After several years investing in the stocks market, I believed that there are no special rules or theories that can guarantee us to make money. It may depend on your right judgments, timing and the most importantly is our investment objectives and also our lucks.
The stocks market can be viewed as the situation that we are fishing. Our fishing rod must be appropriate, our strategy and timing must be right in order to get a desired outcome. The conservative opinion normally is saying that we must look for the fundamental when dealing with our investment at stocks market, but sometimes we must understand that, normally that majority of the investors are more interested for high price volatility and liquidity of shares in the market. From that, they can apply the rule, buy at low price and sell at higher in order to achieve their required returns.
If I have extra money, I will focus on Oil & Gas as well as Telecommunications Stocks in 2011 in Bursa Malaysia. However, so far I don’t (Due to Lack of personal funds), but I am intend to do so.
Why Oil and Gas?
Commodities like crude oil are tied directly to Malaysia economy’s performance, due to Malaysia already become oil producer. Some of the players in the industry may benefited from the recent increase of oil price and the recent findings of new oil and gas fields by Petroliam Nasional Bhd (PETRONAS) offshore Sarawak are expected to boost the country's reserves.
A source quoted that Malaysia currently has 106 marginal oil fields containing 580 million barrels of oil and Petronas planned to develop 25% of the total marginal oil fields to replenish its oil reserves and generate new revenue streams.
Telecommunication industry is experiencing huge growth as more people use more of its services, whether mobile services or fixed. I may consider buying some stock from telecommunications companies because they currently offer great dividends payout. In Malaysia, among the telecommunication companies that pay quite attractive dividends are like TM, Maxis, DiGi while Axiata is believed to start paying dividends this year. But, however, I cant afford to invest in DiGi due to the price per share is more than RM 20 per share already.
Why Don’t Plantation Companies?
I am not favorable for this stocks due to the majority of this stocks, the share price are already high. Better to find out the stocks which affordable for me to invest but can give some capital gains or dividends.
The comments above do not represent a recommendation to buy or sell.