Posted by soojinhou > 2019-01-01 00:04 | Report Abuse

I kena seemingly low market valuation lemon *sigh*

Posted by Choivo Capital > 2019-01-01 00:46 | Report Abuse

Haha, which co is it?

Posted by cheoky > 2019-01-01 01:07 | Report Abuse

I reread few times. Gcb means guan Chong oh. Bad company? Which part? Low pe ? Or u means plenitude?

Posted by cheoky > 2019-01-01 01:35 | Report Abuse

Please start talk about your own pitfall in lemon stocks like plenitude, tguan etc or share why you buy Skp resources. Don't give textbook copied pitfalls. Give your experienced pitfall better. Then you becomes respected rank as icon.

Posted by 4444 > 2019-01-01 01:54 | Report Abuse

Coastal, Dsonic, PresBhd did well in 2018?

Posted by Icon8888 > 2019-01-01 06:05 | Report Abuse

At least KC give ideas. You only know to criticise

Posted by 3iii > 2019-01-01 06:08 | Report Abuse

>>>>
So, remember, if you can avoid heavy losses in investing, half your battle has already won. But you must know what to look for.<<<<<


By avoiding stock losses or keeping these low, the modest returns from your winning stocks translate into good or great return for your portfolio.

Posted by Alex™ > 2019-01-01 07:27 | Report Abuse

Wah... Why I hoot Knm?

Posted by kcchongnz > 2019-01-01 09:52 | Report Abuse

Posted by 4444 > Jan 1, 2019 01:54 AM | Report Abuse
Coastal, Dsonic, PresBhd did well in 2018?

This article attempts to educate those who are interested here, on how to avoid big losses investing in stocks.

Each time I spent my time sharing, you will try to find a few stocks, out of hundred of them, which I shared my analysis in i3investor years ago, and ridicule me when they don't do well a few years later.

Tell me what have I offended you by sharing some analysis of stocks, free of charge in i3investor?

My pick on Datasonic was in August 2013 for 2014, not for 5 years later in 2018. Soon after that the share price shot up by 870% in 7 months from the adjusted price of 24 sen to RM2.33 on 2nd April 2014. When I came back from New Zealand then, a new friend gave me a dinner in Oversea Restaurant in PJ, because he made millions investing in Datasonic after reading my analysis.

My pick on Prestariang was in mid 2013 when it was trading at an adjusted price of about 50 sen. Prestariang’s share price shot up suddenly to RM2.30 within a year for a gain of 360%.

Why would you hold the stocks when their share prices have gone up so fast and way above their intrinsic values, when there are other new opportunities?

My pick on Coastal in 2015 was a wrong decision as crude oil price continued to fall. But tell me, who in the world has got his picks right every time?

Posted by kcchongnz > 2019-01-01 10:02 | Report Abuse

Posted by cheoky > Jan 1, 2019 01:35 AM | Report Abuse
Please start talk about your own pitfall in lemon stocks like plenitude, tguan etc or share why you buy Skp resources. Don't give textbook copied pitfalls. Give your experienced pitfall better. Then you becomes respected rank as icon.


But I share things according to what I like to do, and not what others demand me to do. These sharing on the pitfalls copied from no way. Each and every word is all from my fingers.

Again "respect" is not what I was looking for when I do the sharing.

I did share my analysis on Plenitude, Thong Guan and SKPR. That was because I was happy at those time to share my thoughts.

Their share price may have dropped in 2018 but they aren't lemons according to my criteria as expressed in this article.

In any case, what is the percentage of stocks in Bursa which their share prices haven't dropped in 2018?

Posted by Haw Liao > 2019-01-01 10:10 | Report Abuse

mr.kc...thank you for the lecture!

knowledge is gold...

gold can make u money...

apply knowledge to make money

Posted by Sslee > 2019-01-01 10:23 | Report Abuse

Dear KCChong,
The first company AGM I attended was Xingquan AGM back in 2016. And knowing that the Board members were lying through their teeth and external auditors were idiot and irresponsible. I make complaint to Bursa/SC and seeking Mr. Koon help to call an EGM with below resolutions:
ORDINARY RESOLUTION NO.1
To appoint New Auditor without prejudice to the current SJ Grant Thornton Auditors and to commission:

ORDINARY RESOLUTION NO.2
Extended scope of audit (Forensic Audit) of the tailored make shoe, which incur loss of RMB 415,718,000 to the company notwithstanding to the financial audit that SJ Thornton Auditors had done for financial year closed 2016.

