LMA   

Downtrending of LMA shares

Thats one reason why I usually just tell people whether I think a stock is uptrending or downtrending or stagnating.

 

Hello hikitty,

All I can say is that we have to be cautious when we listen to other people's advice about buying stocks. Take all "advice", including mine and any of the forum participants with a pinch of salt.



The reason is not because this advice is intended to mislead you in anyway. Its mainly because I find that TA or FA is more of an art than a skill. The same indicators or TA charts when showed to 2 different people can be interpreted in different ways.



Also, because different people have different trading timeframes, we get disspointed when a stock doesn't perform well within our own timeframes even if an Analyst says its a good stock.



Basically, its ok to listen to others but you should take your own judgement the most seriously.

 

It 's time that our govt act to "prosecute"  full-time technical analysts who publish their analyses rating certain shares as "buy", "sell" or "outperform"  that later turn out to be extremely misleading  if subsequent investigation proved that they each had a personal agenda.   Many  retail  share players might have lost their hard-earned dollars after buying or selling  based on analysts' recommendations.

 

PS> sometimes the saying "we see what we want to see" has never been so true even in TA practice.

 

Like I said before, TA is just a "must-have" tool (and supremo of all tools). And that it is also not the answer to all problems. It really depends on how the user developes her/his skills after acquiring the excellent tool.

And it must be noted that reports are based on personal or  a particular group's interpretations. And there can be more than one interpretation to any given situation. Just like in Fengshui, astrology etc... the signs are there for interpretation. Although TA actually relects reality in action, it can also be misinterpreted. Take care when you trade.   :)

 

I believe TA is a platform and a guideline to enter and exit at a reasonable price. As for FA,  it really depends on the organization of the company. The nature of the company can be good, but without a strong leadership and management, it means nothing for shareholders. Personally, I am not very sure about LMA company. But I belive my landlord did some studies on that.. hee.. He can tell you many reasons why he vested in.. 

 

Thanks Singaporeregal for being concerned that  fellow investors should exercise care, and for being generous with your TA on LMA.  Your recent article in the Forum mentioned that u've been disappointed by various analysts' recommendations.  To echo your feeling, lallow me to quote two classic examples : analysts' recommendatoins on LMA iand Neratel .  In a stock alert on 20 Oct 2005, DBS  and a few unnamed brokers (as indicated in the Business Times' "Stock Pick" column) had a "buy" rating on Neratel with a fair value of 64 cents per share. It has never hit that price target since then.  In its research report dated 4 August 2006, DBS Vickers Securities maintained a buy on  LMA and a 1-year target of $1.15.  Its technical analyst Keith Wong released his TA on 4 August 2006.  In his analysis, he recommended an entry range of 76 to 77 cents, (which have proved disastrous if relied upon) and was of the opinion  that the price target was 835 cents (hit once on 24 Aug), the resistance  86 cents (which since his report  has not been achieved) and  the support level  68 cents (which since his report has fallen right through). Recently CIMB in its company's update rated LMA as "outperform" with a 91 cents price target (with no time frame stated).  Another startling observation is that when research houses recommend a "buy" on shares with higher price targets after they have already run up for some time, such shares usually fall after that.  Hope Singaporeregal or other learned forum participants can shed some light on such "disastrous" recommendations and on  TA not being entirely reliable (as in Keith Wong's analysis) .   

 

thanks singaporegal!

 

Be careful means this -

(1) If you're already vested in a counter, be vigilant and track its price movements. Be ready to pull out anytime!

(2) If you're not vested in a counter, be cautious in going in!

 

how does one 'be careful" ? 

 

singaporegal, noted! I will becareful on this counter...

 

LMA now on a downtrend

 

Thanks Hikitty..noted..:)

 

Hi Novocaine senior - Temasek sold most of its placement shares  some time ago.  It's now a "minority" SSH.  However, it doesn't mean that Temasek had  no confidence in LMA, which is on track to increasing profitability after clamping down the copycats.  According to Temasek's spokesman, it's a question of allocating more funds to overseas investments and gradually less to Singapore.  Thanks for the learned response on the equipment used in airway management - pse keep up the good work.    

 

hmm.. shrewd....  FA's good and  TA promising...   :)

 

Good comments guys.. anyway, I am vested @ 0.625...

 

TA wise counter is oversold and chaikin is uptrending..acd might uptrend soon..might be a goodtime to come in..bollinger is also pretty squeezed..

 

LMA is fundamentally very strong (otherwise temasek wont be one of their SSH) and they have been vested from ipo times when its around 88cents.

Current price is very attractive and at current valuations their growth havent even been factored in.

I would say its a very good stable company to invest in. Dont forget its products are so called one of the staples in healthcare as day in day out numerous procedures are carried out requiring them especially in general anaethesia. Anaesthetists choose between ETT(Endotracheal tubes) or Laryngeal masks for airway management and they normally prefer LMA since its easier to insert and less traumatising to patients. But of course not all cases can use laryngeal masks.

So saying this I am confident of their growth prospects provided they can maintain their market share and strive to continue be the leader in this area..

 

Hi jackjames - u mean LMA will remain below 80 cts forever. (IPO price: 88cts)  Hulumas did not tell us when it would hit 80cts - may be 1 week, 6 mths or 1 year!!!!  After Hulumas let it go @ 80cts, it may shoot up higher and H 's going to bang ????? (sorry, up to your imagination what Hulumas is going to bang!) It shd become profitable once most of the copycats are sued for damages till their "pants drop". "Manipulators" have to keep on selling at low prices so as to be able to buy on dips to gauge the support level.  

 

0.80? sure or not.. I am not that optimistic lei.. by the way, what price you vested? all time low is yesterday at 0.61.