DELONGZZZ

Just when you thought things were looking up for the steel/iron industry in China and for local players like Delong, this fellow came and shingzed the whole party. 

Of particular note:
“The iron ore market remains massively oversupplied and steel consumption in China will extend declines this year,” Li said in an interview on Tuesday. On Wednesday, he told a conference in Perth that he sees iron ore prices trading between $40 and $60 a metric ton this year as China’s demand weakens.

God bless you.

CASH = BALLS

Nobody doubts the fact that money, can get you almost anything, anywhere.

But not everyone who invests knows that.

The common refrain: Start investing young, let your investments compound, you got a long runway.

But that's not the right track. It sets you up thinking that any time, is a good time to invest.

The right refrain: Work hard, save up your money, invest when your basics are take care of.

But nobody understands why. Why is it so important to have enough savings to tide you over when an emergency occurs. Or simply when an investment goes south overnight.

Because without cash, you got no balls to hold.

YANGZIJIANG AND HONG LEONG ASIA - A DISMAL LOOK AT CHINA

Both Yangzijiang (YZJ) and Hong Leong Asia (HLA) reported their 4Q results. And things don't look pretty.

HLA which produces consumer goods, appliances, diesel engines for the Chinese market alluded that the world economy would be affected by the largely bearish and underperforming equity markets. Well, I agree that happens, in some ways. But quoting an unnamed HR consultant on wage growth in China seemed a bit off and odd. HLA is still conducting a strategic review of Xinfei's business. I hope they get a buyout offer.

I used to like YZJ. But ever since their involvement in the micro credit and financing business, I decided to put them on the backburner. Their latest 4Q net profit is a -99% drop from 2014's. Enough said.

In any case, these two companies are excellent for monitoring certain segments of the Chinese economical health. But only for monitoring at this juncture.

NIBBLE YOUR LIFE AWAY

You will hear the common refrain from some gurus or bloggers who write about the stock market and financial issues locally, especially when markets are roiled:

The stock is undervalued, nibble some.

The stock is trading below NAV, buy some.

Dollar cost averaging/value investing is the way to go. 

Buy regularly, every month/quarter/half a year.

I do not disagree at buying. But at the rate that they are urging you, you will be eaten up. Soon enough.

The net effect is obvious. 

Keep buying. Keep churning brokerage. Keep fees coming. Keep the brokerage firms going. Keep your broker employed. 

By the time you are done nibbling at ST Engineering so many times from a recent 6-month high of $3.80 to a low of $2.80, you are all negative from the fees paid to your brokerage.

You know what to do the next time someone urge you to nibble, or tell you they have been nibbling some.

FO.