Fight night. 

The greatest stock match in the history of 2021 Bursa Malaysia:

Healthcare versus Tech; Downtrend versus Uptrend; Main Market's Blue Chip versus ACE Market's promising turnaround!

If you bought TOPGLOV at closing of 4 Jan 2021 and held until now, you'd get a painful 44% loss (exclud divs).

If you bought GENETEC at closing of 4 Jan 2021 and held until now, you'd get a whopping 1901% profit.

Does this mean, tech stocks will always outperform healthcare?

Would investing in ACE market stocks be better than investing in Main Market stocks?

Established blue-chip versus 

Does this show the full picture of both companies? 

What can we learn from this?

1) “In the short run, the market is a voting machine but in the long run, it is a weighing machine.” ― Benjamin Graham.

Topglov was the love of Mr. Market in 2020.

But Mr. Market dumped her, and made Genetec his new darling in 2021.

What will happen in 2022?

Will Encik Pasar ambil berat Topglov in 2022 or 2023?

Whether Tech or Healthcare, it is the future prospects of the company's business that drives share prices.

2) A profitable company may not always be a profitable stock trade.

Topglov has been making many, many quarters of profits. Yet, share price wise, Topglov was heavily outperformed by one Genetec that has erratic earnings record in 2021. 

An investor has to realise that a company's quality may not equate to stock trading profitability for himself/herself.

3) PE-based investing does not work all the time. 

Just look at the mind-boggling PE difference of both companies. Especially if the business is a cyclical one. 

PE ratio is just one valuation method. There are many other factors to take into account before buying a stock.  

CLOSING THOUGHTS: 

The contrasting fortunes of these two companies is perplexing but interesting. 

Could this be the stockmarket trend going forward?

Would investors be shaken by this episode and forgo stock investment strategies based on company fundamentals, becoming pure technical analysis traders?

Or would investors transform into "diamond hands", holding their stocks for the long term?

Let's revisit them at the end of the year. 

Disclaimer: This article is not tailored financial advice, but mere general stock sharing / observations. Please do further due diligence. The author disclaims all liabilities from readers. The author may have interest in some of the stocks listed above from time to time.