Value Investing Talks : Some pointers

Last month, I went to Maybank Investment talk (May). They invited a speaker from Equitiestracker to give a speech on value investing.

Here are some of his talk for value investing :
1) He said " Begin with the end in mind". Meaning you must set a profit target or when 1 or a few criterias is met, then you should sell the stock. If not having an end in mind, then you may hold the stock indefinitely and don't know when to take profit and may see your profit near your pocket but end up giving back to the market.
2) One should purchase a stock after evaluating the CAPITAL RISK. Meaning we should buy good stock only.
3) One should consider timing risk before pushing the buy button. Meaning buy at the right time, err...this mean buy when is ON Sale. Normally, a stock will be on sale when she is going downtrend. For those who have TA knowledge would be at advantage.

Value investing criteria according to its importance.
1) Operating Cash flow
2) Dividend
3) Consistent Net profit

There are 6 categories of stocks.
1) Investment grade stock (consistent fulfill all the 3 criteria in 10 years, boring, slow moving stocks).
2) Emerging grade stock (these are high growth stock)
3) Cyclical stock (depends on some external factors)
4) Turnaround stock (these stocks just started to go into profit zone, but to me these one will be higher risk)
5) Sunset/ Failing stock (profit margin deteriorating hugely, normally technology stock has this tendency).
6) venture/Speculative stock (these stocks is not in fund manager portfolios and usually are "goreng" stocks)

His strategy is buy some, if drop lower, buy some more, drop further , buy some more, then when turnaround, sell some, sell some more, then sell further.


He has mentioned he is monitoring  GAB, Airasia & AirasiaX (this one is higher risk, emerging stock).
I can't remember the actual date I went to the talk, should be around 17/May. Then these stock is around (13.86, 2.26, 0.755). Let review this in a year if I still remember .

For Maybank Investment themselves, they are promoting their Ezyinvest program. Some sort of unit trust but no annual commision fees and using "Dollar cost averaging" strategy. Suggested we keep for 4 to 8 years, the gain will be around 70%. Imagine one is to put their money in the FD, after 8 years, we would only gain 27%. This is to help newbies to invest and using the safest strategy. One can select from their 8 recommended stocks.
1) Ambank
2) digi
3) TM
4) TimeCom
5) GenM
6) Gamuda
7) Maybank
8) DRBHicom

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