(08-11-2014, 08:14 PM)greengiraffe Wrote: Gd Luck Crab....
Trading a big downtrend stock can be exciting when you catch a turning point...
What if the turning point is false? GG almost got killed trying luck on AGO, Atlas Iron. I lost a finger... that iron stock has since plunged to 23 from my last cut loss level of 36.5. Note I start trading at 55 late Sept when stock was deleted from S&P index rebalancing...
Osim's earnings model has never been transparent - both in terms of chair, vitamins and even TWG.
That bad patch post GFC when the stock was dumped to a penny stock status is a good reminder.
I won't dare catch a falling knife. Got $ better off writing off against a Uinfinity and get some enjoyment.
Odd Lots Vested
GG
(08-11-2014, 07:58 PM)crabcrab Wrote: Osim Int'l ($1.80) - This massage chair company has seen its biggest declined in share price in recent month. A growth company with Osim, Gnc & Twg under its brand name. It seems to me that the recent shorts of this counter may be coordinated effort, timely and swiftly especially before the announcement of Q3 results. The so-calles Analyst reports are like putting salt on wounds.. Fundamentally, OSIM at current level may be start to be a fair value of a trading stock. All negative news seems to have been factored in and net sellers of Osim in previous recent weeks seems to have become net buyers (Crab start trading recently in Osim and saw the counter parties were largely foreign funds)... In the near term, possibly went back above $2.00 due to massive short covering in OSIM shares? At this time, it is of anyone guess.. But seems that the longist are striking back... Gd luck..
(0Crabcrab vested, caveat emptor)
Many may be confused between "trading a stock" and "investing a stock". Allow me to further elaborate...
In the recent scenario of OSIM, that will depend on whether one placed a view on trading or on value investing. IMO, Osim is definitely not for those who are looking for a steady dividend with a steady stock price. However, the recent volatility made it a valid reason to trade in this counter. Be it to short or long, the ability for the price to move (be it up or down since we can trade on both side) must be the key factor for a trading stock. Be it Osim trading at $3.00 per share or $0.10 per share, still it is the price fluctuation that counts in a trading stock. And you must guess the direction right to make gains. If one take on a view of value investing, stocks like Osim should never be in one's portfolio due to its profile..
In contrary, we should invest and not trade on good quality undervalued shares with little price movement. (I don't call them blue chips as blue chips may not necessary be undervalued). Many will know that companies like Hiap Hoe and Bonvest had deep value. But so what if it is cheap? There is little price movement. We should avoid such stocks if we take a trading stand. If one take a short stance in trading such stocks, it is more likely that the price movement is likely to be minimal, unless some positive/negative announcement that act as catalyst made the price to fluctuate suddenly. Over the long run, these companies should move upwards, provided no major negative development.
So it depends on whether we are taking a position on investing or trading. In summary, trading means we want price movement and never mind that valuation. We just want to make from the price difference.. (Be it we long or short the shares)
But in investing, we want values, anything that is undervalue can make a bet in it.
So what is your stand now, trading or investing? Good luck..
