It is difficult to imagine a world without trend in this modern society.
Electronic products, fashions, entertainment etc. etc. etc.
It’d be dull for the modern society generation.
But never did I know that KLSE also has trend, a clear theme, which can bring up almost all counters in a sector.
When some fundamental changes take place, some sectors can benefit a lot from the changes.
Decrease in raw material price, sudden increase in demand, changes in commodities price and so on.
This kind of theme play is well played in KLSE.
Some quick examples include steel theme play early this year,
Needless to say, for those who have taken part in 2015 KLSE, the export theme definitely earned you a lot.
This export theme play effectively brought up stocks from glove sector, furniture sector, plastic packaging sector and electronic manufacturing sector.
The effects are clearly seen.
But along such them play, there are companies that actually done well and there are not.
Riding with the correct company can bring us few times return, but a wrong company, fried on purpose, may not.
Basic understanding and fundamental knowledge are still required to justify whether a theme play is sound.
My first theme play was during end of Sep 2014 to early May 2015.
Frankly speaking, I was clueless on what actually is a theme play and doubted on its reliability.
Still, I manage to undergone an ‘epic journey’ with IFCAMSC.
Yes, the theme was GST.
I was made aware of IFCAMSC by my remisier who promoted it when it was trading at RM0.07, which was penny.
I went on and off with IFCAMSC with considerably good return, in which I’ve given most back to market on my other silly trades.
There were other company specialized in software development, being played back then i.e. CENSOF, NOVAMSC and YGL.
But not all these have good fundamental.
Having said this, even a good fundamental will face its profit cycle.
What goes up will come down one day.
This year, people have been discussing about potential construction theme play, will it really turns well?
The strong USD also led to anticipation on possible continuation of export them play, how will it go?
The low crude oil price fueled, only in Malaysia, aviation theme play?
Or will green energy, focuses on PV, going to be the next theme?
Come on, let’s go do fundamental study, and we’ll know how far these themes can bring us to.
Last but not least, even during a real bear market, there is a special theme that could potentially help us retain our position.
It is a theme that requires tremendous courage, clear mind and fast decision making.
It is a theme that suits only a certain group of people.
An ambiguous theme……
P/S: To sharpen my skill, I do share some stock watch in Invest for Life and facebook https://www.facebook.com/investforlife.com.my/.
Created by Invest4life | Jul 11, 2016
CCCL
Good write-up. Always know when to get-off from the "theme bus" :)
2016-06-24 10:54