Join our investing community

Trading CHM: Moves up in the selling day!

Discussion in 'Shares' started by wdongli, 3rd Jun, 2011.

  1. wdongli

    wdongli Well-Known Member

    Joined:
    31st Mar, 2010
    Posts:
    1,292
    Location:
    Perth
    It moves up unprecedentedly today since I bought it at $0.006 a few weeks ago. The moving up alerted me to check the reasons and it looks beautiful.

    It announced that "Court of Appeal makes Order in Favour" of CHM against Litigation Funder and LIP has to pay CHM $615,855.70 plus the legal costs and damages(to be assessed).

    The most powerful driver of the price crash of CHM now has been removed. All of curses for this legal litigation on CHM now have been confirmed to be wrong. It is a black swan for nearly all of CHM shareholders, old or new one.

    It has a very fundamental reason to move up. That is fantastic as the moving up add the margin of safety as gap to push up the price.

    [​IMG]

    [​IMG]

    Who said market players could not dream? It is not about whether or not you dream but how. No dream a life is miserable! How could all of my dirty-cheap fishes give me this kind of dreams since I am wise and intelligent enough? Could I be qualified to make this kind of dreams regularly and have the insight to see the dreams could be true!

    I am extremely happy I paid the GFC price for CHM! Dream time for CHM: what if it comes back to $0.03 or better to $0.05 or best to $0.15? It is fantastic to get this kind of dreams into sleep. I like this kind of dreams very much!

    Happy to see CHM greatly promotes its position in my team of dirty-cheap fishes. Now I promote you into my 10-baggers squad as reward. I don't have biases on anyone and anything if you could do your job as Fdl(FMS), PRR, IAU, AZZ, and so on, did for me. I would remember your contribution in my market playing life. I swear!

    Do I act as a businesslike market player? Really wonder and expect that!
     
    Last edited by a moderator: 3rd Jun, 2011
  2. wdongli

    wdongli Well-Known Member

    Joined:
    31st Mar, 2010
    Posts:
    1,292
    Location:
    Perth
    Go around to check the market sentiment

    Surf around to visit all of popular trading forum(especially HC) and very happy the good news come into the deaf ears. It is a great sign of the market indifference which usually happens after extremely disappointment.

    In the extremely market disappointment the traders, especially day traders, have been hit terribly again and again for more than half year which started unprecedentedly to all of them after V-shape recovery seemed favor to it. They have chosen to surrender unconditionally and said bye bye to CHM. Based on human nature, the desperate running away usually result in sale on fire. It is a repeat human reaction patter for thousands of years if not millions of years!

    The castle for the day traders are the trading forum to involve with others for encouragement and share news. The total silence on CHM or ignore good news is great for the value type of bargain hunters. What would happen in next financial year? It is worthwhile to wonder.

    I feel my CHM buying is a great buying for my next year financial objectives. I like selling season very much which just burst the remaining bubbles one after another.
     
    Last edited by a moderator: 3rd Jun, 2011
  3. Tropo

    Tropo Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    3,396
    Location:
    NSW
    "In the extremely market disappointment the traders, especially day traders, have been hit terribly again and again for more than half year which started unprecedentedly to all of them.
    They have chosen to surrender unconditionally and said bye bye to CHM."


    What have you been smoking lately? :confused::confused:
    Guess what...Day traders do not trade illiquid dogs like CHM...
    It seems that you have got no idea what day trading is about.
    Instead of trying to convince yourself and others that you know what you do not know, why don't you educate yourself first?

    "They have chosen to surrender unconditionally and said bye bye to CHM."= Where did you get this info from?? :confused:
     
  4. wdongli

    wdongli Well-Known Member

    Joined:
    31st Mar, 2010
    Posts:
    1,292
    Location:
    Perth
    Haha, some of day traders do trade pennies even value investors trade them as they trade the distressed bonds, business, or blue chips. Is it so important what day traders really trade if they just make the losses and stop the losses? If you are interested you could follow BKP, ORO or any pennies to see how day traders trade the pennies. They trade pennies and swans in the same way. Up? they cheerful. Down? they curse. Nowhere going, they complain. At last most of them come to the point: Game is over.

    Something you need to know like who trade CHM and who don't but you don't need to know all(if you hold or want to hold). Are you a day trader? Sound you are? Hope you are different from most of them. Don't be too serious who is whom if we know most of market players lose the money but we don't. I am happy I have not lost my money since 2004 including GFC.

    ***
    Don't feel confused by the smoking from my words if you could sense the margin of safety which is the most important. It is the gem which protect me very well even I make mistakes. If you feel I don't know anything it must be true.

    Something I just could not see without matter how hard I try. Wonder how could I know everything. I nearly give up to know everything but the vital few such as no loss, margin of safety, buying when the market as a whole is fearful, and so on, I really don't dare to ignore.

    ***
    I am extremely happy for what CHM did today. You sound not believe I have doubled my capital since GFC. You could check PRR, FMS, IAU, AZZ, SSN which have given me 5-20 baggers respectively after I hold them for years. I locked some 30-100% profit by selling other fishes too but usually I feel not good to sell them so low.

