Well, when I put "Value Invest" under my Post title, these means I'm putting in my watchlist or Portfolio the stock mentioned under this post. Well, how do I play value invest stocks ?
Hmmm....let take Coastal for example, based on my last blog on Coastal http://reiccs.blogspot.com/2011/10/value-invest-coastal-5071.html, she didnt pass my TA entry criteria (to close at 1.98 or above), but since I going for value invest play, I've started to accumulate her as she is a real gem in terms of her fundamental point of view.
I'm setting myself a guide/procedure to play value invest stocks as below:
a) start small qty buy when price is at 25%~35% discount to intrinsic value.
b) accumulate slowly if drop further, maybe every buy would be 5~10% interval (e.g. 1st buy is 35% discount, for 5% interval, next will be 40%, 45%, 50 % discount and so on from intrinsic value).
c) start accumulate more quantity when she starts showing reversal (e.g above 200MA).
d) The company announcement is important to understand.
e) Every quarter results is an important indicator to decide to further accumulate or cut loss.
f) Strong psychology to HOLD when watching day to day high fluctuation of regional and KLCI .
g) Start to sell some (one third? half?) quantity when she starts to give 30% profit from your average price.
h) Keep the rest to sell only when reach near to intrinsic value OR keep till trend reversal signals (e.g drop back below 200MA)
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