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AK: 2 Questions from a Reader
Aspire, Thought Leaders | 15 December 2015
Articles (41) Profile

A recent email exchange with a reader:

Good Evening AK!  

I have been following your blog for quite a while now! I would first like to thank you for setting up a blog like that! It has helped me gained much knowledge in the world of investing! We actually have met twice so far! Once in your “Talk with AK” and once at InvestXCongress (I was the guy who told you I fell asleep for the first half and post lunch half >< )

Anyway! If it is possible, I would like to share some analysis with you and see if it is actually sound (and hopefully learn more from you (:  )

1) Recently, Hong Fok‘s two chairmen have been buying back huge amounts of their shares. I intend to buy in as a short term trade but potentially hold on till the end of Feb as that is about when they release their FY reports.

2) My second question is about Cordlife. Normally, after the ex-dividend date, one would expect the share price to drop. However, it seems not to be the case for Cordlife. I intend to have my TP at 1.65.Is that a good estimate?

Sorry that the two questions I have are mainly about short term investments. I am trying to build up some more capital to increase my war chest. (Teacher pay not enough >< )

Hope to hear from you soon!


AK’s reply:

Hi J,

Ah, I think I remember you. :)

1. Hong Fok. I happen to know the family quite well. I wouldn’t buy Hong Fok’s stock unless I am thinking of possibly having the value unlocked one day through privatisation, but it could take forever.

2. Stock prices don’t have to fall on ex-dividend date. It just so happens that they often do. Prices are a function of sentiments in the short run.

If you would like to increase your capital in the stock market in the short run, you might be better off learning Technical Analysis and becoming more of a trader.

AK is a Singaporean stock market investor and a popular blogger. His blog was created with the intention of educating investors and sharing his investing journey with the target of having a more secure financial future in an uncertain world by creating a stream of reliable passive income with high yields.

Please click here for more information about this author.

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