Tuesday, June 9, 2015

My stock selection criteria and strategy - Ooi Teik Bee

Dear valued readers,
This posting is not to challenge KC Chongnz, it is also not to compete for business with KC Chongnz. If you think KC Chongnz's strategy on FA is very good, go ahead and learn from him. I want to stress that I had spent a lot of money to learn FA, at last I learn most of my FA knowledge from him. I will continue to say that he is the best FA sifu here, the best of the best FA teacher. There is no question about it honestly. Thank you.
I do not want readers here to mistaken that I am very arrogant, my intention to post this article here is to share my knowledge how to pick the stock according to my methods to win big in stock market. I had tried it for last 3 years, the results were very good as shown below :-
How is my performance in I3investor.com ?
 
Please check my track records in I3investor.com. Below is the summary :
a. I made 57.5% gain in 1H 2013 (1H competition)
b. I made 46% gain in 4 months (2H competition)
c. My 2014 selections, made 61% gain within 12 months
d. My 2015 selections, made 59% gain within 5 months
Please check the aforesaid records in I3investor.com.
 
I also want to clarify that I did not say "FA is not good", I try to say that you want to win big in KLSE, you need more than just FA. Below is my clarification.
You can check with my subscribers, I will not recommend any stock to buy without fundamental. 
I also will not buy very good FA stock if the stock is a down trending stock. Hence I focus more on TA. 
FA is not my sole stock selection criteria. 

I do not want people here to twist my facts. 
To win big in stock market, FA alone is not good enough. You need a combination of market psychology, TA, FA and sectors to focus. 
I also use FA to invest, but it contribute only 25% of my total consideration. I focus more on TA. 
If FA is very good, technical chart is a down trending stock, I will not buy this stock even the margin of safety is very high. 
I am not a long term investor, I want high growth stock so that my ROI is very high in every year. 
My stock selection criteria
I select the stock based on the following criteria :-
  1. Breakout chart - TA
  2. Up trending stock - TA
  3. Undervalued stock - FA
  4. Growth stock -FA
  5. FA selection criteria
  6. a. EBIT growth > 10%
  7. b. EPS growth > 10%
  8. c. PER < 10
  9. d. EV/EBIT < 8
  10. e. Margin of safety > 30%
  11. f. Potential gain > 30%
The stock passed my stock selection criteria must passed items 1 and 2 first, otherwise, no deal. I want a breakout chart stock so that I do not need to keep this stock for very long time frame. Once the major resistance is broken, the stock price will skyrocket up very fast. Please note that I am not a long term investor, hence I want the price to move up very fast in short term.
 
My investment strategy
  1. TA comes first
  2. FA comes second
  3. Sector to focus 
  4. Market psychology
I do not use FA alone for my investment strategy, I use the combination of the above 4 strategies.
 
Sector to focus
It is no point that the FA is very good, the stock is in wrong sector. You must select the sectors that outperform the market.
According to KLSE indexes, the most bullish indexes are Technology Index and Ind/Prod Index. These 2 indexes are super bullish (please read my Weekly Market Outlook Report attached). We should focus on these 2 sectors. This is the reason why all my recommended stocks moved up despite a down market in KLSE.
The present scenario in KLSE and Malaysian economy as a whole, RM is very Weak and USD is very Strong. It favours Export sector or sale in USD stocks. You want to win big, you need to buy these Export stocks. FA is also very important here, it must be undervalued and high growth stocks that passed my FA stock selection criteria.
 
Market psychology
I need to study the chart to look for characteristic of the stock movement pattern. Some stocks move up very fast after consolidate near the support level. Some stocks move up very fast after breaking resistance. We should follow the trend in order to win big.
I always prefer to buy when everyone is fearful so that I can get good bargain. I like to sell when market is super bullish with high volume so that I can sell at very good price. You need to follow this type of strategy to maximise your profit.
 
My Golden rule
  • The company must make more profit (EBIT or Net Profit) in current year than last year (Growth).
  • Avoid if the current year result is worse than the previous year.
  • Avoid this stock if next 2 Quarter results do not show growth.
You can do it yourself
 
I had spelled out my stock selection criteria and strategy, you can try it yourself and please check out your result. I will be very happy if you can win big and make a lot of money.
 
If you do not have confidence to do it, you can attend my training course to learn these special skills.
 
