agree with you Huat1.beside Elsoft pay shareholders handsomely in div as their profit margin is very high.good management. Before this Forbes have described Elsoft as Top 100 plc under one billion stock Asia.A great achievement .
Panic is good. Keep dropping so that I can accumulate more. The coming QR is not going to be great but it is good enough to bring you early X'mas gifts.
Like some of the technology stocks which were negatively affected by the trade war, ELSOFT's business were affected too. That's why its revenue and profit dropped significantly, thus resulted the drop in its stock price from 1.50 on 19 November 2018 to a low of 0.765 on 26 June 2019 (dropped almost 50%) before it rebounded from there to today's level of 0.96 (still a distance from the 1.50 level registered on 19 November 2018).
The recent correction from 1.08 level on 23rd October 2019 was mainly due to the poor results of some technology stocks like Vitrox, Unisem and Gtronics - poor market sentiment on semiconductor industry.
In fact, the softer business performance should be an expected outcome but still investors reacted negatively on these stocks.
ELSOFT business performance were poorer compared to the preceding year but we can see from the last quarterly report that business has began to improve compared to its previous quarter. Things are getting better...the worst may be over?
In investment, we need to look forward to capture the best opportunity ahead of others - not to chase high later.
I believe in the integrity and capabilities of the management team of ELSOLF. Note that ELSOFT is one of companies in KLSE that achieved the highest profit margin. Once business environment improves*, this company should do very well - watch out!
* Latest!!! China says it's reached a consensus in principle with the US during this week's trade talks
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....
Shines
2,824 posts
Posted by Shines > 2019-10-18 15:07 | Report Abuse
I got a friend who told me