A very very good read from Next Insight.
An article contributed from Chris Tan, CEO of Providend.
Teaches you a short history about the stock market. Professional managers may not be always right. Lastly, ignore the noise.
Short quotes from Chris Tan:
"Greed will keep us buying even though prices are at a ridiculous high and will prompt us to sell in panic when we realize how ridiculous we have been."
"Investment professionals always say: 'This time is different'. I disagree. I say there is nothing new under the sun."
"The Internet bubble has clearly shown that professionals are not always right. In fact, they could many times be wrong. How could fund managers, investment advisers, wealth managers, so called experts not know that those Internet stocks were selling at a ridiculous price?"
Click on this link to read.
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3 comments:
I read from LP's blog that you're waiting to collect CourageMa.
I'm waiting for the right price too. But I'm just thinking if u and i can do a small discussion on this company based on our FA analysis.
My blog is www.bear-analysis.blogspot.com
If you're interested, drop me a post or add me on msn.
Hi jingxiong,
Regarding Courage Marine, I'm kinda hesitant, will the BDI drop more after the olympics? Nobody knows. I'll take the safest route to wait and see their next financial results.
From my understanding of the company, BDI contributes to the rise and fall of revenues, but the main focus is on how the management utilises ships. On average, their ship utilisation is 90%. So far I have no doubt about the management of the company on cost control, but in the business itself. Their balance sheet is fantastic. I'm more concerned with the growth prospects of the company. Are they able to increase their market share while maintaining their huge margins and ROE? Heard that they are trying to buy more 2nd hand ships and expand. Until they kept their promise, I'll wait first. I noticed that they sold 2 ships last year, duno why.
BDI is around 7500 now.
At all news that BDI is falling and such, CM has managed to increased their profits by 67% compared to last quarter.
For me, utilisation of it's fleet is key to it's revenue.
Throw in the dividends they payout, at current price it's about 12+%, which is attractive.
I'm still holding back though....
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