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PR Newswire
09-01-2013, 09:18 AM
By Sylvia Paik | Posted: 08 January 2013 2250 hrs
SINGAPORE: Some stocks like Rowsley and Geo Energy have been in the spotlight with retail investors recently after being linked to high-profile investors like Peter Lim and Jim Rogers.
But experts said retail investors should avoid following a herd mentality when picking stocks.
Instead, they should look for businesses with strong management teams and solid fundamentals.
Rowsley, which is a Singapore-listed firm controlled by "Remisier King" Peter Lim, saw its share price double in just a week after it announced plans to acquire a site in Malaysia's Iskander region.
Rowsley's share price on Tuesday closed at S$0.315, up from December 20, 2012 price of S$0.14.
Meanwhile, Indonesian coal miner Geo Energy's share price has nearly doubled since Jim Rogers joined its board a month ago.
Jim Roger's appointment as non-executive director was announced on December 3, 2012. Geo Energy shares closed at S$0.635 on Tuesday, up from S$0.35 on November 29, 2012.
Geo Energy granted Jim Rogers a call option over two million shares, at S$0.35 per share, with an exercise period of 10 years, commencing on January 1, 2015.
His involvement is in line with his views on the potential in the energy sector.
Mr Rogers said: "You should never invest in anything unless you know what you are talking about yourself. People should not listen to people they see in the press because you don't know what I'll do. I might sell it next week. If you bought it because of me, and then I sell it, I'm not going to call you up, and say Bill, Mary, I sold my stock. You should sell yours too. I don't even know you bought it."
Analysts said this trend of investing on the coat-tails of well-known investment personalities has its benefits and risks.
Roger Tan, Chief Executive Officer of SIAS Research, said: "For retail investors, the most important thing and the most difficult thing is acquiring information. Information is difficult to acquire and expensive to acquire. Most of the time, what they do, is they try to look for good investors, well-known investors, as a way to find signals to go into companies. And it reduces the effort of trying to acquire information.
"The upside of course, is that by following them, and if you follow them early enough, and these gurus get it right, then the payoff is a lot higher."
Terence Wong, who is the co-head of research at DMG & Partners, said: "Investors need to be very much more cautious when investing with the herd, or just on the backs of these so called market gurus. Many of these guys have a long term perspective and very very deep pockets.
"They can afford to lose millions, or tens of millions. But many people, they park a good part of their wealth into such stocks. And when it doesn't happen, it's going to hurt them a lot harder than these market gurus."
Analysts said there is simply no short cut to making fast cash.
They say retail investors should look at the fundamentals and valuations of the stock before investing.
- CNA/fa
http://www.channelnewsasia.com/stories/s...54/1/.html
SINGAPORE: Some stocks like Rowsley and Geo Energy have been in the spotlight with retail investors recently after being linked to high-profile investors like Peter Lim and Jim Rogers.
But experts said retail investors should avoid following a herd mentality when picking stocks.
Instead, they should look for businesses with strong management teams and solid fundamentals.
Rowsley, which is a Singapore-listed firm controlled by "Remisier King" Peter Lim, saw its share price double in just a week after it announced plans to acquire a site in Malaysia's Iskander region.
Rowsley's share price on Tuesday closed at S$0.315, up from December 20, 2012 price of S$0.14.
Meanwhile, Indonesian coal miner Geo Energy's share price has nearly doubled since Jim Rogers joined its board a month ago.
Jim Roger's appointment as non-executive director was announced on December 3, 2012. Geo Energy shares closed at S$0.635 on Tuesday, up from S$0.35 on November 29, 2012.
Geo Energy granted Jim Rogers a call option over two million shares, at S$0.35 per share, with an exercise period of 10 years, commencing on January 1, 2015.
His involvement is in line with his views on the potential in the energy sector.
Mr Rogers said: "You should never invest in anything unless you know what you are talking about yourself. People should not listen to people they see in the press because you don't know what I'll do. I might sell it next week. If you bought it because of me, and then I sell it, I'm not going to call you up, and say Bill, Mary, I sold my stock. You should sell yours too. I don't even know you bought it."
Analysts said this trend of investing on the coat-tails of well-known investment personalities has its benefits and risks.
Roger Tan, Chief Executive Officer of SIAS Research, said: "For retail investors, the most important thing and the most difficult thing is acquiring information. Information is difficult to acquire and expensive to acquire. Most of the time, what they do, is they try to look for good investors, well-known investors, as a way to find signals to go into companies. And it reduces the effort of trying to acquire information.
"The upside of course, is that by following them, and if you follow them early enough, and these gurus get it right, then the payoff is a lot higher."
Terence Wong, who is the co-head of research at DMG & Partners, said: "Investors need to be very much more cautious when investing with the herd, or just on the backs of these so called market gurus. Many of these guys have a long term perspective and very very deep pockets.
"They can afford to lose millions, or tens of millions. But many people, they park a good part of their wealth into such stocks. And when it doesn't happen, it's going to hurt them a lot harder than these market gurus."
Analysts said there is simply no short cut to making fast cash.
They say retail investors should look at the fundamentals and valuations of the stock before investing.
- CNA/fa
http://www.channelnewsasia.com/stories/s...54/1/.html
Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.
