Intelligent Investing

Feels like good times already

Ricky Yeo
Publish date: Tue, 25 Mar 2014, 04:26 PM

Actually it has been feeling like good times already since 2013. KLSE ended 2013 up by 10%+, nothing to shout about but most mid/small stocks had gains far more than that, some by several folds. KLSE moved sideway during the 2 months into 2014 but most stocks started to rally again, excuse me, what tapering?

To be fair the good times started earlier back in 2012. Take for example Wellcall, starting 2012 at $1.30, peaked at $4 before splits and keep going up right after split. That's an excellent 207% gain in 2 years. What PE? The company is making more money, everyone is happy, that's what it's all about.

Or how about Ecoworld, 450% gain in 6 months. Liew Kee Sin - this name definitely worth a lot. Wait, miniscule revenue? It is the landbank silly. Inject more landbank and the share will go up. 

Last year the fever was about Oil & Gas sector as more contracts were being awarded, this year the craze is all on Plantation sector as CPO price keeps on climbing. I know Exxonmobil will make more money when oil prices go up, but didn't know buy-at-any-price will make everyone more money. 

Last one, how can we miss Datasonic. Step aside Liew Kee Sin, or Tesla or Netflix. 500% gain in 6 months and another 100% 3 months after 1:5 splits. It is not that hard to believe, Datasonic is making great money. When someone give you $1 and in return you give them back 5 x 20 cents, they suddenly feel richer! That's why everyone love splits! Who cares about Datasonic only has an average profit of 24mil for the past 6 years, everyone is paying 100 times for that right now with a market cap of 2.6bil. Wait, a lot people in the forum are saying after the split at $3.88, it is going to hit $5, very likely going back to pre-split of $10. Slap me now. Again it is not that hard to believe, Datasonic just poured 110mil into capital expenditure, close to half of it's revenue, this is going to thermonuclear their revenue. Although they never had free cash flow, acc receivables reaches 137mil (net profit is 88mil - on paper), debts hitting 86% of total equity, that's alright, you will be dumber if you miss the train again. 

 

Discussions
1 person likes this. Showing 2 of 2 comments

ipomember

can't agree more. the market makes me confuse

2014-03-25 16:56

johnny cash

SO is investment in datasonic good or bad??

2014-03-25 19:36

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