Nov 24 2008, 09:43 AM
QUOTE(viper88 @ Nov 23 2008, 11:57 PM)
Wa.. sure onot? In bearish market.. most blue chips also drop kaw kaw...due to fear sentiments.
- Public Bank 13/5/08 at RM 12.00 .. now how much? RM 7.85.
- IOICORP 15/1/08 at RM 8.06 now RM2.94, lowest ? RM 2.08
- Resort 11/1/08 at RM 4.26 now RM 2.58, lowest RM 2.16
There are more other blue chip counters tat drop close or more than 50% already.
Those beginners who bought blue chips counter at early/mid of this year also get hit badly....
My remiser told me during bear market all stock will get hit, bluechip or penny stocks alll get beaten down.
Those stocks that rise too high over its fair value will get hit harder. Those stock tat close to its fair value
will drop lesser.
Cheers,
v_viper88
Yup, when bearish time, most are down together.- Public Bank 13/5/08 at RM 12.00 .. now how much? RM 7.85.
- IOICORP 15/1/08 at RM 8.06 now RM2.94, lowest ? RM 2.08
- Resort 11/1/08 at RM 4.26 now RM 2.58, lowest RM 2.16
There are more other blue chip counters tat drop close or more than 50% already.
Those beginners who bought blue chips counter at early/mid of this year also get hit badly....
My remiser told me during bear market all stock will get hit, bluechip or penny stocks alll get beaten down.
Those stocks that rise too high over its fair value will get hit harder. Those stock tat close to its fair value
will drop lesser.
Cheers, v_viper88
But don't forget Pbb rose from Rm2 - RM3 to now currently. So a drop from Rm12.00 to Rm8.00 is not a disastrous for those longer term investors who bought many many years back. Not to forget in between, its dividend is more and almost double FD interest rate over the years.
IOI from Rm1.+ to RM8.00, which my view is it overshoot at the high side, so dropping 50% is not a disastrous for those long term investors which bought years back. IOI is really a magnificient performer recent years, so just like people said, went too high, so down also sharp.
Resort from RM1.+ to now.
Agree on the part of getting blue chips won't able to save yourself from loss either, just those generally those are fundamental sound, which when good time come back, it has ability to rise back. But for some potato chips, some may not able to get through the difficult period.
Fair value is a subjective matter and relativity, IOI fair value can be Rm2.00, while abc stock fair value can be RM 0.05.
So if IOI share being split 1:10, then its fair value become RM0.20. But people will see RM0.20 is cheaper than Rm2.00. But in the end of the day, it is still the same.
Not mean penny stocks won't be a good target or not, just share splitting, company can make their share become low, but it doesn't change the fundamental issue of it.
My main point is whether the share is RM0.50, or Rm5.00, or Rm50.00, it doesn't tell any clue whether it is cheap or not.
A share of RM0.50, its earning is Rm0.05, so PER at 10x. B share of Rm50.00, its earning is Rm5.00, so in term of valuation or fair value, they are the same.
Just my 2 cents.
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its a gamble...
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