Investment Idea - Feb 2012

Good Day! We are now at the 2 ^nd month of 2012. The current market position, all short term, mid term and long term still showing position up trend for US and similar to all Asia stock market, including Malaysia. So, do not short the market, though we know one day it will crash after go up very high, but now is not the time yet!

Market is unpredictable, so don't predict, trade according to the trend. There are a lot of company stock moving high right now, you can enjoy to ride on it but remember to run fast when the party end.

Which company do you want to invest if there's 2 option:

1. Company's earning is unpredictable, some time make profit, certain time report lost
2. Company with stable earning and profit is growing

If you choose the 1 ^st one, be prepared to face the volatile share price. I prefer the 2 ^nd one if plan for long term with condition the company still can survive after 10 years. F&N is one of my favorite in this case.

As expected, F&N was badly hurt by Thailand flood last year follow by absent of Coca-Cola's sale. Last week's quarterly result already show the sign of slowness. I expect the share price will go down further... this is good opportunity for long term investors.

So the question now is how much F&N fair value after the lost of Coca-Cola? Since the profit decrease of 17% to 20%, the earning will fall back to one / two year's ago... in other words, let refer to what's the price at that time. One and half year ago, it was trade between 14.++ to 15.++. so make your own decision if you want to buy or not should the price appear at this range in next few weeks.

Investment Idea - Jan 2012

After few months sentiment play on Europe crisis, almost all the world's stock market still doing very good at the end of 2011. We have yet to see weakness in the up trend. This is the indication that market still having ample of hot money. Market will only reverse if it can not break the previous high record. Coming to the month of January, we will see a lot of fund manager reposition their holding, hence, market will remain active.

As usual, we always insist, DO NOT predict the market, as no one can tell what going to happen next. Just like we don't know if later it going to rain or not, but this will not stop us from going out, as long as we plan and take precautions step. Cold wind and dark clouds are the sign of rain going to come, it may or may not rain.

We always have 3 type of trend for a stock, up, down or side way. As I have mentioned, as trader, we need to know the trend and trade according to trend. Choose the up trend stock will increase the chances of winning.

For long term investor, 10% of yearly return is not a problem, you may visit my below blog for latest information on REITs:

Malaysia REIT Report - Dec 2011

Happy Investing!