Success in Stock Market through Value Investment
At 211 degree F, water is extremely hot
At 212 degree F, water boils and become steam
Steam got power to run engine, turbines and contribute huge amount of engergy
All it take is....only 1 more degree
After you've invested in potential value stock, only 1 step further to wait the energy explore. This is just a matter of time.
If you buy a value stock and you understand you're not chasing the high, the price you go in at consolidation stage and the most important you know that, this company is generating profit, healthy cash flow and debt, and business is growing. But the price is going down further aftet you bought in.
Should you sell it or CUT LOSS?
My answer is NO, keep it. You bought the right stock, the only mistake you have made is ONLY buy at wrong timing. As timing is most difficult part in stock investing, don't expect you can perform perfectly. I would say this is very difficult or impossible to get it right at the right timing. Or merely you just a lucky guy bought in at the right time not because you're smart.
Therefore, keep it simple, admit the buy mistake in wrong timing . You will also soon to know the most difficult is selling timing. This can happen when you see the gain, but next week it wipe out completely.
Believed for value stock, the price will will grow. It just a matter of time only. Invest in patience, profit from patience.
Nevertheless LCTH and HIL still turtle moving. Both of them need a "plastic surgery" to make the price and the trend pretty.
My favourite HIL today see a small rebound but will low volume. Still not look good.
Remind myself, value investing need a very strong patience. That's is my rule 3 - profit from patience.
Now the price reflection is in wave 3 move, massive public shooting now. I remembered last time (1 to 2 year before) this stock public awareness is very low and liquidity is very low, it status still in cold stock.
Now time matured, the stock turn to very explosive and backup by value.
When in the wave 3, the engine mostly in the full force rocket launching and the sky is clear without any obstacle.
This is only applicable to the value stock. HIL should be the next.
Don't get surprise why it shoot up, only surprise why it never go up.
Remember this is always matter of time only for value stock price to reflect its center value (fair)
1st wave: Smart money quietly buy. It can be you also if you detected it. The price remain flat or small price movement. I've detected IFCAMSC at 0.08 before it start its amazing move. HIL at 0.40, SKPRES 0.10, KELADI, ASIAPAC and many more.
2nd wave: Institutions investors like fund manager awareness. They start buy in with big quantity. This will lead the price start move upward.
3rd wave: Public awareness, massive shooting aiming the bull leading the price move higher and higher.
Till the price run far away from its true value. The bubble will burst leading massive killing shooting.
Therefore, refer back my previous post. Price will decided 3 stage too:
1. Below center value (fair value)
2. Center value (fair value). This is what it's worth.
3. Above center value.
Value stock normally will create higher value leading higher price. If not it will either stay stagnant or start its lower price reflection to meet it's lower fair value. This is call downtrend. That's why you can see some stocks this year making good profit buy price keep going down, then next year turn to a loss making company. HIAPTEK as an example.
Aim the bull...detect value stock at 1st or 2nd wave.
Price doesn't reflect the true value right now...
Doesn't mean it never will...
So what we need to have? A patience, believed Profit From Patience...
Another value awareness stock by public causing KOBAY price hit limit up. Factors element fullfil and qualified for limit up once the awareness reach public. Anyway smart investors before public awareness already on board.
Simple and solid factors keep the KOBAY price hit limit up:
1. Profit growing lead to higher EPS. Price reflection for the low PE after reached public awareness.
2. Cash rich with minimum debt or manageable cash and debt.
HIL should be the next target for limit up stock, I believed on it. I still collecting on it, 0.70 to 0.80 price range still yummy. ☺
Aim the bull...aim the EPS growing...aim the next limit up HIL
Nothing is permanent in the life, u never can be happy always so as sadness. Thing will be changed if time is still moving. So, don't rush, enjoy the moment, forget the past sadness and learn from the past experiences. Every bad or good when is reached the right time, it will happen.
Stock market is a life, it's go up and come down every moment. It mixed all the investors and traders feeling. Which is the strongest will override the weakest feeling. That's make the price reaction without caring the value in short term. But in long term, the feeling of price will react to the value.
That's similar with the life, we only able to know who is our real friends in long run. Be a happy investors is a key to success, today your failure doesn't mean tomorrow will be the same. As long as you're invest in value stock, value will help you to create value. Your patience is needed and wait for the right time to happen.
Aim the bull...aim the right time as well...
In the life, timing is the everything. If you try to request something (e.g. proposal for married) from your girlfriend at the wrong timing (i.e. she is in the bad mood), the chance of the request to be successful is low.
In the stock market, timing is everything as well, right stock at right timing is the key to success. To be a long term investor, a strong patience is needed. Profit from patience.
A value stock price will be reflected at the right timing.
If it meant to happen, it will at the right time for the right reasons.
Sometimes you meet the right person but wrong timing and wrong outcome.
Sometimes you meet the right stock but wrong timing and wrong expectation
Wrong timing it can be price at high side (above fair or center value), no awareness yet from public or institutions investors, stock liquidity issue, etc)
