Saturday, July 25, 2009


20090725 Salvatore Deli of Malaysia Finance Blog likes MPHB for its 'meat value for potential vultures'. The price has surged last Friday. Looking at the chart how would one play it from a trading point of view? Well, if one were to commit a certain amount in this trade, you could chase the price and buy 1/2 position on break of the highs, then enter the 2nd 1/2 on retracement to the 8 ma on the 60 min charts. Stop loss? 1.40 may be good. Just an idea.(remember this is only for hypothetical purposes only)

20090726 Oh, I just want to add that this type of trade in a stock is 'from a tip'..... If everyone is in a trade it might go for a while, but the insiders have already got on the train 5 stations before you do..... Let's see how this pans out. As Salvatore says, the fundamentals are compelling for a corporate raider to come in and take a strategic stake in the company. If so, a better strategy is to keep the stock on the radar screen, in case there is a sharp market correction to enter. This type of 'value investing' play is superior to the kicks one gets from taking a gamble on a stock.

0 Comments:

Post a Comment

<< Home


"There is the plain fool who does the wrong thing at all times anywhere, but there is the Wall Street fool who thinks he must trade all the time."J Livermore Manchester City FCl Crude Palm Oil

fcpo.blogspot.com


From Dragons and Bulls by Stanley Kroll
Introduction and Foreword
The Importance of an Investment Strategy
5 The Art of War, by Sun Tau (circa 506 BC) and The Art of Trading Success (circa AD 1994)
That's the way you want to bet
Long-term v Short term trading
Technicals v Fundamentals
Perception v Reality
Part 1: Winners and Losers
Part 2: Winners and Losers
Sun Tzu: The Art of War
Those who tell don't know, those who know don't tell
Why there is no such thing as a "bad market"
The Secret to Trading Success
The Experts, do they know better?
Risk control and money management
Larry Hite: The Billion Dollar fund Manager
Systems Trading:Kroll's Suggested Method
Buy the Strength Sell the Weakness
Good advice
The 'good bets' business by Larry Hite
Don't lose your shirt
Ed Sykota's secret trend trading system