Four more days

It is four more days till the full year ending 30th June for corporate companies. This is the time when the companies will release their full year/half year results . The sharemarket will certainly be anticipating it. They say never invest before a profit announcement, because doing that would just be speculation for the short-term investor and also could be detrimental for the long-term investor.

During this period, many employees in various organisations are experiencing what we call the blackout period. During this time, because of insider advantage in knowing the profits of the company, they are not allowed to trade shares of the company during the blackout period, usually a few days before the profit announcement and one day after the announcement.

Funny how I should remember the rule not to invest before a profit announcement, because I am actually going to invest in a company I recently found. I could have invested this week, but remembering the profit announcement rule, I decide to invest only next week. I'm going to invest in an income-generating company that pays high dividends this time. I'm feeling stable so the company I chose pays out high dividend yields and has great prospects for the future, I believe.

Whether the profit announcement would cause the share price to go up or down before I buy it, I will just treat it as irrelevant, as I am a long-term value investor. Let us all cheer for the future and may God be with us.