I've been investing in stock market since year 1993. In the early days, I was investing blindly, without much investment knowledge, buying stocks mainly on "hot tips".
I made money in 1993's Super Bull Run but in 1994 when the market crashed, I gave back all my "gains" and even lost 30% to 40% of my capital.
I then realised that it is a mistake to "confuse" bull market with one's genius.
In the last 1 year, many people also made money from stocks (becos it is a bull market). Only in the recent market corrections that help separate those who know almost nothing (like who I was in 1994) from those who know something about investing.
Many people asked me for tips. However, they forget that if I give them a fish, they will only be full for one day.
Tomorrow, they have to ask me for any tip (fish). Why not I teach you how to fish instead? If you learn how to fish, you will never go hungry again. And one day even if I'm gone, you can still make money since you don't need to come to me for tips.
I'll share (whenever my inspiration comes) some Simple Investment strategies that work for me, again and again in this discussion thread.
Investment strategies that work irregardless of time and era
Moderators: alvin, learner, Dennis Ng
Investment strategies that work irregardless of time and era
Cheers!
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Investing in "Turnaround" companies
One investment strategy that paid off for me time and again is investing into "turnaround" companies before the crowd get interested again.
It is why I invested in Mediaring when it was 17 cents before all the "hoola" in the last 2 years. I reaped more than 100% Capital Gains when I sold out last year.
Another example is buying China Aviation Oil a few months ago when it was S$1.50.
Below is some updates on CAO.
Cheers!
Dennis Ng, http://www.HousingLoanSG.com
Indeed, there have been some notable milestones. CAO shares resumed trading in March 2006, after their suspension as a result of the scandal. The stock hit a high of $1.85 and settled at $1.64 on the first day of trading - but many were sceptical the gains would hold. In May 2006, however, CAO posted a net profit of $342.2 million for the first three months of 2006 - its first quarter of profit following the oil trading fiasco. This was helped by a $312 million one-time waiver of debts under its restructuring plan.
In February 2007, CAO declared dividends for the first time since the scandal. On the back of net profits of about $369 million for the financial year 2006, it declared a final dividend of two cents per share, saying the payout was a sign that it had finally turned the corner.
Three months later in May, CAO paid off its last remaining debts, amounting to US$73.3 million, four years ahead of schedule. This month, the company said net profit for the second quarter of 2007 climbed to US$140.2 million from US$8.2 million a year ago, boosted by the sale of an asset.
More importantly - given the scandal three years ago - CAO has strengthened its corporate governance and risk control structures and revamped its management.
What remains is for the asset injection to complete the picture. But even if it does not materialise, there would still be some happy investors, given the extent of the stock's gains. BP and Temasek, who were issued shares at 51.5 cents in return for their cash injections, would certainly be pleased at how their investments in CAO have paid off handsomely so far. And there's nothing stopping CAO from securing new assets on its own after the October deadline has passed.
One investment strategy that paid off for me time and again is investing into "turnaround" companies before the crowd get interested again.
It is why I invested in Mediaring when it was 17 cents before all the "hoola" in the last 2 years. I reaped more than 100% Capital Gains when I sold out last year.
Another example is buying China Aviation Oil a few months ago when it was S$1.50.
Below is some updates on CAO.
Cheers!
Dennis Ng, http://www.HousingLoanSG.com
Indeed, there have been some notable milestones. CAO shares resumed trading in March 2006, after their suspension as a result of the scandal. The stock hit a high of $1.85 and settled at $1.64 on the first day of trading - but many were sceptical the gains would hold. In May 2006, however, CAO posted a net profit of $342.2 million for the first three months of 2006 - its first quarter of profit following the oil trading fiasco. This was helped by a $312 million one-time waiver of debts under its restructuring plan.
In February 2007, CAO declared dividends for the first time since the scandal. On the back of net profits of about $369 million for the financial year 2006, it declared a final dividend of two cents per share, saying the payout was a sign that it had finally turned the corner.
Three months later in May, CAO paid off its last remaining debts, amounting to US$73.3 million, four years ahead of schedule. This month, the company said net profit for the second quarter of 2007 climbed to US$140.2 million from US$8.2 million a year ago, boosted by the sale of an asset.
More importantly - given the scandal three years ago - CAO has strengthened its corporate governance and risk control structures and revamped its management.
What remains is for the asset injection to complete the picture. But even if it does not materialise, there would still be some happy investors, given the extent of the stock's gains. BP and Temasek, who were issued shares at 51.5 cents in return for their cash injections, would certainly be pleased at how their investments in CAO have paid off handsomely so far. And there's nothing stopping CAO from securing new assets on its own after the October deadline has passed.
Last edited by Dennis Ng on Sun Aug 26, 2007 6:04 pm, edited 1 time in total.
Cheers!
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Investing in UnderValued Companies
Another strategy I used which have made me money time and again is buying into undervalued companies, measured in terms of Price to Book ratio. Metro is one good example.
For such stocks, sometimes it might take some time, even up to 2 to 5 years before you can "harvest". However, the good thing is that during market turmoil, you can sleep very well as you know that you have at most paid 60 cents for S$1 of NAV.
Doing this is quite simple but it does require patience to "win" in this strategy. Sadly, nowadays people clamour for quick gains and have no patience to even wait 2 to 5 years.
Another strategy I used which have made me money time and again is buying into undervalued companies, measured in terms of Price to Book ratio. Metro is one good example.
For such stocks, sometimes it might take some time, even up to 2 to 5 years before you can "harvest". However, the good thing is that during market turmoil, you can sleep very well as you know that you have at most paid 60 cents for S$1 of NAV.
Doing this is quite simple but it does require patience to "win" in this strategy. Sadly, nowadays people clamour for quick gains and have no patience to even wait 2 to 5 years.
Cheers!
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.