"GOOD" or "BAD" INSIDER NEWS ??

Is the insider news may affect the stock price of company? The answer from me is YES. The bad insider news may affect the stock price badly, below two examples may show the cause and effect. Those of the link provided in Example 1 and 2 below is belong to a writer named robertl in I3 investor website. Here let us observe Example 1 first.

Example 1:
XINQUAN, the Hollow Story (First shot) 星泉空城计 (第一炮)
Link: http://klse.i3investor.com/blogs/ncnscscn/88989.jsp

XINQUAN, the Hollow Story (Second shot) 星泉空城计 (第二炮)
Link: http://klse.i3investor.com/blogs/ncnscscn/89011.jsp

Here we see what happen on closed stock price of XINQUAN in this few days:

31 Dec : RM 0.635
04 Jan  : RM 0.560 (-11.81%)
05 Jan  : RM 0.520 (-7.14%)
06 Jan  : RM 0.540 (+3.85%)

Both of the article was posted at 2/1/2016 (Saturday) and 4/1/2016 (Monday) respectively. Amazing on the stock price of XINQUAN? Seem like some of the investors affected by the BAD INSIDER NEWS and starting to dump their holding shares to market.

Example 2:
OMG : After XINQUAN, next HEVEA! 星泉风暴即将席捲亿维雅
Link: http://klse.i3investor.com/blogs/heveatimetoalight/

HEVEA, Internal Cracks Emerging 亿维雅，股东内鬨
Link : http://klse.i3investor.com/blogs/heveatimetoalight/89220.jsp

Let we see again what happen on closed stock price of HEVEA when affected BAD INSIDER NEWS today:

31 Dec : RM 1.62
04 Jan  : RM 1.70 (+4.94%)
05 Jan  : RM 1.73 (+1.76%)
06 Jan  : RM 1.63 (-5.78%)

Both of the article above in example 2 is posted at same date 6/1/2016 and this news made HEVEA rewind after few days of uptrend. Today, HEVEA closed at price RM 1.63, it was decreased RM 0.10 (-5.78%). I made homework on HEVEA today too and discovered the fundamental of HEVEA is good but the current price may slightly high for me, lower price on it may give me a good catch.

Example 3:
Stock Pick 2016 - Koon Yew Yin
Link: http://klse.i3investor.com/servlets/pfs/54015.jsp

Ok, the Example 1 and Example 2 above are BAD INSIDER NEWS. Now, let us refer GOOD INSIDER NEWS. Mr.Koon shows his interest to join the I3 investor competition at 3/1/2016 (Sunday). His portfolio may become a good example of GOOD INSIDER NEWS to some of the investors. Now, let us check the stock price of the five stocks in this few days.

CANONE      - RM 4.56 > RM 4.88 (+7.02%)
CHINWEL    - RM 2.10 > RM 2.31 (+10.0%)
FAVCO         - RM 2.74 > RM 3.00 (+9.49%)
FLBHD          - RM 2.88 > RM 2.96 (+2.78%)
TGUAN-WA - RM 2.14 >  RM 2.49 (+16.36%)

Mr.Koon is a famous investor last year and his previous marvelous record is LATITUDE and V.S INDUSTRY bring him massive of return in one year. I believe most of the investors had heard his name last year and then I believe most of the investor may follow Mr.Koon's portfolio too.

My view on the strategy applied by both investing master Mr.Koon and Mr.Cold Eye is one classified as HOT side and another belong to COLD side respectively. Even their main target alike making money in stock market but the way and strategy used is different. Lastly, each of the successful investor has his or her own way and strategy to trade, but we cannot "copy" it and the way we can do are "learn" it. Don't be a "Herd" and affected by the insider news even it is "GOOD" or "BAD", just trust the intrinsic value of company.


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