LCL - My broker recommended me to buy
This afternoon, i called my broker just for some small chat. Asking her how she’s doing and stuff like that. Cheekily i asked her whether she got any recommendation.
Without hesitation, she recommended me to buy LCL (7177). I was dumbfounded at first when she recommended me LCL. I guess she hasn’t caught my pattern of investment style which is more to fundamental rather then buying on rumours.
According to my broker, LCL is a good bet now because Abu Dhabi is sending SOS to Dubai as much as $10 billion to cover debts. This is news which i got from Yahoo Finance. Click here to read more on the help Abu Dhabi is sending to Dubai.
LCL is heavily linked with Dubai and such news might trigger the revival of LCL after she fell from 0.95 to current price of around 0.20 ++. I have written a little on Dubai World’s crisis in a post titled “Dubai World crisis - What investment strategy you going to adopt?”
In short, i will just listen what my broker has told me but will not take any action as LCL is not my cup of tea.
Here are the reasons why i won’t touch LCL :-
- Negative PE
- Negative EPS for the past 4Q
- Lousy financial results
- Heavily linked with Dubai
I wouldn’t dare to touch stocks with such financial performances. See for yourself to believe!
Conclusion
I am still sticking hard to my principals in investing in share market. To be successful self discipline is important and i wouldn’t want my hard earned money to go just like that. For those of you betting on LCL, i wish you all the best!
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3 Responses to “LCL - My broker recommended me to buy”
By Daniel on Dec 16, 2009 | Reply
Ya, brokers can’t be trusted. They might make you broke if you simply follow their advice all the time. That’s why they are called ‘broker’ =P Most brokers are just salesmen, but not all though. Some are good in what they do, but very rare.
By Daniel on Dec 16, 2009 | Reply
And it’s good that you’ve done your homework before deciding on whether or not to follow your broker’s advice
By Kampung Boy on Dec 17, 2009 | Reply
If i would have followed her without doing my homework, now i won’t be sleeping so nicely at night.
LCL now is 15 cents only. When she recommend me that time it was 24 cents if i am not mistaken.
I have retired myself from such counters and companies that has poor financial results.