Wednesday, 8 October 2014

MEGA Sales?

In September 2014, I just added Huayang into my portfolio. I plan to buy more Huayang's shares this month, as I think I still don't have enough.

When its share price dropped to RM2.26 on 3rd Oct 2014, I thought it was a good opportunity to collect more, so I bought again with all my remaining fund. 

Nevertheless, now it seems like I can get it at much lower price...

After two days of panic sell across the market, Huayang drops to a low of RM2.00. It may go further lower if bad news for property sector is announced in Budget 2015.

All the stocks in my portfolio are not exempted from a heavy fall. This makes me think of a stock market correction in August last year.


       KLCI minor correction in Aug13


At that time, I just started my new chapter of investment journey a month earlier. I picked a few stocks which I thought were fundamentally good & undervalued.

Most of those stocks now are still in my current portfolio, which are Gtronic, Inari, Scientex & YOCB.

During that episode of minor stock market correction, all my newly-acquired stocks plunged into loss.

RM Cost Lowest Loss (%)
GTRONIC 2.43 2.31 -4.9
INARI 0.73 0.715 -2.1
SCIENTEX 5.47 4.62 -15.5
YOCB 0.69 0.61 -11.6


Tambun which was my jumbo shareholding, was the one that suffered the most in which its share price collapsed more than 20% (RM1.50 to RM1.16) in 3 days, though it didn't fall below my cost price.

Anyway, I did not panic sell, though I was panic and also worry. 

If I sell those stocks then, I'm not sure whether I will ever get them back into my portfolio. Luckily I didn't sell I would say.

I posted an article in this blog soon after the market correction in September in Buy, Hold Or Sell.

I can't really remember what I wrote at that time. Looking back, I am amazed to find this paragraph below.

" For the past 3 weeks when KLCI started to dive, I actually did nothing, because the companies I hold are doing very well financially... As a result, I see my overall paper profit falls almost 60% at one point. Now even though most share price slowly crawl upwards, I think it is unlikely to reach previous peak within this year. Should I accumulate more shares at lower price or sell now in anticipation of another stock market slump? "


Hmm.. it seems like I was so confident with my pick at that time. Or is it because I'm too slow to respond? Haha!

Retrospectively, I was right not to sell any shares at that time. I learned a lesson for not having spare cash to buy at that opportunity. So I always mention in my monthly review later that I want to keep some cash to prepare for the next market crash.

Readers who follow my blogs will know that I still fail to accumulate any significant amount of free cash until today. I tend to throw the cash into the market when I see it.

So with Gtronic at RM4.00, Inari at RM2.80, Huayang at RM2.00, I can only LOOK at them.

I mentioned last year that the share price of those stocks that I hold are unlikely to reach previous peak within year 2013. I was so wrong by saying that.



Anyway, it might just be the beginning of a bear market now, even though personally I think that this is unlikely.

You can convert all your shares into cash now, but what if tomorrow the stock market stage a spectacular rebound?

You can hold on to all your stocks or buy more now, but what if tomorrow the diarrhoea becomes bloody?

Market is unpredictable and you should buy and sell at your own risk.


5 comments:

  1. I choose to stay away at the moment..too much uncertainties.good luck

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    Replies
    1. Just do what we're comfortable with :)

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  2. But isn't there fueling talk in d budget for more goodies n efforts to drive affordable homes? With that would Huayang benefit from it?

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    Replies
    1. Developers who build high-end properties will be affected most. So I think it's safer to invest in Huayang :)

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    2. Yea ... Tats y I think Huayang is still a gud bet

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