Thanks for replying to my tongue-in-cheek message.
I am fully with you on your philosophy of investing. About 3 years ago, I almost lost all my money on the stock market due to my inexperience. I couldn't tell then the difference between gambling and investing. I was truly the "dumb money" in the market. For a short period of time after that, I fell into a state of depression and one fine day, when I was at my lowest, I came across "the Tao of Warren Buffett" and I read it because I didn't know where else to turn to. For the first time in my life, my eyes were opened to the countless mistakes I had made. That simple book inspired me to read every investment book I could get my hands on and it was a life changing experience. The most important thing I learned was that I had to understand myself and my relationship with the market. I also learned to be much more patient. I have now adopt the mantra "Knowledge and patience". You mentioned before that your trading style is "deep n narrow". Mine has become the same too. I have 3 stocks (Midas, Nam Cheong and Kreuz) that constitute 80% of my total holdings. The remaining 20% is for me to experiment with new stocks. Like you, I watch my mainstay like a hawk.
I read a lot of what you wrote on this site and they are exactly what I believe in. I am still quite inexperience in stock investing and it's a great privilege to learn from people like you who have great wisdom and experience in this area.
This is a great site and it's very enriching to be able to read all the diverse opinions and to think for ourselves what is right or wrong. I also see that many of the people here have great passion for stocks and I can relate to that.
Some strong and weak points on the stock:
Strong Points:
1. Fairly good FA – little debt and good cash pile; discount to NAV; low forward PE
2. Good TA – consolidating between 19 & 20 cents range since mid-Sept 2013; nice Bollinger Band awaiting a breakout. Stock manages to break through its resistance level of 20/20.5 cts yesterday on a volume of over 3.9 million shares.
3. Psychological Analysis – few people interested or take notice presently
4. Company is growing or expanding its business
5. Relatively low downside risk at 20 cts (good margin of safety)
Weak Points:
1. Expansion plans may easily exhaust its cash pile & go into fund raising or debt financing
2. Insufficient track record to show management’s ability to increase & sustain company’s revenue & profit through expansion plans
Vested at 19.9 cts for the short term in anticipation of release of a good set of full year’s result in the forthcoming reporting season.
Last edit: 10 years 9 months ago by observer2. Reason: typo error
Will Global Invacom reply as follows?
"Dear SGX, we have no idea of any reason for the hectic trading and the rise and rise in the share price of our company. But, wait a minute, perhaps we can say that we have noted the postings on NextInsight of a Joseph Yeo who has correctly analysed our company's robust fundamentals and they have won a following among the forumers and other readers. We thank Joe and we will report our results shortly."