Do you want to learn this investment skill ?
I provide the following services online for a small fee of RM 960.00 per year. 
  • I teach you TA lessons online.
  • I teach you FA lessons online.
  • I teach you market psychology.
  • I provide you a weekly market outlook report (KLSE + Worldwide market outlook)
  • I provide you a list of "KLSE stocks to watch".
  • I whatsapp you when there is a stock to buy or to sell.
If you are interested, please contact me @ tbooifx@gmail.com.
Enclosed is a copy of my "KLSE stocks to watch from 8/6/2015 to 12/6/2015". You can notice that most of the stock prices of my recommended stocks are moving up despite a weak market sentiment in KLSE.
Thank you.
Ooi
Dear valued clients,
 
I had started FA lessons in May 2015. I teach you to read my standard FA template. I cover Profit and Loss, Balance Sheet and Cash Flow statements.
We will revise 1 TA lesson every week.
 
Special note:
Please note that this article is restricted for private reading only, you are not allowed to post it or reproduce it on any public forum or media. 
 
Oversea markets
  • All Asian markets are bearish - Nikkei (Japan) and SSE (China) are bullish. 
  • USA markets are bearish, however Nasdaq is bullish.
  • All European markets are bearish.
Bullish is defined as the index must crossed 20 Days EMA.
 
Super bullish means index must cross 200 days SMA. 
 
KLSE Index
The below KLSE indexes are bullish and Super bullish. 
  • Technology
  • Ind/Prod
Bullish is defined as the index must crossed 20 Days EMA.
 
Super bullish means index must cross 200 days SMA. 
 
The below KLSE indexes are still above 200 days MA. 
  • Consumer
Bull market is defined as the index must cross 200 Days SMA.
 
Strategy
  • KLSE is still bearish except the Technology and Ind/Prod Indexes are bullish.
  • My strategy is not suitable for short term trading or contra, it is suitable to Buy and Hold for 3 to 6 months.
  • My strategy is TA comes first, FA comes second. I must adhere to this rule all the times.
  • All stocks in my watch list must be very good in Fundamental.
  • Focus on Technology and Ind/Prod stocks.
Stocks to watch
 
The stock marked red colour are my favourite stocks.
 
StockBreakoutTarget priceGain %Stop loss
KESM 3.69 7.18 95% 3.41
ECS 1.68 2.46 46% 1.57
Geshen 0.73 1.05 44% 0.63
Hevea-WB 2.19 3.00 37% 1.99
VS Ind 4.33 5.25 21% 3.99
 
 
The price must cross 20 Days EMA.
Buy on Breakout - In a bullish market, the price breaks out from major resistance and breaks new high.
Buy on Weakness - It means the price had broken up in a bullish market, it retraces to support level. Buy 1 bid above support.
Buy on Support - In a down trend or correction market, it retraces to support level. Buy 1 bid above support.
Buy on Weakness - It means the price had broken up in a bullish market, it retraces to support level. Buy 1 bid above support.
Buy on Support - In a down trend or correction market, it retraces to support level. Buy 1 bid above support.
 
Buy on weakness
 
StockSupportTarget priceGain %Stop loss
LCTH 0.495 0.76 54% 0.41
Frontkn 0.23 0.32 39% 0.18
Penta 0.69 0.94 36% 0.60
       
 
Recommendation
  • According to KLSE Indexes, KLSE is still bearish. I prefer to let market drops and we buy on weakness. I believe KLSE is almost bottom before the end of June 2015.
  • I believe Technology and Semicon stocks had started their up trending cycle again, please focus on them. 
  • Penta, LCTH, Frontkn and KESM are my favourite technology stocks. I want to buy on weakness. They are value for money. I intend to buy them and hold for 6 months to a year. 
  • All export stocks are coming back because of weakening of RM against USD. 
  • There is a cut loss in the recommended stocks, please adhere to it strictly. I will not inform you again.
Note : 
  • Please note that this article is restricted for private reading only, you are not allowed to post it or reproduce it on any public forum or media.
  • Many valued clients here are subscribers of my article, it is my job to ensure that my article is value for money. Hence I have to ensure that you win consistently in KLSE.
  • Please help not to share this information with others. Please note that I need to hire people to do FA. I need to get other valued members to subscribe for my articles at 960.00 per year. 
  • 寧可天下人負我, 休教我負天下人
Thank you.
Ooi

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