First Stock Investment, Gpacket 0082
Today, I have my first stock investment in life. I had bought 2 units of Gpacket at 0.695. Yes, just 2 units as I have limited saving in hand. My first principle for investing is never borrow for investing. Just invest what you have. The purpose of investing is to hope that our money work for us instead keeping in bank waiting for depreciation cause by inflation.
Maybe you are curios why I buy this stock since it is in red ink and deep in dept RM50.1 million, correct me if mistake. I also feel that I am taking too much risk on it. In common sense, would you invest in a company that deep in debt? I guest probably not. If not invest in this stock, there are still plenty of stock available with better attractive company cashflow right?
Green Packet CEO, Puan Cheng Cheong
Photo from The Star Online
So what the strong reasons that influence me to buy it?
1) I feel and sense that it might turn profit in the future
2) Greedy. I want earn more in short time as tech stock is more volatile than others
3) Their present net loss is due to heavy market promotion
4) WIMAX is a trend in futures
5) I believe Green Packet CEO, Puan Cheng Cheong can handle it since it had experience almost losing all his fortune twice. We learn from mistake.
6) Gpacket is the pioneer in WIMAX solution with the other three more competitors. This add value to Gpacket
7) Green Packet will be the default broadband service provider for all WiMAX-enabled laptops using Intel chipsets by next year
8 ) I believe my foresight rather than numbers in this investment
This is how I verify myself for this risky investment. The important is I will not regret buying and still looking good for it.
Mrcoolku, I strongly believe you’ve made a right purchase for picking GreenPacket
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Mrcoolku Reply:
September 25th, 2009 at 2:42 pm
I believe too. Whatever the result is, I take it as experience.
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The risk is always there, but if you believe Mr. Puan can take the debt into profit, better track this counter diligently. Competition is always there, and things can go bad.
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Mrcoolku Reply:
September 25th, 2009 at 2:42 pm
Ya, I will keep an eye on it. The more you know the less risk you have.
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If you trade for short term, this stock might goes up and down.
This is definitely not a long term stock.
Technology changes every day. I ‘m sure very soon someone will introduce some new technology called “XXmax” which have 1GB speech.
The Wimax will go to drain by then. We experience the 64K, GPRS, 3G, 3.5G, Fiber and etc. It is just an evolution.
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Mrcoolku Reply:
September 25th, 2009 at 2:43 pm
From my view, WIMAX will stand for quite long time else they won’t throw in up to billion to set it up, especially YTL-e. Maybe they see some future in WIMAX which we don’t see.
Of course, technology will always being replaced from time to time. So it depends, there are always pros and cons in one thing. Need to keep an eye on the company.
Thanks for your advice. I might sell it at satisfy price. I have no gurus on stock market. So I hamtam saja and take it as experience.:)
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In my opinion p1 should be invested for longer term, somewhere around 1 to 2 year. As they r still aggressively raising capital for marketing and activities, it might take a while to make profit. And also some time for the service to stabilize, as usually wireless will have a lot of problem to start with.
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Mrcoolku Reply:
October 12th, 2009 at 8:35 pm
Ya, it is one or two years investment. They are promoting WIMAX heavily now. Hope will have nice result next year.
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It seems that GPACKET is very popular among investors but personally i will not touch this tech stock as their financial results is not pretty. Just my 2 cents..
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Mrcoolku Reply:
December 3rd, 2009 at 5:49 pm
Ya, the moment I buy it I still do not know how to see financial statement. I just “feel” that it might be profitable in the future.
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