September 22, 2007

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Last Updated on September 22, 2007 by stlplace

Week in review 09/16 to 09/22

0) Sept 22 is “no car day” in many Chinese cities. Individual car owners are encouraged to take public transportation. I saw some volunteers on Zhongshan park metro station.

1) According to China Capital week, 中文难倒高盛, Goldman Sachs senior executive, Malysian Chinese Richard Ong, failed the Chinese test administrated by CSRC. Because of that Mr. Ong can not take the top postion of Goldman China.

2) US federal reserve hikes interest rate by 50 points. Higher than many people expected. The more important question investor should ask: is Mr. Bernanke trying to rescue the market, or the economy?

3) You got the RMB, we got the IPOs. To contain the excessive liquidity in China, the CSRC recently approved the Haigui IPO of 3 big state owned companies: China construction bank, Sheng Hua Coal, and Petro China.

The reason people called it Haigui is, those stocks have been listed in Hongkong Stock Exchange for a while. Now they are returning to the Shanghai A share market, at a much higher price compared to the price listed in HK a few years ago.

My investing journey III: 2004 to 2005

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Last Updated on September 22, 2007 by stlplace

After I got some moderate success on OPSW and GE in early 2004. I got a bit excited.

If I could use one word to summerize what I did my acitivies on stocks in those two years, it’s speculation. I did all kinds of speculations, luckily I did not get into really dangerous zone: margin, short and options. So my loss is still limited (a few thousand dollars each year). I did the following speculations:

1) Bet on earning: from PALM, Redhat (RHT), NetEase (NTES) to more speculative plays such as Look Smart (LOOK), the9 (NCTY), I never made a dime on betting ERs. The common scenario is I bought them right before the earning. The stock price already reflected best case scenario. Even if the company came out with a blow out (good) earning, there wouldn’t be much upside. But in reality 100% of time they did not beat the estimate by wide margin. So…I had to sell the stocks after earning to limit my loss.