When two great Shifus clash

When two great Shifus clash

The title Shifu is not simply accorded to any Tom, Dick or Harry or similarly to any Mary, Susie or Jane. The person being accorded with this title must have attained an expertise or a skills or even talent that have earned the respect of many. One does not simply become a Shifu instantly. Many times it comes with countless of failures to propel the person to rise and strive further ahead in what the person wants to excel.

On Bursa Malaysia, investors should be grateful that there are several great Shifus with vast knowledge and experience in investing the stock market. Most of them are kind enough to share of their ideas and thoughts through the media social online.

I admit I personally have great respect and admirations for many of them.  The way they went to great lengths to share their deep thoughts, ideas, analysis of stocks actually amaze a humble man-in-the-street like yours truly deeply.

Without all these great Shifus willing to share their expertise, where would most of us have the opportunities to access all these valuables informations of companies?

Yes, there are the weekly The Edge, Focus Malaysia and the monthly Smart Investors magazines available and a few subscription-based online website. But all these require money as these companies are run based on profit-based.

But what we read from all these great Shifus are free and we should seriously say a word of thank you to them.

Each Shifu has his own methods of investing which he is comfortable with.  As investors, we should try to understand their ways of teachings and do our homework to see if the methods are applicable to us or not. Not all methods are applicable to everyone. In short, there is no such thing as A Shoe that fits all sizes.

Since last year, two of Bursa Malaysia's great Shifus seem to have a clash against each others about their ways of investing using share margin account. Of course, in case you are not familiar with what I am talking, I am referring to our highly respected senior Koon Yew Yin and the equally respected gentleman, Kcchongnz.

Both must be the most highly respected Shifus. Both have posted impeccable track records of winnings big in Bursa Malaysia. Both are very highly experienced investors with vastly different ways of analysing stocks.

My article here is not to say which side is right or not. Similarly I am also not here to enjoin readers to take camp either. Rather I am puzzled that in the first place, why this "clash" started in the first place?

It would not occur if either side has just strictly adhere to their own views/sharing rather than taking a swipe at someone's else published comment?

Interesting when one takes a swipe at it, the offended launch a counter-strike again and it becomes a game of "you-striked-me & I-striked-you back harder game".

How long will this clash of views/ideas/methods end? I do not think it will end soon. Sometimes I feel this clashes are similar to politics bickering which might confused many naive investors especially those inexperienced ones.

My personal views are as investors, we should be ready to be exposed to different types of investing methods by all those great Shifus. But we need to evaluate which one is applicable and which one in not and use it to help  us to make better investing decisions that ultimately resulting in more profitable trades!

Buying 4,000 shares of

Chin Well Holdings Berhad

at RM1.69 on March 15, 2016

Chin Well is engaged in the manufacture and trade of fastening and wire products. It is believed to have a worldwide market share of 3%. It has a new high growth product lines : gate wires and gabion which is possibly a beneficiary of new train routes in South East Asia.

According to one blogger, Chin Well has a lot of loyal customers including some even up to nearly 30 years of business relationship. Wow, this is amazing because it is not easy to forge a business relationship of such long periods considering competitors here and there are trying to prise away customers with attractive prices and new products.

What I also particularly like about Chin Well is its net cash position of 23 sen per share. It is still in a net cash position of RM71 Million plus. Chin Well also has a 40% Dividend Policy which is quiet an attractive dividend stock.

Chin Well is one of the group of so-called export-oriented stocks that was surging to new 52-week's high of RM2.34 during the rally of the export-oriented stocks. In line with poor market sentiment towards the strengthening of the Ringgit to RM4.10 plus against the USD, panic investors dumped many of those stocks like no body's business. I was actually keeping an eye on several of those oriented-export stocks. Many of them are just doing fine with their business with good cash flow and paying good dividends.

Chin Well was actually one such stock in my buying radar range when the appreciation of the USD against the Ringgit started since last year. It was a blessing that I have managed to patiently wait until recently when the sharp sell down allowed me to pick up the shares.

Chin Well has done extremely well in the first two Qtrs for Financial Year 2016 ended June. Its first two Qtrs of 6.07 sen and 6.23 sen are almost 90% of its whole earning of 14.69 sen for Financial Year 2015 ended June.

A similar repeat earnings of its two Qtrs for Qtr 3 and 4 could mean an earnings of 24 sen which will be 64% higher.

Besides, investors buying now will be rewarded with a 4 sen interim dividend (corresponding period was only 2 sen) which will be going ex-date on April 1st, 2016.