As we all know, PH is very concerned about government expenditure. PH is trying the best to reduce unnecessary high end projects which do not bring good implications to Malaysians. As the matter of fact, PH just scrapped KL-Singapore high speed train project a week ago.
Up coming, hot in the news is ECRL. This is different from KL-Singapore high speed train project, not just paying few million of money and the deal can be cancelled. Once ECRL cancelled, China might suspend some trades with Malaysia bringing multiple magnitudes of chain effects starting from tourism, agricultural sector (palm oil, bird nest, durian), property sector (Forrest city) and etc.
All these will be like dominos effects and hit all sectors in Malaysia. By the time, KLSE will easily melt down to less than 1000 points. Good FA shares can sell at jaw dropping dirt cheap price of PE 1-2, ie poor prospects with market uncertainty.
There are oversupplied of apartments and shop-lots in Malaysia especially in Klang valley. Without big project like ECRL, construction company is expected to earn peanuts by relying on selling apartments and shop-lots. Profit margin of construction company will be squeezed with the new PH government mottos “Competency, Accountability and Transparency (CAT)”
Until the ECRL issue settled, it is better to stay away from construction shares.
the ECRL contract signed by between the previous administration and China company has a lot of issues,like no progress billing, drawdown is outside Malaysia etc.
China is smart enough to know now the way to do business in Malaysia has changed, You can no longer bribe ppl like Najib to get deal done.
The whole ECRL project is done almost every thing by the china company, so other local company has no hand in it.
If China is stupid enough to suspend trade,tourism, it will get lots of backslash from Malaysia.
Construction stock is already on the downtrend since last year, the downtrend has nothing to do with ECRL cancellation or the 14th GE change of government.
Gadang: I started buying Gadang recently when I see it has been dropping from Rm 1.28 in the last 8/9 months to the current level of 67 sen as shown on the above chart. I believe it has bottom out and beginning its up trend. In any case, the downside risk is limited. It is so cheap, selling P/E 4.
KLCI has been falling ever since Tun Dr Mahathir said that he must look at all the mega projects especially those that were awarded without open competitive tender. On last Wednesday KLCI dropped 60 points, the biggest drop in the last 10 years. When the market sentiment improves Gadang should go higher.
GADANG:I bought GADANG on 1/3/2017 when I saw a golden stock.I believed it will soar to 1.50 or at other words, has a bullish trend.In any case,,the downside risk is limited. It was so cheap,selling P/E 9.
Today,Gasang had lost me 0.42 per share and do I still expect it to soar to 1.50?No ! But only recovered my losses as much as possible.I dare not hope to earn but no lose is already good.
hmm, KYY buy as the chances gadang drop limit getting lesser. time to buy in and keep it. anyway tomorrow gadang will up la. u want buy at 60cent++ also cannot liao. market adjusted due to his statement.
according to 1 of my frens,he told me he bought at 1.12-1.16 before the bonus and split,so by now he still make more than 100% cos his buying price is adjusted to 33-35cts
1. Stock A returns up to 100% but 50% chance win/ 50% loss
2. Stock B returns only 10%, but 80% chance win/ 20% chance loss
Most people will choose 1, because everyone is attracted by the return of 100%, while ignoring the loss of the super fatality, so most people lose money
Those who have long been able to make money in the stock market will choose 2. Investment is a steady and long process. Attitude is calm, heart is at a loss, and when the odds of winning are low, it is not a shot. It is better to miss and never to make mistakes.
We must remember that before buying a stock, we often remind ourselves that the “probability of winning” is 100 times more important than the “potential return”.
apolloang according to 1 of my frens,he told me he bought at 1.12-1.16 before the bonus and split,so by now he still make more than 100% cos his buying price is adjusted to 33-35cts 03/06/2018 23:36
check annual report 2017.KYY IS NOT FOUND.your friend is probably a liar.
U all can just used command sense by doing peer analysis and try to understand again what is pe....this will enrich Ur pocket rather than just offend other without any concrete basis....
Do this counter making losses or the order book is not sustainable? If I am not wrong, the order book can sustain the revenue of the company at least three years....do you think the management unable to replenish the order book? Please see the company track record....this stock is outperformed based on the current price...
yalo.. dunno what happened to his BullShit business sense. Steel counters till today are making increased profit yet he is one of the reason many counters dropped at one time.
think kyy business sense got hold certain weightage. no business sense but heavily under value still acceptable. meaning if less business sense but the value under the "less business sense" threshold still is a good buy.
dude, pls open eyes see.. he is a manipulator. Human emotions manipulator. he only promotes his stocks after he has accumulated enough. very good modus operandi.
GADANG...just look at its business model...you can probably use the NTA or book value as guideline. Strong balance sheet...plus high return of Invested Capital n Dupont ROE. This one is okay for longer term. But use your common sense n Investment target. TQ.
It's construction + property bro, cannot look at NTA loh...strong balance sheet? so so lah, by construction company standard, considered good la...business model too much reliance on gov project already...
geary GADANG...just look at its business model...you can probably use the NTA or book value as guideline. Strong balance sheet...plus high return of Invested Capital n Dupont ROE. This one is okay for longer term. But use your common sense n Investment target. TQ
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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....
Koon Bee
5,187 posts
Posted by Koon Bee > 2018-06-02 23:01 | Report Abuse
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