So whose fault is that @peterchu? Yours or the counter's?
I heard the same thing about some growth funds trying to push the price up to RM1.50 or so (idk abut RM2 as some of you all have quoted) by the end of the month. To them, maybe the counter is still undervalued since its peers are trading at an average PE of 30x. GHLSYS is almost double that at 60x. Very normal for tech companies as investors are looking for future growth prospects anyways. And Revenue probably has one of the best business models and profit margins in an industry that is only going to grow further in the coming years so not surprised that once it cleared the resistance of RM0.80, it has only been one way traffic.
I don't understand how some of you can even compare Revenue with Mi, JHM and Dufu?? They're completely different companies employ different business models offering different products to different markets. Dufu is involved in manufacturing hard disks, JHM produces electrical components & LEDs while Mi makes sorting machines for the semiconductor industry. The only way Revenue is similar to all 3 is that they are all listed as tech companies - nothing else. If you're going to compare Revenue with those 3, you might as well compare it with the 90 other companies listed in the Bursa tech sector. Out of those, there are only 2 companies that you could say has comparable products, markets and business models with Revenue - and they're MPAY and GHLSYS.
MPAY has managed to double revenue y-on-y over the past 2 quarters while GHLSYS has been experiencing steady profit and profit margin growth for over 2 years. But they don't even come close to Revenue in terms of net profit and profit margin growth whereby Revenue's net profit has grown consistently at an average yearly rate of 75% over the past 3 years and its profit margins are no less than 25% - almost 2.5x that of its competitors. And when you see GHLSYS trading at 60x PE (can't compare with the PE of MPAY since it's loss making), are you all even surprised that the price has been surging over the past few days?
After listing, there appeared to be massive resistance at 0.795 but once that was cleared, it has only been moving in one direction with just minor retracement episodes. That plus the fact that most of the surges have been the result of high volume buy transactions, there can honestly only be one explanation - fund accumulation. And if funds are indeed accumulating, even at RM1 when Revenue will be trading at approx. 30x FPE for FY18, it is still only half the PE of GHLSYS - the supposed market leader before Revenue's IPO!
Also, always remember that you cannot judge a technology company in exponential growth industries by the absolute value of its PE alone. I'm almost certain that many of the growth funds that have been mopping up the stock over the past few days are not going to bother too much about what Revenue earns this year or next because they think that paying such prices today will justify their investments in the future. Especially considering Revenue's growth rate and prospects in an industry that has little competition right now and almost limitless prospects in our developing economy that's transitioning into a cashless society (most developed countries have already reached this stage - around 50% of transactions in Europe & North America today are cashless). In fact, look at all the big tech stocks consistently trading at what some might consider as "excessive PE" and tell me if their price has ever dropped due to over-valuation? No, because its the premium you pay for (almost) guaranteed growth.
Maybe some of you are just upset that you missed the boat but judging by how Revenue has been surging for the past 4 days, I think it's only a matter of time before the price doubles to RM1.50 in the coming weeks if our suspicions are correct and funds are indeed accumulating so it may still not be too late!
@spchon2 ignore what @tradesman is saying. Just scroll up, read his comments and you'll see that he sold early @ 0.91 and now cannot take it to see the price being so high. @peterchu is even worse - sold for 0.01 profit and now kicking himself so he's also hoping it will drop to 0.7. I have no idea how its possible for anyone to just profit 0.01 from this stock. Over the past 4 days, there have been many, many entry points but you didn't buy because you wanted it to drop to your target price. As a result, now you have earned little yet can still hope for bad things to happen to other shareholders. No words for you both.
4 straight days of gains is very impressive for ANY stock so a slight pullback of a few cents is quite normal (there was already a slight correction one hour before closing on Thursday and again an hour before closing on Friday) but to even think that it will hit 0.91 or anything less than 0.90 after such strong momentum is crazy. There will need to be equally strong selling pressure (high volume sales) for it to even touch that price. And no, any correction will have nothing to do with the Turkish crisis. I don't even see how this company or even any other company on Bursa is related to it at all but just goes to show how irrational and "dengki" some people on this forum can be.
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....
KanYewYinKanasai
27 posts
Posted by KanYewYinKanasai > 2018-08-07 19:54 | Report Abuse
Drop to 0.85 also not possible. If 0.85 you can barbecue my bola. Tomorrow will be one way up.