It seems that the foreign investors are looking at the BURSA again. Here’s one latest news about them: Foreign investors acquired RM69.9 million of stocks So, do we buy into the stock markets then since everyone seems to be? Actually, not many people buy shares of companies these days. They say they did not know. They say the risk is too high. They say prices can go up and come down fast. Haha…
Did not know, then read more. Risk too high, then manage those risks into calculative ones if we understand what we are buying. Diversify versus putting all money into the same stock. Prices come up and come down fast, do you mean you are buying and selling everyday and NOT because of what the company do and the fundamentally, were they well managed or in a good and growing industry?
Please do not worry too much, there’s no links within this article to go buy some stocks yeah. Just sharing some interesting news about penny stocks here in Malaysia. Penny stock means they are priced below RM1 per share unit.
Article in themalaysianreserve.com . For 2019 thus far, FTSE Bursa Malaysia KLCI remained in the negative territory, falling 4.4% year-to-date. Small-cap index meanwhile rose by 28%. Meanwhile investors in some penny stocks saw their investments soaring 280% to 400% over the year.
According to Bloomberg data, oil and gas (O&G) service provider Dayang Enterprise Holdings Bhd’s share price has soared as much as 414.24% YTD. Dayang Enterprise trades at 15 times its estimated earnings per share for the coming year.
Sarawak Consolidated Industries Bhd’s — Sarawak and Sabah’s sole spun pile and industrialised building system hollow core and panel wall manufacturer has seen its share price soaring by 290% in the past 12 months.
KPB started the year with stock valued at 38 sen a piece. As of yesterday, KPB closed at 276% higher at RM1.41, valuing four times more at RM107.37 million. The company had recently returned to the black in its first quarter ended Sept 30, 2019 (1QFY20), where the group posted a net profit of RM948,000 compared to a net loss of RM328,000 a year ago.
Petra Energy Bhd is another O&G contractor that soared amid the improving outlook for the sector. The stock price is up 285.71% YTD to RM1.38 from 35 sen a piece in January. Petra returned to the black with a net profit of RM25.04 million for 3Q19, from a net loss of RM26.97 million recorded a year ago. Its 3Q19 revenue jumped 82.92% year-on-year to RM219.01 million.
Notice something similar among all these ‘profitable’ stories? Yes, the business volumes were up, thus the investors were willing to buy into the company at ever higher share prices. They were NOT buying to sell tomorrow or the day after. It has to show some fundamental. As for the many other companies mentioned, many returned to the black (profitable) versus red (losses) previously. This is a good sign that the company is now moving up versus losing money.
By the way, we do not need to wait for these news to come before we buy. When we visit the hypermarket on a weekly basis and the cashier counters are ALWAYS FULL of customers, go online, check if that hypermarket is a listed entity. Then read more about them and decide if they are still undervalued.
When we see more Proton cars on the road for example, it’s time to read who owns Proton and read the company’s financials and whether more Proton sales will actually push up its profit numbers next year. If the share price seems undervalued versus the potential car sales next year, perhaps it’s time to buy, keep and wait for the sales to go up, results to come out and share prices to go up.
Yes, there was this one year when I saw so many new Proton Sagas on the road and I bought Proton’s shares which were only RM1.50 . After the full year results were released, the prices went up as high as RM4. Before I saw those Proton Saga, I have NEVER thought of buying Proton shares because everyone around me were speaking lowly of them… Do not make buying into shares a difficult decision. make it easy, make it logical. Read kopiandproperty.com too for these occasional stock related articles.
Next suggested article: Easy to follow stock investment advice. Sudden rich not possible