Wednesday, November 11, 2009

The Proxy Theory

Alot of times, it unwise to chase stocks that has ran alot maybe because of stirling results or acquisitions. Deep down inside, you feel like banging walls for not following your heart and buy it in the first place. This is the emotion turmoil a trader would go through time to time.

Don't look back anymore!!! Let me introduce the Proxy Theory.

For instance:
a) SembMar (SMM) has soar to 3.50 while its mother share Sembcorp Industries(SCI) is at 3.30. You should take Sembcorp Industries as a proxy. SCI owns 40%-60% of SMM.

b) EzionHlgs has been promoted to the STI mainbaord from Catalyst board. Its most recent profit has soared 140%. If you have missed out on this gem, no worries there's always Ezra which owns 16% of EzionHlgs.

c) Kepcorp owns substantial amount of Kepland and KepT&T. KepT&T owns part of M1.


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