In this uncertain equities market environment, it is always safer to pick up stocks near their bottom prices, if we decide to stay invested in equities over the medium/long term. The challenge is always in predicting the “exact” bottom as we will not be correct all the time. Fine examples of recent opportunities for “bottom fishing” were SP Setia, SKP, SuperMax, Top Glove, Luxchem, Padini, MYEG, Petron, Hengyuan etc. Time & Tides wait for no man. Panic Buy when others are panic selling :-) There will always be differing opinion that makes share investing exciting and opportunities to make monies.
Time & Tide Waits For No Man. A word of caution - Bottom fishing strategy will not work in Covid-19 negative sectors like Aviation, Tourism, Hospitality, Retail and Banking sectors at this juncture though and no point fighting the opposing tide. Share price/valuation based on 2020 evolving Covid-19 negative impact will determine the entry prices.
i bought this share around 11.30 till 11.76. i have been trading stocks since 1993. forget abt crisis 1997, 2008. I dont see such a quality stock with such a low price. I could be wrong, but i dont think I could be that wrong. every bluechip stock needs a bad news to drive it down. but the bad news seems to be ok, it is a matter of government enforcement. it is not talking about huge debt or bankruptcy. my advise to young investors, just keep buying this stock, a stock that u could keep forever, of course dont expect it will fly within a short period, in few years time, it shall reach rm50.
with about 10% dividen, the buffer is huge, even the coming profit is half gone, u still have 5% dividen, that means about 90% of market share are belonged to smuggling, which is very unlikely to happen. even if it does happen, 5% dividen is good enough for investors to rush to buy.
My triple Averaging Down strategy working well. From “paper loss“ to “paper profit” and I am not exiting anytime soon even at 12.20 :-) The Best Is Yet To Come.
I am definitely keeping as endowment funds and gifts to my grandchildren. It might be the best gift for their education funds since my average cost is so low as compared with RM66 !
panorama1need to consult you , someone bought the share at 66 in 2006 , today is 12 .As you know the co revenue and profit are on the decline each year so by the time your children have the share it could be much lower price than today. why you believe this business can improve with time from now on
Of course, BAT business will not improve significantly over time. However, you need to bear in mind that my entry price at an average cost of RM11 plus (not 66 or even 20) is very low indeed for a high dividend yield counter. BAT is facing the full brunt due to the illicit cigarettes level at 65% as at the last quarter mainly due to lax enforcement issues and market risks aversion. Our Government need to focus on the eradication of illicit cigarettes smuggling immediately to prevent major tax leakages in the shadow economy. With revenue plunging (lower oil prices, negative tourism effect due to Covid-19, lower tax revenue etc.), the urgency is there to act fast on all these tax leakages with the assistance of Customs & Police to mitigate against the high recession possibility for Malaysia in 2020. BAT will not head back to it’s hey day share price level due to steps taken globally to reduce smoking but it should not be at the current share price level. Market has no memory. I am a non-smoker too :-)
@Panorama1 agreed with your points. Another main challenges for tobacco business is the demand for traditional tobacco Vs e-Cigarette. The drop of smokers statistic worldwide also influence investors from giving higher premium evaluation to tobacco company. Other than that, i think all negative point of views already price in at current BAT price level.
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....
EngineeringProfit
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Posted by EngineeringProfit > 2020-02-17 09:55 | Report Abuse
huat ar