Tuesday, November 29, 2011

Shortlist For Shorting Stocks (Updated)


Well this was posted back in June 2011, which in itself was an update from December 2010. Almost 6 months now, KNM is now 97 sen which meant that it lost more than 50% (so how, Simon, where are the back stoppers ... just a shoutout to one of the commentators). Of course if taken with the original posting, the stock would be considered decimated from the RM2.89 level when i first wrote the shorting post.


Green Packet is more resilient. Its now at 59 sen, meaning it lost just 21%.


Would these two still be worth shorting at current level? Even if they were worth shorting, are they still the best stocks to short from the whole of Bursa?



The answers is Yes and Yes. Green Packet is more an Angry Bird stock, you have to keep hitting the walls, and the walls are creaking and moving ... you sometimes have to wait for the egg to explode for the thing to crumble.



Friday, June 03, 2011




I think this was posted last year 29 December. KNM closed yesterday at RM2.01. Green Packet closed at 0.75. GPacket is doing very well price wise, we'll see, we'll see... Anyways, some friends visited a recent exhibition in KL where KNM had a booth. The picture may tell a wonderful story of the company ... (click for larger image to read the inscriptions).

----------------

29 December 2010

Unfortunately, we don't get to short stocks in Malaysia, and in many markets actually. When we think of shorting stocks, it is very easy to pick the highly speculative ones with zero fundamentals. Its a no brainer to lump stocks such as Maxbiz, Compugates or Tejari and the likes to the category of stocks to short. In fact, if you try to short these stocks, they will come back to bite you as they are highly speculative and share prices could double or triple for no reason if they "manage" the stock price well enough.



A genuine stock shorting process involves company that is running on supposedly good fundamentals, but you do not think that that is the case in reality. Some will ask, why even talk about them and make enemies. I think its pathetic to only talk about good stocks. Sometimes its good to have an opinion of stocks you do not like.

However, to save myself, I will not elaborate on why I think they are my favourite stocks to short, but let me assure you that I stand behind my views 100%. I will check back on their respective share prices every 3 months and see how they fare. I think both are excellent stocks to short on a 1-2 year time horizon.

The stocks on my list that no one wants to be in:

KNM ($2.89)

Green Packet ($0.71)

I am sure plenty will differ in their views, and thats what makes a good liquid market place, there are always buyers and sellers. If you go long, please rub it in my nose 3,6,9,12 months down the road if they continue to perform well. I will accept the dressing down gleefully.



NOTE: The above opinion is not an invitation to buy or sell. It serves as a blogging activity of my investing thoughts and ideas, this does not represent an investment advisory service as I charge no subscription or management fees (donations are welcomed though). The content on this site is provided as general information only and should not be taken as investment advice. All site content, shall not be construed as a recommendation to buy or sell any security or financial instrument. The ideas expressed are solely the opinions of the author. Any action that you take as a result of information, analysis, or commentary on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.

25 comments:

cwblog said...

What's happening to CBIP? any comment?

Kingsmen said...

hidden gem for 2010....weida and cypark....go green

Loo said...

KNM has had many retailers caught previously despite this stocks trading with top ten volume previously. I guess KNM would still be a retailer's favorite. Personally I dont like this counter. GPacket may not do well in the near future. Technically, it is trading below its 200 day moving average. Financially, it does not look like the company will do well in the near furture as its P1 broadband service is absolutely attrocious!

bonny b said...

Dear Dali,
U may like to know that KNM may be clinching another US1b contract soon, so says the grapevine.
Caveat Emptor..

Roy said...

Agree on your list.

Is there any way at all that we can short stocks in Malaysia? Thanks.

Nostradamus said...

Will it go back to 80 sen = (Rm 3.20) before retrace back in 3 to 6 months? What are the assumptions for the retracement in 3 - 6 months time?

simon said...

short KNM? big big mistake
lets bet rm1.00?

simon said...

shorting KNM? big big mistake.

Simon said...

both company may have back-end support that might shock you if you short.

Andy said...

You left out IJMLand! Talk abt insider trading and corporate governance crap. Those insiders were clearing their stocks this morning before the news was out!

tkl said...

Add another useless ctr....mudajaya
tkl

Jim Cheng said...

To all blogger, wishing you Happy New Year.

Well wishing from
http://stockmarkettalks.blogspot.com

traderszone4u said...

Happy New Year 2011 to Dali and all blogger. Hope we can see the strong economy recovery in year 2011 especially the ailing countries i.e US and Europe able to recover in 1H 2011.

emacro said...

Follow the money.... use a long term moving average and she'll be right, mate...

thebigbang said...

Turkey solution provider
LOL

kine said...

Only the market makers have the
advantage to short the market.
They are allow to play both long &
short . It is the ability that can
short the market that will make them
a billion ton of money effortlessly!

khtee said...

Just curious, if there is an active stock futures/options market will you short it there ?
Cheers

Kingsmen said...

In a strong wind even TURKEYS can fly.....i think whoever doing this promotional booths adverts is history now....

steve said...

KNM is from Turkey? lolzzz

Breakingbrokers said...

Whats going on with CBIP?

FrankKer said...

Ya, i agree that Gpacket's share price is overvalued.

peng said...

Sounds like most of you just simply gambling..good luck to you. You should keep your money for your kids education instead of throwing it away.

Category of One said...

According to 1-million-dollar-blog, there's something introduced in 2006 called Regulated Short Selling (RSS) in Bursa Malaysia, but it's limited to certain stocks.

http://1-million-dollar-blog.com/regulated-short-selling-rss-on-bursa-malaysia/

http://www.bursamalaysia.com/website/bm/products_and_services/SBL/downloads/cir_sbl1_2006.pdf

nick said...

Turkey solution provider??? Ornithology engineering or psychiatric problems??? Call KNM! LOL!


Nick.

Unknown said...

KNM will be another episode of pebbles stone where the shine has no longer but the dawn is still far. Despite written lost in 3Q; year end closing is expected neither will not seeing any glory. I am more concern to mine "one lot" 7164 if she can survive through the stormy water. Recalling those last exaltation 2006/7,I am definitely not prepare to sing "Memory - The cats".