As the old adage goes – “Buy when people are fearful, Sell when people are overly optimistic” – has a certain truth if you really look at it in perspective. What is more salient about this concept is the fact the market may not be totally efficient at any point in time.
Our job as an acute investor is hence to identify market opportunities and make an intelligent ‘bet’ with all available information. In more obvious words, we always seek the cheapest buy with the highest potential for returns. That is by definition the meaning of a trader.
Genting SP had been badly sold down since its early year highs due to its rumored take-over bid for Echo, an Australian casino player. The bidding war against Packer for Echo has not really materialized after much concern about Genting’s strategy. Its prices had taken another nose dive on China growth concerns and poor …