Blog: Alternative recovery play stock to AirAsia, GENM or AEON? You decide.

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5 comment(s). Last comment by StockWise 2021-03-29 21:14

Analyser

67 posts

Posted by Analyser > 2021-03-27 14:44 | Report Abuse

i'm new here and just only invested in Innature also. Nice article. the lacking attention to this counter is true. maybe it's good to collect now before people know this counter.

the next quarter results should be even better than the one just release hor?

StockWise

7 posts

Posted by StockWise > 2021-03-27 16:15 | Report Abuse

Thanks for spending time to read. To answer your question, I can't guarantee for sure the next quarter will be better but most likely it should be a Yes. With ongoing vaccinations and shrinking losses of Natura, it should only improve further.

If you notice, foot traffic has returned to malls with everyone going out again. Shops like LV always have a long queue. And the new Donki store in Lot 10 has crazy lines from Ground floor all the way to 3rd floor!

WiseEye

1,199 posts

Posted by WiseEye > 2021-03-29 13:02 | Report Abuse

Great article. if Innature manages to retain it's latest quarter profit of RM7.7m, the PE will be approx 15. but definitely, it perform better than this figure post-covid recovery. i reckon it'll be around 10 times PE when situation improves.

StockWise

7 posts

Posted by StockWise > 2021-03-29 15:40 | Report Abuse

yeah definitely. i bet Natura's losses will shrink further post covid. Natura's business model is similar to Young Living and Nuskin, where it relies a lot of agents to market their products. it'll be interesting to see how this pans out with the combination of agent marketing and store model.

StockWise

7 posts

Posted by StockWise > 2021-03-29 21:14 | Report Abuse

And I'd like to emphasize several things:

1) Think about this. Do you want to buy a recovery stock which is profit-making or loss-making? AirAsia just posted a RM 2.6 billion loss in Q4. We are just waiting for the share price to blow up in our faces. Tony can use his PR charm to smooth talk his way out but the fact is that recovery for them takes time. Nothing stops them from issuing rights issue next.

2) So why not place your bet on profitable companies. It doesn't have to be Innature, but as long as the company is fundamentally sound. Innature has been a solid recovery stock which is profitable throughout Covid period. You can sleep well at night owning this stock.

Clearly. the market now has been disillusioned by hype and forgetting that fundamentals are more important.

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