Is is too risky to enter the market?

sean.ng
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14 years 11 months ago #1467 by sean.ng

Replied by sean.ng on topic Re:Is is too risky to enter the market?

yes, i have also been making mistakes as a beginner, however i can say that i am lucky in that i have been \"practising\" amid quite low levels of prices. I agree that you really have to select the right stocks in order to have sure gains in time to come. For this round of rally, i hate to admit that i have missed out a good deal of chances as I have selected the \"rotten\" Sinking chips during the troughs and thus even though prices are low, they never seem to make it far yet,unable to turn around until the recent rally, which gives me another chance to give up positions in some which i have stubbornly held for the past few months to swap to others which i feel more comfortable with and which i have confidence that these will rise when the prolonged bull run finally comes. I am focusing at chips that people will buy when the market picks up, have strong earnings visbility, with punters\' interest and the potential to rise back to pre-2008 levels or possibly more. People will get bored with the bears for so long time, and with so much cash on the sidelines, i wouldnt want to be missing out the action in the coming few months. Anyway, almost half of 2009 is gone by and just a few more months left to the year. Sad to say, i think diversiying has its risks too as i experienced it myself, as such picking the best at a reasonable price should be able to preserve my cash and weather through, and I shall stay fully invested whilst waiting and looking at people vesting their interest and dumping $ into the market everyday. :laugh:

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neontet
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14 years 8 months ago #1661 by neontet

Replied by neontet on topic Re:Is is too risky to enter the market?

5 months ago, Gary Teh posted the 1st item in this thread, and he has been proven right - that the market will rebound in good time. but oh, what a sharp rally it has been in the last 3 months. I can\'t stop kicking myself for being too scared to buy early this year. now, i gotta do what i gotta do - accumulate some good S-chips (damn cheap) and laggards. examples: sinotel technologies, techcomp, healthway medical group. u all got stock ideas to share?

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musicwhiz
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14 years 8 months ago #1664 by musicwhiz

Replied by musicwhiz on topic Re:Is is too risky to enter the market?

No ideas at the moment. I have stopped buying since the index surged to significantly in May 2009, and have been unable to find good bargains in Singapore-listed (note: NOT S-Share) companies. But I will continue my hunt for good companies which come at fair prices.

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sean.ng
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14 years 8 months ago #1665 by sean.ng

Replied by sean.ng on topic Re:Is is too risky to enter the market?

it is still not too risky to buy in now, as there are still some laggards left in the rally which has not risen much yet. S-chips are like a gamble, if you choose the stocks which ple like to bet on, they could rise like 100% or more in time to come. Maybe can consider shipping stocks? if really like S-chips, maybe Yangzijiang is worth a look? Shipping stocks should rise in time to come when the general mkt recovers. Real risk will come when everybody is rushing in to buy stocks like crazy and that will be the best time when i will exit out of the mkt.

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sean.ng
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14 years 8 months ago #1666 by sean.ng

Replied by sean.ng on topic Re:Is is too risky to enter the market?

hi musicwhiz, just something to ask u. Would you be looking at a company\'s PE at this moment to decide whether a stock is cheap? Take for example, ezra\'s PE is now abt 38 at this moment, which is considered rather high. Would you consider it as being overbought? On the other hand, swiber\'s PE is only about 7. What is your take on a better stock? rgds sean

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musicwhiz
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14 years 8 months ago #1667 by musicwhiz

Replied by musicwhiz on topic Re:Is is too risky to enter the market?

Hi Sean Ng, Erm....in the first place how did you arrive at Ezra\'s PER of 38 ? And Swiber\'s PER of 7 ? Is this historical PER, rolling PER or prospective PER ? And yes, I do of course look at PER to decide on an investment, among other factors. But looking at PER alone is foolish as a company is much more than just that. I take margins, prospects and qualitative factors into consideration as well. PER simply tells you if it\'s cheap or expensive. Right now, valuations are normalizing across the board; and very quickly as well. Soon, most companies will revert to their mean (average) PER, and bargains will be much harder to find. Just my views.

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