ORDINARY RESOLUTION NO.3
Extended scope of audit (Forensic Audit) on the doubtful debt of RMB 157,455,000 not withstanding to the financial audit that SJ Thornton Auditors had done for financial year closed 2016.

ORDINARY RESOLUTION NO.4
Extended scope of audit (Forensic Audit) of cash in Bank accounts is rightfully belonging to the company not withstanding to the financial audit that SJ Thornton Auditors had done for financial year closed 2016.

For CSL AGM: I ask auditor to sign on his written statement to questions:
1. Please give the list of Banks the cash is deposit?
2. What are the methods used to audit and verified the bank balance and the bank balance is rightfully belongs to the company?
I personally handed this signed document to SC during the joint meeting with SC and Bursa. The auditor was called by SC and the rest is history.

Thank you.

Posted by cheoky > 2019-01-01 10:47 | Report Abuse

I shut up if you replace gcb with cypark instead. Cypark fits your so called pitfalls instead of gcb. Who is wrong?

Posted by PotentialGhost > 2019-01-01 12:54 | Report Abuse

When price stay at peak KC say is still holding ,when price faLL to deep KC say he sell already. That why I say KC is Malaysia charlie munger not US charlie munger

Posted by PotentialGhost > 2019-01-01 13:00 | Report Abuse

Our Malaysia have many super ultimate investor

Jon choivo = Malaysia warren buffet
KC chong = Malaysia charlie munger
This two super ultimate investor always write very very long article.

Kyy = Malaysia Soros
Harry = the king of cash

Posted by kcchongnz > 2019-01-01 14:32 | Report Abuse

Posted by PotentialGhost > Jan 1, 2019 12:54 PM | Report Abuse
When price stay at peak KC say is still holding ,when price faLL to deep KC say he sell already. That why I say KC is Malaysia charlie munger not US charlie munger


Take my advice. Change your name to a better one. Because the behaviour of you, the thing you say tend to be reflected in your name; spewing venom, personal attacks, lies and untruths.

Which part of the article or comment here did I say I bought what share at what price and sold what share at what price?

I started writing articles in i3investor more than 6 years ago. So far I have written 349 articles, with 14069 comments. I believe my sharing has benefited many readers, of course you not included.

Now tell me, which article, or comment I made, in my 349 articles and 14069 comments, that says I bought what share at what price, and sell what share at what price?

By the way, is the following still a deal?



Posted by PotentialGhost > Oct 24, 2018 08:44 PM | Report Abuse
I believe you I cut my bird ,if you dare show your real statement la o0o

Posted by soojinhou > 2019-01-01 23:13 | Report Abuse

Let me share the biggest lemon in my life in a HKEX company called CW Group listed in HKEX. At the time of purchase, it was trading at PE 3.7, and about to make an acquisition for a German machine maker with a profit guarantee that will push the PE to 2+. I'm not stupid, and I clearly know the weaknesses of the company. But then, there's sufficient mitigating factors also. The main weakness of the company is poor receivables collection, and it keeps growing every year. However, the company's revenue and net profit is growing at 5 year cagr of 31-32%. At that rate of growth, it is not difficult to justify weak FCF due to rapid expansion of working capital. Even though collection is poor, impairment on receivables is very low for the past 5 years. Company justified the poor collection from their business as part of a turnkey project supplier where everyone gets paid only when the whole project is commissioned, which made sense. AVIC, one of the largest aerospace conglomerate is an investor, and they paid more than double what I paid for it. They also have a board seat, which made the investment more reassuring.

