Dec 13 2006
Thank God the long overdue correction started yesterday in the Bursa Malaysia (Kuala Lumpur Stock Exchange) and according to most of the foreign analysts, this correction should continue for a couple more days before a pause to continue its’ uptrend (if there’s any). I think this is a very healthy correction – well, if it could gained 2 (two) digit point within a day previously, then a correction of the same magnitude is nothing to shout about.
I still noticed some habit never dies among investors (or should I used the word speculators / gamblers / punters?) – They never know when to stop and take profit. A classic example – what else if not the high-profile Genting Berhad (GENTING, stock-code : 3182). It’s normal for short-term and budget investors to pin their hopes in the call-warrant, Genting-CA (KLSE : stock-code 3182CA) as a cheaper alternative.
I’m sure you must have learn the basic lesson in stock-market – “Buy on Rumor, Sell on News”. After the announcement of the successful bid for the second casino in Sentosa, Genting-related stocks gapped-up, Genting Berhad share itself was up by more than 22% at one time – a sign of “celebration“. Great, such a celebration is expected and understandable but as a serious investor, you should take the “Whole Monday” opportunity to lock-in profit. What happened after that is history, Genting-CA is down by another 12% as of the writing. I bet majority of the punters in this call-warrant doesn’t know the difference between this share compare to the other normal-warrant or how the conversion works. What they know is there’s a word “Genting” attached to it and it must be punted on.
Oh dear, if making money in stock-market is that easy. On the other hand, wouldn’t it be nice to be able to short-sell this stock at the current correction stage? Nevertheless, I would like to share this (which I have on my past articles) with you:
Bull & Bear makes money, Pig gets slaughtered!!!
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December 13th, 2006 by financetwitter
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