OMG, KLCI skids another 21 points right after 2nd half of the trading today, with the crude oil price spiking above US$100 because of Libya issue.
The dramatic spike of oil price has indirectly impact most of the company earnings and direct impact aviation, transportation and power industry. It is no surprise that we can see the share price of AIRASIA and MAS vomited 10% this week.
Many small and mid-cap stocks are experiencing a cheap sales this afternoon. We can easily spot them with at least 5-10% discount. The best part is that they have just released their 'not bad' quarter results 1 or 2 days ago. Instead of buy, I hope your hand is not burn so badly today.
By looking at my portfolio, 2 horses falling like no tomorrow. Yes, they are belongs to plantation and construction sector, CEPAT and MUDAJYA. CEPAT is the plantation stock I talked about in my previous post. My average entry price was around RM1.27. It shot up to RM1.65 in the early of last month and since then it slumped more than 40%, which has already fall below my average entry price. MUDAJYA is more than 15% unrealized loss from the peak so far.
Let's have a look at the current situation. If Libya managed to stable down within 1 or 2 weeks and crude oil facilities remain robust, the oil price should be gradually retrace in tandem. If this is the case, it should be a short-term issue and offers an opportunity for us to buy low. I hope this will be the case, as I'm trying to accumulate potential companies with my remaining capitals.
I'm not sure whether it's a mistake. I've accumulated 1st stage of UCHITEC on yesterday morning. I accumulated it because it has high dividend yield like HOMERIZ, outstanding (looks like) management and the company earning seems gradually recovering from the bottom. In fact, I did not expect there is a big slump today. If not, I rather collect other potential stock with 5-10% discount this afternoon.
Anyway, if tomorrow is another slump day, I'll accumulate a stock falls under property sector as well as consider to average down my CEPAT share price at RM1.10 level.
By the way, I've received email from a reader recently. He asked me why I've disabled the 'comment' feature. My apology that I've took it off for temporary and thanks for your email. I've re-enabled the Comment feature for you to comment and discuss from now on. Will it be a good idea to add a chatbox in this blog too?
All the best, KLSE Winners.
Posts
Be greedy when everyone is in fear.
Have fun.