Sometimes Up, Sometimes Down

Sometimes Up,

Sometimes Down

The stock market is always a mystery to me, despite the fact that it has been around for so many decades. Mystery in the sense that the prices move up and down from time to time due to whatever reasons real or not real.

I like to call it : Sometimes Up, Sometimes Down.

When our investment is up, we feel great and excited. Our level of excitement also depends on our level of paper profit. If the profit is a mere 5 to 10%, one might just feel a bit "syiok-syiok" only. But if the paper profit is more than that and sometimes almost 100%, one can bet that the excitement level would be different. Even the "walking style" of that investor will not be the same.

However on the other way round, a small paper loss of our investment to many would be just to shrug it off a just a bit loss only. It is only when the loss snowball to massive amount that many would not be feeling the same as before.

So one must be physically and mentally prepared when one sinks his hard earned money into the investment world. Even then, it is still not easy to be able to muster the heart of steel when the stock market crashes from time to time due to many factors, internally and externally.

As a ordinary man in the street, I have been affected to some degrees when my investment went up or crash down.

Take for example, one of my favourite sons, Fima Corporation Berhad or Fimacor. This stock is giving good dividends since the last decade.

The current price is RM2.53 post the share split and bonus issue exercise. But before the announcement of the exercise on June 25, 2014, the stock was trading at around the RM8 level. After the announcement, Fimacor went to touch a record high of RM9.72.

You can bet at that time How happy I were. My mind was simply Fimacor! Fimacor! Fimacor!

Well, sometimes up, sometimes down is very true. Post-exercise, the share price is WORSE! The current share price of RM2.53 x 3 is only RM7.59, much lower than the pre-exercise level.

And do you think my mind is still Fimacor? Fimacor? Fimacor?

Then early this year, out of the blue, came Tenaga Nasional Berhad's attempt to take over Integrax Berhad. As I hold some shares of Integrax, I am definitely thrilled by the rise of the share price of Integrax. It means my paper profit at the moment is vastly different compared to 2014.

And since the announcement in early January by Tenaga, Integrax's share price has been moving up by notches from time to time. First it was RM2.75, then it was revised to RM3.25.

Then came some reports that there would be a Voluntary General Offer from our "David" Amin shortly before the end of March.

But on Monday evening (Mar 30) came the announcement that Tenaga has managed to secure over 50% of Integrax shares. That means now Tenaga has secured management control of Integrax. Minorities shareholders like me are still able to participate in Integrax as the company will remain listed, well at least at that moment.

So the certainty is clear. Integrax will be under the control of Tenaga.

Then on Tuesday evening, it was reported that Amin would be selling all his stakes to Tenaga.

Well, that sums up everything with Tenaga eventually winning the battle for control of Integrax.

I hope to be able to come out more with my personal comment on this final episode of take over of Integrax in my next blog. At the moment I am still digesting on all these events and I need more time to think and analyse the situation.

The three months' saga of Integrax adds suspense and excitement to  me and those investors who are involved in the stock market especially when your paper profit can swing wildly by a big margin and one holds quiet a sizable numbers of shares of that particular company.

This saga has been taking a toll on my concentration since January. It has left me exhausted, physically and mentally to look around for other stocks.

Like I said before, all investors experience roller coaster feelings when their companies are involved in bonus issues or take over attempts which can impact the share price and ultimately result in paper loss or profits.

See, the stock market is such a wonderful mystery animal that can rock you to the top of the world and then drop you down and then send you up again in another rocket out of the blue!

An email from Sridhar Chandrasekaran on March 12, 2015 said : 

You have such an interesting blog. Thanks for sharing, I enjoyed reading your posts. All the best for your future blogging journey.

Thank you, Sridhar. I am glad that you are one of those readers who enjoyed reading my postings. It is extremely good when sometimes one receives compliments comments from time to time.

I notice that many people do not bother, or don't care, or find it hard to say or compliment on others for even a small service.

I am glad to say that I have always make it a point to say thank you to those service providers. Even though we pay for their services, a word of thank you can make their days brighter easily!

   

An email from Luiz on March 13, 2015 said : 

"What do I think of Suria Capital Holdings Berhad?"

Another port share trading at undemanding valuation?

I must admit I did not really pay much attention to this company. Other than reading its coverage from time to time in reports, this is one port stock that does not get my attention.

But Suria was featured recently in The Edge's - Insider Asia's Stock Of The Day. I am definitely sure good coverage was written in that article and as such should have attracted some interested investors who would have bought into the stock.

But I did not buy any Suria shares. I have not given it as one of my top next target stocks because I would have preferred small company stocks that are trading at simple price earning ratios with reasonable good dividends.

And I am still scouting at the moment ........