Cnergenz looks attractive but could its IPO be bad timing?
Cnergenz Bhd is likely to attract investors who may have missed out on the listing of electronics manufacturing services (EMS) Aurelius Technologies Bhd (ATech), which saw a commendable debut, rising as much as 34.6% over its IPO price.
Cnergenz is an EMS provider, specialising in surface mount technology manufacturing solutions for the electronics and semiconductor industries. Compared Cnergenz with peers Greatech Technology Bhd and Genetec Technology Bhd, which saw dizzying heights in their share prices over the past year.
Genetec climbed to a 52-week high of RM3.85 versus a low of 28 sen while Greatech surged to RM7.60 from a low of RM2.81.
With such an amazing run, investors may find it hard to resist putting their funds into Cnergenz hoping it will also enjoy the stellar performance.
Cnergenz has healthy growth prospects and a strong net cash position post listing.
But if you look at its past financial performance, its net profit growth does not look healthy.
Cnergenz managed to grow its net profit to RM30.5 million in FY2019 from RM23.3 million in the previous year.
First drop to 0.615. Small, brief rebound. Next stop 0.57/0.58. Thereafter it will go into slow motion drift to 0.35. If you intend to hold what you bought into 0.68 - 0.70 trap today, you will lose half of yr money.
Havent you heard that tech stocks are imploding worldwide due to ridiculous valuation. They all pancit half way. Another half to go.
Actually if there is a huge volume to sell then I dare not go in but looking at the buying interest which consider strong still, I guess I can take some risks to enter and wait for something positive, too early to judge this counter.
You said big players were buying like crazy 0.69 - 0.70.
If they were buying like crazy 0.69, why are they not buying like crazy now 0.65? Its cheaper.
Answer: 0.68 - 0.70 heavy buying n selling were left pocket to right pocket trades to release their shares that that acquired earlier to you. I.e. they tricked you into buying.
Advice: Admit yr mistake early n get out at relatively smaller losses. Bcause should they quietly pack their bags n leave, you would be in bigger trouble.
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....
Jimmy888
83 posts
Posted by Jimmy888 > 2022-05-26 15:13 | Report Abuse
Limit up today?