Waaaa..... another holiday.

... and congrats ..... new job!

pharma was a 'special' case.
It had been suspended for a long time, due to shareholder spread issue (or something like that. )....
based on the earnings... the suspended price at that time was rather cheap... low PE... below 10 inm...
after exiting its real coma status.... it just erupted.... lol... went limit up couple of times inm too.
rest is history.

Anyway... point is... in a small sector (actually in any sector) ... you always need comparisons.

Simple reason is that you want to be in the best stock in that sector.
In your stock basket, you do not want to put everything (or over invest) into one sector...
you just want to choose the best...

And as you know, PE means price over earnings.
Price equals the traded stock price.
If the PE is high, it means the demand for the stock is high despite its earnings....
which crudely can means the stock is LAKU.
So high PE means LAKU.
Low PE means TADA LAKU or whack the fly.

Now take governmental contracted pharmaceutical companies like Pharma and CCMD.

Why is Pharma trading at PE multiples over 20... whereas CCMD is in the low teens?
why is Pharma more laku?

The checking of the free float is a simple exercise of awareness for the investor/trader.

There is always good and bad.
I don't think there is a one shoe fit all.

Now for a tightly held share.
One well known risk is the company could be taken private.
Yup, the big shareholder telan the rest of the shares.
They do this by making a general offer to buy the rest of the shares.

Now the obvious question is why would the big shareholder do this?
Isn't being a listed company very glamorous?
Isn't there many 'benefits' for a company to be listed?

If that's the case, why do the big shareholder want to chiak all the shares?

The simple reason always is to make BIG money.

Jokes aside... this is very real.
Small shareholders always get cheated every single time when it happens.
Big eat small.
Big bully small.

These cases usually happen in stocks where the float is small.
Smaller float means less shares not belonging to the big shareholders.

Take this recent example which I have read, Delloyd.

Read this: http://klse.i3investor.com/blogs/kianweiaritcles/52834.jsp

Quote: Delloyd's jewel is a large oil palm estate Sungai Rambai Estate which is about 20km from KL. It has an area of 1,448ha. The proposed WCE will run right through the middle of this estate. The market value of this estate is about RM1.55bil at RM10psf. This represents RM15.5/share.

Hidden value is worth 15.5 per share.
This jewel (or land) exists because the land has not been properly valued.
ie the cost of the land in the account books is very cheap.

Let me paste these here from that posting...

At a price 4.80, Delloyd market capital is 480 million. (100 mil shares x 4.80)
or in simpler English, at 4.80, the whole of Delloyd is only worth 480 million.
ie if ever you can buy up all the shares, you only pay 480 million!
And since, the big fish already owns 61%, the big fish only needs to pay some 187 million to completely own that palm oil estate which has a market value of 1.55 billion.
Steal of the century????

This is one of the big risks in stocks which has a small free float.
Big fish eats small fish.

The advantage is, smaller float shares is more stable.
Big fish is in control of the share price.
But this itself has its good and bad.
The more sly big fish..... they can easily move the share price.
But then... there are some lazy big fish.
They tend to just manage the company and not the share....
and when that happens...
the share tends to be in coma..................

Everything will have its pros and cons.
Most important, the stock player should be aware.
They need to know what they are getting into when they trade a share.....

Trading blindly and buying just cos someone else said so.... is extremely dangerous for your money.

When it comes to offers, it's all about valuations.
The traded share price is not a fair indicator what a company is worth.

Using same Delloyd example, and if one uses traded share price as the indicator, one would assume that the offer is best cos Delloyd never traded so high before.

Takeover speculators would love the deal.
Quick, easy profit.
Nice.

However, those who knows about value, would feel they have been cheated big time.

hehehe.... I give you a much more simpler layman perspective.

You own a house.
You purchase it say 500,000.00
I come up to you and offer you 700,00.
A cool 40% gain from your purchase price.
Would you take it?

Or would you do your own value research, in which you come to realise that a new LRT station would be build nearby and there's a new proposed high end property project to built next year, hence raising your home property to be worth at least 1.6million?

Yes, would you sell by value or would you sell just cos someone offered you a profitable price?

Which is why ....

when it comes to offers, it's all about valuations.
The traded share price is not a fair indicator what a company is worth.

And when you come to think all these over...
you would probably find it a bit all too strange...

People tends to buy and sell shares without much of a second thought....
but when it comes to say.. properties, cars, businesses... they want to do so much more homework...
and they demand 2nd opinion...
3rd opinion... etc etc etc....

nah.. I tend to talk wind most of the time.

Yeah, whether you are trading or investing, there's so much preparation you need to do

You need to know yourself and then you need to know all the tools of the trade and then you need to do constant homework.

Dah goreng-ed already.......

Trading shares can make money.
Trading for KFC?

this thread can go into PN17 jor.....

It's in coma jor.

I became a stock seller in one stock.
Almost... finish selling.

Now, look see only.


Any tipsy?

hehehe... don't have.

I saw it broke out of its recent range but ... the oomph doesn't seem to be there.

Bartender also get tipsy.

Carry luggage bag also get tipsy.

Why I cannot get one?

You know what I think?



I think hor.....


everyone.... hiding from you lor......

Poor thing you.

Ok. I give you one fast fast.

Buy the stock that will go up.





Good?



hehe... so what stock you watching la?

Your tai chi too geng.

There's nothing wrong to be an investor.

A good investor can make good money too.

Waaa....... TQ la.

Err... no need salute.... just come in more often and talk (talk 3 talk 4 also can la)

second half of 2014 - means the second quarter of 2014?

Not exactly clear. In this case, since the statement does not specifically says FY 2014, I would assume that it means exactly what it means in English, which is from June to Dec 2014.

operations in vietnam are expected to incur a loss in the next financial years - so the profits in FY2014 will be affected, and it was already informed in 2013, so my question is when the quarter reports for FY 2014 are announced and indeed their profits are decreased, will it affect the share price?

You need to check if profits come mainly from its operations in Vietnam. If the answer is yes, profits will decrease and YES, logically (but sometimes, market not very logic one), the share price will fall.


profit contribution from vietnam opearations are expected to remain negligible for at least another 3 years - meaning the operations are expected to incur loss for 3 years to break even?

My interpretation here is that negligible means earnings are so small it's not meaningful. Does not neccessary mean it will incur loss.

My 3 sen nia.

Wish you all the best of luck

However, do note, starting an overseas ventures operation does not mean sure success.
Many times, overseas ventures, like overseas plants ends up in failures one.
For example, you can take the case of JCY.
Last time, it spent big bucks to setup their plant in Thailand....
then.... what happen next?
Floods came......

Recent case was some factories being attacked.

Of course, lots of conspiracy theories....
some included that the attacks were staged by the Chinese themselves...