V19, a new phase for stock market.

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.

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

Without any reference, I can assure one ie. Airasia never gives dividend one.

Just fyi,

Airasia is making a loss of 400+ millions on lastest Q financial report.

Extreme green day across the region espeically HSI (up 1K points at time being) as well as expected from Europe opening even though US job data last Friday showed loss of 500K+ job over the October.

The market simply price in a lot of negative data already, anything is not that disastrous, is considered a good news.

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Added on December 8, 2008, 3:12 pmNext year is 'bull' year in Chinese calendar, so hopefully the bull will come out from the market.

This post has been edited by cherroy: Dec 8 2008, 03:12 PM

It only applicable for those bought a few days ago, other than that especially longer term, investors in this stock are suffering massive losses, even for those bought 30-50 years ago.
You wish you don't have this stock in the first place.

Later fade away

Even 15 billions auto rescue plan is approved, it doesn't mean economy become no problem already and stock market will rally to a very high level. It doesn't solve the credit crunch overnight.
But market has priced-in a lot of negative news, so downside is also not that much, but upside also cap by certain limit because of economy recession and poor corporate earning.

You need some sign of economy recovery (light in the tunnel) to have a real market rally.

Today KNM trade is a bit abnormal. Volume is enormous.

Favourite on dumping.

Asian countries took about 2-4 years before really recover from the financial crisis mess, it tells us about time frame one realistically should be expecting.

Subprime mess first emerged during September 2007.

Yes, it took about years around 2000-2002 before clearing up the financial mess.

KLCI is giving up its morning gain, back to square one.

It failed to submit their financial report previous before being suspended.

Blue chips now also cheap cheap only mah, somemore can trade 1 lots x 100 shares.

You want to buy some company stocks that unable to report their financial result?

Same one lah,

You buy 1 lots (x100) BAT share at 44.00 = RM4k, commission Rm28
You buy 100 lots ABC penny stock of 0.40 = RM4k, commission Rm28.

Some may argue from 0.40 to 0.50 is easy but for a stock to climb from 44.00 to 50.00 is equivalent easy as well.

In fact, for 44.00 to climb to 50.00 it can be easier than 0.40 to 0.50 because high price stocks, there are not many retailers around which potential being seller to resist for the upside.
But for 0.40 to surge, you need massive volume of buyers because there are plenty of sellers waiting on upside. How often to see selller Q in those penny stock with 10K,20k,30 lots but for a stock of 44.00, you most probably see a few ten lots up to 50 to 100 lots only on the seller side.

It is basically not much difference actually, just people mindset tend to think it is "cheap".

Just like people say Resort is cheap now with 2.10, but if without split, it is 10.50, then people won't say it is cheap anymore but actual fact both are same.

Every listed company cannot report later than 3 months after the Quarterly financial calendar.

Popular doesn't mean will earn money, in fact most of the time popular stock (the top volume) is the one most people losing money one.
No offence.

Mistaken it. Thanks for the correction.

A privatised company means that they have accessed to use the company cash for their whatever reason, as it is you own company, you can do whatever you want. But for a public listed, no, you can't, as there are other shareholders benefit that need to look for, and more regulated.