Added a Link - Wisdom Wise

I have added a link- Wisdom Wise.

We can learn more about investing by reading his opinion on equity and investing. A good blog for how to be an Intelligent Investor.

Thanks Ben Gan for sharing his wisdom !

Added a Link - The Value Circle

Added a link; the value circle (www.thevaluecircle.com) for those who are interested in value investing.

Lion Deversified bought Lion Industries in open Mkt

Notice LionD has accumulated LionInd shares in open mkt.
From 6/3/07 to 12/3/07, she has bt a total of 8.0 million shares. (refer BSKL announcement)

What is the intention ??
To support the shares price or another restructuring in the pipeline ?????????????

Lessons From This Correction

This correction tell me 2 things:-

1) Bursa Malaysia is closely link to the world markets, the market sentiment and up & down will be affected by the regional market's volatility. Hence, a serious investor must be able to observe the regional markets performance.

Actually, the world index (ie NYSE, HangSeng, Nikkie, STI) has already shown weakness months before the currect correction.

2) The weak characters of our local market investors
Malaysia's investor or the retail investor tend to 'throw everything out from the window' when the market undergo correction, they sell everything base on fear & emotion rather than fundamental. This also explain why our mkt drop the most in this round of correction if compare to the others regional markets.

Child's Education Fund @ 28/2/2007

KLCI finally undergo a severe correction on 27/2/07 & today. KLCI has went down 100 point at opening time today, rebound back to closed at 1,196 point. Down 41 point.

After this round of correction, The CI will resume the bull run to retest 1,300 point. LONG TERM BULLISH REMAINED.

LONG TERM BULLISH

Hot Hot Hot !!! The market volume has surge to 4.7 billion after Chinese New Year. The 2nd liner & Mesdaq stock is moving with a bang.

I Capital in it's latest weekly issue raise the medium/ long term KLCI target to 2,000 point. WOW!

Maybe the best strategy is to buy a few good stock & keep it. Don't sell it so easily unless the price is irresistible. Why ? Because it's LONG TERM BULLISH!

Transaction @ 15/2/2007

Instead of buying Icap at below 1.50, I decided to use all balance cash to buy 12,000 Muiind at 0.275.

It has good potential to recover from current price.

Value Investing, Mr. Market, Margin of Safety

The transactions volume has surge pass 2.0b since last week, market sentiment is high and focus has shifted to 2nd & 3rd liner ( cheap price stock).

We see more counters has surpass recent height, more & more counter has cross RM1.00 in recent rally. But there are a lot of counters still below RM1.00 or below RM0.50.

Are those below 0.50 is cheap or those above 5.00 is expensive ?
Do you chase those cheap shares blindly in this 'hot-hot' market?

The concept of ' Value Investing', 'Mr.Market' & ' Margin of Safety' will help in answering above questions. You can find it in any books on Warren Buffett's investment philosophy.

Go read it now, you will be able to made good investment decision once you really understand the concept of VALUE INVESTING, MR. MARKET & MARGIN OF SAFETY.

Now the market attention has shifted to 'cheap stock', I find 'Muiind'(0.27) very attractive, it has the biz and possess many assets, it has recover from worse to better, the rewards will be fantastic if the company can give good results in the following years.

Child's Education Fund @ 2/2/2007

Ornasteel & Lion Industries has appreciate more than 18% & 11% respectively, more upside expected.

Still waiting for the right entry price to buy 'Icap'. Below 1.50 should be an attrative price to enter.

KLCI has surged to 1209 led by Big Cap Stock. 2nd & 3rd liner with strong fundamental should move in following weeks. It's interesting to see whether the retail player will come back into market, daily shares transactions volume will tell.

Time to accumulate undervalue stock ???

Today KLCI has resume its upward trend led by ‘Blue Chip’(1177.53), the investor may not want to left out from this rally, yet remain cautious due to fear of imminent correction.

The value investor may consider to accumulate the following ‘undervalue stock’ which downside risk is considered limited to me:-

1. Petronas Dagangan(5.20)

2. Mieco(1.26)

3. Airasia(1.45)

Again, if you have lower risk appetite, it will be better to wait for another 5%-10% discount at current price.