Tuesday, June 12, 2007

My personal investment

Right now, although I am really uncomfortable with the current market condition, I am holding shares in the market. It's so dangerous but yet I still want to remain true to my long-term view I decided when I had bought the stocks. To give a brief way about my investments, I have 3 different stocks I am holding onto now(yes only three) which are in three different industries. However, under no circumstances am I to name specific shares. I shall explain this soon later on.

My first share I ever bought is an oil search and production company. I am particularly attracted to this company because they are bargain hunters, besides the fact I did rely on professional analyst help in the form of a Buy recommendation for this company. This company operates in the areas East of China, Mongolia, and slightly toward the south near Indochina and Hong Kong. Recently, a war broke out between two tribes in northern China and Mongolia, resulting in a huge price fall in value of the land. The company grabbed this opportunity and bought vast amounts of land at low prices, in search for oil. It is commonly known that oil companies are risky investments. Oil companies start off at search companies and its survival depends on its findings of oil. Because of the recent volatility in the market, the company has dropped to low levels where it's a bargain. And i couped up this company at that price.

The second share I bought is for a company that sorts out data for automobile companies. It has a system that organises data for major automobile companies around the world, such as Ford to name one, and it processes them in a way that could give the automobile company a strategic information advantage. However, since its operations are a substantial percentage overseas it is liable to the movements in currencies. Its subscription to its main systems have gone up, but net profit has gone down. This caused a sell-out from many investors because of loss of confidence for the company. However, believing in the recovery of this company which has a better future, I bought it at the bargain price driven by the market.

The third share I bought is meant to be a turnaround. I turnaround is where the company is beaten down so badly along wiht its share price, nobody thinks it is going to recover when suddenly its share price "turnarounds". The shape would be abit like a parabola. The whole process takes a few years. This company is now on its way down, its taken a triple whammy from high interest rates, a sudden change in government plan, and the drought in Australia. It deals mainly in managed forestry investment schemes and also horticulture. I can classify this stock as being in the agriculture industry. However, I believe in its recovery in the long-term and thats why I bought this stock at half its price from what it used to be a few years ago. Hopefully all will turn out right for this company that is trying its best to sort out things in its most difficult period.

Coming back to the reason I would not name any stocks specifically is because if I recommend it, alot of buyers might go out and buy this stock. This would push the price up because of demand and I might then sell it. It wouldn't turn out so nice that way, with me being an original recommender of the stock. Best to avoid situations like these, and no naming of particular stocks(publicly). I wish your investments go well too, and remember the key to success in investing is discipline and remaining steadfast to a plan.

1 comment:

Anonymous said...

I agree with many points. But in some areas, I feel we need to be more aggressive. Just my opinion. Love ya. semi dresses Christian Louboutin Heels Evening Dresses