There will only be 3 types of company i am looking to invest:
(1) Moderate growth and stable company: dividend story has been stable or increasing in the last 5 years. Normally the profit margin is low. Gross profit margin below 15% and net profit margin below 7%. I will add more to this company along the way. I SHOULD NOT sell some of this shares first to buy 2nd type of company when i need more capital. E.g. Sunningdale Tech.
(2) High growth potential with excellent balance sheet: paying dividend for the last 3 years but the amount of dividend is not consistent/stable. Gross profit margin is above 30% and net profit margin is above 15%. E.g. Best World & Avi-Tech.
I will invest with maxium capital of 30k and normally will buy in a single time of entry point.
(3) High growth but with moderate balance sheet and low price to NTA/NAV. So this is more to Asset Play with potential High Growth Stock. The cash portion is not significant, so there is some risk involved (E.g. Issuing new shares to raise funds). The industry of this stock should be in Medical, Food, Telecommunication, etc. Global Invacom is one of the the example. Down side is protected by the Economic Recession FREE. I will invest with a maximum of 30k and in a few entry points.
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