In my previous article under the title You must know the company’s business before you invest, I pointed out that the products from Masteel, Southern Steel and Choo Bee are used in the building of houses and condominiums. Since there is already an oversupply of houses and condominiums in every city and town in Malaysia, the sales and profit of these companies will definitely be reduced in the near future. Some may even suffer losses. That is why the share prices of these companies have been falling
The above chart of Choo Bee shows that its price has been falling and the volume of shares traded has been increasing in the last 2 or more weeks since the news of the Megasteel closure. This hot news has attracted a lot of ignorant people who simply buy without a clear understanding of the company’s business.
If you look at Choo Bee’s announcement in Bursa Malaysia, you can see its Director Mr. Soon Cheng Boon and Lambaga Tabung Haji have been taking the opportunity of the hot news of Megasteel closure to sell some of their holdings.
Obviously my article has helped readers to invest wisely. They would have sold their holdings or they did not buy it.
Buying Choo Bee’s share is the same like buying any property company’s share.
By the way, in the same article I recommended readers to buy CSC Steel because its products are for making motor cars, fridges, computer casings, factory roofs etc.
Obviously my article has encouraged a lot of smart people to buy CSC Steel. As a result, its price has been going up continuously and I have to buy at higher prices. All of my remisiers and friends cannot understand why I would recommend the whole world to buy CSC Steel when I still want to buy more and more. I am doing it as if I am doing charity. I am teaching people how to fish instead of just giving out fish to them. I want to teach people how to make more money from the stock market. Moreover, I do not mind buying it at higher prices because I believe the price will go up much higher.