2011/01/29
MICHAEL SUN
msun@nst.com.my
Excitement in the air at The Stock is Right game
PSYCHOLOGY and investment knowledge worked well together for HELP University College (HELP) student Lee Chong De, 20, at The Stock is Right game organised jointly by Maybank Investment Bank Bhd and HELP recently.
The first-year Psychology student won the Grand Final prize at the fourth elimination round. And how did the Psychology student acquire his investment knowledge? "I had been doing some research so I know when to buy, hold and sell stocks." Lee made mistakes initially, but his scores allowed him to move on. He extrapolated his knowledge of how current culture affected society and whether the trend would be upward or downward, onto his stock pick plans.
His analysis was based on psycho-analysing both people and the market. This knowledge was not newly acquired. He had earlier attended an Amway business lecture on transforming expenses to liabilities and turning them into assets.
Assimilating the concept of yield — when to let go of a stock and when to buy the stock — Lee had mulled over a given example at the lecture and decided whether to buy or to sell.
At the fourth elimination round, both Lee and runner-up contestant Chong Mei Kung were presented with a video presentation on QL Resources Bhd — a company that was looking for capital to expand by selling some 30 million new shares.
The two students were asked to give the closest target price to pick the stock which was then trading at RM5.61 before the capital raising.
QL's price-earnings ratio was 4.5 times and its yield was 1.3 per cent. Calling QL Resources's target share price at RM5.99 — the closest to Maybank Investment Bank's price target at RM5.91 — won Lee the Grand Final prize. Chong's call was at RM3.50.
Chong was happy with her second placing and admits she has much to learn.
The game gave participant Chan Chee Hoong, 21, some insight into investing. Ying Yee Hoo, 20, a second-year Business Finance student, found the game a beneficial exposure to risk-taking and the stock market. "We certainly gained from the experience of experts — you shouldn't buy or you should hold owing to lack of information." Maybank Investment Bank chief executive officer Tengku Zafrul Aziz and Maybank Bhd chairman Tan Sri Megat Zaharuddin Megat, who shared their experiences at the event, had an impact on the students.
First-year Accounting and Finance student Alexander David Ton, 20, found the game interesting. "You don't get to play a risky game in a risk-free environment every day. It's a good opportunity to discover what investment actually is." And playing the stock market investing game has improved his confidence in picking stocks. More than 150 students from HELP, HELP Academy and HELP International College of Technology took part in the event which was also officiated by HELP president and co-founder Datuk Dr Paul Chan.
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