25 August 2011

VIS: My first 200% Profit Return from Bursa Malaysia 2011 - Experience Sharing

VIS is my first 200% ++ return from Bursa Malaysia 2011. I bought VIS when it was only RM0.12. “Are you crazy?” My brother asked me. “Its market price is only RM0.12. Don’t you fear it will bankrupt suddenly? Besides, its volume is so low, only few shares or even no transaction per day.” However, after my fear made me regret few times previously, I decided that I must believe in my study and analysis.  As a result, I bought VIS when its volume was low and its market price was only RM0.12.

I still remember that when I analysis VIS, I found that VIS was very profitable with profit margin of around 50% and EPS of 1.5sen in consecutive three quarters. What is good deal! I told myself. EPS of 1.5sen per quarter is equivalent to 6sen per year or PE of 0.12/0.06 = TWO!!! What is surprise!! After I bought VIS, it dropped to RM0.11. And then, after few weeks, VIS soared to RM0.15-0.18. I was so happy because it meant I got profit of around 50% if I sold it. But when I recap my analysis again, it was too cheap to sell VIS at RM0.18. So I decided to keep it. And then, its market price dropped back to RM0.13-0.14. At this time, the voices which advise me to sell it surround me every day.

After few more weeks, finally, VIS soared to RM0.18-0.19, again. After that, VIS moved around RM 0.17-0.19 every day. At this time, in order to reduce my worry (since I was still not confident enough in my analysis due to lack of experience), I decided to sell some of my VIS to get back all my capital. Guess what, after I made the first transaction at RM0.19 on the day, the market price of VIS soared to RM0.23 and never come back…. Never ever come back…. Suddenly, I realize that I need more confidence to persist my belief…

After that, I hold the remainder VIS regardless of its market price movement until one day, the market price of VIS soared to RM0.38!!! What a surprise!!! I was so happy. But I also feel pitiful since I sold out some of my VIS already.

From this matter, l learnt and realized that what my senior always tell me is right: Patience and value investment will help one achieves financial freedom eventually.
This sharing is not show-off my achievement in stock market investment, instead, is a remainder for me to recap my belief. Thanks for my dear Fire Senior here for his guidance, sharing and advice, which definitely change my destiny in stock market investment and help me to be a real value investor.  


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Written by: Xaivier Chia

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