Investment Note - Feb 2013

Dear Investor,

 

 

For those who celebrate Chinese New Year, Gong Xi Fah Chai! The celebration is not over yet!

Almost all the stock markets in the world are near the all time high! US Dow Index just close near 14,000 points. We can see all the money stay sideline in last few months, start to move into equity (stock market).

However, there's one exception, Malaysia stock market! As all know, the General Election is approaching, many investors stay sideline for the time being... Some one even predicted if the opposition party win the election, Bursa will drop by at least 500 points! I don't know what was his intention (to scare people?), but as a mature investors, we should welcome this! How can we buy low if the market is always high? Another question, if the ruling party win the election, will the stock market going up? Ok, I don't want to touch politic issue here, this is just to let investors be prepared for the worst case, if market crash, the only worry is without bullet (money)

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Stay away from problematic stocks

Just a gentle reminder to investors, stay away from speculate stock, even they may look as if very cheap (few cents only). Why chasing low price speculation stocks is very risky? The reason is one may potentially buy and hold a problematic stock if you were to continue buy this kind of stocks. The stock sell cheap for a reason.

Market tips for now?

As of last month's, YTLPowr still under our buying list should it drop near to around RM1.51. Investors can accumulate at this level and wait for Malakoff IPO launching. SP Setia was another good buy at around RM3.00, which we managed to collect 2 months ago. I hope if general election will create the fearing factor and we can have the opportunity to collect these stocks at low price. For this month, I also put Digi into our watch list... if the price drop near RM4.60 or below, then it's a good buy, for dividend and capital gain as well.

That's all for this time, I wish you all doing well in 2013!