[1]. Loss-making companies and mostly companies in a bad shape.
E.g. MTDACPI - losses almost every year and ballooning debts.
[2]. Cheap penny stocks; price < 50 sen which drop from higher price (RM1 or RM5) due to high losses every year.
E.g. MAS
[3]. Low NTA (Net Tangible Assets) per share. Poor quality assets -
little value & don't generate much income.
E.g. AMEDIA
E.g. AMEDIA
[4]. High gearing and high debts. High risk - high chance they could not service the debts.
E.g. KNM - 1B debt, little or no profit/positive cash flow.
E.g. KNM - 1B debt, little or no profit/positive cash flow.
[5]. Stay flat when market goes up, goes down even fasterwhne stock market goes down.
E.g. COMPUGT
[6]. Generous director
fees, allowances and bonuses irrespective of the losses of the company.
E.g. SMTRACK
[7]. No Dividend - irrespective of profit/(loss) of
the company.
[8]. Target of stock market syndicates
E.g. GLOTEC, SUMATEC, HUBLINE, PDZ.
E.g. GLOTEC, SUMATEC, HUBLINE, PDZ.
[9]. Juicy stories and Market rumours - created by the stock syndicates to entice
retail investors
E.g. HIBISCS - plenty of MOU, magic touch of Dr Kenneth
E.g. HIBISCS - plenty of MOU, magic touch of Dr Kenneth
[10].
They are usually speculative stocks; they can go very high up within a short
time frame.
E.g. SUMATEC
E.g. SUMATEC
[11]. Always ask for money - every few
years there is a rights issue or private placement.
E.g. LONBISC
E.g. LONBISC
[12]. Crappy management - playing company
stocks for profit rather than running the company for a profit, selling their assets to the company at high
valuations, approving stock options to themselves.
E.g. MPCORP
[13]. Heavily promoted in stock market forums, stock market
magazines, newspapers and even Facebook stock groups. A
good story.......
E.g. SUMATEC. GLOTEC, KNM, HUBLINE, PDZ.
E.g. SUMATEC. GLOTEC, KNM, HUBLINE, PDZ.
14. Red chip companies
E.g. CSL, HBGLOB, CAP, XDL, CHOUHUA
E.g. CSL, HBGLOB, CAP, XDL, CHOUHUA
