Ladies and Gentlemen -

It has been a roller coaster ride for the past week. Soon after new year, things were going south, especially for the recovery stocks. Not quite a good way to start the new year.

To recap, I gave the following TPs for LKL in my previous blog in the following sequence (closing month / target price)-

Dec-20   0.96
Jan-21   1.0 - 1.05
Feb-21  1.10 - 1.2
Mar-21  1.20 - 1.35

With regret, closing price for year ending 2020 did not meet the forecasted target price. However, last week, on the 8^th of January, price of LKL spiked to a high of RM1.01 – all thanks to the frenzy buying of healthcare stocks.

Following trade statistic (for 8 January 2021) is obtained from Bursa Malaysia website

Clearly seen that foreign players were net buyers. However, I do not know whether there was any foreign buyers entering LKL as I did not sell my shares – I can’t view the counter party.

Yesterday was brutal and the joy was short-lived. Price was slaughtered all the way down to 88cents. To those who managed to sell off on last Friday, congratulations, you are one lucky b******. Can’t rant any further. I do not have crystal ball and I can’t really predict the highest and lowest point.

So What’s Next ?

I’m gonna hold on to it. Our government just announced the return of MCO for 5 states. The dark side of me is thinking that the share price of LKL is moving in tandem to the number of covid cases (though that might not be the case). The rational side of me speaks otherwise as I could lose my income anytime if this prolongs.

All I am betting is that LKL is selling their hospital bed like selling hot cakes now. I hope so. As you read in the news, our healthcare system is in a breaking point – to be precise, shortage of medical staffs coupled with the high utilization of hospital beds. All resources seem to be running dry.

For ease of comparison, I’ve extracted some figures out from its quarter report. Feel free to cross check my work and do let me know if there’s mistake and I’ll put up an errata. Let’s take a look –

*Figures in yellow were the periods, when, and after, covid19 formed its name.

For the record, covid19 cases in Malaysia during these periods were either in double digits or at most, triple digits. Anyway, I didn’t know that medical peripherals and accessories were LKL’s core until I extracted the above figures for comparison. You want to know further on what they are selling? Here's the catalog.

Aside from the above contribution to the topline, I’m hopeful that their gloves venture (distributorship) will be bearing fruits in the next 1 or 2 quarter. Let’s see.

Chart wise, thus far, still looking good. Running sideway, no major up, no major down. As long as it does not breach 0.78, I believe it’s still good for a medium-term investment. Look below -

Note that my technical analysis skill is akin to a half-baked cake. Well, past 5 months history shows that whenever the price hits 78 cents +-, it subsequently rebounded. Hence, hopefully it will not breach below 78 cents; But if it does, then it won’t be looking good anymore and a cut loss is required. Hopefully, this day will never come to me.

Before I sign off, here’s a few articles for you to digest

11 January 2021 - PM: Nation's healthcare system is at breaking point

https://www.theedgemarkets.com/article/pm-says-malaysias-healthcare-system-breaking-point

11 January 2021 - Occupancy rate for Covid-19 hospital beds at UM, KL Hospital at 100%, 83% in Sg Buloh Hospital — PM

https://www.theedgemarkets.com/article/occupancy-rate-covid19-hospital-beds-um-kl-hospital-100-83-sg-buloh-hospital-%E2%80%94-pm

My target price remained the same for LKL. At the end of -
Jan-21, hopefully it’s around 1.0 - 1.05
Feb-21, hopefully it’s around 1.10 - 1.2
Mar-21, hopefully it’s around 1.20 - 1.35

Disclaimer : Writer’s opinions are of his/her own. All content on this blog is only for informational purposes and do not constitute a financial advice, an investment recommendation, nor should be relied upon for any investment activities. Again, this is a sharing of personal investment journey and the information is not intended as an offer or solicitation in respect to buy and sell of any securities.