    If I got the dirty-fishes I usually expect much more than 50% otherwise I don't touch them. It is because after deducting the loss and cost, they have to leave a lot for me as a full time market student since otherwise we could not get our goals. By the way few dirty-cheap fishes would like IMI in my experience. They give me more than the blue chips.

    ***
    Everyone is different. Dog has dog's day. And every way could lead to Rome and every one could crawl, walk, jump, run to Rome if they know how to protect himself and what they do is their best. Don't feel unhappy when you feel my way is different from you if both of us could make butters and milks first in the market.

    In the market all of us should know everything could be viewed as smoking since they could be intentionally covered by smoking or something is out of our circle and we don't know the words used in these special circles. Don't worry about smoking. Just get what could make sense to you. We want to play anything safely and that is all about market playing. It is not good since we feel not very good for words.

    We need to learn how to get the gems from the smoking!
     
    Last edited by a moderator: 3rd Jun, 2011
  5. wdongli

    wdongli Well-Known Member

    Joined:
    31st Mar, 2010
    Posts:
    1,292
    Location:
    Perth
    Prepare before the strategic opportunies appear!

    CHM went up in the selling day. It shows a contradictory things, the big enough buying forces and failed selling huge momentum of the market as a whole to CHM. What was the positive forces behind CHM price up? What was the negative forces behind market sentiment? Why a fragile dirty-cheap fish as CHM could defied the storm and dared to stand up?

    It is obvious that the moving up in this storm day was very significant since technical factors or market sentiment could not initiate this defying. So it logically is about some changes in fundamental. Yes it has been confirmed it has won the appeal against a lawyer house.

    ***
    How could we interpret this winning rationally and properly after we cheered for this moving up as good bargain hunter for value at the price about $0.006? CHM has done a excellent job to protect its right and asset in this appealing, which would result in a great economic consequence and power, which has shown by its huge collective running away by the market players from it since last October.

    The winning could be a turning point and enforce its financial status due to cash flow from the Legal house. This legal house has to pay if it wants to stay in the business. How much? It should be more than $615,855.70. You could say it is nothing for a business but in my view, it is great to a minnow like CHM plus its $1.6 million placement at $0.008.

    The winning case actually tells the market its board could work together to deal with some significant challenges and very tough in the frustrated bad time. No any support from the retail shareholders, most of whom are for quick money. The price up they cheer. The price down they curse. They don't care what happen and what reasons but they do care losses and stop losses with all of the right but business could not run for quick money and doesn't fight against what it has to stand up to finght!

    ***
    I quickly glanced all of posts in CHM stream of HC. I feel very good. No any voice to rationally discuss the causes why CHM appealed to the Layer House. I just found only one post in all of trading forums I came to, which said the winning was a not bad news but didn't dare to say anything more positively!

    I am happy when all of traders and a lot of investors are so desperate and hopeless about CHM with this great news. Don't mistaken I am predict CHM would be sure a 10 baggers. Nothing is sure but it would greatly add the margin of safety for all of new shareholders at the price of $0.006 around.

    If you have the margin of safety, you could patiently design mental system and plan your financial strategy one stage after another.

    By the way I feel very good to see DOW lost 97 points yesterday. Let all of the bad things happen in this selling season please, which would drive all of weak minds out of the queues. Don't worry market would be no sign of men and women any more. They would come back with the new saving and new dreams for quick money or killings in the sunny days and pay for the crash sometimes later! It is their job in the market!
     
    Last edited by a moderator: 4th Jun, 2011
  6. wdongli

    wdongli Well-Known Member

    Joined:
    31st Mar, 2010
    Posts:
    1,292
    Location:
    Perth
    Ross Gittins is one of economists I really appreciate not because he knows much more than I know about economies but because the senses of logic and common senses in his writing. Today I just found a good article from him, Too much hot air gives Hockey the hiccups.

    I like these words very much: "See how long it takes you to figure this one out: if something falls by 50 per cent, then rises by 100 per cent, where is it? Answer: just back where it started." How much could you win or lose for this backing where it was? The answers would be quite different to everyone. You may argue you would be sure what you could get. but seriously saying I could not be sure since my mood could change and then I could be stupid or intelligent at different time. However it is an article need to pay some times.

    ***
    He told his observation om national accounts, the contraction of 1.2% in march quarter and then told us:

    1. Thanks to economists' obsession with growth, we focus almost exclusively on the percentage change in GDP and its components from one quarter to the next, but if you don't have a good feel for how percentage changes work you risk bamboozling yourself.

    2. Speaking of which, remember that, though the percentage increase needed to get you back to par is always bigger than the original fall, the smaller that fall the less spectacular the subsequent rebound.

    ...
    (could we use the understanding of the above in CHM case?)

    ...
    Could we say some of the great baseball players are speculators since they just hit out at the best time they believe? They train them day and night just for some great hits with a lot of failed hitting.

