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Moolah
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Posting #11: Wed Oct 24th, 2007 06:16 |
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Random,
I do know who Dreman is. Do compare his notes versus what i had written when you have the time. ok?
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stockraider1
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Posting #12: Wed Oct 24th, 2007 06:19 |
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Contrarian investment will work if u combine your investment with strong financial analysis, businesslike approach with patient in your investment strategy.
Rationale;
1)Contrarian only when there is a basis such as mkt panic or temporary setback or neglected stocks upon investigation to its merits.
2)Financial analysis and business analysis inorder to confirm your hypothesis of mkt misprice the stock
3)Allow time for your hypothesis to work normal recommended time 3 yrs.
4)Monitor the stocks based on underlying business and only sell when wrong analysis or underlying business deteriorates or when it reach the 3 year holding
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Moolah
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Posting #13: Wed Oct 24th, 2007 06:23 |
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And I wonder... what's the difference between that from investing?
Hmmm... i guess the word 'contrarian' simply makes it much more... geng!
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random
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Posting #14: Wed Oct 24th, 2007 06:25 |
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Moolah wrote: Random,
I do know who Dreman is. Do compare his notes versus what i had written when you have the time. ok?
Kakaka.. Saw this coming..
Should have known the mere mention of Megan is like lighting a fire under your butt
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random
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Posting #15: Wed Oct 24th, 2007 06:29 |
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You see hor.. the reason I bring up this topic is I see people confusing the contrarian approach with the value approach
IMO, it is NOT the same..
Make no mistake about it, this contrarian thingy is a BET.. A bet on a troubled company
So the most important assumption of this approach is ALL TROUBLED COMPANIES WILL TURN AROUND. So when they do make a mistake its HUGE as you stand to lose everything. But when they do hit it it is usually big as well.
So number 1 requirement: Deep deep pockets (For buying and the way down and foregoing other investments during the turnaround periods)
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Moolah
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Posting #16: Wed Oct 24th, 2007 06:30 |
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And why is that so?  ( u miss me sooooooo much ah? )
If one had practised 'contrarian' investing in Megan... how?
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random
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Posting #17: Wed Oct 24th, 2007 06:33 |
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Moolah wrote:
And why is that so? ( u miss me sooooooo much ah? )
If one had practised 'contrarian' investing in Megan... how?
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stockraider1
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Posting #18: Wed Oct 24th, 2007 06:33 |
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Diff: Contrarian investment u are going for;
1)Bargain hunting during Mkt panic where normal investment will wait and see
2)Going for temporary setback beaten down stock where normal investor will run or wait and see
3)Going for neglected and inactive value stocks where normal investor will avoid
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Moolah
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Posting #19: Wed Oct 24th, 2007 06:35 |
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You see hor.. the reason I bring up this topic is I see people confusing the contrarian approach with the value approach
IMO, it is NOT the same..
Make no mistake about it, this contrarian thingy is a BET.. A bet on a troubled company
So the most important assumption of this approach is ALL TROUBLED COMPANIES WILL TURN AROUND. So when they do make a mistake its HUGE as you stand to lose everything. But when they do hit it it is usually big as well.
Very well said.
You see hor...
many are simply thought the wrong thing... and most amazing thing is.. some are even trying to pass this thingee around. :p
Just like value investing... yes... everything has some sort of value to it.. like garbage, they do have their recycled value in them... but in terms of value investing... can one really use this strategy on every single stock in the pasar?
Oh.... here is the question of the day...
So what's the value of a crooked company?
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random
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Posting #20: Wed Oct 24th, 2007 06:42 |
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Actually this approach is even riskier than say... trading warrants..
But.. High risk High return mah :p
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