IPO Stocks

Looking back, one of the mistakes I made previous was to buy IPO stocks. I still can remember using ATM to subscribe IPO stocks that I did not even know what is the company is about. The impression I had last time was it was very easy to make money from the IPO offering. You subsribed the share for $0.10 and the 1st trading days it would shoot up to 100%! It was the easy money, wasn’t it? However, we would never go and sell the share as our greed told us that it would go higher and higher and made money $$$! At the end of the day, the price would drop back to even lower than the IPO price. I have lost money with Del Monte, Dynamic, Giant Wireless, Valuetronics and Eastgate that my record is almost 100% (LOSING MONEY!!) I have got rid of Del Monte and Dynamic two weeks back and still holding Valuetronics.

Lessons learnt: Do not anyhow buy IPO stocks unless you are VERY VERY SURE it is a good company with very good business prospective and fundamental. Anyway, it is always a gamble to buy IPO stocks as there is no historical data for us the assess the stock price. It can make money very fast and also make us lose money as fast!

Singapore Stocks

Personally I feel that those STI index component stocks prices were over value. I am waiting for the correction before re-look into those blue chip stocks again. At the moment, I am investing with those penny stocks with good fundamental and have shown some good bullish momentum lately.

Stocks with good fundamental & good future prospects:
(1) Best World
(2) Hongguo
(3) China Fishery

Stocks with bullish momentum recently
(1) Meiban
(2) Sunning Tech

I started to clean up my old portfolio (1 lot Del Monte, 3 lots Dynamic) that I don’t even know why I bought them at the 1st place. However, it is never too late to correct my past mistakes and start my proper investing again.

When I first started investing….

I have been “investing” in stocks since 1998, but maybe a more appropriate work is “buying blindly”. What I did was to hear from my colleagues what shares to buy and just throw my hard earn money to buy the stocks he recommended. I did not know how to analyse & evaluate a company, did not know how to analyse the stock chart & totally lost with those jargons like support & resistance, correction, candle sticks, etc. I was just like those retail “investors” out there (uncles & aunties) and did not even know what kinds of risks I was putting myself into. I bought Keppel Land, UOB KayHian, Chartered Semiconductor (when the stock price was S$10!), JIT (later acquired by Flextronics) in my initial first few years of investing. As expected, I lost money and I am still holding my Charted Semiconductor share today! But I have started to average down my ChartedSc stocks as I know semiconductor recovery is around the corner and I can minimise the loses when the stock price goes up.

Recently I decided to take up some investing courses and it reaps benefit. I’ve learnt how to analyse a good company and evaluate the stock price whether it is under value or over value. I also learned how to use Technical Analysis to analyse the stock price trend to time my entry and exit points. I decided to share my learning experience and stock analysis in this blog space after encouragement from my classmate. I will be sharing some company analysis and stock charts I have done. Welcome for any comment as this will help me to learn.