I have been an inactive market participant for the last month or so especially during the FIFA world cup 2010 crazy weeks in South Africa. But I did read market news, the up and down following American economic figures and European debt crisis as these somehow have impact on our market. Moreover this is the second quarter where markets tend to be quieter.
Last week I re entered the market and noticed that my counter MRCB has again captured investors’ radar and it was climbing up. As I have been thinking of clearing some of my positions and perhaps picking up some stocks for short-term gains, I did not hesitate to sell off all my MRCB rights issues secured at 1.12 for 1.63. My over eagerness did not pay as the stock went on a rapid upside to reach 1.74! Why couldn’t I wait for another three days? The stock was going up, I should have waited and be a bit greedy.. ooops!
At the same time I noticed the technology counters were having a hiccup perhaps due to the lacklustre technology company reports on Wall St Journal the day before. Notion and JCY were my focus. After checking their three-month high, I went on to buy JCY at 1.51 ( well it was launched at an institutional price of 1.60 and a bit lower for retail investors) so there, the basis of my rush. Then I noted that the price was declining further and without thinking logically, I grabbed more of its shares at 1.45 only to feel irritated as it went on plunging and now seemed to stabilise at 1.37! Why couldn’t I wait for another week? The stock was going down, I should have waited and be a bit thrifty with my precious money....
Sell high, buy low, a good edict but is quite difficult to translate into practice unless you are a professional trader or fund manager. But there is no fun if you just sit back and let other people manage ALL your investing fund... I need that thrill of making it on my own which means I must be ready to laugh these blunders off....
Looks like I have to hold on to JCY till the next quarter and wait for MRCB to strike beyond 2.06 in 2011 to dispose the rest of my shares! And JCY to once again reach 1.98... big deal mate!
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4 comments:
Hi Marcella,
I used to predict that Sime Darby's share price will do well in 2 yrs time. But now it looks like going down south if more bad news come out from the special audit, which target to release on 24 Aug.
If I not mistaken, you are no longer holding any S D share, rigth?
When SD started to merge with other GLC listed companies, I already predicted there will be many scandals, mal-practices and bad management...bla bla bla. But I never thought it now happening and so soon.
I did plan to buy this counter, but luckily I was diverted and invested my hard earned money into property.
Come to think about it, I was actually lucky. Like old man in share market says, you need luck beside doing all the necessary home works and analysis.
Wish you in good luck too. :)
By the way, about JCY share price drops, there is a report saying that ipad is using flash memory instead of HDD. This made HDD makers struggled and to throw their products price. You can search online for the news.
Hi AC,
Thanks for visiting. Yep, I remember you predicted SD shares to go up to RM11 if I am not mistaken.
I sold 50% of my SD shares acquired during 2008 financial meltdown. I disposed the shares at 8.40 in Aug 2009 so my remaining capital is slightly less than 33% of initial investment as I am still holding 50% shares. Should have sold at RM9.11 in Feb 2010 before the bad news! Anyway I will stick with it for a while yet and may be sell 50% of my current holding when the shares stabilise a bit above 7.60.
Will stick to some shares so that I can vote in next AGM to remove all those (good for nothing)directors on existing SD board!
Thanks for your kind wish.. who knows the shares might rebound later and I will be laughing all the way to the bank :))
About JCY shares, there is a report by Reuters on 21 Aug 2010 which I failed to read that Western Digital and Seagate warned about their Q2 financial results being lower due to oversupply and declining demand by the European market due to their debt woes. Both companies' shares in New York took a dive following the news.
JCY is a major supplier of parts for HDD to both these giant technology companies. So the domino effect occurred here in Malaysia. That is globalisation for you.
There must have been some insider trading going on as JCY price started to slide around about 13 Aug 2010, that was the time I foolishly bought quite a number of its shares. And again on 23 Aug :((
Well, the demand will return and only time will determine so I am stuck with the shares for a longer period...just my bad luck... hopefully those PIGS (Portugal, Italy, Greek , Spain) countries will recover economically real soon.
I will search for the article mentioned by you but I doubt that iPad will take off just yet due to many technical glitches. Steve Jobs will have to work harder.
I agree with you luck does play a part in our wealth creation.
I too hope that you are lucky in your property investment.
Cheers.
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