Sound Investment

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10 years 7 months ago #16198 by Rock
Replied by Rock on topic Sucessful Investment
Forget the price you pay for a share

One problem that many investors have is a belief that they must always sell a share for more than they paid for it. So, what you must always try to do when you invest is forget about what you paid for a share.

If you can do this successfully, then you are going to look at outcomes rather than trying to prove that you were right all along. Remember investing is about finding a good home for your money over the long term. You cannot easily do that if your money is tied up in bad investments. You need to be humble enough to admit when you have got things badly wrong. Perhaps your investing thesis was incorrect in the first place or maybe things at the company have changed for the worse.

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10 years 6 months ago #16237 by Rock
Replied by Rock on topic Sucessful Investment
When applied to investing, it is best to focus on the economics of the businesses that we own shares in. If a company is doing all the right things to grow its business profitably, then the share price should reflect that over time. It may not happen immediately but in time it should.

Important is source for undervalued companies with solid sales and earnings growth, exceptional management, high returns on equity, defensible profit margins and manageable debt. Analysis of the value of a business and compares it with the market price. If it is selling at a substantial discount to that number - thereby offering not just good upside potential but a high margin of safety.

Keep a list of companies which have the potential to growth or undervalue stocks. Gradually accumulate and build up a portfolio of cord stocks at the good entry price.The best opportunity at this time is during market correction or market weakness.

The most challenging part is decide when to sell. If the company business is on track on growing its business, then why sell. Our investment should grow with the company business.

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10 years 6 months ago #16239 by gangho
Replied by gangho on topic Sucessful Investment
Rock,

What do you think of Shanghai Turbo?

It has been profitable most of the time since listing in 2005 and giving very good div yield of abt 6%.

A Japanese fund owns 27% and another Japanese biz man own 12%, with CEO holds abt 29% stake.

And, the cmy is collaborating extensively with Mitsubishi to become the world's largest manufacturer of heavy generator

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10 years 6 months ago #16255 by Rock
Replied by Rock on topic Sucessful Investment
Gangho,
I have look up on Shanghai Turbo it’s business are in precision engineering specializes in steam turbine vanes for power generation power plant.

The past 5 years revenues and profits are growing but 1Q 2013 result there is a reverse in trend. Dividend for past 4 years: RMB 0.05, 0.025, 0.05 and back to 0.025. At share price of 8 to 9 cents, yield is quite attractive but too bad the sentiment on china’s stock is bad.

Personally if I am in this stock and if I don’t need the money for other more attractive stocks I will keep it for yield and take capital gain as bonus.

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10 years 6 months ago #16259 by gangho
Replied by gangho on topic Sucessful Investment

Rock wrote: Gangho,
I have look up on Shanghai Turbo it’s business are in precision engineering specializes in steam turbine vanes for power generation power plant.

The past 5 years revenues and profits are growing but 1Q 2013 result there is a reverse in trend. Dividend for past 4 years: RMB 0.05, 0.025, 0.05 and back to 0.025. At share price of 8 to 9 cents, yield is quite attractive but too bad the sentiment on china’s stock is bad.

Personally if I am in this stock and if I don’t need the money for other more attractive stocks I will keep it for yield and take capital gain as bonus.


Rock, thanks for your analysis. I find the CEO's message in 2012 Annual Rpt interesting. Note that it aims to become the world's largest manufacturer of heavy genset...and it is collaborating with Mitsubishi and Toshiba to make it happen....can you recall how VibroPower has jumped up from 5c to now 8c?

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10 years 6 months ago #16291 by Rock
Replied by Rock on topic Sucessful Investment
The delay of the tapering of the QE3 had cause the market surged recently. There is already increasing evidence that the bubble is forming in stock markets. Wall Street is at around all-time highs but the US economy is not out of the wood yet and Fed feels should stay on life support.

The valuations of Singapore's STI are also well above historical averages, despite an upcoming period of structurally slower growth here and in regional powerhouses like China.

Sooner or later QE3 tapering will take place once the US job data improves. The surged in the recent world stock markets are only temporary.There will be more volatility of the stock markets around the world. While the tapering has been put on hold, the move only delays the inevitable. The key for our portfolio is to be prepared for the liquidity tap to be turned off and not be caught up in the current euphoria in the markets.

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