For Buffett, the Long Run Still Trumps the Quick Return


very good read, if you are value investor

It's cheong time today!

Buy --- Noble, Biosensors, Midas, Hiap Hoe, S-chips, everything *(that is good)!

Dow & S&P are cheonging. The European markets are cheonging too.

Tomorrow what to buy?

Midas! What else ?

35 cents going to 45 cents. Rail projects are being revived. Midas will be fine.
(Brother Raffles will be not so fine though)

Good news for the weekend .

After a 70-point drop, the Dow Jones Industrial Average DJIA +0.32% ended up 42.76 points, or 0.3%, at 13,207.95.

Star performer was Hewlett-Packard Co. HPQ +1.49% . It rose 0.9% for the week.

At five straight weeks, the blue-chip Dow is in its longest winning streak since October.

NEW YORK (MarketWatch) — U.S. stocks surged Friday, with the Dow extending its longest weekly winning streak of 2012, after July jobs data beat expectations and investors found reason for cheer on Europe.

Tallying its fourth weekly rise, the Dow Jones Industrial Average DJIA +1.69% rose 217.29 points, or 1.7%, to 13,096.17, up 0.2% from last Friday’s close.

The nonfarm payrolls report “put traders in a good mood, after four days of being in a bad mood,” said Ron Florance, managing director of investment strategy for Wells Fargo Private Bank, of the market’s best session in more than a month.

“Our markets are nicely in the green today, and we have to give some of the credit to Europe,” said John De Clue, a regional investment director at U.S. Bank, citing behind-the-scene efforts by European leaders to put a concrete plan together.

Have just stumbled on this thread. Six months ago, people were talking about Qingmei, World Precision, China Minzhong, etc.

Look at the prices now. Qingmei & Minzhong have gone down  50% roughly.
World Precision has risen about 3 cents to touch 50 cents.

Stocks swing -- will Qingmei and Minzhong be a 30% gainer in the next few months?

Mizzart99, with Qingmet touching 16+ cents recently, what do you say? It does look to me that the market was irrational when pricing Qingmei at 11.6. And the Qingmei management was clueless about seizing opportunities to create value for shareholders.

Temporary insanity of overbearish market now corrected with stock reaching 14.1 cents

Rally is indeed here! Euro crisis is easing?

Anyway, stocks touted in this forum have done well.

World Precision Machinery at 47 and China Minzhong touched 92 cents.

Will Innotek continue its run? Will Trek soar?

Eh, is it the cheery year-end and Xmas spirit spilling over to the stock market? More and more people seem to be expecting a rally ...What to buy, ah? While I hope forumers will share their picks, I shamelessly promote the following as my 'buy' stock ideas: World Precision Machinery (44 cents) and China Minzhong (71 cents).

Hi, Joes,

I could be wrong but I still believe there is a fair chance of a small rally occurring in January 2012 if no major bad news surfaces. However, I also believe that it is best for small investors who are not good traders to stay on the sideline as any rally are more likely to be confined to selective or special situational stocks and the profit margins are also likely to be small.

We are in a bear market setting and past bear markets had shown that it is often wise for investors (who are not seasoned players) to stay clear from all stocks, especially out-of-favor and penny stocks, in a bear market for at least 12 to 18 months from the market peak. The market peak this time is 9 November 2010 with the STI closing at 3,313. For those who were caught holding penny stocks (catching falling knives), it is also a wise move to seriously consider switching from a weak or bad stock to one with better fundamentals and prospects of recovery. when there is virtually no interest for penny stocks (usually 12 to 18 months after the market peak) – a matter of survival. As selective blue chips and good second liners were usually the ones that rose first in a market upturn, investors would do well to focus on such stocks at the low end of a bear market.

This market volality has made me learn a few hard lessons.

1) Cut Loss mechanism should be adhered to even if the reasons for buying might not have changed. I always ask myself, if the fundemental of a company has not changed, but the price has been bashed down so much that it hits your loss limit, should you cut loss, of should you wait. Answer is cut loss.

2) There is a difference between accumulating over weakness and av. down. If you have side aside a sum of money each month to invest in stock, you may wish to accumulate whenever you feel that the market is overselling your counter, but if you are averaging down to reduce loss, you should wait at least for the counter to fall more that 30%  and not be trigger happy. IF you plan to average down more than 2 times, you are actually accunulating over weakness and might not be be able to effectively average down.

3) Third, patience. Price of a undervalued and fundementally strong counter might remain depressed for a long period of time. If it did not hit your loss limit, be patience and not switch out to sexier counters for fear of losing out on opportunity costs. YOu might jump out when the tide is just turning.

this kind of bear market provide attractive valuation for those good fundamental stock. I personally prefer those who have strong share buy-back at this period of time.

this share buy-back signal that the company management feel that the price is at bottom, and they have enough CASH to support the price. this is good news for investors like us.

many expensive stock now looks so cheap, and you can buy 1 get 1 FREE when you compared it to end of last year.. woohoo..

currently i looking at Sunvic, strong buy back since 2008. and you can see all share buy-back are done at their lowest points.

any comment?

How about C&G...clean energy business?

read the many views here. think there'll be a year end rally. vested heavily in Sino Grandness, CAnimalHealth and Gallant Venture. also dumped all cpf into Fidelity America utrust. Buy when there is fear and pray hard  for there is hope...