QUOTE(cherroy @ Jan 9 2009, 11:53 PM)
You have to tell those research houses's analysts. We had no less than a handful research report/paper to recommend people to stay away from plantation stocks, just prior before this round of pre-cny rally. Haha, no offence to those research houses or anyone.
A lot of them are commenting plantation stocks are expensive to hold right now even before the rally started.
All report and research paper are saying bad almost all sectors, if according to them, nothing worth to buy at all in the market
Plantation - too expensitve
Steel - future very very bleak, capacity utilisation less than half.
Financial - too risky with raising NPL
Consumer - Sales expected to go down
O&G - Free fall in line with oil price
Properties - Lagi worst, all give extreme negative rating. (but some properties stocks are trading at signficant discount to its NTA)
But for most experienced investors knew that after massive sell-down of stock and gloom and doomy view everywhere, deep inside, they see opportunities here and there.
If market turns upside, then every report will change tone liao, say this good that good already.
But I don't reckon plantation stocks are that badly hit even at current level because if anyone bought those stocks 2-3 years ago, they are still having a gain quite significant one. Just it goes back to its norm price in term of its long term trend, as previously they are performing extra-ordinary.
But for those potato chips, GLCs, even bought 3-5 years ago, can't make a gain, some even at loss.
That's because investment banks purchase shares before their analysts upgrades the stocks. I have a few friends working at Wall St, and i can tell you they are paid very well. How do investments banks afford it? Simple, insider trading and constant misguidance to the public. Cox at SEC has always been sleeping thats why fraud and insider trading has been rampant the last few years.
When more and more analysts downgrade stocks, i will take the opportunity to buy beaten up stocks like BHP, Alcoa, IOI, Genting, KLK, Sime...2-3 years from now, i know i be making tonnes.
Oh, and gold and oil will rally sometime this year, with BOE, ECB, BOJ, Feds reducing rates to REALLY low levels, quantitative easing will be their next agenda, if not already. (Feds, BOJ) And i do believe the best printing press in the world will cause super hyper inflation beginning next year.
Long end T bill at 2.5%? I am having a laugh....
This post has been edited by AdamG1981: Jan 10 2009, 03:45 PM