharesa: Dec 6 2008, 09:51 AM

My hands so itchy la. Been on the sidelines for almost 2 weeks now. Plus Monday holiday. So boring.

I guess that's to be expected in this bear market. Some reports are saying the Asian stock markets will probably recover before the West..... late in and early out.... hope so as I don't want to wait to long to see some good news!

Besides some counters like YTLPOWER, I think you didn't miss anything. Shares has been dropping for the past 2 weeks. Hope to see a small rebound as I want to goreng my KNM stocks....

Edit : Would it be correct to say that comparing stocks to unit trust, stocks would be a better buy at the moment for the long-term?

This post has been edited by kmarc: Dec 6 2008, 10:08 AM

Hopefully, we'll experience the traditional year-end window dressing in V19.

Heard from my friend who has investment in Unit Trust that he has lost between 30% to 60% from different funds this year. This has more or less wipe out all the gains that has been building up over the years for him.

I guess UT is for you if don't have time to monitor or want exposure to markets otherwise not avaliable (like those china funds)

That's also true for stocks where they have dropped quite a lot.

What I'm asking is, at this time, would it be correct to say that given a choice, shares would be a better pick rather than unit trust for maximum profitability in the long run? (sorry if the question is so noob )

This post has been edited by kmarc: Dec 6 2008, 10:32 AM

V19 now. Check in as well.

That is what I m think of now. Last yr economic really boom b4 oct 07 when US mortgage n subprime crisis really struck their economic. KLSE rose to 1300+ PB mutual earn me 5K+. but right now if i sale I L b losing 7k+. If hoping UT need to wait for few yrs. anyway UT safe unlike stock company will goes privatize some already bust .....

Yup, KLSE will only play catch up, after others have risen a lot, similar situation back 2006-2007 times. As it won't be the top choice of foreign fund managers.
Some sort like you drop the least, you surge at last or lesser.

Compared index to index, KLCI actually loss a bit lesser compared to other regional bourses. HSI drops from 32K to now 13K (60% loss), STI from 3.7K to 1.6k (56%), KLCI from 1500 to 800 (46%)

If compared to some fundamental good stocks, then stock outperform UT generally.

As one major disadvantage of UT, is its management fee. If the stock you hold not rising, then you breakeven, but in UT, due to the management fee, you will lose 1.5% annually, so if the stock is not moving 10 years, then in stock, you breakeven, in UT, you lose 15% already, no including initial service charges of 5% compared to 1.5% commission of stock trading.

UT portfolio is more diversified, so it will normalise both upside and downside. You holding 2 to 3 stocks in your hand, if those stocks surge 50%, then you gain 50%. But in UT, they have bunch of stock in their portfolio, 2 to 3 stocks surge 50%, won't able to result the fund gain 50%, as there might be other perform not so good or bad one, so other will normalise it which result fund only gain 20-30%.

But on the downside, if your holding stocks drop 50%, then you loss 50%, but if the UT portfolio is diversifed enough to have some stocks that are still performing quite good, then the fund performance might loss only 20%.
But currently, it is not the case in most funds, as recent stock market plunge is worldwide and across.

Only a handful of stocks are able to offset in recent downturn, locally and typically like BAT, F&N etc, which one hand finger already enough to count.


But the main problem and issue in stock & UT comparison is the stock pick, if you pick the wrong stock to invest then it could be a lot poorer than UT.

So can't totally which one is better, stock pick is the key.

Just my 2 cents.

This post has been edited by cherroy: Dec 6 2008, 11:03 AM

Thx for the excellent explanation.

I would conclude that UT are cushioned more as compared to stocks. I understand the dividends are also less i.e. less risk, less returns and high risk, high returns (and loss!!)

Honestly, I do wished that good stocks drop a bit more than that so that I can buy them cheaper!! Including the ones you mentioned i.e. BAT & F&N, others are like public bank, BJTOTO, SIME, etc. I actually acquired SIME at RM5.00 (500 shares only) because it had a significant drop last week!!! My target price was below it's lowest price of RM5.50 but since it dropped so much, might as well stock up on it....

This post has been edited by kmarc: Dec 6 2008, 11:38 AM

thx mr. cherroy good explaination,

u did mention about the disadvantages of UT is the management fee, so I m currently holding UT with SIP. in SIP although every month buy UT with discounted rate but still pay the management fee... so at this moment during economic recession it would b more more disadvantage is it?

Reporting in

december should be good

v19 already! Congrat!

Anybody fatt in the previous version?

Version 19,

Ding Dong between the range 800.

The best is yet to come...