PE so high, growth is just so-so. ROI is low, high expectation may lead to high disappointment, i cant really justify to buy this share lo, just because jack ma has indirectly taken a piece of this cake into his mouth... unless there is a surprise for us lah....
Hong Leong IB Research said "We believe GDEX should be fairly valued at RM1.80 based on FY17 P/E of 27.5x, given the strong growth potentials of its business model with further upside from regional expansion,” it said.... Oh! what kind of standard is this research?!!! Pegging a P/E ratio of 27.5 times and based on FY17 forecast earnings?
Think of PE, think of Jack Ma or think of research house's valuation THIS IS A BORING COUNTER.
You may start to connect it to KL-Singapore fast train project or you can get some clue on Temasek's Singapore Post which currently hold some shares at GDEX.
try to do critical thinking on GDEX's value creation & unlocking value initiatives start from this year.
GDEX is a special case, the PE is something i never seen before, but market give this valuation because it expect GDEX to growth at rate close to 20% continuously for the mid to long term. In this case, the most suitable valuation method is DCF, which RHB has done it. "FY17 P/E pf 27.5"? Why FY17? Why 27.5? What is the comparable? PE is a type of "relative value" method, being "relative" means it has to be "relative". So 27.5x is relative to what? What a guess work
aiyoooo... read up CIMB report for Singpost regarding the E-commerce within South-East Asia, such a young industry...Earnings growth will lower the P/E ratio la from time to time, not significant...
First hand experience is the best teacher. I was going to plonk down for shares in GDEX until I personally experienced their bad/no service. Answers like 'no time', no kidding. I have complained directly not to them but a major international company that uses them. At the end of the day....people on the ground makes or breaks the company.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
wakakaka88
779 posts
Posted by wakakaka88 > 2015-02-12 10:13 | Report Abuse
share dilutions...run...