ks55If you forget about fundamental, Masteel is already in safe zone to punt.
1. Your cost will be the lowest among the existing shareholders. 2. Force selling period is over. 3. Those trapped above 50 sen (11m) will be your cushion, together with the 18m trapped above 66 sen. Unless they willing to lock up their share, they will have to generate interest to let go their holding soon. Otherwise, volume will turn low and share price will drift lower and lower each day.
Note, my dream price is still 33 sen. That is after taking into consideration further write down 100m obsolete stock and potential cash call. 30 sen is a better bet and any rights issue cannot be less than 50 sen.
ks55I bought at 48.5 sen also lose money (10% already) Those sifu who condemn me 3 months ago all lost their underpants now.
Look like Tai is letting Masteel to drift downwards with small volume. Drifting counters never reverse its trend unless some strong intervention/event. I believe I will see 40 sen next week, 33 sen in Sept, 30 sen in Oct.
Good to keep at bay for the time being. Masteel falling into category of drifting counters.......it will never ends.
nooobieeetwo counters I knew still drifting like not tomorrow hubline from 0.11 to 0.01 gpacket from 0.60 to 0.2x
Dun get suck in, dun be the support for others to throw...
There is a lot of "unexplained", dun look at just the "fundamental news"
drifters will only come to a stop when it is "dirt-cheap" enough...
As I reiterated over and over again, please trade with care...
BeststockThe market price of Masteel can easily fly if the company decides today to do a Revaluation Report for their landed properties. With regards to the Debtors figure, the old Auditors must be "of something wrong" to say all 380 Millions debtors figure is ambigious and not collectable. The newly appointed auditors say all the debts were already collected after the third months except 2 customers. This is very normal for a business going concerns. The drop in Masteel price is now very much under-valued and I envisage it will easily go back to above RM1-00 barring all consequences. For a sure win stock which we all can keep, Masteel is the one. Opportunity like this seldom appear. Only once in a while we have this kind of opportunity. Of course, the current low price is controlled by the bad image of the steel sector all over the world now. Keep this Masteel for a longer period, your returns should be double or triple with confidence.
ggg123Beststock, even though current price is very attractive due to large discount based on P/B because of recent forced selling, how about looking at fundamentals? Looks like a high chance for continued loss for the rest of the year, due to the same fundamental problems.
Revenue factors: 1. China overcapacity + dumping = unprofitable selling prices globally. Right now this one of the main problem pushing the company financials into loss making territory. 2. Malaysia construction = potential slowdown in new projects due to political situation? If this happens, the company financials might be impacted even more than right now.
Cost factors: 1. Strong USD (interest rate hike) + weak Ringgit (investor flight) = raw material prices shoot up 2. Higher electricity cost + labour cost = operating cost goes up
For the stock price to start climbing up again, it will need to be supported by improving profit, or the potential for profit improvement based on industry development. What IF the losses persist for the next one or two years? How would this affect the stock price?
Cut loss? Hold? Buy?
ks55Masteel already confirm entered drifting stock category, with price dropping everyday and low volume.
What is the characteristics of a drifting stock???????
Just wait for it to fall to 33 sen. My guess only. Just to remind myself. Please don't respond unless I know you............
Beststockggg123, you are right on the dot. This local steel industry is doomed if the govt is not doing anything to help to stop the import of steel bars. The best steel player agmonst in Malaysia is now affected and no wonder ppl are asking to change the govt. Masteel investors are suffering huge losses in their warrants come Oct 2015 expiry date. Who is not angry? Not only the poor are angry but the rich too are angry. If the govt still hesitant in impossing restrictive imports, Masteel must take restructive measures instead of expanding. It is time to close shop now and take stock. The price would be better for the investors.