Today I will post the remaining stocks that newbie bought. Lazy to post one by one with details.
Early 2016 sold all Caring shares, very good profit. Made about 80% on the second batch. He sold because high PE ratio and lack of growth. Many analysts also recommended to sell.
Then he bought Mitra shares. Many research reports recommended to buy. After few months until now, up 10%. Not very encouraging due to the fact that so many analysts recommended. His purchase cost was RM1.1x.
Then newbie sold half of his Harbour stock at RM2.7x. This one made almost 100%.
He didnt sell all. I told him Maybank research still said can keep. If you look at the price now, split 1 into 2, also got free warrant, now is RM0.92, dropped 46% (from RM2.70 divide by 2), aiyoooo maybe he is going to kill me. But still much above his purchase cost and he also sold his free warrant.
Then he bought Gadang stock. PE low and with growth, recommended by some analysts also. The purcahse price is RM2.0x. Gadang share price not much change as of now.
I have told him cannot concentrate in one single industry, need to diversify. He told me Mitra is contruction and Gadang is "Investment Holding" company.
I then explained to him most of the stocks in Bursa Malaysia are investment holdings company. This is the nature of how the company structure, but they have one or few main businesses. So dont just treat them as investment holdings.
Then he bought Oldtown shares, reasonable PE ratio and growth. Purchased the share at RM1.4x and now the share price is RM1.81, up more than 20%.
The next one is Gtronic stock bought at RM2.5x. This is a sad story, lose more than 40% based on current market price. GTronic profit I think dropped 90%.
Another bad decision followed. Bought Supermax stock at RM2.7x, and now the price is RM2.14, down more than 20%.
There was some closing of production lines, but according to analysts, still a good buy. Hope so.
Then bought Superln stock RM1.9x because global warming and more people need aircon. So he decided to buy Superlon stock. Now Superlon stock is RM2.09, not much different, up few percent.
At the same time sold DRBHCOM because he said no future.
Also bought LBS counter at RM1.6x. Price now down a bit.
The next one bought TGuan-wa. This is because Tguan has growth potential and low PE ratio. Bought the warrant is due to small premium only. If Tguan up 25%, Tguan warrant could up 40%. Risk also bigger. Tguan down 25%, the warrant could down more than 40%.
Now Tguan-wa share price is RM2.56, up more than 40% from his purchase price within a month.
That's all for now. His next purcahse will be OCK or MFCB if nothing change much.
Overall the portfolio still in ptofit. I think about 2 months ago it was in the red.
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http://politemarket.blogspot.my/2016/06/tguan-warrant-superlon-mitra-harbour.html
