obviously u are not very bright ... PMCorp is asset play ... got nothin to do with PE or matching growth ... i'll suggest u go buy a few torch lights for your own use.
Example if a share is worth Rm1.00 and it earns 20 cents a year the P/E is Rm1.00 divided by 20 = 5
P/E is 5 or it takes 5 years making 20 cents to make Rm1.00
In 5 years time you get back your original capital & from 6 year onward you will get free dividend for the rest of the business enterprise.
Now if You pay Rm1.00 for 10 cents earning you are paying at P/E 10
If earning is only 5 cents P/E would be 20.
So it is expensive to pay Rm1.00 for a company earning only 5 cents a year. It will take 20 years to make back your original capital.
So if we buy a share at Rm1.00 with only 5 cents earning this year we hope next year its earnings will improve to 10 cents then next year 20 cents.
So people normally pay more for shares due to the expectation of higher and higher profits like Pohuat, Lihen, VS, Latitude & Now Supermax & MyEG & also JTiasa & NTPM.
Question is
Will their growth trajectory be constantly on upward trend for many years like Scientex, Magni & Ajinomoto? If so the trend is established.
If not then by chasing we can Overpay for cyclical stocks at their peak.
HE THAT IS LOW NEEDS FEAR NO FALL
Explanation:
If we buy a share that is fallen to very low level with High NTA, Low P/E & good dividend then it is quite safe.
But if we start chasing high flying shares like this
Buy 10,000 X shares at Rm2.00
Buy 30,000 X Shares at Rm4.00 (Buy more due to first doubling of price)
Buy 50,000 X Shares at Rm6.00 (So far so good. Must be right mah.
So far correct?
So?
So sell the house and buy 1,000,000 X shares at Rm8.00 (Confidence goes into over exuberance. When you look invincible you commit great mistake by being over confident.
At bottom you bought only 10,000 shares when you were uncertain & cautious.
At peak you bought 1 million shares and throw caution to the wind
Suddenly Crisis Hit like Year 2007/8
X Shares CRASHED BACK AT BELOW RM2.50
See how many people go bankrupt not because they picked wrong shares. THEY GO BANKRUPT BECAUSE THEY OVERPAY FOR GOOD CYCLICAL SHARES THAT SUDDENLY CRASHED.
Hi. Calvin. I have been reading your comments. And I lean a lot from it. Tq. can I ask u About oil shares next year. Oil price is down. Iran is joining back. Is it going to be more dangerous for oil n gas shares. I thank u for your response.
APPROVALS REQUIRED The Proposals are subject to and conditional upon approvals being obtained from the following:- (i) the shareholders of the Company for the Proposals at an extraordinary general meeting to be convened by the Company; (ii) the High Court of Malaya for a court order confirming the Proposed Par Value Reduction, the Proposed Share Premium Reduction and the Proposed Capital Distribution pursuant to Sections 60(2) and 64 of the Act; and (iii) any other relevant authorities, if required.
hahahah .... tis one simple accounting ... simple math mar ... HAHAHAHAHAH ... HAHAHAHAH ... tat's why leno refuse to sell even a single share lor .... HAHAHAHAHAHAH ..... WANG BESAR ! WANG BESAR !!
i ask u simple question lar ... how much u willing to pay for a stock with NA 42 sen, net cash 16 sen with zero debt ? it is a simple question .. so ... give simple answer hor ... no need to write long long thesis hor ... HAHAHAHAHAHAH
if u still got problem to answer simple question than let me re-frame lor .... if u and your partner abu own a company (50:50) which have 16 million cash, no debt, and another 26 million asset (in investment, hotel, land, factory) ... how much will u be willing to sell all your share to abu or how much u willing to buy all of abu shares in the company ? HAHAHAHAHAH .... HAHAHAHAHAHAH ..... 1 million ? 10 million ? 20 million ?
nolah, leno. You must understand who behind company! You see how KKP wife condemn him? Fxxx stingy old man, don't even want to spend single cent on her....so? You think he going to reward us minority back in BIG FAT div?
My Guess-He rather take the money into graveyard with him. Until he die and his successor takeover maybe only we can see better Div Yield.
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....
leno
6,167 posts
Posted by leno > 2015-12-17 17:15 | Report Abuse
obviously u are not very bright ... PMCorp is asset play ... got nothin to do with PE or matching growth ... i'll suggest u go buy a few torch lights for your own use.