It depends on individual stocks.
may be can drop to 1 cents or 2 cents or 5 cents? haha, no offence.
But those are very very high risk compared to a 10.00 stock, as those tiny little penny one, some may be 'ta pau' that's why they are trading at those price. A stock won't be too cheap if the company still making profit and able to withstand the recession risk.

So low price doesn't necessary mean low risk. As you can lose all together in those kind of share.

1 cent stock, you buy 100,000 shares mean you spend 1K on it, company tak pau you lose 1K
10.00 stock you buy 100 shares at 1K, but even though the share drop to 8.00, you still have 800.

You lose the same amount of money whether it is 10 cents or 10.00, because it is the amount/capital that you are keen to put into the stock which matter the most. You don't buy 100 shares in those 0.05 stock, right?

We are KLK gang now. Haha.

We got plenty of gang in this forum, from Sapcres, KNM, YTLpower etc.

Or summarise should be like this

You fall in love him when he got plenty of $$ to feed you (i.e. company make tons of profit and give you as dividend), then when he cannot feed you time, dump him, search a new rich boyfriend. Hehe.

Walau, I look so old meh?

Fair enough.

Just try to remind people about buying stock not for the sake of looking the price only and risk of those stocks involved, not all stocks are the same even they are penny.

There is nothing wrong to go for penny stock and I am not against penny stock, especially for trade and speculation purposes.
Everyone has his/her own preference and risk appetide, there is no such thing definite right or wrong in the market.

Just to add a point, one needs to look at the total amount of trade as well ie. volume x share price.

If a stock is 0.20, then 1 millions of volume is seemed small only, as 200K already can 'goreng' up this stock. Because most people won't buy/sell with 10 or 20 lot in those kind of low penny stock.

Another consideration is the liquidity of the stock as well, if liquidity of the stock is low, then those 200K volume may be can sustain the rise, but if the liquidity is high, then the volume is insignificant.

Diversify or too diversify means you are following the market average, you can't outperform the market.

Yup, sometimes picking a few might be enough already, as too diversify means drag down those good one.
If good stocks are doing badly, then those poorly fundamental one generally won't be better than them.

The one I don't like UT is that no matter they are making profit or loss, they are earning the same amount of service fee and charging the same management fee annual. So even though market moving nowhere, they still getting 1.5% annually from you, or even the fund is performing very poor and bad decision has been made, they are still charging you the 1.5% annually.

Don't get me wrong, I am not against UT, in fact UT is good for those non-investment savy person or having no time to follow the market or etc reason, which might be suit to particular individual.
Just speak out my opinion. FYI, I did invest UT before, and made some good gain out of it, (around 30+%).

I have the patient to answer 234346.

If the motheshare price is below the exercise price of strike price, you lose all together ie. your total investment in those warrant, except WA allows you to convert to mothershare. But if mothershare price is below the exercise price, then it illogic to convert it as a retailers, as you can buy the mothershare directly from the market which is cheaper.

Near expiring time, generally those CI/WA/Cxxxx will trade at some discount to its mothershare.

In term of CW or W total valuation = warrant price + conversion/exercise price.

Which is the true worth of the warrant, not 0.30.

This post has been edited by cherroy: Jan 14 2009, 03:54 PM

Just treat it like CNY gaming loh. No harm done, you got the fun mah.

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Added on January 14, 2009, 4:29 pmAfter you post, I go to see this stock.

All the transaction is done in one price and constantly at around 200 lots. While buyer Q is fake one. Some one is playing around this stock.

This post has been edited by cherroy: Jan 14 2009, 04:29 PM

Actually it is same one. Buying share also a long term one, except one aims for speculatoin and purely trading purposes.

Holding UT = Holding equities or shares.

Just UT might have 15 stocks in hand, so if one goes down (as you mentioned tabao), UT fund may be suffer a few % drop because still got other 14 in hand which make up the total NAV.

So if an individual holds 15 stocks as identical to the UT fund managers, so situation is exactly the same.

As above example, if the company tabao, you lose 1 stocks which become toilet paper but let say you have 50K for the portfolio buying across 15 stocks, so you suffer a few K losses in your total invested amount which is totally identical to UT situation.

UT is just like an employer hire an employee to do job. May be because the employer doesn't know how to do or no time to do it or whatever reason.

So UT = shares. The different is choosing stocks only. But on local front, there are not many choice of stocks actually, most will consist like Pbbank, YTL, Genting, Sime, IOI etc, which basically can't run away much as choice of big cap and high liquidity stocks are not that many.

