Post Recovery Stocks (Next 3-6 Months)
I would like to say that i made lots of money in the recovery stocks especially in the semiconductors, cryptocurrency, banks and tech.
The stocks that i bought are the following:
1. Ripples (RM1.34) is now RM1.87.
The reason I bought this was because bitcoin was on the rise. With the rise of bitcoin, other cryptocurrency tend to rise along with it. However this was a little special because this counter is under SEC charge and involved in certain lawsuits. Nevertheless, my mindset was like this. If the lawsuits gets settled, the price will increase much more than it is now. The worst case will be at its current price. No doubt it could go down to RM1.50 or lower but i took a chance and ready msyself to TP at RM1.50 if that day were to come.
2. Greatec (RM3.50) is now RM5.72.
This is a great stock that i bought. I bought it is due to the rise of its quarter report earning. This company has shown great prospect for growth. Compared year 2019 and year 2020, it has shown that the earning is close to doubling. If the next quarter report shows an increase of earning, i will remain invested until the day it stops earning more on a quarter basis.
3. Pentamaster (Rm4.93) is now Rm5.72.
Still a good stock but i was expecting it to go much higher and not lower. It is not a bad move to buy this cause it is still profitable to buy when it was below rm5.00. Looking at the quarter report, it is not performing as well as i thought it would be despite the demand i hear in Malaysia.
4. Public bank (RM4.04) is now RM4.30.
Despite the low performance last year compared to 2019. The reason i bought was simple, banks will always rebound back because of the loans that has been given out to the clients last year when time was bad. It is just a matter of time when the banks will push the interest rate higher.
There are one stock that I sold already.
Don't buy on trend. It wont last. The best way to buy things without looking at trends is to find out more about a company future planning and potential earning.
If you know the company is earning more profit next quarter (or next few quarters) compared to the previous quarters. That is a good company to buy. Find out more of the company future planning and ensure that it will be able to generate more net profit from it.
Don't rely on your sifu. Teach yourself to fish. It is so much more satisfying when you fish it on your own even if you make a loss. You learn and enjoy the process.
At the moment, I have just bought a few Post-recovery stocks.
The stocks i recently bought are in these sectors in the past 2 weeks: Airline, Tourism, Construction, Oil & Gloves.
Tips for glove stocks:
Gloves so cheap now. I bought a 3 glove counters and made from it especially the new glove counter. I highly recommend to you to research the new glove counters that has yet to make any profit from it. Great upside potential. Find the good one and keep it for long term. I won't say which one is the best, so do the research yourself. I can tell you that the future earning is looking promising. That is what i think.
By the way, you can compare whichever stock you are looking at with the FOCUS DYNAMIC GROUP BERHAD report. This counter does not have good annual earning and have a lot of downsides but manage to stay around 0.60 for more than 5 months now. Anything is possible as long as you agree with the company goal and focus.