Made some trades today:
Long MMODE at 27 sen
Long PERDANA at 74 sen
The rationale the MMODE buy is stated here. PERDANA on the other hand is 100% speculative and based on rumour. Thought I'd pick up some shares as the stock showed weakness. Stop loss for each stock implies that the risk for each position is 1% of equity. Total risk: 2%.
Risk control is essential in times of uncertainty like this.
Wednesday 24 August 2011
Thursday 18 August 2011
MMODE
MMODE on the 11th of August announced a 417% increase in 1H profits compared to a similar period last year. I always like companies that post massive earnings increase that are accompanied with bullish price action. And the chart reflects this.
Google Finance has this to say about the company:
"M-Mode Berhad (M-Mode) is a Malaysia-based investment holding company. Through its subsidiaries, M-Mode is engaged in the provision of mobile contents and data application services with platform connected to mobile network operators in Malaysia and China."
I also learned that they run www.sempoi.com.my, www.qq.com.my and game.mmode.com.my. I can somehow relate to this company as they are selling products that are meant for my generation.
Upon closer inspection, the fundamentals of the company are pretty strong for an ACE market company:
Revenue and net profit has been on an uptrend ever since 2006. Cashflow from operations look decent as well. Hasn't got much debt so it could theoretically lever itself to grow further and expand their market.
Amid current market volatility, I am a little hesitant to bid at the current price of 29 sen. I might be interested if it goes down to 27-27.5 sen level, with a stop loss in the 24-25sen region.
I always go for at least 2:1 reward to risk ratio. Assuming a 2.5-3 sen risk, that means my TP should be around 32.5-33 sen.
Game plan:
Entry price: 27-27.5 sen
Stop loss: 24-25 sen
Target profit: 32.5-33 sen
I am currently 100% in cash. Closely monitoring this stock. No position yet.
Source: ChartNexus
Google Finance has this to say about the company:
"M-Mode Berhad (M-Mode) is a Malaysia-based investment holding company. Through its subsidiaries, M-Mode is engaged in the provision of mobile contents and data application services with platform connected to mobile network operators in Malaysia and China."
I also learned that they run www.sempoi.com.my, www.qq.com.my and game.mmode.com.my. I can somehow relate to this company as they are selling products that are meant for my generation.
Upon closer inspection, the fundamentals of the company are pretty strong for an ACE market company:
Source: Equities Tracker
Revenue and net profit has been on an uptrend ever since 2006. Cashflow from operations look decent as well. Hasn't got much debt so it could theoretically lever itself to grow further and expand their market.
Amid current market volatility, I am a little hesitant to bid at the current price of 29 sen. I might be interested if it goes down to 27-27.5 sen level, with a stop loss in the 24-25sen region.
I always go for at least 2:1 reward to risk ratio. Assuming a 2.5-3 sen risk, that means my TP should be around 32.5-33 sen.
Game plan:
Entry price: 27-27.5 sen
Stop loss: 24-25 sen
Target profit: 32.5-33 sen
I am currently 100% in cash. Closely monitoring this stock. No position yet.
Wednesday 17 August 2011
Daim's son and SANICHI
On the 4th of August, Daim's son Datuk Md Wira Dani Abdul Daim bought 10 million shares or 6.12% of SANICHI. Just two days after, he sold all the shares for unknown reasons.
Let's view the chart:
He bought the shares via an off-market deal at 6 sen each on the 3rd of August. He only had to fork out about RM600,000 to carry out this operation. Which is in my opinion, a paltry sum to him. Rasa-rasanya duit kopi je untuk dia ni. Interestingly, the stock nearly doubled on huge volume on the 2nd of August. Perhaps parties who got wind of this deal bought ahead. Maybe.
Anyways, the next 2 days saw the stock trade between a range of 7.5 sen sen and 11.5 sen. Assuming that he sold all his shares at an average price of 9.5-10 sen, he probably made about RM350,000-RM400,000 on this deal. Not bad for two days worth of work + perhaps another few days of planning.
The question that has been going on in my mind is why would he do such things though? RM350,000-RM400,000 is such a small amount for a guy of his stature.
Perhaps it was because of the large fall in the FBMKLCI on the 5th of August. I suspect that this stock can be goreng-ed further, but probably abandoned his plans when the market crashed.
Or... something else. The possibilities are endless. I may never know unless I am on the inside. It is those who are on the "inside" that make big bucks. Small retail players like us have to work our punggungs off.