So one can actually mimic the UT portfolio if one has some sufficient fund to do it. Don't need to have millions, a few ten K up to around 50K or so can do it already.

UT has one distinct advantage is that it allows diversifcation on small amount of fund, but for those having sufficient fund, the advantage seems not that obvious already as one has the sufficient to diversify on his/her own if wish provided he/she knows what he/she is doing.

Don't get me wrong, don't mean to give negative comment on UT, it has its usage and function for the public and some serve well for public (provided public with some timing), just to explain and give out clear situation so that people won't have the mindset of holding equities UT is not the same of holding shares. Actually it is the same.

To be exact, UT is just another tool that you hire a fund manager to do the job for you. So whether one needs the service or not, it depends on individual needs and situation. UT is just another platform to have exposure in share in different way which can be good as well.

OT a bit, I would like to see some change in UT industry so that management fee charges or service charges based on performance, which is much fair to the investors, they can still charge a fixed floor fee (they still need to pay for office/personnel which I fully understand), but only rise up in par with performance. Just like now it is 1.5% across, no matter how they are doing. With the like eg I mentioned, something like they can only charge 0.5% fixed, but if performance is good then only rise to 1.0% or 1.5% accordingly, which is much fair to investors while indirectly push the fund houses to have more incentive to perform better.

In current structure, it is not fair, as even a fund is doing poorly still charge the same amount with those fund performs magnificient one.

This post has been edited by cherroy: Jan 14 2009, 09:46 PM

Yes, you make a good point, just like you hire the employee that you fully trust what he/she is doing with no question ask except seeing the result delivered to you.

But we have to consider that bulk of public don't know how to look the financial report, nor knowing whether the company make profit or give dividend or not, or company financial still in good shape or not.

So this (UT) is a better channel for them rather than blindly buy something directly from the market they don't know or clear about.
That's why I said it serves somebody well, but for some, it is not good as they can do on their own while fund has its performance limitation as you said, while at the mean time, for some, they can't do it on their own even having knowledge on it due to other commitment etc so need the service of fund managers.

Yup, market won't rise up or bull run next week.

But you have to consider that, if some one is holding 100. So even he/she knows the market won't rise, he/she still can buy each time like spending 2 or 3 even though knowing price is not that low, as you don't know when is the bottom. So you spread out to buy along the way. As you are totally not buying anything, then if finally the market goes up, then you had nothing whereby you will totally miss the market.

This only applicable on buying some good stocks that eventually will go up back one day.

Even so, if the price is not going up, one still getting the dividend yield comparable or higher than FD rate offering.
Especially with FD rate will be going down which is worldwide trend now, so putting in FD yield not much also. USD 0.25%, Yen 0%, GBP 1.5%, SGD 0.5%, RM 3.5%.

Between FD and stocks, if one not going to realise the paper loss (as those money is already set aside in the first place which not going to be used for long term, then comparison between stocks and FD, seems like stocks are attractive, provided stock not expensive.

Just my 2 cents.

Each company has their own policy in term of giving out dividend. Mostly will give when financial calendar end. While some set aside some policy like give 30% or 50% of the profit made etc. So whenever they reported their financial situation, generally they will propose the dividend as well.

It is widely and easy available nowadays, even thestar (free site) also got.

You only buy CW or W or those high gearing stuff during bull time, which you use small knife cut big tree which is very useful and effective.

But when tree is tumbling here and there. Taking a small knife and go to the forest and want to cut big tree, high probably you will hit by tumbling tree.

Mainly because you only can gain through CW or W when market up time, while those CW has expiration ie. time is always against you, so even the mothershare manage to rise after this bear run end, but your CW cannot wait, as CW time frame or life-time simply too short as for longer term holding.

Isn't it, market already said/predicted gov will implement stimulus package II in the coming month? which could be range in 7-10 billions.

Ain't recent rise from Uemland, Tebrau etc already signal something?

But those are typically goreng counter, so if you might be "goreng"ed instead of "goreng"ing.

Haha, nice one.

This is what people are hoping, that's why we see massive Q on 0.005.

Those massive Q is not massive actually.

But I would rather spend those 2K on Genting casino, as winning chance is much higher than it. My opinon only as it is trading at 200~300% premium because its mothershare just 0.035 only. If the company can revive, it is much better to take its mothershare instead of getting some that will expire next year or so.

This post has been edited by cherroy: Jan 15 2009, 04:20 PM