Trader and Investor

Trader will buy or sell whenever he feels that there is an opportunity irrespective of whether it is market top or market bottom, uptrend or downtrend. He usually follows the short-term trend and the 'herd' movement. An alert trader that can follow the market closely can be very successful in a 'well behaved' market. Trader goes for active stocks that are in motion. he looks at short-term chart movement as long-term has no meaning to him. Stocks such as IOI, IJM and Gamuda are the preferred stocks for trader. These stocks have moved, active and are still moving as shown in the following short-term chart.



Investors usually looking for long-term or at least medium-term return. They look for value buy, good earning, good NTA and good dividend yield, they like to 'average down' for their selected 'value stocks'. They avoid the 'herd' and at time be a 'contrarian', buy when others are selling (this action sometimes can be an expensive adventure). They usually look at long-term chart as shown below to make sure that their entry point is low. Stocks which are hovering at the long-term bottoms are their choice. Stocks such as HDBS, TA, OSK, Bandar Raya or any other stocks with similar pattern are usually in their shopping list.

Inch Kenneth after touching a low of 16 cents, it closed last Friday at 22 cents. In its Dec 2008 quaterly report, it last quarter earning is -0.39 cents. Net asset per share is Rm 1.26. It was reported that 'the company is in final dicussions with a few parties to dispose of its 600 acres of land near Bangi'. This alone will give the company a cash backing per share of about 30 cents (using Rm 200,000.00 per acre). The company has another piece of land 350 acre in Kajang with an estimated gross development value of Rm 1.2 billion to Rm 1.5 billion. Bank borrowings and other payables totalled Rm27 million against cash in hand and other receivables of Rm 14 million. At 22 cents Inch Kenneth should be in the list of the investor.