Tuesday, September 22, 2009

Stock Picks Explained

As explained in my education post, I adopt an eclectic approach towards stock investing. it will sound a bit incoherent when i explain my stock picks at first cut. but remember the following:

Diversify but not too much, 9-12 stocks in your portfolio should be manageable

Stock-picking is important. Stocks only make sense in the long run if they don't die halfway.

Time in the market counts. stay in the market for at least 3 months. if you stock picked properly, it should be able to stay in the market till you receive a quarterly report.but also remember to watch out for bear market signs, something that i have taught in earlier posts.

Asiatic Group
I love the idea that it is generating electricity in Cambodia. It will take some time to figure out the real contribution of power generation to its top and bottom line. Financing is also an issue. Nonetheless, it has secured good partnership and it is a stock worth one year's wait to see if its potential is revealed.

One of my speculative stocks. I think it is the only bio tech stock in Singapore. i am not certain that it is worth investing. my judgment tells me that its presence in china and its superior trial data makes it a good bet, till at least when there is a better drug eluting stent to siphon earnings from its cash machine. please note that it has bonds due to refinance in November.

Elite KSB
Very thinly traded stock. I like it because it is one of those boring stocks. heck, it is the only listed chicken processor that i know off. nonetheless, i know that the upside might be very limited. i see 26cents as the upper threshold. good management with clever acquisition.

Etika international

Should have seen it earlier. took notice when i realised that Wilmar linked PPB group has a 5% stake in the company. thinly traded is also an issue but its revenue and bottom line look to grow exponentially as it tries to enter new markets.

FJ Benjamin

I borrowed $500 from my friend to buy 4 lots. I bought it blindly to follow cramer's advice of getting a retailer. in my opinion, its fortune traces the general stock market. i wish i had bought more of it but what it has done for me is sufficient.

GMG Global
this is my cyclical story. i like it for the fact that it has presence in Africa. it has had a rights issue and its share price seems to be stuck at $0.105-0.110 range. My guess is that it is a stock that will have many cycles and hence opportunities to get in and out.

Another speculative stock. It is less cyclical now and has that certain vibe around it. this recent acquisition will be held on for a year as well. its technology is good. it might not be the best but due to the fact that defence agencies do not like to change the platforms, should mean repeat customers for its intelligent vision technologies.

TPV Tech
manufacturing LCD monitor and television. I hope it does not become another RCA. will have to watch and monitor the trends in television sales. the challenge from plasma is not there but LED becoming cheaper might give it a run for its money.

I had only the money to buy this financial. I think im going to keep it for a while for its attractive dividend yield.

Having thus explained one time, it will be a convenient point to refer to evertime i think of selling.

The lesson learnt here is tat your must establish the reason why you buy. that reason must be sound. once reality of the market sets in and the reason is violated, should consider selling it.


No comments:

Post a Comment