Do big sharks do this?
1. For example, XYZ counter. Buy in large quantities pushing the price from 0.50 until 0.58.
2. Small fishes greedy, jump in to queue 0.575, 0.57, 0.565....
3. Shark sells to small fishes, and makes profit.
4. Shark leaves the counter and target a different counter.
5. Small fishes gets impatient and sell at a loss.

oh gosh... i can't wait for the next news to send fear into the market.

my maybulk no steam liao. docking at port for a while.

http://247wallst.com/2009/04/02/jobless-cl...ging-indicator/

More than 5.7 million in US alone is unemployed. I think the Dow is headed for a new low.

I see. Your strategy is also known as the "greater fool theory".

The below "Accident" could be avoided if the investor regularly reviews his total portfolio and performs asset reallocation. Assume he wants to keep 80% of assets in Real Estate, 5% in cash and 15% in stocks. When the stock prices have increase high, then his assets allocation may look something like this... 78% in Real estate, 2% in cash and 20% in stocks. So what he does when he reallocate his assets is to sell some stocks until his stock holding becomes 15% of his total assets again. This way, he has taken some profits when the stock price is high.

I read an article last week in the Star, stating that Foreign Funds now owns less than 20% of the total equity on KLCI. This is good right? Market should rally when the FF comes back, right? So should buy now and wait for FF to come back?

You guys think after the by-elections, the market will drop?
Maybe the local boys have been instructed to buy so people will be happy.

You've got a good broker. Keep him. Everytime he says SELL, you BUY. When he says BUY, you SELL.

I think if BN wins, then market will go up, cos local funds will be buying like mad so the newspapers can print "Market votes for BN". And if opposition wins, then market will drop cos local boys will sell so that newspapers can print "Investors flee as political risks heighten"

I took the plunge and dump all my money into LCL @ 0.55
Bought 35100 shares. Close eye until KLCI reach 1,800 points.

Yes, all in.
I target this counter cos I think this is one counter the Foreign Funds will goreng.
When they come in 4 years later, this counter could easily double or triple.
Keeping my fingers crossed.

Hahahahaha.
Thats the problem with "trader's mentality".
Is difficult to switch to "investor's mentality."
Ya.. maybe 4 days later a new opportunity will present itself.

Hahahaha. Painful la.. so many WTF-ing me.
Anyway, I didn't jump into LCL blindly. I've started to notice LCL about 1 week ago, after I bought Maybulk. At that time, LCL was already off its low. I was waiting for it to go down again after the UMNO elections. But it shot up instead.. until yesterday. So, if I don't buy now, maybe later the boat will leave without me. Sold my Maybulk to buy LCL.

Looking at their annual reports, they have been paying dividends of 10 sen (pre-tax, non tax-exempt) under the old tax structure. In 2008, maybe they won't pay dividends to conserve cash. If going forward, they continue to pay 10 sen (tax-exempt under the single tier structure), then it would be 18% dividend yield.

If I didn't plan to buy a property in these few months, I would have bought another 54,900 shares, making it a nice total 90,000 shares. Wah.. imagine every year RM9k dividend. Better than my bonus.

I'll be happy if they go rights issue. But have to be a few months later for me to save bullets. That time, people will sell and push the price lower. Hehehehe.

As for the poor Q4 results, it is already expected and priced into the share price. That's why we can now buy it at less than RM1. I agree that past performance is not a guarantee of future results. But pass performance can tell you what could happen in the future if things return to "normal". Otherwise, why would Warren Buffett insist on investing only in companies with impressive track records? By looking at track records, he's also looking at the past.

It's normal for companies to make "provisions" for losses during economic downturns. This could be the reason for poor results in Q4. Some companies make more "provisions" than is necessary. Nobody is going to criticize the Management if they make huge losses during economy downturn, so the Management might as well make more "provisions" and declare more "losses". And when the economy picks up again, the shareholders will expect the Management to perform. And if they fail to meet the shareholders target, the Management would then release, or reverse these "provisions" back into the P&L, making the earnings higher and the P&L looking better. Shareholders are happy the target earnings is met. Directors are happy they get higher salary, bonus, options etc. (Whisper: My boss does this all the time. But please don't tell anyone.)

Without looking at the details of the P&L, it is difficult to say if the losses in Q4 is really losses, or "fake" losses. Can anyone point out to me the details of the income statement and the Notes to the Accounts?

Well, this really depends on your goal when you first buy LCL. Did you buy LCL for its dividends or capital gain? If capital gain, then is it short term gain, medium term gain, or long term gain. And the target of your gain.

In theory, If you buy for dividends, then what happens in KLCI doesn't matter. In other words, the share price doesn't matter. What matters is, can the company continue to make its profits to continue paying dividends or not.

For me, I will consider both approaches. Dividend and Share Price. If Share Price is low, then keep the stock to earn its dividends if the company is still a profitable company and can sustain its earnings. If the Share price rises high, then I will sell it to lock in the profit, and wait for the next economy downturn.

This post has been edited by simplesmile: Apr 7 2009, 01:27 PM

Oh shit! My dividend yield cut into half.

Really got fake losses.
This month, my company is reversing some provisions it booked 8 years ago.... to boost up the profit for this year.

From what you're saying... this means the most depressed price for Maybank will be on the eve of the rights? This is when most people will be desparate to sell their rights?

Now I feel lucky for "show hand" into LCL. Finally.... now i've recovered all my previous losses and made back my capital.

Nope. Not until it reaches RM0.70 then I will consider again. If that time can sell and then buy back lower, then I'll sell. If not, then I'll keep.