Sale of Lian Beng

==== Small Talk in the Market =====
2 and a half mths has passed since the last correction in late jul/early aug where we see a sharp decline in STI from an all time high of 3700++ to 2900++ breaking the 200MA support.

Back to present, we managed to see STI breaks into new record of 3900+ into the uncharted region yesterday. Several analyst feels that he recovery is way too fast and predicts there may be a pull back in mid Oct.

During the week, STI has gapped up on two occasion only to closed lower due to the profit taking sentiment in the market. Just yesterday, STI hit its high of 3906 and close at 3814 (almost a hundred points down). It may be a sign of warning.

====Personal Experience====
As a beginner, I am alway heavily vested in the market. This has made me got caught in the two market corrections where my holdings got struck. From the experience, I learnt to be smart and decided to lock some profits to safeguard myself against the forseeable correction ahead.

Looking at my holdings, I have only 2 counters(Lian Beng & STI ETF 100) that are on profits. This scale down to only one choice - Lian Beng - as its the only one that I could liqudate into cash. I have already do my research on Lian Beng and its peers before selling it. (see below)

===Personal Analysis===

Overview of P/E (Sources: Straits Times, 10th Oct, Wednesday)
CSC Holdings: 43.1
Chip Eng Seng: 34.2
LC Dev: 55.9
Lian Beng: 77.3
Yongnam:63.9

Comparing among its peers, Lian Beng has the highest P/E. It is very risky for investors enter into it now.

Constructions Charts






All the charts above shows a possible downtrend. It may be a good time to lock profits and entered on dips during the correction.