Quote Gordon Gekko: "If you're not on the inside, you're outside"
Let's view the chart:
He bought the shares via an off-market deal at 6 sen each on the 3rd of August. He only had to fork out about RM600,000 to carry out this operation. Which is in my opinion, a paltry sum to him. Rasa-rasanya duit kopi je untuk dia ni. Interestingly, the stock nearly doubled on huge volume on the 2nd of August. Perhaps parties who got wind of this deal bought ahead. Maybe.
Anyways, the next 2 days saw the stock trade between a range of 7.5 sen sen and 11.5 sen. Assuming that he sold all his shares at an average price of 9.5-10 sen, he probably made about RM350,000-RM400,000 on this deal. Not bad for two days worth of work + perhaps another few days of planning.
The question that has been going on in my mind is why would he do such things though? RM350,000-RM400,000 is such a small amount for a guy of his stature.
Perhaps it was because of the large fall in the FBMKLCI on the 5th of August. I suspect that this stock can be goreng-ed further, but probably abandoned his plans when the market crashed.
Or... something else. The possibilities are endless. I may never know unless I am on the inside. It is those who are on the "inside" that make big bucks. Small retail players like us have to work our punggungs off.
Quote Gordon Gekko: "If you're not on the inside, you're outside"
Tuesday 16 August 2011
Trading Strategies
As mentioned in the sidebar, I do not believe in technical indicators to trade the markets. I believe that the ultimate indicator a trader should pay attention to is price. Indicators such as MACD, Stochastics and RSI on the other hand involve dividing the price with "n", which produces a lagging number.
Therefore I only use simple support and resistance, volume analysis with a little pinch of fundamental analysis (earnings growth, D/E ratio, P/E) as my trading arsenal. This includes breakouts and bounces away and off support and resistance zones. Through painstaking research and a constant urge to find out what "works" in the market, I've come up with my own proprietary trading strategy that I call "EBS". It is basically a breakout strategy that buys only the best stocks.
For "investment" purposes (investment in my book means 1 year or more holding period), I will only buy quality blue chips at bargain prices, preferably those that have more than RM1 billion in market cap. Investing in REITS is also an option.
Money management for me is absolutely important. I am a conservative - in nature and in business. I will not risk more than 3% of total equity for trades during bull market or 1% during bear markets. For blue chips, maximum position size is 10% of total equity. I have a set of drawdown rules that will apply when I hit losing streaks.
Therefore I only use simple support and resistance, volume analysis with a little pinch of fundamental analysis (earnings growth, D/E ratio, P/E) as my trading arsenal. This includes breakouts and bounces away and off support and resistance zones. Through painstaking research and a constant urge to find out what "works" in the market, I've come up with my own proprietary trading strategy that I call "EBS". It is basically a breakout strategy that buys only the best stocks.
For "investment" purposes (investment in my book means 1 year or more holding period), I will only buy quality blue chips at bargain prices, preferably those that have more than RM1 billion in market cap. Investing in REITS is also an option.
Money management for me is absolutely important. I am a conservative - in nature and in business. I will not risk more than 3% of total equity for trades during bull market or 1% during bear markets. For blue chips, maximum position size is 10% of total equity. I have a set of drawdown rules that will apply when I hit losing streaks.
Welcome to peniagasaham.blogspot.com!
Hi there,
Welcome to my blog. Sometimes when I have thoughts about the market or a particular stock that I'd like to share with someone, I just can't seem to find the right channel to do such. Don't think I'd want my Facebook friends or Twitter followers to suffer from financial jargon. So that's why I started this blog.
I'd like to keep things informal over here. This blog is meant for the layman. No point blogging about 10-20 pages worth of stock analysis when you can find these easily through your brokers and blogs such as the ones on my sidebar.
The content of this blog will probably consist of my trades, simple stock and market analysis and maybe throw in some political and current events commentary.
The purpose for posting up my trades is so that I can publicize my trading activities and perhaps generate some sort of a track record. If I do well, who knows? There might be somebody out there who'd be willing to fund my dream investment firm operation. Nothing is impossible.
Welcome to my blog. Sometimes when I have thoughts about the market or a particular stock that I'd like to share with someone, I just can't seem to find the right channel to do such. Don't think I'd want my Facebook friends or Twitter followers to suffer from financial jargon. So that's why I started this blog.
I'd like to keep things informal over here. This blog is meant for the layman. No point blogging about 10-20 pages worth of stock analysis when you can find these easily through your brokers and blogs such as the ones on my sidebar.
The content of this blog will probably consist of my trades, simple stock and market analysis and maybe throw in some political and current events commentary.
The purpose for posting up my trades is so that I can publicize my trading activities and perhaps generate some sort of a track record. If I do well, who knows? There might be somebody out there who'd be willing to fund my dream investment firm operation. Nothing is impossible.
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