My golden rule for buying: My golden rule for buying is that the company must report increasing profit for 2 consecutive quarters. Many people who have followed my recommendation have bought Dayang. Some of them have asked me when they should sell Dayang since it has gone up so rapidly. The price gone up by 8 sen and 13 sen in the last 2 trading days respectively. Many shareholders are naturally tempted to sell to take profit.
The price chart shows that it has gone up from 90 sen to close at Rm 1.93, a gain of Rm 1.03 or 114% within 4 months. I know many people have already sold earlier. In fact, one famous so- called expert advised all his followers to sell because he has sold all his Dayang earlier. Only time will tell who is right.
My rule for selling
My rule for selling Dayang or any share is that I will only sell as soon as I see the company is reporting less or reduced profit. If the company can continue to report increasing profit which is the most powerful catalyst for moving share price, I will not sell. If the company can continue to report increasing profit, I am not afraid to buy. Since the value of my holdings have gone up, I will have additional margin facilities to buy some more Dayang on Monday.
Deja vu is a French word meaning a feeling of having already experienced the present situation before.
I have used or followed this buying and selling principle before to buy Lii Hen, Latitude and VS Industry. Lii Hen and Latitude shot up more than 800% and VS shot up more than 550% within 3 years. Their 2016 annual report shows that I was the 2ndlargest shareholder in Lii Hen and VS Industry and 4thlargest shareholder in Latitude. VS Industry 2016 annual report showed that I was the 2ndlargest shareholder, holding 102 million shares.
Dayang will report its 3rdquarter result before the end of November. Looking at the aggressive buying in the last few days, it looks like many rich fund managers already know or expect the 3rd quarter result to be better than the 2ndquarter. It is so foolish to sell Dayang when it can continue to report increasing profit, especially when the price chart is extremely bullish. People can lie but chart cannot lie. Only stupid idiots who know what is an up trending chart to sell their shares.
I know a few braggarts who have sold Dayang earlier and hope to buy back at cheaper prices. They are now regretting because they cannot buy back at cheaper prices. They are in a dilemma to buy back or not to buy???
My intention in writing this piece is honourable. You must remember whether you buy or sell will not make any difference because the daily traded volume is tens of million shares.