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Post by zuolun on Mar 31, 2014 16:35:51 GMT 7
Yes, companies use debt to grow their businesses exponentially. Theoretically, if your borrowing costs is low and you are able to put the money to better use, you can create more profits with the borrowed money even after paying interests. The theory falls apart when the economy spirals downwards. Banks will then charge more for their loans as the risks have increased. Worse, business slows down dramatically in a recession creating a double whammy for those who have borrowed hoping to create more wealth. At this late stage of the bull run, I too shy away from companies with heavy debt burdens. I wish them well as they really need all the luck they can get! oldman, This Malaysian property stock, TROP fits your above description. Although the company is extremely highly geared but the chart pattern shows a nice rounding bottom.  TROP — Rounding bottom breakout; TP 1.79TROP closed at day's high with a white marubozu @ 1.57 (+0.18, +12.9%) with high volume done at 11.1m shares on 31 Mar 2014. Immediate resistance @ 1.605, immediate support @ 1.49 (resistance-turned-support).   |
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Post by oldman on Mar 31, 2014 17:06:42 GMT 7
I am still cautious about the Malaysian stock market.... currency issues as well as banking regulations. My preference is still Singapore stocks... just that a time may come when I think controlling a listed company may make more sense as you are then in control of your own destiny. I just need to be patient for the market to crash first.  |
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Post by zuolun on Mar 31, 2014 19:02:39 GMT 7
oldman, There's a Chinese saying: 见好就收 = "Quit while you're ahead." Blumont's EW chart pattern already looked extremely toppish to me in mid-Sep, prior to the collapse on the 3rd of Oct. I am still cautious about the Malaysian stock market.... currency issues as well as banking regulations. My preference is still Singapore stocks... just that a time may come when I think controlling a listed company may make more sense as you are then in control of your own destiny. I just need to be patient for the market to crash first. oldman, You practise 见好就收 = "Quit while you're ahead."
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Post by zuolun on Apr 10, 2014 12:20:43 GMT 7
TROP — Bull Flag formation
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Post by zuolun on Apr 28, 2014 9:59:02 GMT 7
TROP — Double Top formationTROP closed with a hammer @ @ 1.57 (-0.02, -1.3%) with thin volume done at 0.76m shares on 25 Apr 2014. Immediate resistance @ 1.60, immediate support @ 1.54, next support @ 1.51. Should the pullback move down to 1.48, the 38.2% FIBO retracement and hit lower low, the bull flag is negated. Alternatively, if the pullback hits 1.55 and U-turn to hit above 1.66, the last high scored on 2 Apr 2014, the double top is invalid and the uptrend will resume.  TROP (weekly) — Trading in an upward sloping channel TROP — Bull Flag formation
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Post by zuolun on Jun 11, 2014 13:39:33 GMT 7
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Post by zuolun on Jul 9, 2014 12:42:47 GMT 7
TROP — Double Top Breakout, TP 1.36
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Post by zuolun on Oct 5, 2014 11:34:55 GMT 7
TROP — Semi-round arch / "Mushroom Of Death" chart pattern, TP RM 1.19TROP closed @ RM 1.26 on 3 Oct 2014.  TROP — Double Top Breakout, TP 1.36
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Post by zuolun on Oct 9, 2014 10:11:31 GMT 7
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Post by zuolun on Jan 2, 2015 13:17:04 GMT 7
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Post by zuolun on Jan 15, 2015 14:11:47 GMT 7
Insiders tradingTROP — Bearish Gartley FormationTROP closed @ RM 1.04 on 14 Jan 2015. 
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