now is not the time to buy yet. Sell and run with your cash to invest at end of the year. You see, in 2014 when oil price hit to 30 USD/barrel, economy almost like a standstill. Bank gets hit because their loan impairment to O&G companies. Also low interest rates means banks will earn less. When banking gets hit, its a sign economy is not good. Then u add this with the Covid19 virus that brought company production to a standstill. China only starting to ramp up again. But now worldwide is spreading fast. Penang just started. Once escalated in Penang, we will be required to work from home, which is very non productive, especially Penang is a manufacturing hub. That's why this virus will impact electronic sectors. Then all entertainment, transportation, outlets, etc will get hit. Perak transit hotel, bowling, bus terminals, etc. Most likely people are going to take car instead of bus. Also perak transit running petrol stations. Low oil price means petrol stations making losses cos they have to sell to people at cheaper price.
If my evaluation is correct, May financial report for Q1 will be bad across the board and we will move into recession. Q2 is also expecting to be bad. 2 quarters of decline growth is technically a recession.
1. Oil price 30 USD/barrel is good for business (except oil & gas upstream & downstream). Read my comment back in 2015 on Airasia 2. On low interest rate, we need to understand OPR mechanism 3. On standstill company production, we can refer to SARS 4. For petrol station, whether oil price is high or low, profit margin does not change 5. Looking at KLSE chart, technically recession started back on April 2018 (index 1891)
Guys, this is only going to get worst. When the new Kampar terminal come up, if ppl can afford, they wont take bus because of the covid virus. in fact, if you ask yourself, will u go to a bus terminal? you wont even hang out there. So you wont go to their cinema, stalls to hang out or hotel. Then like I say, the petrol factor comes in. I sincerely do think its a whammy. BUT, I like this stock, I will be in Sept Oct time frame but if things got worst, maybe only next year buy
flintstones, this company gross profit margin is 20-25%, stable income from rental of its shop in amanjaya bus terminal. Now its opening in Kampar. and soon in Bidor. All buses in the city must go thru that terminal. Its a good business model Setback is with this virus and oil price.
TKSW, are you serious? Buy signal emerge? Tell me, from Technical or fundamental? I just told u all the fundamental reason. Technical reason => Already break support level, RSI already going into the oversold region.
Still same advice. Dont treat it as buy & sell. Only buy if you can afford it. Only buy what you are comfortable with owning for long term. Most important is still can sleep at night yea
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....
ShuaiDoi
31 posts
Posted by ShuaiDoi > 2020-03-04 16:19 | Report Abuse
buy signal mana?