“No Eye See” Value Investing kcchongnz


The selloff that struck the US stock market ripped through Bursa in October 2018 as fears of slowing economic growth, escalation of trade war between US and China, and rising interest rates spoke investors. The downgrading of the outlook for global growth to 3.7% in 2018 worsen the situation. The jump in volatilities of the markets is causing a lot of anxiety to the market players.
Historically too, October is known as one of the roughest months for investing in the stock market. It gives investors the jitters amid fears of the “October Effect”.
The Dow has tumbled by 6.4%, or 1728 points since the beginning of the month of October 2018. Bursa follows suit and lost closed to 100 points, or 5.4% so far for this month. From the beginning of the year to the close on 23rd October 2018, FBMKLCI has lost 5.5%. Not too bad actually.

For those who dabbles in the mid and small cap stocks, which kcchongnz is one, the loss could be devastating as the FBM Small Cap Index has lost a whopping 23% year to date. You may also refer to the result of those participated in the stock pick challenge for this year to see how bad it really is.
Below are the charts of two small cap stocks which have been touted for the past year by “The One” who is the most active commentator in i3investor with numerous nicks; qqq cube, Stockmanny, Brightsmart, Desa etc. etc.
Figure 1: Share price movement of Jaks


Figure 2: Share price movement of Eversendai

The notorious character above has been shouting two famous words for these two stocks; “sailing” and “margin”. He uses his “dynamite” investing, “panic moment”, whatever they mean. He advocated people to put all their money in these stocks, and even more, to do it with using margin finance to punt on Jaks and Sendai at above RM1.50 and RM1.20 respectively.
The share price of Jaks and Sendai closed at 96 sen and 72.5 sen respectively on 24th October 2018. They have lost a whopping 47% and 33% respectively from their peaks this year.
Imagine with the margin finance, say at 50%, how much punters have lost this year? 94%?
That is how bad the market has been this year in Bursa. Really “No Eye See”!

Since the stock market is so bad, it is the best time to bash those value investors again. Here is one of the numerous comments everyday by this usual character,
[Posted by qqq3 > Oct 24, 2018 12:17 AM | Report Abuse https://cdn1.i3investor.com/cm/icon/trans16.gif
kc
where are all the value investors? They are never around when u need them....and they hang around when u don't need them.]


I would like to thank the above very much for his concern. I am fine, perfect and still around. What do you need from me?
I have been very happy with my value investing during the normal time since 10 years ago with returns many times more than the return of the broad market. You can read them in the links below,
https://klse.i3investor.com/blogs/kcchongnz/175060.jsp
https://klse.i3investor.com/blogs/kcchongnz/176865.jsp
https://klse.i3investor.com/blogs/kcchongnz/177480.jsp
Those were established records published in i3investor from 6 years ago, and not just hearsay.
However, I am not able to replicate the same kind of return for this year so far, but definitely it is far better, in fact there is simply no comparison, when compared to the touted stocks of Jaks and Sendai above, which has lost 47% and 33% respectively from their peaks this year.

Kcchongnz value investing in 2018
I have selected 6 stocks for the year 2018 for my stock pick service. 5 of the stocks were chosen basing on my normal value investing principles and methodologies as described in the links below,
https://klse.i3investor.com/blogs/kcchongnz/161473.jsp
https://klse.i3investor.com/blogs/kcchongnz/162226.jsp
I seriously think this is a right path to pursue in investing to build long-term wealth, slowly, steadily, surely and safely. I sincerely hope those who are not savvy in investing to read through and act and not procrastinate any further as the future of your financial wellbeing is not a “play play” thingy.
The portfolio of 5 value stocks return an average of 2.3% this year as shown in Table 1 in the Appendix. It is nothing great at all, but aren’t they better than the loss of 23% of the mid and small cap stocks, and especially the loss of 47% and 33% respectively for Jaks and Sendai.
So, thank you very much. Value investor like me is still okay lah.
As for another of my good friend here,
[Posted by ciaksai > Oct 23, 2018 12:36 PM | Report Abuse https://cdn1.i3investor.com/cm/icon/trans16.gif
OTB, KC Chong where are they? Why bear market they run away?]

Thanks also for your concern. As there is really not much excitement in the “bear” stock market now, I have “no eye see” and have been “running away” to some local and regional holiday destinies with my university mates and family and enjoying my golf, some beer, and chit chatting for nothing with my golfing kakis. In fact I have been doing this all the time, whether it is a bull market, or a bear market. I really don’t like to glue to the computer screens looking at the green, red or white colours. I have also been reading some interesting books such as “Billion $ Whale”, “Sarawak Report”, “Thinking fast and slow”, and re-reading the value investing books of Coldeye. Also trying to see my parents more often, but not enough.
Most of all, I enjoy answering questions to my online investment course participants. I have also been doing a lot of analysis on stocks and writing them up for my stock pick service participants. I have also spent a lot of time for my practical investing course this time for those online course participants who wish to learn in depth on value investing in financial statement analysis and various valuations, and for various industiries such as manufacturing, trading, construction, plantation and financial institutions. It is my hobby. Best of all, I can do it in Kuala Lumpur, Ipoh, Taiping, Vietnam, in China, Auckland, or Singapore.
Stock market? No eye see.
Are you interested to be one of us as a stress-free value investor, or to get some value stock ideas?
If so, you may email me at,
ckc14invest@gmail.com

KC Chong

Appendix

Table 1: Return of my stocks picked in 2018


https://klse.i3investor.com/blogs/kcchongnz/179523.jsp