Sunday, November 20, 2011

I am pro Fundamental Analysis, really!

It is starting to look like I'm a chartist, isn't it? I really am not. Just so happened that I have started to explore on Technical Analysis a little more. It sucks to watch my stocks fall right after I buy them. Ofcourse, Fundamental Analysis says that doesn't matter because it's for the long term, but if i can avoid buying at the worst points, such as strong resistance, why not.
When I started this blog, I wanted to write about companies listed in KLSE/Bursa which I may consider adding into my portfolio. Their fundamentals, pros n cons, a bit on technical and target prices. All of which that'll help me decide to grab or thrash.
A full write-up on a stock will take a long time. And most likely will deter me from ever finishing up. So, I'm gonna break it up into 3 parts; The Story, Fundamental Analysis and Technical Analysis.
The Story about a company is very important. If I can't tell a story about the company of the stock that I want to purchase, I do not go into it. I must be able to tell what the company does, what are its products/services, where are its presence, its growth prospects, market share, durable competitive advantages, its management and so much more. It's difficult to know much about the management as a retail investor. On this aspect, I mostly rely on financial ratios to gauge if its management delivers. And i avoid companies of notoriously shady management. You know, those who screw their shareholders over n over again. You know who they are...
There are so many stocks that I want to cover. So difficult to pick one to start with. So let's just go with something smooth, light, refreshing, full-flavored. You got it right, it's 'Time for a Tiger'. For the benefit of non-drinkers, my next post will be a story on Guinness Anchor Berhad (GAB). No ratios, no charts, just a story.

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