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Stocks Terence Fok is covering

I have looked through the analyst briefing slides and it seems that valuations for GMG appears to be very cheap, compare to Wilmar and Golden-Agri. It was also stated that India is facing a problem with ageing rubber trees and they won't be able to grow new trees in time to meet rising demand, rubber trees take 7 years to grow before latax can be tapped. My fair value call on GMG is $0.20.

 

Hope you guys stayed calm today, I went bargain hunting and pick up 80 lots of AEM-Evertech and 100 lots of GMG today.  Congrats to all Asiatic shareholders, you all performed well today by not cutting your selling prices. Well done.

 

Ask my dad to buy for me..

 

Hi Terrence,



Digiland shares were offered only in March 2002.  Since you're 18 years now, how did you get a trading account at 13 years old?



Hmm....... curious to know leh.

 

In fact, it all started when I was 11. I was at my uncle's house and sal those blue-coloured from sgx. So I was curious and ask him, then slowly I found out more and I managed to save up $2k plus from primary one to six. If you ask me, I would say I am more of a saver than a spender, so I thought maybe I should do something to make my $2k plus grow. My first investment was in Digiland, and as you all know, Digiland almost went bust, so I kana burnt, bought 10 lots at $0.19 and 40 lots at $0.12 but sold all at $0.065, just before they released a set of results which saw loses balloned from 12 million to 44 million, but my secondary school days I save much more. Occassionally, I tried my luck by just buying blindly and lucky make some. I only got into serious business when I was Sec 3 but I think Karin and Asiatic are my 2 best investments. Thats all for my FA, TA share with you guys tomorrow. Cheers.

 

Hi Terence, I am impressed by your achievements at such a young age.  I dont know where to hide leh.... Can you please share with us your learning experience in trading ie how did you get started and how did you learn all the FA and TA etc.  Hope you dont mind and thanking in advance.

 

geojam,



Nowadays, I just don't think about it going up after selling.  It's better to make less than to loose a lot.



Sorry, Terrence, it seems that we are getting out of the topic in your thread.

 

I-tan888

But i funny,i just cut loss and move on.

Hope to learn and maybe lucky next time.

easy said than done,cos if sell now,what happen if it goes up?Then more upset,.

 

geojam,



That's why I told you at the Fellowship thread today.  If you consider your agonies, I think I'm much worse than you.  It's all because I didn't practice STOP LOSS and also being emotional and sentimental.  These 3 setbacks almost killed me.

 

i-tan888

wah,so many under water shares?

my heart aches for u man.

 

Yea, these are only half (loss stocks) of my holdings, but I still have another equivalent batch, which are making me good money at the moment.  Actually, I also intend to relinquish all and get out of the share market.  But what can I do with the money then?  If I were to invest wrongly again, I stand to loose another time.  Headache lah you know.

 

Hi I_Tan888,

I feel you are holding onto too many stocks. Maybe it would be good to consolidate into 3 or 4.

 

My agonies are with:



Serial System (-84%), Flextronics (formerly converted from JIT Holdings) (-61%), Mediaring (-55%), Medtecs (-61%), Benefun (-86%), Tuan Sing (-40%), Samudera (-22%), Delong (-54%) and Tianjin Zhongxin (-35%).



Well, I intend to relinquish them soon and use that money to invest in some other better stocks instead.



I had also sold my Xpress stock last week for a loss of 86% or $11,041.  You won't believe it right?

 

I don't have much faith in the Cambodian government.  They can overrule anything overnight.  I've been there before and do you know that most of their drivers will carry a gun with them in their car?



My friend had also been in a business collaboration with them (with 1 of Hun Sen's relative).  After less than a year, they had a dispute and he was forced to relinquish his business there.  All his investments go to waste.

 

so which is the worst performing stock?

 

I don't mean the individual stocks breakeven.  I mean about half of the cumulation of my total stocks had gained (beyond my buying price), so that they are compensating my other stocks which are still under-water.  Most of my current gains are from property stocks anyway.

 

Can you let me know which are your stocks that have only started to break even? So that I may consider buying..heehee.

 

FYI: Asiatic at $0.295 still can buy:

2007 EPS (estmiate): $0.025

Current NAV: $0.26

P/E: About 12 times.

P/E looks a little high, based on current price it is fully valued, HOWEVER it's 2 power plants only started operations on 1 Nov 2006 so it only contributes to 5 months earnings for FY07, it still has a third power plant under construction, furthermore its 2 power plants are 10-year contracts from Cambodia govt.

Conclusion:

My FY08 EPS: $0.032

P/E for FY08: 9.2 times

I will review my EPS and fair value after the FY07 results are released in May.

Thank you for your time in reading my review.

 

Hi Terrence,



I like that approach.  But, I have about 20 counters since 1997/8 and today, half are still under-water.  So, you'll also need to choose your stocks with care and must know the fundamental business of the companies.  Otherwise, you may end up like me and wait for a miserable 10 years before starting to breakeven, and waste all the interests to have earned instead.  Cheers.

 

I am adopting Warren Buffet's strategy of investing, so usually the stocks I cover will be trading below NAV with good earnings, but these stocks may have low volumes, so hope you all don't mind, but if anyone who has strong holding power will get rich in future....