    A lot of value based market players said you shouldn't do so in the market, but if you trust your gut and drill your gut to grip on the best points, you should not be perplexed by others' views. At their positions, they just could not see what you feel and your calculation in the drills and trains.

    More later in wdongli - Member Blogs
     
    Last edited by a moderator: 4th Jun, 2011
  7. Tropo

    Tropo Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    3,396
    Location:
    NSW
    Q. What is the definition of confusion?

    A. Two blind lesbians in a fish market.
     
  8. wdongli

    wdongli Well-Known Member

    Joined:
    31st Mar, 2010
    Posts:
    1,292
    Location:
    Perth
    Based on a dictionary, confusion in psychology term means impaired orientation with respect to time, place, or person; a disturbed mental state.

    So in the selling season, about this market ugly duck or dirty-cheap fish, the person around this dirty-cheap fish could be impaired and get a disturbed mental state. Why could this fish move against the market winds and storm rather than closing the door?

    You could feel some of market players hate CHM too much as I hate ERG. But it is not good and right for our market playing since hating usually generates some desires to destroy something and when you are driven by the desire to destroy, you lose the background to win in the market.

    When I loved Tech symbol, ERG, I became obsessive, ignore the dramatic loss of the gap between the value and price. When I got conscious I traded ERG at $0.10 around since a lot of losers in ERG still struggled to deny the failure and got more than my capital(not lost huge paper profit) back and said bye bye to it!

    It is not bad if we feel confused first. However if we don't give up to understand the underlying reasons for the surprised movement of this dirty cheap fish, we would be more comfortable to see it shoots up further.

    By the way, any confusion in the market is excellent warning signals that is our minds are in troubles and some gap between our imagination of something in the market and the market reality. Am I confused by the moving up of CHM? So far I am not based on the information I have got and my independent reasoning. What if DHM would closed the door in future? I have buffered it with other dirty-cheap fish team in my portfolio. In this dream land, it is quite unlikely a lot of dirty-cheap fishes would die together in the foreseen near future.

    ***
    Two blind lesbians in a fish market usually don't care about the dirty-cheap fishes. They chase after the fancy since they hope life is interesting.

    The dirty-cheap fish collectors usually like to see the money in the vault and they tend to choose bargain for discount rather than fancy!

    No right or wrong but if you want profit, actually you should like money rather than fancy. In the market, you have to pay less than you get from your selling. You are businesslike poor bums in the market. No too many people love them since the disgusting smelling from the dirty cheap fishes. But if you could get your first bucket of gold, what you said today may be the subject for some professors to wonder why you are so visionary.

    What do you want? If you get what you want, you should be happy to pay!

    ***
    I am always confused in the market since it is totally different from my official and home life. Giving me another 5 or 10 years of the full-time market study, I should get what I want, not too much, I just want to get $10,000,000 in my 70s. But no gut to rob a bank!

    Don't say I am sure I could get. It is a goal for long term. In Chinese if you really want to get your dream to be true you have to set up a big enough goal and step by step towards to it.

    Don't ask me how I would use it. My mind need to be updated enough and then I could answer this question! In 1995 I wondered what I would feel if each of my houses could be about $200,000. Now it is about $500,000 each but I could not feel my excitement as I expected then.

    Life is about problems. The best life is you live in your loved problems! Confusion sometimes is a good start, which was one thing I just sorted out in my 16 -21 when I left from my home town and worked in a remote farm land!

    ***
    Don't assume I am claiming CHM will be 10 baggers very soon. I don't know what future would unfold for it. The followings are my conclusion so far what the vital few in our mind could lead winning in the market:

    1. desire to play as an independent market player or better a master in your own circle.(don't read as I just try to be isolated. Independence here means decision by yourself only and you could not independent financially from your wife without matter how wishfully we want)

    2. reasoning for self-aware and environment-aware

    3. decision and gut to grip on the value in the improbable bad lucks

    4. waiting for things better than from normal lucks and gap between value and price disappear.

    5. selling when you worry about the crowding and abnormal high demand for what you hold.

    The item 1 and 2 are the matters I work on everyday now. The item 3 is what I try to be very competent. The item 4 or 5 need more efforts I need to pay out. I do feel you could fail in any one of these matters. So margin of safety is the matter you have to put onto your divine place of your mind and never and never let it lose its effects in anything you do in the market!
     
    Last edited by a moderator: 5th Jun, 2011
  9. merlinnn

    merlinnn Active Member

    Joined:
    1st Nov, 2009
    Posts:
    35
    Location:
    Brisbane
    After reading through the entire post the only thing I took away from it was the joke about the lesbians:D
     
  10. merlinnn

    merlinnn Active Member

    Joined:
    1st Nov, 2009
    Posts:
    35
    Location:
    Brisbane
    I take that back, I have learnt a little Yoda Speak "confused am I"
     
  11. wdongli

    wdongli Well-Known Member

    Joined:
    31st Mar, 2010
    Posts:
    1,292
    Location:
    Perth
    Don't take any words before you are sure you could take the chips away from the table! All of wisdom appear as cliches since they don't need the glosses!