Investing

Hengyuan: Test your investing skill

The chart below shows that the share price of Hengyuan has been going up from Rm 3 to Rm 14.41 within the last 12 months

Many investors would know that I have posted a few articles on my blog and on i3investor.com, recommending buy on Hengyuan.

Many readers doubted my sincerity. What prompted me to write this piece is because I found out that a few of my friends including a fund manager did not believe me and they did not buy any Hengyuan.

Let me test your investing skill:

Case 1 If you do not own any Hengyuan, do you want to start buying?

Case 2 If you are holding some Hengyuan, do you want to buy some more?

Case 3 If Hengyuan is your largest holding in your portfolio, do you want to buy some more?

Case 4 If Hengyaun is your largest holding in your portfolio, do you want to sell some to take profit?

Case 5 If you have sold earlier at cheaper price, do you dare to admit your mistake and buy some more at a higher price?

Case 6 As you know Hengyaun share price has been going up everyday in the last 7 or 8 trading days without any correction, do you want to sell some?

Case 7 As you know, no share can go up continuously without correction, if you decide to sell, will you buy back when it continues its upward climb?

Case 8 If the price continues to fall after you have sold some, will you continue to sell?

All readers are very interested to know my advice. I cannot advise you because I am in a dilemma.

As you can see from the picture, I am riding the motor cycle and my wife is laughing all the way to the bank!

A few days ago, Maybank Investment Bank stopped my wife from buying some more Hengyaun because her holding of Hengyuan exceeded 33% of her the total value of her portfolio. Since the price has been going higher everyday, her position is getting more difficult.

As I have 7 margin accounts with all the 7 leading financial institutions, I have been discussing with the Banks about the 33% limit of any one counter. They say it’s the Banks’ security policy. I said the Banks must have hundreds of clients and most of them do not hold Hengyuan. What is the risk?

They said their policy is also to protect the clients. Fortunately, 3 of the 7 institutions allows me to buy more than 33%, because they trust my ability and judgement.

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