stockoperator - for short term trader, you may right. For long term investor, no matter the start up investment is RM1m or RM100, it is always a startup point. The main thing is consistently to invest and accumulate on fundamental growing stocks (instead of saving in FD), then only you can get the first bucket of gold sooner.
@Flinstones- I totally agree with you. although the company is fundamentally good, price now 1.85-1.87 is still overvalued based on my calculation. i would not take the risk of putting my money betting on future earnings. Actually, most of the counters in Bursa are alr fairly valued to overvalued. only managed to find a few companies that are fundamentally stable and still undervalued. if the economy stable, there is still chance of upside gains. however, keep in mind, what goes up, must come down. Business cycle.
My 1st bucket of gold from the stock investment from padini and aeoncr... sold padini at $2.. now it's time to accumulate some... i hold aeoncr from 2011 till now and accumulate along the way... you need to hv time to see your investment grow. i would say at least 1-2 years... to review your portfolios...i am still learning and has missed a few opportunities for 100% gain by selling too soon... invest those you have 100% confident with(analyst the historical reports, view on future prospect ).. ask urself this question b4 start buying a share... if the price drop 30% further will i invest more? if your answer is 100% yes, then go ahead... confident in yourself and having patient are the keys to success in stock investing... cheers :)
I cant proof any things ,but report. Now u see is drop, do you will buy in? Or there got good counter ?? But what i hope good price better than i think negative . Good management always grow and pay . Good Day.
yes. I agree with good management and consistent dividend payout.but in term of future growth, i am more concern about new comers in the industry like H&M, M&S ,Zara,Cotton on and etc. Those companies if expand their branches in malaysia, will padini lose it competitive advantage in the long run?Padini's EBITDA dropped 13.8% over the last 3 years. It seems to me that their same store sales are not generating enough cash to cover their operating expenses. And they are forced to sell lower margin product.Giving more discount. Management need to come out new plan to stay competitive in long run.
but those european companies have stronger cash reserve and background . they could also adopt the same strategy and drive padini out the market slowly. their operating cost is much lower due to bigger economical of scale . btw H&M grew its biz in malaysia from 37.9M (2012) to 170.8M(2013) and at the same period padini sales only grew marginally from 726.1 to 789.8. Only selling discounted items to keep customer would not be a long term plan. i guess they need to work harder to create more value in their brand.
H & M although is an offshore brand well like by some pro brand consumers, however looking at local ground of our consumer behaviour in shopping mall, mostly their look for value buy ( meaning buy on sales /discount / offer time) thats not always practice by offshore brand like H&M & others, most importantly is the market share that who has in their respective market, particularly in respective zone and also malls. Padini is one of the major brand that most mall operator cannot afford to miss them out in their mall ( consider their crowd pulling factors) . so i would say it is still a gem at the moment . of cos as investor , we are looking at good bargain on the share price beside the potential of the business.
Heard the new list will be published in Nov. Many people assume that Padini will be reinstated into the list based on fact that it had rearranged its banking activities to align with the requirement. But there is no guarantee.
Foreign leaving...hope padini can strong support on 1.80 in this 2 week , if no more serious dropping. Since can see US 2014 biggest drop 335 . Don't guess , Don't think , Don't panic. This all only for SHOW.
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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....
Alvin Tan
59 posts
Posted by Alvin Tan > 2014-09-03 08:59 | Report Abuse
stockoperator - for short term trader, you may right. For long term investor, no matter the start up investment is RM1m or RM100, it is always a startup point. The main thing is consistently to invest and accumulate on fundamental growing stocks (instead of saving in FD), then only you can get the first bucket of gold sooner.