Fundamental Analysis: The Income Statement

Every trading day would see me looking at charts in the evening and looking out for pertinent news which might have an impact on my investments. On weekends, I would sometimes blog about my personal experience and some ideas which I might have about investments. The Chinese New Year long weekend is giving all of us a much needed break from trading. Take some time to smell the flowers, so to … [Read more...]

A capital question: how much to have or how much to use?

I remember reading a book titled "The Swiss Family Robinson" in my school going days. It was one of many classics such as "Black Beauty" and "Call of the Wild". It is very strange but most people who are younger than me by just, say, 6 or 7 years have never read these books before. Classics, they are. Anyway, I digress. The book in question is about how a family got shipwrecked on an island … [Read more...]

Excuse me, are you an investor?

We have heard many times the advice that we should diversify our investments to minimise risk. For those of us who have read books about Warren Buffet, we would also remember something along the line that diversification is for the "know nothing" investor and for the "know something" investor Warren Buffet, when he identifies something good, he goes in big! He doesn't diversify, he concentrates! … [Read more...]

Portfolio strategy

Done my weekly reading of The EDGE. Goola Warden, Darryl Guppy and Michael Kahn are people whose articles I enjoy reading. I have also learned a lot about TA from their writings. In this issue of The EDGE, all of them have gone decidedly bearish about the prospects of global stock markets. My own reading of the STI shows that the uptrend is still intact but the index is in a rather dicey … [Read more...]

Grow your wealth and beat inflation

In some interviews earlier in the year, Marc Faber said that the meteoric rise in global stock markets in 2009 was a once in a lifetime opportunity to make a lot of money and that 2010 should be a year of capital preservation (ie. not to lose money). Marc also said that, on average, it is still possible to get about 10% gain from the stockmarket this year. People who know me would know that I … [Read more...]

Rationale for partial divestment

Amongst the three counters I am actively monitoring, I remain heavily vested in only one counter: Saizen REIT. I have divested 90% of my position in Golden Agriculture and 80% of my position in Healthway Medical in the recent run up in prices. From 4 Jan, the first trading day of 2010, Golden Agriculture raced from 51c to a high of 65.5c for a gain of 14.5c or 28%. Healthway Medical blasted … [Read more...]

STI: Up or down?

Looking into crystal balls can be hazardous to health because they give you signs of what might be and not what will be. Usually cryptic and sometimes perverse, it's best to avoid these magical objects. However, being human, I have the failings of our kind, the type of failings which got us kicked out of Paradise in the first instance. In a post dated 12 Jan, I wondered if a correction was at … [Read more...]

Healthway Medical: A seven months journey

One of the best performers in my portfolio in recent times has to be Healthway Medical. I started accumulating shares in the company in June 2009 at 10c and I was actively contributing in various forums on why Healthway was a value buy and how its intrinsic value should have been higher. I walked the talk and was actively buying up more shares in Healthway Medical over time and my last purchase … [Read more...]

Genting SP

This is another counter which I found visitors searching for in my blog. Personally, I'm not vested. Here is a TA for those who are interested. On 31 Dec 09, price action formed a wickless white candle, closing at $1.30 for 2009, a record high at the time. On the first trading day of 2010, price action formed a long legged doji with price closing 1c lower. MACD had a sell signal that day and … [Read more...]

Healthway Medical – Rising too quickly?

Healthway Medical opened nicely enough as it gapped up at 16.5. The buy up at 17c which we identified as an intermediate target was fierce but 17c proved ultimately too strong to be taken out today even as trading volume increased. Closing at 16c is a sign of near term weakness. Any decline in price will find support at 14.5c, the top of the previous cup formation which was resistance and now … [Read more...]