Lets give you example...

Company A, total shares 100 million

Total earnings 20 mil per year

So EPS = 20 mil/100 mil = 0.2/share. Assume constant PE 10x, share price now RM 2 share

Next year earnings grow to 30 mil (50% increase)

Now EPS = 30 mil/100 mil = 0.3/share. Assume constant PE 10x, share price now RM 3/share




Now company B, total shares 1000 million

Total earnings 20 mil per year

So EPS = 20 mil/1000 mil = 0.02/share. Assume constant PE 10x, share price now RM 0.2 share

Next year earnings grow to 30 mil (50% increase)

Now EPS = 30 mil/1000 mil = 0.03/share. Assume constant PE 10x, share price now RM 0.3/share


So now you tell me what is the difference? Company B share price is 0.20 vs company A share price of RM2, what is the difference in terms of growth? Why must the one with lower price have better growth? Does teh share price determine the growth or the EARNINGS determine the growth?

This post has been edited by gark: Dec 27 2013, 03:23 PM

look at Whole Milk Powder futures.. so far uptrend from 2008 onwards.. if current uptrend continues then margin kaput..



This post has been edited by gark: Dec 27 2013, 03:32 PM

You still don't understand even given such a elaborate example.. ok lah good luck to you.

I am talking about earning growth and you argue all the way to africa...

Remember to buy more penny shares yah..the lower the better... as your theory goes RM 0.02 sen companies has better growth than RM 20 companies because it is 'cheaper'..

This post has been edited by gark: Dec 27 2013, 03:56 PM

Trying to teach you the basics of FA.. you dont want to listen.. then what can we do?

Anyway good luck.

This post has been edited by gark: Dec 27 2013, 04:03 PM

Some cheaper stocks have negative EPS ... so infinite PE.

Capital appreciation is always based on profit growth.. hence the example is trying to say is A RM 0.2 and RM 2 stock does not have limitation in their price to give the same profit growth as in EPS.

If you hold the same amount of Comp A and Comp B (In terms of value, not number of stock) your capital appreciation is the same. And if they decide to pay the same value of dividend (again value) you will receive the same percentage of dividend.

This post has been edited by gark: Dec 27 2013, 04:07 PM

hahaha no you win....

Like this kind of people also dare to invest in stocks..

Seriously good luck.. you will need it.

This post has been edited by gark: Dec 27 2013, 04:20 PM

Adoi.. adoi.. My stomach pain from laughing too loud...


Stop already...

This post has been edited by gark: Dec 27 2013, 04:26 PM

For me still under KIV... need further study...

Last time you very pro beer stock... now very negative... why ah?

Cscenic is similar to other hot furniture counters now, mostly export to USA, hence higher earnings, Cscenic may be re-rated IF they can show improve earnings...

Misleading.... so misleading.....

But then how?.. Malaysian are addicted to bonus issue...

This post has been edited by gark: Jan 8 2014, 06:05 PM

Shhhhh... not so loud

Dont change the uncle/aunty midset...

This post has been edited by gark: Jan 8 2014, 06:44 PM

Mine is 0.12% and no minimum.....

But broker not in malaysia.

Indon..

Not drop lah.. it bonus issue, which is good news.

Before you attempt to trade stock, first learn to read all you can on the fundamentals of the stock, not just see the 'price' which tells you nothing.

Rather you try predict next years dividend, try to see if the dividend is sustainable first?

Buying a supposedly high dividend company without checking the sustainability and where they get the money for future dividend payment is playing a very high risk game.

This post has been edited by gark: Apr 2 2014, 03:26 PM

Hmm.. RM 8 looks about right.. nearly 5% yield..

I shall wait there for you.

This post has been edited by gark: Apr 4 2014, 12:41 PM

Dividend stocks = reit stocks = bond yield = tapering

This post has been edited by gark: Apr 4 2014, 12:44 PM

Yeah.. for what reason?