Icon8888, I really like to meet you and I would like to buy you dinner for your efforts of writing the anlaysis about Tguan (i made some good money after reading your article) and learn some stock analysis skill from you.
Noted! Thank you Ahbeng11! I just sold some Tguan and bought Tguan-LA as I plan to hold long term, at least one year because i see the potential of Tguan. Hopefully i'm right! hahaha
I actually sold some of my Tguan and bought the LA instead since I plan to hold long term and will convert my LA to mother share by Oct 2016 for more margin of safety + higher profit margin as the LA is trading at 30 cents+ discount. Is it a good move ?
Icon8888, if next quarter result Tguan's earning remains at 10.70 cents (let's say la), what will be the share price that you think is reasonable compare with its EPS x PE ?
Author: Koon Yew Yin | Publish date: Mon, 30 Nov 2015, 09:45 AM Many friends and acquaintances frequently ask me how I made so much money from the stock market. I have been using this golden rule for share selection: The company must be able to make more money this year than last year by looking at its profit for the last few quarters and provided it is still selling at a reasonable P/E ratio. For most cases I consider P/E 10 is cheap enough or acceptable. But for leaders of the industries, I am willing to buy at a higher P/E ratio. I need only to wait for the next quarter profit announcement to see the share price go up because an increased profit announcement is the most powerful catalyst to move share price. When the company announces its annual result of an increased profit, the share price will surely go up because most clever investors who are watching for quarterly announcement, will rush to buy the share. The following shares comply with my share selection golden rule.
Can One 1st Q. 10 sen, 2nd Q. 14.77 and 3 rd Q. 14.28 EPS selling at Rm 4.35 Focus Lumber 1st Q. 3.22 sen, 2nd Q. 7.80, 3rd Q. 9.35 EPS selling at Rm 2.90, Thong Guan 1st Q 4.4 sen 2nd Q 6.75 , 3rd Q 10.70 sen EPS, selling Rm 2.65 Mieco Chipboard 1st Q 1.53, 2ndQ 3.21, 3rd Q 2.94 sen EPS, selling Rm 1.10
Many readers frequently complain that I only recommend shares when they have already gone up in price and I wanted to sell so that they can buy. As you know I have been recommending Latitude, Lii Hen and VS for a long time when their prices were much lower but all my critics did not buy. Those who have bought are laughing to the bank. Now the prices of Latitude, Lii Hen and VS have all gone up a few 100% within 1 or 2 years, nevertheless, they still comply with my golden rule. I believe their prices will continue to climb. You can verify what I said above by looking at their EPS for the last few quarters in Bursa Malaysia. On the last trading day 28th Nov. 2015, both Latitude and MPI reported about 29 sen per share and both their share prices went up about 30 sen each. If you are not a novice, you should use margin finance to leverage your profit. As long as you are confident to make more than the 4.8% pa interest rate, you can make more money with margin finance. I hope some readers will find some new shares which comply with my golden rule and post their findings here for the benefit of all readers. My intention of posting this article is to teach people how to make more money from the stock market. Unfortunately, there are a few habitual critics who want readers to think that they are clever in making stupid comments. They must realise that most readers can see how stupid they really are and appreciate my writings. As I have a lot of the shares I mentioned above, I am not asking you to buy any of them but if you decide to buy, you are doing it at your own risk.
TGuan is on track to climb higher as a result of timely expansion of production and diversity of products. Trading price will soon reach RM2.90-RM3.30 when the 4th quarter results are released. Be patience for those who are still holding this counter. Soon you will reap a better harvest.
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....
Icon8888
18,659 posts
Posted by Icon8888 > 2015-11-23 11:45 | Report Abuse
with this kind of result, there is no way the stock will peak at 2.50
it should reach at least 2.70 within this 3 months and move on to a higher level of let's say, RM3.00 if next quarter result is good
if they continue to deliver strong profitability, by end of 2016 should reach at least RM3.50 or probably RM4.00