Value vs Price in stock market

This is very important principal in value investing. I used Mphbcap as example to illustrate. Value for Mphbcap is 1.80, above 1.80 and below 1.80 is self explanation. Investor now explain Mphbcap only worth 1.25, so they will sell it without consider the core value 1.80. So, some investors like me know that this is good chance to collect (if you financially capable), as we know the price one day will surely back to it's core value 1.80. We will only sell it when it deviate much of core value, let's said 2.5.

I only can collect little by little as I have run out of investment cash.

HIL - over reaction

Still is a value stock, but trader over reaction and throw HIL like rubbish. I say "trader" as a value investor will not do this if company financial fundamental still strong as is.

Stock movement = Human nature

There is nothing new on Wall Street or in stock speculation. What has happened in the past will happen again, and again and again. This is because human nature does not change, and it is human emotion, solidly built into human nature, that always gets in the way of human intelligence.
"Of this I am sure."
-Jesse Livermore

This is explained why stock movement pattern can be detected with your TA and FA skill and most important your "feeling". What you need is a simple trend analysis, able to understand simple financial data, and most important based on your reading how you feel it, feel good, feel risky, feel high chance, feel must buy, feel must let go now... your feeling will be your final decision.

This will a "basic" to enter a buy or sell, even you make a wrong decision, you will still happy with it as this is your decision. Also, you learned from mistake, your own the mistake, and willing to accept it.

No need to attend expensive workshop, just follow aim the bull 5 steps. :)

Human Mind...

Compass vs clock - which one u choose to be?

Compass - i use compass as a symbol to mark the financial data to remind that the direction where to go is most important. You know where to go then you will stick to it. If the basic no change, still strong, you will not act silly when price go against your expectation temporary.

Clock - more apply to contra, just reflect to what is happening now, u just do and do, you don't have direction, just react accordingly. Want faster settle it, as fast as possible. End up dont know what is doing and tired.

GTRONIC - Today top down

Sometimes value investing cannot work...Therefore Step 5 is very important to escape from the risk if we able to predict the outlook well. But, of course very difficult.

Globetronics
Fresh guidance from management. 1Q16 operating profit will be down 30+% due to weak demand from Heptagon as end customer rationalize their inventory. 2Q16 outlook for the proximity sensor also does not look good (10m units per month or below from 13m units per month in 1Q16); management doesn't discount that there could be a new competitor producing the proximity sensor or a design out (meaning a new sensor replacing the proximity sensor).
As for the 3D imaging sensor, adoption in 2016 model now seems unlikely with low volume forecast by client. 2017 adoption is more likely according to Heptagon.
Globetronics is one of the street's top pick with consensus earnings now at risk. Our forecast is on the lower range at MYR93m but still there is downside risk of about 30-40% should proximity sensor volume falls to 10m per month going forward and zero adoption of 3D imaging sensor.
1Q16 results will be released tomorrow. Share price has already started to react to this.

Aim the bull 5 steps for value investing

My 5 simple steps will lead me to simple but effective value investing. My way to minimise the risk and maximise the gain.

Step 1: Check the PNL. Profit? Potential turnaround to profit?

Step 2: Check the cash flow. Where is the money generate? Where is the money go?

Step 3: Check the Balance Sheet. Is it only left the shit (e.g debt)? Cash status? Retained earnings for potential bonus issue? NTA vs price? Fair value vs price vs NTA?

Step 4: Check the price status? Which wave? Uptrend? Downtrend? Consolidation? At peak? Measurement of margin of safety?

Step 5: How is the outlook of the existing business and any potential sales pipeline?

If score 1 or 2 points...forget it
If score 3 points...monitor closely
If score 4 points...collect slowly
If score 5 points...full force...sai lang

Stock market invisible hand

No matter this is value stock or pump and dump stock, the invisible hand will lead the stock movement direction.

Advantages and disadvantages for value investing

The consistent profit machine: Value investing

What is value investing

The most important for me is I can sleep well and live happily.

Value investing is the best

They said value investing is the best investment. The more you give, the more return you get.