Don’t invest on ‘junk’ stocks

Arr… I made mistake on stock market last few years. I bought several ‘junk’ stocks before 2008 economy crisis. Just managed to cut loss on few of them and left 1201 Sumatec and 9822 LKT now. If you are lucky, some of the good performing stocks will be back to previous highest level or even better. But I ran out of luck on these 2 stocks ~ Sumatec and LKT.

Sumatec proposed rights issues. It wants more money from stockholders. This can be good or bad depend on companies. But for Sumatec? It just released its financial year end result with net loss 62.167 million (increased 12.06% from previous year).

Sumatec Resources Berhad

LKT has another issue ~ take-over offer. Yup, Singapore Precision Engineering Limited is going to buy back LKT shares with RM2.10. Say bye bye to LKT stock. I don’t even have a choice and have to sell it at ‘underwater’ price.

LKT Industrial Berhad

Compare these 2 stocks. I rather keep LKT and sell Sumatec. But I don’t have much choice. What I can do now? Wait for Sumatec stock price up a little bit. Will cut loss then. Done deal.

Guess what? I bought these 2 stocks at the peak of the chart. How stupid am I in stock market back then? 😛