To cut the story short, I got dumbstrucked when the company announced they have defaulted on their bond payment, when the money from the bond is clearly sitting in an escrow account as indicated in their annual report. Final confirmation of fraud occurred when the majority and CEO sold his stake for 20 cents, for a company with a book value of more than HKD 3. I've lost 70% on an overweight position in this counter. It's the most painful loss in my investment career.

I get asked if I have learned anything from this, and if I have gone back in time, would I buy this company again. People are surprised when I said I learned nothing from it, and I will buy this kind of company again. As an investor with high risk appetite and a fairly aggressive strategy, my return for the past 6 year is satisfactory, even after taking into account this year's loss, which CW Group contributed to. I'm cognizant of the fact that no strategy is perfect, as some winners will undoubtedly slip through, and some losers will be caught instead. That's a fact of life. Nobody wins all the time. The same strategy that ensnared me with this big lemon, also served me magnificent returns from stocks like AEM, which peaked at 11x my investment in 1.5 years time. What is important is that the strategy yields satisfactory result given one's risk appetite over a reasonably long period. If that is met, I don't see why I should change my strategy due to an occasional lemon, as painful as it was.

KC Chong's advice is sound. Those with less appetite for risk and adventure should stay away from lemony stocks. Also, a loss like mine can easily wipe my portfolio out if I have leveraged with margin and get too cocky with weightage like how KYY got with Jaks. As it is, even with an aggressive strategy, I'm mindful of risks and so the loss from CW Groups is recoverable. But I do expect to be hit with more lemons in the future because I'm too stubborn to learn hahaha.

Posted by PotentialGhost > 2019-01-02 09:19 | Report Abuse

Kc you just post all your traking record la , if you are honest I will open live to cut my big bird, but who know you honest or not? Kc you no attack people meh? You turn one rounds to attack people only , attack a 80yearold old man, walao scary you know? and my friend after reading all your article and comment now he borrow money from me to eat nasi lemak everyday.

Posted by kcchongnz > 2019-01-02 10:40 | Report Abuse

Posted by PotentialGhost > Jan 2, 2019 09:19 AM | Report Abuse
Kc you just post all your traking record la , if you are honest I will open live to cut my big bird, but who know you honest or not? Kc you no attack people meh? You turn one rounds to attack people only , attack a 80yearold old man, walao scary you know? and my friend after reading all your article and comment now he borrow money from me to eat nasi lemak everyday.


If I post my "traking" record, you cut your "big bird"?

Why should I post my "traking" record? For what? I have never boasted how rich am I, how much shares I own, how much I made in stocks. So for what?

If I post my "traking" record, you cut your "bird"? So if I get all my "traking" record, verified by lawyer, then you cut your "bird"? Sure or not? But for what? Why would you want to become a man without "bird"?

I attacked people? Which article of mine mentioned names, or were they sharing about investment philosophies, methods, whether they work or not work? How much money they would have saved from losing if they just pay attention to my sharing, say on Jaks and Sendai? So wasn't it smart to ponder and think about what my opinions were, rather then thinking that I attacked them, and because of high ego, bought more and ended up in the present predicament?

Your friend got to borrow money from you to eat nasi lemak after reading my articles, and comments? Why? How come it involves me?

There is no God in investment. Nobody can be right all the time. Even the analysis may be correct at certain time, price may have gone up too much. There may be changes in macro and micro levels etc. etc. The investment scenario changes, it has changed very fast in recent years. Some are luckier than others.

Posted by paperplane > 2019-01-02 10:43 | Report Abuse

Kc, its new yr. I say sorry lah if offend u. Salute your effort sharing knowledge here.

Posted by alfredbeh > 2019-01-03 22:24 | Report Abuse

KC, What a fantastic article on pitfalls in investing in the stock market. Happy New Year and keep on writing.
Ignore the small people in life!
Don't correct a fool, or he will hate you; correct a wise man, and he will appreciate you.( Proverbs 9:8).

Posted by Nonare > 2019-01-04 14:51 | Report Abuse

Great share. Thanks KC!

Posted by connie7i3 > 2019-01-06 21:53 | Report Abuse

KCChongNZ thanks for your effort to guide and teach us