Many of my less informed critics are so concerned or worried about the falling steel price in China as shown on the latest steel price chart below.
Immediately after the Budget 2022 announcement, the stock market has been plunging in the last 3 trading days. Practically all the listed shares have been dropping so rapidly. On 1st November alone, Rm 33.8 billion was wiped off the market capitalisation of KLSE. This market crash can only mean that the Budget 2022 will not be good for our economy.
Many of my critics do not understand why I bought 1.2 million AYS shares when the steel price in China is dropping recently. AYS share price has been dropping in spite of its good profit growth. It was dragged down by the overall market sentiment due the Budget 2022 proposal.
When is the best buying opportunity?
The best time to buy stocks is when many fearful investors are rushing to sell their holdings. As I said in my previous article, on the last trading day, RHB bought 1.2 million AYS shares for me when it plunged to 70 sen a share. If you doubt, you can ring 05-2493279 RHB Yee Ling to confirm my purchase.
Why steel price does not affect AYS
AYS is one of the best steel traders. It is not a steel manufacturer. It buys steel from the cheapest steel manufacturers to sell to building construction contractors. Obviously AYS must be a very efficient steel trader to be able to report 8.5 EPS in its latest quarter ending June and reported EPS 4.4 sen in its previous quarter during the Covid 19 pandemic lockdown.
Currently there is no more MCO lockdown and there should be more building and infrastructure construction activities which will require more steel.
Dialog Group just secured another Rm 248 million contract to build a titanium nitrile latex factory in Pengerang, Johore for Petronas Refinery.
Under the improved environment AYS should be able to report a much better profit for the quarter ending September before the end of this month. All investors should wait patiently to see AYS profit before rushing to sell their holdings.
No stock can drop continuously for whatever reason. After sometime it should rebound.
Steel price is surging in USA
As I said AYS does not worry about steel price. Steel price is surging in USA as shown on the chart below.
Chart | Stock Name | Last | Change | Volume |
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Created by Koon Yew Yin | Apr 22, 2024
Eversendai Corporation Berhad made a remarkable comeback in FY2023, reporting strong profit growth. Here are the key highlights from their financial performance:
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Sendai price chart below is showing its price trend reversal. It is hitting a record high.
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After the stock closed yesterday, KSL announced its 4th quarter EPS which is 40.76 sen and its net tangible asset (NTA) backing of Rm 3.65. Its profit increased by 230% more than last year.
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Currently Sabah Government does not know that solar panel produces the cheapest electricity???
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During my life time I saw every Prime Minister being replaced by another politician for one reason or another. Dr Mahathir managed to stay the longest time of 22 years.
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All property developers have just announced their annual profit for 2023. All of them reported increased profit.
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Although my writing of this article sounds boastful but I feel that it is important to keep this record for posterity. Engineers play a pivotal role in shaping our modern world.
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What can KSL do to benefit shareholders? I hope all the shareholders will read this article so that they can attend the coming annual general meeting to vote out those directors who are seeking re...
Created by Koon Yew Yin | Feb 29, 2024
After the stock market closed, KSL announced its 4th quarter ending Dec 2023 EPS of 12.74 sen. The total is 40.76 sen for 4 quarters. Its total EPS for 4 quarter ending 2020 was only 17.8 sen.
Created by Koon Yew Yin | Feb 29, 2024
KSL is the cheapest in terms of PE ratio. KSL Holdings Bhd is a holding company. It is engaged in real estate services.
No stock can drop continuously? Pls open the TGlove and supermax chart......
2021-11-05 15:29
Also, US dun buy steel from malaysia le. They buy from mexico and canada. He send to US, transportation fee also rugi.
2021-11-05 15:33
The reason is simple. As Phillip said, it's inventories. As a steel trader, AYS bought steel when it was rising, and they sold steel products at a much higher price than their cost, due to the lag time between purchasing and selling. Now the REVERSE will happen, and AYS is likely to make loases, as they bought their current steel inventories at inflated prices, but will have to sell at depressed price.
2021-11-05 19:36
No stock can drop continuously. you said this when gloves started dropping last year, and changed tune right after you cut loss. Con you win, don't be so unethical. please, have some dignity.
2021-11-06 12:08
vcinvestor
the more he posts about a counter... you know the more desperate he is. must be close to margin call
2021-11-05 11:36