Investor on the Street

Why has GKENT been forgotten by investors?

Effulgence
Publish date: Sun, 05 Jun 2022, 04:21 PM

GKENT is a Main Market company which is in the Construction segment. 

It is a company that whose products are used on daily basis. (water meters)  

Its business is mainly in manufacturing & distribution of water meters. 

 

After an explosive share price gain in 2016-2017, have investors forgotten about GKENT?

 

1. Daily share price volume hardly hits 1 million.

Normally penny stocks (less than RM1) have huge volumes, but GKENT has turned cold turkey since last year.

 

2. Diversification into gloves scared investors.

GKENT announced its intention to enter gloves business end-Mac 2021. Its share price dipped after that until now. 

 

3. LRT 3 joint-venture stake bought over by MRCB. 

After Sep 2021, GKENT had one less source of revenue. More investors gave up on GKENT.  

 

4. Low Publicity.

GKENT is not a heavily-promoted stock. See how many bloggers & analysts mention GKENT. How many interviews are with GKENT management? 

 

I always liked companies that maintain profitability for many years.

I also like dividend paying companies.

I prefer net cash companies.

 

GKENT is one example.

 

GKENT maintained profitability every single quarter since 10 years ago. (the actual record should be far longer than that)

GKENT is also paying dividend soon.

GKENT is net cash. 

 

Some investors link GKENT as a proxy stock to BN. Not surprising, since its share price flew up before GE 2018 & crashed down after BN's loss. 

I just think that at this price GKENT's downside is limited.

I will continue to hold GKENT.

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