@vin If one compares Pwroot to other big cap consumer stock, its trading at relatively low P/E(current P/E at 18, Big cap like nestle & F&N trades around 27,28),which i deemed it as fully value. Of course it can trade at higher P/E if market wants it to. My take is, if u are confident and have faith on its future prospect, Why not? The company has good growth history, which if you factor the growth, the PEG is attractive. Foremost,you most be familiar with the company and have faith on it, provided u are a long term investor
Ipomember, you cannot compare PWR to F&N cos not similiar in business although both in consumer industry. You should take a look a pier industries like Old Town.
But i likes PWR cos part of the profits derived from Indonesian market which is a big biz. Their products on the local front is facing competition from other beverages makers and their cafe like business can't match Old Town Kopitiam, hence they really relied on the Indonesian markets which i think is well accepted there judging from the encouraging profits quarter after quarter.
If the stocks is trading at PE18 times, i think is fully value. I still remember i bought 5 years ago at 75sen and sold somewhere in 2012 at 1.05 and it shoot like nobody business supported by good earning and dividend. So at 2.12 it is deemed fully valued unless some corporate exercise is on the card. Either Old Town acquire their business for synergies purposes and to penetrate the big Indonesian market which Old Town is eyeing.
Hi ktsk88, literally i think oldtown is not a good enough comparison. I have to agree the rest. In investing, i believe we are also buying in the future of the company. I believe market is always efficient that, you can hardly find a good company trading in low valuation. Market will even factor in upcoming good news/bad news in the share price. So, if the company still can achieve good growth in future,its attracting.
it is good to see director buying its own share or holding significant interest of share. As we know, directors are the one who knows the company the most. It strengtens my confidence when this scenario happen.
Everyday's transaction is not heavy n with the directors' support anytime the small volume can be easily absorbed by them n this can easily push the price up. If I got the fund I'll everyday collect the shares as this is my favourite counter for investment.
Abudance, ya it's true but I think if they still want to list the company, they'll support to a certain limit n then slowing sell some when the price has gone up. When they think that the price has stabilized then they can wait n see n let the market forces take over. I hope I'm not wrong.
Not at all, just encourge the members not to be too concern in this counter as it is a good company. Next year with the inclusion of income from the sales of the shop houses in JB the profit will be very good. What do u think Fat Cat Tim?
Hi Fat Cat Tim Buddy, what do u think of magna shares? I thought of going into this counter but I noticed that the PE is around 20 n their annual report for 2012 was very impressive with so many projects many of which r already in progress n some r almost completed. U try to go to their Annual Report 2012 n see n give me ur opinion which I can share with n make my decision. Ipomember if possible I also need ur opinion. Thanks to both of you. Enjoy ur beautiful Sunday.
Jimstock, why are you so confident that price will head north? my remisier told me to buy within these few days. chances of making 20% within short period. is the price a bit expensive?
Tonywong, i cant predict shorterm like yr remisier, i go for long term due to their improvement and expansion. Of course, my average price is still relatively low and i will wait to see how far it can go.
1.Their export growth very impressive 2. Plant capacity expanded and looks going to build factory in saudi very soon 3. Coffe is an addictive product, consumer will stay and grow. 4. Of course, the property development help 5. The director continuorsly buy back.
I agreed with you now the pe is high, div is low but i bet on their high growth
If you are punters, you have to be aware of all these reports even if they are craps because it affects sentiment and there are people following these calls. But if you invest base on fundamentals for long term, you can ignore if the fundamentals are still intact
Just sharing. Read that pwroot Egypt market is badly affected by the citizen uprising there. It's their biggest market in mEast. Hence price downgraded.
Film industry in Malaysia is poorly supported. And not their core business of coffee. Price dropping more. No sign of dividend for this year. Was hoping to see dividend announcement this June....
drinks + coffee products/ phillipines is a huge growing market/ egypt might affect bottomline but it's owners wld press on his minions to deliver the required sales
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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....
ipomember
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Posted by ipomember > 2013-07-11 10:00 | Report Abuse
@vin
If one compares Pwroot to other big cap consumer stock, its trading at relatively low P/E(current P/E at 18, Big cap like nestle & F&N trades around 27,28),which i deemed it as fully value. Of course it can trade at higher P/E if market wants it to. My take is, if u are confident and have faith on its future prospect, Why not? The company has good growth history, which if you factor the growth, the PEG is attractive. Foremost,you most be familiar with the company and have faith on it, provided u are a long term investor