Choosing good shares amid This global slowdown

Fellow investors,

Amid this global widespread misfortune, we are hearing more and more BIG mnc crumpling.
From banks to Insurance firms, one by one is down due to credit crunch. Probably lots of fingers pointing to the existing CEO, however, i personally do not think its the only reason.

CEO is to me the head of the organisation and thats the far and foremost important critical element in a firm progress and future.

One who started the firm will tend to hold more responsibility and strive really hard to ride pass these obstacles. These type of CEO needs no educational initiatives though they tend to further their paper qualification some time during their climb to success. All they have inside is the passion, determination to make a point in what THEY want to do. A racehorse mindset. Their creditability and life long efforts will be in jeopardy when recession comes. Gets a pay cut if needed. Its a all or nothing push to get their firm back on track. He makes himself CEO.

The other ONE is those who was employed through HEAD HUNTING AGENCY. Who do we have for these people ? We get the so called 20yrs experienced employee who has a marvelous and attractive set of portfolio. Adding to the CV is his ever impressive academic achievements and all those book awards that he collected during school days (kind of at least 20-35yrs back). A organisation savvy persona with charismatic charm. He orchestrates teams and departments under his directions and ideas. Playing business strategies is his most valuable possession. This is as such a double-edged sword. When an organisation employed one who CANNOT play strategy well. Its gonna be a gone case. He needs not push to his physical limit nor undergo salary cut to save the company situation. Instead, his monthly compensation package is always guaranteed until he is given the golden hand-shake that usually comprises of yet another few more million dollars and possibly choice of shareholding option. He is made a CEO.

Now, in singapore, many blue chips have fall. The US recession impact has hit our shore. This is only the surface of the water of the gigantic iceberg. Our economy has yet to reach bottom. Recently, i was talking to owner of http://www.forexandbinary.com/ . A very good friend of mine and a very experienced banking trader. His prediction to this fall will be deep, probably worser than the historical GREAT DEPRESSION. Strait Times Index has fell to 1600pts as per yesterday closing. This is very close to his prediction of 1500pts. It is very scarry to think just a year back, STI is trading over 3000pts. it has dropped 50%. The US impact took 1yr time frame to hit our shore. But this is still not the bottom. So, next question is,

WHEN IS THE BOTTOM OF THIS FINANCIAL CRISIS ?

Now that the STI is close to 1500pts. Many traders who do not believe in my friend's prediction started talking to him. His reply was, "i myself is not confident too, that 1500pts is the bottom. It could be even lower. BUT 1500pts will make me interested to buy shares again"...

So, when it hits 1500pts, i ask my friend if there will be waves after waves of rises and falls. He said, its possible. When STI hits so low, many people starts to buy. This will prompt the demand and supply equation into place again. Thus, once value goes up, those who bought at low prices, sell short to take profits. With lots selling, it will plunge the price again. Bringing the new buyers to contracting investments. As fear creeps towards them while the prices of their shares drop, they will panic and sell. This will initiate the first action again. This cycle will repeat till the market sentiment is cool.

WHICH CHIPS ARE UNDERVALUE ? (i do not based on technical information for my comments)

DBS BANK - dented with their lehman brothers minibonds issue has effectively dropped to 10bucks. A cheap buy if you ask me, since they are the most popular bank in singapore among the bigger lower and middle income families. Was trading ard 20bucks a year ago. Should be able to ride pass this crisis with govt help.

CAPITALAND - One of the biggest property developer possessing numerous quality projects and assets locally and overseas has also seen a slower work year. Price has slide, attractive too.

BANYAN TREE - Lead by a very charismatic CEO (Mr Ho Kwon Ping). This firm has also prompted my friend interest. Price dropped from 2dollars to a merely 0.50dollar. Still is among the most seeked after tourist resorts provider and with its multi-income channels, can be a good buy when the crisis ends and tourism booms in asia again.

For now, these are my current interest. Any new recommendation will come later.