you all will be surprised that this black golden horse of 2018 will very soon fly to 1.16 by Aug, and once fantastic result released end of Aug, CIMB and others will upgrade the target price to RM1.3X~RM1.5X. Cheers~!
Uncle, truly a great investor doing long term investment well. My friend is working there and their business really doing well, automation, many orders, 0% gst effect, new factory additional prod line capacity. On Aug may announce the best ever qtr result!
Small-cap stocks rebound after falling 24% TheStar Thu, Jul 26, 2018 - 6 days ago
Long-term value: CIMB Research reckons that despite the uncertainties in the market, small-cap stocks offer long-term value accretion to investors
Long-term value: CIMB Research reckons that despite the uncertainties in the market, small-cap stocks offer long-term value accretion to investors
PETALING JAYA: Stocks with a small market capitalisation on Bursa Malaysia, or small-cap stocks, have clawed back some of the losses they have seen since the start of the year as market sentiment improves.
On a year-to-date basis, the FBM Small Cap Index has lost more than 12% compared to the 1.8% loss in the FBM KLCI, which tracks 30 blue-chip stocks.
Small-cap stocks tracked by the FBM Small Cap Index have fallen as much as 24% from mid-January to mid-April. The index fell further at end-June to its lowest for the year, before rebounding more than 9% over the last three weeks.
CIMB Research reckoned that despite the uncertainties in the market, small-cap stocks offer long-term value accretion to investors.
“We are still bullish on small caps in the long run because they offer investors stronger growth prospects and are under-institutionalised.
“Also, in the longer run, we think the small-cap space would continue to provide investors opportunities to unearth ‘alpha’ gems,” it said in a report yesterday.
CIMB attributed the underperformance in the small-cap index to poor corporate earnings over the past few quarters, foreign equity outflows, which led to a selldown in small-cap stocks, and expensive stock valuations.
It pointed out that at end-2017, the FBM Small Cap Index was trading at a valuation of 17 times the price-earnings ratio, which was close to that of the index-linked stocks.
In terms of a short-term view, CIMB said that the outlook for the small-cap stocks remained unexciting in the second half of this year due to earnings downside risk and possible negative impact from a review of government policies.
“In our view, domestic equity markets would remain volatile in the second half of this year as the new government’s ongoing review of policies and the impact of these reviews pose earnings downside risk for corporates, especially small-cap companies.
“Other challenges in the second-half of 2018 include slower economic growth, revenue pressure from possible policy or regulatory changes, escalating trade tensions between China and the United States, rising operating cost pressures and global monetary tightening,” it said.
The research house said the key pointers for small-cap counters were consumer stocks with defensive earnings, bombed-out stocks with emerging value, and stocks with recurring income and high earnings visibility.
“We believe that any selldown in our selection of small-cap stocks offers investors opportunities to accumulate,” it said.
Among its top picks for defensive consumer stocks are CCK Consolidated Holdings Bhd , Lee Swee Kiat Group Bhd and Kawan Food Bhd .
CIMB said there were a total of 50 stocks under its coverage of 129 companies that qualify as small caps. Of the 50 small-cap stocks under its coverage, 30 stocks have market capitalisations of RM500mil to RM2bil, 11 stocks have market caps of RM200mil to RM500mil, and eight stocks have market caps of below RM200mil.
On a year-to-date basis, CIMB said the collective market cap of all the 50 small-cap stocks under its coverage had declined by 14.8%.
“Among the small-cap stocks under our coverage, the top-three performers in terms of share price are Lee Swee Kiat, CCK and Tan Chong Motor ,” it said.
LEESK is a goreng stock that has nearly reached its peak. Better get ready to run on any major dip. Fair value is around 0.34 translating to a forward P/E of 8.0x inline with peers LIIHEN (8.6x), POHUAT (7.6x)
time will tell and prove whether is good or goreng counter. so far, I prefer mee goreng than goreng counter, Hahaha, just share the view, hope no hard feelings , everyone looking for good and stable counter. believe shpg22 trying to give good advice just to prevent others simply dump in, take own risk, advice been given
my group have own analyst specialist, we will hold or even accumulate until 3rd or 4th quarter, which are LEESK traditional peak quarter. We will not take profit on this month, which going to announce 2nd Q result. We will add position if 2nd qtr result is better yoy and qoq.
be patient mates~ be patient for the fruitful returns~ i'm glad that you all are having positive and right investment strategies. Good company good boss definitely won't disappoint you!
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....
Money122
982 posts
Posted by Money122 > 2018-07-20 23:08 | Report Abuse
Next will up to another higher level