Your pro investor doesn't sound so pro.

As it is, it's just a retailer which is trading at a rather high valuation.

Such a business model, the growth ain't easy. It's not easy and not profitable using the growth of new stores strategy....

Hence holding long term, might not help.

For example, that article again...

https://www.theedgemarkets.com/article/ipos...gs-fail-impress

That table...



see some of the BIG names...

Malakoff... that listing is since 2015... IPO price 1.80. Today 27/1/2022 price is 72 sen.

Is Malakoff a bad company? Maybe not... but holding on to the stock since listing hasn't done the investor any favors...

and ya... it pays decent dividends but even if you total it up....



it's still an investment lost since 2015....

how? Hold another 5 years?

See the point is... telling someone hold long term sounds so pro... so easy....

sometimes.... it just doesn't work.

So what you need to do is consider... how long do you want to hold? 5 years? 10 years?

What if after 5 years... and you find out that... holding this long term is not a good idea... and ya... the worst thing about this when it happens is, what if come 5 years, the stock is only worth 'say' 50 sen? Then how? Same decision time once again... but only difference is that you could be holding on to an even bigger paper loss!

That's the worst case...

of course... if nasib good.... who knows.... maybe in 5 years, this stock could be trading at 2 bucks!

thanks.. after found the below video decided to sell this morning. Won't go into IPO ever again

https://youtu.be/OMxxjBE8rFA?t=1000

Such a high P/E ratio for a new IPO not a good sign also. Good P/E ratio is around 20-30. This is around 6 times of a good PE.
Looks like plans of the Senheng bosses worked, mark up IPO, get quick cash.. profit.



This post has been edited by Davidtcf: Jan 28 2022, 09:27 AM

The eps is supposedly just for the quarter Q3 2021. So the PE displayed on the screen isn't accurate and furthermore, that quarter is usually considered pre-ipo numbers (earnings before listing) and usually they tend to differ post ipo...

Ya... one of the many other dangers of ipo 'investing'...

thing is I saw the 3 SenHeng brothers keep buying up shares at the news section.. haha they gonna get burnt real bad themselves

They believe in the company...
Thus keep buying 😏 also their original cost way lower...
Whatever is still low vs others buy during IPO or open market

Not as straight forward...

One of the son is buying, the other the wife is buying but the other son is selling...

And the thing for me is...

I will ask myself is following insider buying a good investing/trading strategy?

If one says is good then the opposite comes from the biggest insider buying of a local stock recently was Top Glove boss... That was multi million ringgit disaster. Those who followed died.

Yup.. again it's a flip of a coin.

Hence I for one would never be my own making of a water fish and buy a stock cos the boss is buying. As proven many, many times before insiders aren't any superinvestor...

dropped to 0.86 liao.. more coming.

Today hit 83cents

Hehehe...
Wait & watch...
Eat popcorn 😋

kalau macam ini punya jatuh isnin ½day boleh capai 75c agaknya

Can we say the price drops because of their own people come into the share market to influence to pull the price down?

I wouldn't know but one thing I know in the stock market is, try to reason out by yourself, don't over complicate things by overthinking and mixing conspiracy theories.... esp those you hear from media/social media. It just doesn't help.

One thing I would ask, for a company like SenHeng, a retailer in the electronics market, where profit margins are super thin, I would ask where do I see SenHeng in 5 times. Do I envision the company making much more money? If I don't, then why would others get excited over the stock?

i thought i was going to enter at 85cents.... luckily i didn't pull the trigger

yes see their net profit for 2021. High revenue but cost of doing biz is high also:



and like others say here, they not alone in market selling electrical appliances, so many other Sdn. Bhd companies like HLK, Harvey Norman etc.

https://www.investopedia.com/terms/u/underpricing.asp





^they should price their IPO correctly or underprice, rather than overpricing. Those kena burnt already likely won't buy their stocks in the future or have a bad perception towards their company.

Waiting for 0.7xx?

actually i don't even know what is suppose to be the "fair value" right now. If going by PE then at least need to be 0.4xx to be safe?

yeah could fall down to around there.. thats why just now I fast2 sell after watched that youtube taikor talk about Senheng

https://youtu.be/OMxxjBE8rFA?t=1000

This post has been edited by Davidtcf: Jan 28 2022, 04:07 PM

SENHENG/SENQ gains confidence level from traders due to its own well known name in the country. Their decision to enter share market is not simple too. Must watch how their finance manager takes care of their cash. Also what kind of care they have for share holders. They are new and we need to understand their business mindset after entering share market.
Share price depends largely on who the traders are in the trading field. So, still a valid concern to know who, which groups of traders, are trading SENHENG now.

This is from Bursa website...

https://www.bursamalaysia.com/market_inform...?ann_id=3223602




that's for for Q3 fy 2021.



but like I said... that's pre IPO performance... hence take it with a pinch of salt.

Traders trade because of the reputation of the name?

Wow. First time hearing such stuff. Well, if you believe it so, so be it.