LMA   

Investors are not idiots

Hi tuntan8888 - According to LMA news release on 2 November 2006 (details available on SGX website) its unaudited net profit for 1st nine months of FY 2006 was US$17.1 million.  Its earnings growth for FY 2006  should, therefore, be positive. With its S$6 million damage claim against AMBU (case will be heard in November 2007), which  LMA should succeed,  and another suit against AMBU  for another patent infringement, it  should return to profitability   in FY 2007 and beyond..     Some manipulators love to adopt a "contrarian" approach by continuing to sell down a share in spite of positive signs that it will be profitable ,  only to grab them at low prices from weak or panicky holders.   LMA is a classic example.!!  

 

Sorry,just would like to add : Investors are notIdiots but there'reIdiots who're Investors. Cheers!

 

It doesn't matter whether you avg-up or down.As long as you're comfortable and know what you're doing it should be ok. I prefer to avg-up 'cos once the trend reverses, I could keep 'dumping' my holding; and if it doesn't, I'll be dame-pleased which is not the case with avg-down. But one advice though - never catch a falling knife.

BTW, how to avg-up when the knife is falling - it should be avg down rite?????????????????????? Cheers!

 

 This again bring back fond memories of that dancer Nicolas Davas, who many years ago made so much money with the principle of "averaging up", if you may call it that. What he did was buy on the way up. When the price goes higher, he buys more. When it goes even higher, he buys even more... and so on... until he made millions. And he was 'just' a professional dancer, not pro analyst. His system, which uses "price boxes", makes real fascinating reading even today, after so many years. Gooog and read.     

 

My opinion is that averaging is dangerous if you do it blindly.

You need to have some indication of where the trend is heading. If you're betting the wrong way, you're just getting yourself into hotter soup.

I don't practise averaging because there's little chance to do so in my short term trading.

 

Averaging down is "damn bleddy dangerous" only when a downtrend has commenced.

But if it is confirmed to be just a pull-back from a continuation, averaging is superbly exhilarating and like someone said, can be better than uncontrollable orgasmic.

 

Isn't averaging dangerous as some forummers mentioned previously?

Is there a safe way to do it?

 

My suggestions for catching a falling knives is to average up. enter at ur min lot size and add as it goes up. LMA may contd to be pushed down to shake out the small players

 

CIMB GK last week maintained its buy recommendation with price target of $0.91; & Deutsche Bank had previously targetted @$1.15 before FY results. Looking at how prices have fallen from its peak, I am tempted to go in too, but its FY05 results is difficult to comprehend. FY05 Bottomline loss of US$2.5m was a complete reversal of previous yr net profit of $22.4m. FY05 NTA is US$0.07, that means Price/NTA is about 6x now. Is NV co a concern, ie from corporate government viewpoint ? Pl advise.

 

Hope the manipulator (or manipulators) of LMA will read this posting.   No point being poor church mice (or "cheap" funds) and try to manipulate a counter.  Why waste time trying to collect a few LMA shares at low prices?  As there are very few weak holders left,  it is futile to fake weakness in the shares, hoping to buy them at  lower and lower prices, only to be "played out" by retail investors who buy the manipulators' shares at the  low selling prices.  Investors are NOT idiots as they know LMA is fundamentally sound and financially strong . Its earnings growth will improve  after all  the copycats, which have affected its profitability, are wiped out.   Almost all human beings have to use it (it may not be the LMA brand, but there are not many competitors ) at least once in our lifetime, others more than once during surgical operations. As LMA's market is the whole world of human beings, it is a fundamentally sound share.