My mistakes for stock selection were scattered to pieces over NGK Hall / 5333: NGK Insulators

 I decided to start a stock investment in 2019/3, and opened an account with SBI securities and Sumi-shin SBI Net Bank. I was filled with joyful expectations for future bomb profit.  

I searched on the Internet when I first thought about what stock I should buy. However, I think the way to look for was bad.  

For me today, I know I can see youtube videos and some blogs that kindly teach me how to invest, how to build investment strategies, how to choose stocks.  Even if I could not still find the best way to invest, I think I could have avoided the NG action! 

I want to write today’s blog for past me and investment beginner. I’ve failed. I want someone will not mistake like me. 

Get information from economic news paper 

When I saw online XYZ economic news paper, I was interested in this article. 

“In the future, environmental regulations will be tightened worldwide, and regulations in China will also become stricter. So these regulation will be a great tailwind for exhaust gas purification equipment. Therefore, NGK will be the noteworthy brand in the future.” 

 Come Ooooon! ━━━━(゜∀゚)━━━━!!  

 ・NGK is a large company that I know what it does.  

・NGK brand is world famous company  

・It may be a good company because a university graduate with a high deviation value of acquaintances is working.  

・”Gaishi(NGK) Hall” is famous as a concert hall with good sound. 

This is a good buy!  

“I must buy it before the stock price rises due to the people who have seen this article!” I hurriedly bought 200 shares at 1,700 yen on March 22nd. The chart below plots monthly highs and lows. At this time, if stock price will return to the high price of around 3,000 yen, my income would be +1,300 yen.  

Don’t count your chickens before they are hatched. 

I tried it. Afterwards 

Three days after purchasing NGK stocks, the news came out and it was a big drop of-200 yen, about -12%. 

On March 25th, NGK announced that its consolidated net income for the fiscal year ending March 2019 will be 25% lower than the previous year at 34.5 billion yen.  The forecast is 9.5 billion yen lower than the previous forecast. Demand for automobile parts fell significantly below expectations, and business profitability declined… 

NGK announced on the 25th that it has decided to dissolve a Chinese subsidiary that manufactures electric wire parts “insulators”. Profitability deteriorated due to intensifying competition with Chinese manufacturers. Demand for “insulators” is sluggish worldwide… 

Where is a tailwind?  A tailwind was stopped?  XYZ economic newspaper said NGK Insulators should be noteworthy stock… (But XYZ do not say “Buy it!”)  

After all, I sold all at 1696 yen (-4 yen) when it almost returned to the buying price at 25 days later. I was surprised by the maximum -40,000 yen and sold NISA stock  when it returned to about plus or minus 0… 

Now, I checked the performance of NGK Insulators 

At that time, the full-year financial results for 2019/3 were not available, so I was looking at the results until 2018/3. 2016 was good, but it may be stable as a big mature company, but it may be difficult to grow significantly. 

What I learned 

After all, 

1. The Information on the internet was already known to many people. Not only you know.

2. The article is the opinion of the author and no one knows if it really will. (If someone’s opinion was always true, someone would become billionaire)

3. I don’t know if the person who wrote the article really thinks it or does it for a different purpose.   

It’s funny that you don’t research or think deeply on your own to spend your precious money. 

I was an idiot at that time. 

In regular life, you wouldn’t spend 100,000 yen or 1,000,000 yen without being so much researched if someone advised you.

I don’t think you who reading this article are idiot.

 If you read an article on the Internet and believe it and lose money, the person who wrote the article will not pay you for the lost money. He doesn’t even apologize. 

But It would be nice if the article was the starting point for doing a lot of research and thinking.  

Even if the decision is wrong, we can correct the process of thinking that led to the decision at the next opportunity. This is good experience.    

Finally

When I forgot it, I got a dividend of 5,000 yen from NGK on 6/24. 

I was happy with the first dividend… 

 Wow! The stock price plunged right after the purchase of NGK. The reason is was the next day of the last trading day with rights? 

If you own the stock on the last trading day with rights, you can receive dividends, so after that day, the stock price tends to decline.   

It’s scary not knowing. 

 

 

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