Had the panic selling over for AGES (KLSE: 7145) ?
Malaysia’s stock market has been a wreak havoc due to several external factors such as potential delisting of China listed companies in the US market, resurgence of a new variant of virus, and risks of accelerated interest risk hiking. Although these are macroeconomic factors, but they indeed smashed the investor’s confidence to pieces.
But what about AGES?
Due to the private placement fund raising exercise by the company, AGES had experienced an outflux of weak holders for the company. Is it good, or bad? For the longer term, shaking out inexperienced investors and weak holders is good for the growth of the company, but in the shorter term, investors might be freaked out by the knee-jerk reaction on the share price.
Luckily for us investors, there are two indicators I identified, and this could be the saving grace for those who wanted to invest in the company.
Flat share price amidst global meltdowns. During a share market meltdown, usually share price would either go up, or down, especially for one that is well known as AGES, due to a change of investor’s buying and selling behaviour. But from what we see here, in the graph for AGES price movement, the share price had stayed flat, which means people are no longer selling AGES shares even though the market is bad.
Reduced trading volume. Trading volume is best represented as the interest level for a company. After a drop in the share price caused by the private placement knee-jerk aftereffect, we are clearly seeing reduced trading volume here. In lay man term, people are, once again, no longer selling the shares of AGES.
As someone who observe AGES day in and day out, I would say that AGES is a deeply undervalued stock with low single digit price-to-earnings valuation. This might just be the best chance for one to grab the shares for AGES!
Actually where is the promoting ? I just don't get it. Those people randomly come in just say con ? Guess those who with random bad mouth going to receive karma first..
KUALA LUMPUR (Dec 22): Hong Leong Investment Bank (HLIB) Research forecast construction-sector earnings to double in 2022, driven by higher productivity and margins.
In a sector outlook on Wednesday (Dec 22), HLIB Research said job awards could recover, driven by both the private and public sectors.
According to the research firm, construction gross domestic product is slated to rebound 16.6% in 2022 and that in tandem, the firm has pencilled in a doubling of sector cumulative earnings driven by higher site productivity and better margins.
HLIB Research noted that its financial year 2022 forecasts are roughly 15% lower than pre-Covid-19 levels on account of impaired productivity, a worsening labour shortage, hostile cost environment and lower outstanding order book.
“We see a limited scope for earnings upgrades as the aforementioned factors are likely to persist in 2022. To the contrary, should Omicron (the new Covid-19 variant) prove nastier, another earnings downgrade cycle might be triggered,” the firm said.
HLIB Research added that domestic jobs in the first 11 months of 2021 were public sector-driven, while the private sector floundered.
As such, the firm cautiously expects gradually improving contract flows as Malaysia embraces endemicity with private-sector opportunities and roll-outs of public projects like the East Coast Rail Link, Pan Borneo Highway, Johor Baru-Singapore Rapid Transit System and Central Spine Road to keep the tap running in 2022.
“Higher development expenditure bodes well for the general tender environment even with new big-ticket projects missing. Implementation of existing megaprojects should also continue to selectively present opportunities.
“Developments of the Mass Rapid Transit Line 3 (MRT 3) could catalyse flows with open tenders targeted for next year’s third quarter [and] awards in 2023. Downside risks are Home Ownership Campaign expiry, rate hikes, delays due to high material prices and election overlaps,” the firm said.
HLIB Research also foresees elevated election risks denting sentiment next year, which could potentially weigh on news flow catalysts.
The firm said there were significant de-risking activities in the past two election cycles, resulting in pullbacks of 9% to 14% and price-to-book (P/B) derating of 13%/18%, but low sector ownership this time would mitigate it to some extent.
“Comparatively, we anticipate less pronounced volatility this time due to low foreign ownership of the heavyweights and low expectations.
"However, 2022 could see an extra element of market unpredictability vis-à-vis past cycles with the stamp duty cap removed,” the firm said.
Meanwhile, HLIB Research highlighted that the Bursa Malaysia Construction Index (KLCON) was lagging the FBM KLCI by -10.4% year-to-date as negatives like multiple movement control orders, High Speed Rail cancellation, political flare-ups and a disappointing Budget dragged the index.
“Details of MRT 3 in April this year did little to spur the index to new heights as Covid-19 risks outweighed. On a relative basis, IJM Corp Bhd was the key performer, outperforming the KLCON by 14.1%, riding on its IJM Plantations Bhd value unlocking,” the firm said.
HLIB Research also retained its sector call at “neutral” as fluidity of the looming election could weigh on sector sentiment, with investors adopting a wait-and-see approach and sector valuations on the lower end at 12.2 times price-earnings (P/E) NTM earnings per share and 0.61 times P/B.
KUALA LUMPUR (Dec 22): Hong Leong Investment Bank (HLIB) Research forecast construction-sector earnings to double in 2022, driven by higher productivity and margins.
In a sector outlook on Wednesday (Dec 22), HLIB Research said job awards could recover, driven by both the private and public sectors.
According to the research firm, construction gross domestic product is slated to rebound 16.6% in 2022 and that in tandem, the firm has pencilled in a doubling of sector cumulative earnings driven by higher site productivity and better margins.
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....
kangedd
457 posts
Posted by kangedd > 2021-12-06 15:51 | Report Abuse
well said, nowadays there is a lot of fear going around the market, plz remain positive if you want to stay in this market