Remember the LORD for it is he who gives you the ability to produce wealth and so confirms his covenant... Deut. 8:18

Saturday, November 22, 2008

Double Cheap Stocks

1 AUD = 2.22 MYR, 1000KrW = 2.39 MYR. Monitoring over next week..
Get ready to transact MYR to AUD and KrW for purchase of stocks in Aussie and Korea. It's going to be a double gain. Both stocks and currencies has fallen.
Stocks fallen by 50%. And it's cheaper to purchase now considering the currency fluctuation of 30%.
US market stocks are cheap too. Just beware of currency risk when repatriating your money back to Malaysia. Not a problem if you intend to park your monetary gain in USA for other venture.

A Stock's Price is Rarely the Same as a Company's Value:
The first thing I've learned is that a stock's price is rarely the same as the company's value. The reason for that is the valuation process is flawed. Stock prices are heavily affected by market dynamics and by investors' emotions. These emotions swing widely from pessimism to optimism. Also, many investors buy stocks with the intention of holding them for 1 to 5 years based upon information that really only applies to a short-term time horizon. While the information they are using to invest may be valuable, it is often the wrong information for their investment timeframe. If people invest in a company based on current information, they have to be prepared to act on any changes in that information in a much shorter time frame than most investors are prepared to do. Richard Driehaus

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