Oct 6 2014, 09:03 PM
QUOTE(Boon3 @ Oct 4 2014, 11:13 AM)
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Masteel is different kind of animal imo....
Fundi wise...
it's not really the worst... but then it's also not really the best either.....
Profits have some what recovered from the poor 2011 and 2012....
but then.... as you were look/compare 2010 and current TTM profit numbers....
there is the improvement... from 28 mil to 32 mil...
but for some...
this doesn't look like a top notch company...
because in a time frame of 4 years, company profits only grew at a cagr pace of around 3.3%
Probably if I have to grade it (*cheh waaa... like terror only ... hehe*), I would say that this is only an average company....
Ahhh.... yes.... PE multiple is considered low.... Masteel trading at a multiple of 7.4x current TTM earnings.
And the immediate current chart probably does support your definition of a neat bottom end fishing with the chart indicating there is an immediate support at 1.02
But then the next chart is rather telling....
on a slightly longer time frame....
we have this chart below...
it indicates CLEARLY that the stock is STUCK firmly in a range between around 96 sen and 114.
OK, some traders love such stocks....
They like to play range....
buy in the lower end of the range...
and then HOPE the stock will trade back higher to the upper end of the range....
if it doesn't break past the upper range, they will dispose and gain the stock trading range....
and if it does break the upper range, it's like BONUS jackpot...
Some just don't like trading stocks in a range...
(1) it is 'limiting'... *gains are usually limited* - hitting jackpots is rare... (not every stock will hit the jackpot like Homer recently)
(2) As much as a stock can breakout of a range, it can also break down. (meaning to say, you can buy at the bottom of the range, and the stock can actually breakdown)
ya..ya..ya.... I know... not everyone trades the same stylo milo way....
and the last chart.... when we zoom out more.....
now if we put into perspective...
the company's profits performance... and the chart....
I feel la.... (ya I could be wrong)...
this stock is probably fairly priced......
A year ago, the stock was around 70+ sen...
now it's about 100+.....
which is probably a fair value given its profit performance....
and mind you we need to consider the HAPPY FAMILY issue....
Masteel is a steel stock...
and given how lousy and how shitty the other steel stocks are performing....
yes, we can say, maybe Masteel is the better steel stock...
yeah... let's give Masteel a pat in the back...
well done guys!
But then.... like it or not....
funds in general, they do not like to invest in a sluggish sector.
again, like it or not, they do not like to swim against the tide.......
and this is why....
they will most likely... avoid... stocks like Masteel (doesn't this kind of explain why the stock is trading in a range and there is not much excitement in traded volume (in fact some would call this 'coma' liao... hehe - note the almost non trading activity from Sep to now) ? )
And yes... of course.... you can ALWAYS bet against these funds....
it's your money and your decision....
and it is perfectly ok to be contrarian at times.
Most important thing is you understand what is happening and why you want to trade this stock.
Fundi wise...
it's not really the worst... but then it's also not really the best either.....
Profits have some what recovered from the poor 2011 and 2012....
but then.... as you were look/compare 2010 and current TTM profit numbers....
there is the improvement... from 28 mil to 32 mil...
but for some...
this doesn't look like a top notch company...
because in a time frame of 4 years, company profits only grew at a cagr pace of around 3.3%
Probably if I have to grade it (*cheh waaa... like terror only ... hehe*), I would say that this is only an average company....
Ahhh.... yes.... PE multiple is considered low.... Masteel trading at a multiple of 7.4x current TTM earnings.
And the immediate current chart probably does support your definition of a neat bottom end fishing with the chart indicating there is an immediate support at 1.02
But then the next chart is rather telling....
on a slightly longer time frame....
we have this chart below...
it indicates CLEARLY that the stock is STUCK firmly in a range between around 96 sen and 114.
OK, some traders love such stocks....
They like to play range....
buy in the lower end of the range...
and then HOPE the stock will trade back higher to the upper end of the range....
if it doesn't break past the upper range, they will dispose and gain the stock trading range....
and if it does break the upper range, it's like BONUS jackpot...
Some just don't like trading stocks in a range...
(1) it is 'limiting'... *gains are usually limited* - hitting jackpots is rare... (not every stock will hit the jackpot like Homer recently)
(2) As much as a stock can breakout of a range, it can also break down. (meaning to say, you can buy at the bottom of the range, and the stock can actually breakdown)
ya..ya..ya.... I know... not everyone trades the same stylo milo way....
and the last chart.... when we zoom out more.....
now if we put into perspective...
the company's profits performance... and the chart....
I feel la.... (ya I could be wrong)...
this stock is probably fairly priced......
A year ago, the stock was around 70+ sen...
now it's about 100+.....
which is probably a fair value given its profit performance....
and mind you we need to consider the HAPPY FAMILY issue....
Masteel is a steel stock...
and given how lousy and how shitty the other steel stocks are performing....
yes, we can say, maybe Masteel is the better steel stock...
yeah... let's give Masteel a pat in the back...
well done guys!
But then.... like it or not....
funds in general, they do not like to invest in a sluggish sector.
again, like it or not, they do not like to swim against the tide.......
and this is why....
they will most likely... avoid... stocks like Masteel (doesn't this kind of explain why the stock is trading in a range and there is not much excitement in traded volume (in fact some would call this 'coma' liao... hehe - note the almost non trading activity from Sep to now) ? )
And yes... of course.... you can ALWAYS bet against these funds....
it's your money and your decision....
and it is perfectly ok to be contrarian at times.
Most important thing is you understand what is happening and why you want to trade this stock.
but but but.... china economy influence in malaysia very strong. and malaysia do depend on china for export market.... likely will not happens due to politic reason but then malaysian govt will do something stupid from time to time
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