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Monday, May 11, 2009

Clean out the underperformers or losers (ext: Edge)

Sentiment on Bursa Malaysia is expected to remain firm, with interest on lower liners and selected blue chips, on May 11, underpinned by the strong overnight close on Wall Street.

Trading interest has spread to penny stocks and some counters which do not have any fresh corporate news.

Perhaps, investors should review their portfolio and clean out the underperformers or losers. Investors must be also disciplined to sell those which had not performed in months or even years.

Companies which have poor financial performance, weak cashflow and not performed in months or years should be cleared out.

Investors can take comfort from the recent trade data when Malaysia’s March exports fell 15.6% from a year, which was less than in February’s 15.9%.

 

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