The unprofessional
A few type to unprofessional that exist in CNA forum :
1. Someone tries to curse and swear a particular stock and felt happy when it really goes down
2. Someone keeps telling people how accurate his prediction is, but he forgot to mention out of 10 other 8 go no where.
3. Someone keep changing his mind, when a particular stock is in uptrend and cheap, this stock is undervalue, BUY. When it reverse, although the value drop back to previous price range, he will say this stock is cheap, don’t buy cheap stock, buy value stock.
4. When volumn high and price not moving – accumulation in progress.
5. When stock at highest point – break out soon.
6. When stock at low point – bottom fishing time.
Too many already, kind of lazy to list them down. The good thing of surfing CNA forum is kind ppl used to post reports, info from various source and they are fast. Bad thing is too many ppl try to act professional and claim everything without any solid facts.
Retail investor can be innocent, but professional analyst shoudn’t be, or may be they are not professional enough. Will spend a little time to blog the following part because i’m also in China Paper, and the highest entry price some more LOL.
2 reports from Kim Eng about China Paper, issued within 2 weeks, but totally different story :
23 March Report
Price – $0.370
Target – $0.650
BUY because :
- Rare combination of attractive valuations, growth and yield
- Wheat pulp paper is a green product
- Big picture for the paper industry in China is very bright
- New products to drive revenue; integration to boost margins
4 April Report
Price – $0.490
Target – $0.370
SELL because :
- Company insiders sold a 16% stake yesterday
- Sales go against management’s assurance
- Corporate transparency is an issue with China plays
At the latest closing price of S$0.49, the stock has risen 32% from our buy call at S$0.37. We are downgrading the stock to SELL.
This remark is just pure speculation.
I believe everyone agrees that if major shareholders (especially chairman) sold their shares, it definate means something, company in problem? their personal finance in problem or? No matter what, it will affect the share for sure.
But i just can’t understand why there is a 180 degree change just within 2 week, because major shareholder sold large amount and never explain why (lack of transparency as indicated in report 2)? Yes, company must be demerit and downgrade if major shareholder sold and lack of transparency, but from BUY to SELL is too extreme, unless KE knows exactly WHY? But i believe they don’t know what happened also, else they won’t say is “lack of transparency”. Since KE doesn’t know, the more reasonable recommendation should be HOLD, to see wait for further annoucement, but why SELL? One reason that i can think of is : They are just another speculator, analyst will swing according to the market, but not explaining the market. Kind of sad huh !!!
Anyway i don’t read their report, so won’t affect me much, just don’t know if there will be some other ppl also think they didn’t handle this case properly.
I hope I got more money to stand by for China Paper, will see how, don’t know what to do also, can only watch it closely.
