zodiac based stock picking

Zodiac-based stock picking 0 comments

(P.S: Sorry for any disturbances the advertisements above may have

caused you)

I seldom recommend stocks down here in my blogs but I was inspired by

a report in the Straits Times Money section today which cites studies

claiming the effects of the lunar calendar as well as the Chinese

zodiac on stock returns. For the latter, the recommendations reported

were highly inadequate, given that it only says that "it is the year

of the Dog, hence the underdog China stocks have had a bull run". So

below, here're my stock picks for the twelve years of the Chinese

zodiac calendar, to enable the discerning and astute market investor

to practise market timing in a systematic and intelligent manner.

Year of the Rat

Given the the rat sparked the Black Death several centuries ago, and

how people hate the colour black when it is associated with the stock

market (such as "Black Friday" last week when in fact it was meant to

signal the start of the US Thanksgiving season which propels

retailers' bottomlines into the black), it is a year to avoid stocks.

However, for those really addicted, you may want to buy stocks which

have a history of rodent-like behaviour, such as mDR (a.k.a. ACCS) and

Centillion (a.k.a. Citiraya) and China Aviation Oil (a.k.a. US$550M).

Year of the Cow

The premier stock in this year must be China Milk. Cows love bull

semen. Well, other milk stocks are also investible, such as China

Dairy. Leather-related stocks like HTL and Man Wah could also benefit.

Also, to try another flavour, why not buy stocks from the Land of the

Holy Cow, which incidentally only number the total of one on the SGX

--- Meghmani. Never mind, since it removes the need for

diversification.

Year of the Tiger

There can only be one Asia Tiger.

For the prudent investor, he can unlock intrinsic value in Haw Par

which boasts the Tiger Balm Oil.

Year of the Rabbit

There can only be one China Kangda, which slaughters the white furry

creature and packages it as exotic delicacies for the very cultured

mainland Chinese.

Year of the Dragon

It is time for the China stocks to roar. By now, if you notice, the

previous three Zodiac years have all involved China stocks. This

explains why China stocks are the most investible category in the

entire stock universe, according to the Chinese zodiac.

Although it is not listed on the SGX, investors should make an effort

to open an account on the Hong Kong Exchange so that they can buy Nine

Dragons Paper, the bluest of the blue in this red-hot Dragon year (for

those less acquainted with Chinese culture, the number 9 is the

ultimate in Chinese culture. The Chinese emperor had 999 rooms in his

palace to house his concubines). Well, to pick on the "9" theme, more

homely investors can choose Jiutian Chemical which means Nine Days in

Chinese.

Year of the Snake

This is a bit difficult. It is a year for the really good stock

picker. The Chinese Zodiac investment advisor, who is usually very

good and accurate with his picks, cannot help here.

Ok, but for those who are desperate, understand that snakes are highly

territorial creatures, and they guard their property jealously. Hence,

property stocks are the pick of the bunch. Also, given their

oft-quoted comparison with the reptilian creature, banks might be a

good pick as well.

Year of the Horse

What else? The prime pick must be Interra, otherwise known as the

Wonder Horse in its previous life as Van der Horst. I have plenty of

research on this wonderful stock, in my Hotstocks pick on Interra.

Year of the Sheep

Time to go for all the penny stocks below 5 cents. This is the year

when the Sheep can be easily led to whatever destination one wants to

take it, similar to the way lemmings follow one another to their final

noble destination.

Year of the Monkey

The Monkey is known for its mischief, and its ability to swing up and

down trees. Expect a year of great volatility.

What thrives in volatile conditions? By the Black-Scholes option

pricing model, it is options and warrants (this intricate

understanding of academic theory shows Zodiac investment advisors are

not to be trifled with).

Year of the Rooster

The obvious pick would be the pure-play Elite KSB, which slaughters

chickens for a living. For those looking for dividend plays and stocks

of slightly better quality, there's always Cerebos with its Brand's

chicken essence. And wait, there's a new player on the chicken essence

scene: Eu Yan Sang ..... and the good thing is, its chicken essence

does not contain caramel! What a revolutionary concoction!

Panning out to the top-down perspective, the Zodiac outlook for the

year also suggests that asset allocation strategy should shift to cash

early in the year, because the rooster crows once at dawn and then

remains silent for the rest of the day. A suggested manner of handling

the cash is to head down to Geylang Lorong XX where there are plenty

of young chicks around.

Year of the Dog

That's the current year we're in, and whatever the Straits Times

reported in its article this morning, it must be true, hence I shall

not elaborate further here.

Year of the Pig

There's no shortage of stock picks here. We have two pork processors

from China, People's Food and United Food, to choose from.

Although, come to think of it, are these stocks that slaughter the

relevant Zodiac animal stocks to be avoided, rather than picked?

Frankly, that depends on how the Zodiac God dispenses his/her

judgment. That is another story for another day --- the influence of

astrology on the stock market is such a vast subject that we will all

be glad for the national papers to cover it in more detail in the

future.