I highlighted on the profit warning from CSC Steel this morning. Profit Warning From CSC Steel
CSC Steel is up some 5.8% or 6 sen!
When a company issues a profit warning saying that "net profit and revenue will be lower than in the same period last year due to lower selling prices and demand" and the stock shoots for the moon, you know something has gone out of whack!
So how brown cow?
On one hand, you know the trend is your bestest friend in the market.
However, when the trend goes totally out of whack and against common sense, do know what is best for your money.
:D
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3 comments:
maybe people are encouraged by the honesty shown by the company's directors!
Hi Moola,
Just to side track a bit, not related to CSC.
A company issues a profit warning and at the same time approve share buy-back policy. The record shows there is significant buy-back from the company.
The tricky part is to determine which one is the trick for the investor - a) profit warning or b) share buy back policy ?
Shall the investor look at other evidence that avail in the system or make their decision narrowed on the issued profit warning and share buy-back policy announced by the company.
The philosophy part of it is that sometimes our decision is based on certain factors, but these factors are not independent from "human intelligence, wit and emotion", actually very humane in nature ( not without error) and these changes with respect to time and market situation.
My bigger question is , shall a decision is based only on narrow collection of evidences or shall w widen the collection of evidences to come to one last conclusion.
I am still pondering about this philosophical matter, the fact that we are not detached from human (ie we are not isolated, living in a silo or whatsoeva) made it more difficult to be concluded.
Seen alot of this type of trading in KLSE.
Even on the eve of bad news, the stock price will shoot up.I guess our market is still consider small thus prone to manipulation by stock operators.
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