Koon Yew Yin's Blog
Never buy stocks in anticipation of future profit - Koon Yew Yin
Koon Yew Yin
Publish date: Tue, 09 Nov 2021, 09:30 AM
Koon Yew Yin
0 1,414
An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.
All materials published here are prepared by Mr. Koon Yew Yin
All materials published here are prepared by Mr. Koon Yew Yin
Almost every day someone would recommend stocks for me to buy. Yesterday I received this email.
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Good Day Bro KYY,
Here I would like to recommend you to look into refinery business in Malaysia. Petronas Dagangan, HengYuan, Petron M are the refinery companies that are listed in KLSE. Their profits are directly related to Brent Crack Spread which is booming up to year high at the moment. Looking at refinery company in US, for instance, Chevron Corporation, is making huge profit in the bullish run of crack spread price. This has been pushing Chevron share price up from USD 70+ to USD 114 per share (PE 22).
02. For your information, HengYuan refinery capacity is 156000 barrel a day, compared with Petron M capacity of 88000 barrels per day. Let's look at the refinery margin for HengYuan at USD 10 per barrel.
Simple calculation for HengYuan Profit
156000 barrel x USD 10 x 4.16 (conversion) x 30 days = RM 194.6 million (translating to EPS of at least 50 cents)
50cents x 4 quarter = 200 cents
This brings HengYuan forward PE of merely 2.1 with the current share price of 4.2+.
03. Above calculation is based on estimation and the available information that I could gather so far. I believe the coming quarter of refinery companies will be very good. Anyway, I am just a normal retail investor, sharing my opinion. What do you think, bro KYY? Is it worthwhile to invest in refinery business now?
Thank you very much for spending your time reading this.
Best regards,
James
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As I said never buy any stock in anticipation of future profit.
Hengyuan’s last traded price is Rm 4.24 and it reported 19 sen loss per share in its latest quarter.
Petronas Deganang’s last traded price is Rm 20.68 and it reported 8.3 sen per share in its latest quarter.
Petron Malaysia’s last traded price is Rm 4.53 and it reported 15.6 sen per share in its latest quarter.
For comparison AYS’s last traded price is 71.5 sen and it reported 8.5 sen per share in its latest quarter. It is very much cheaper than any of the 3 stocks in terms of PE ratio.
Why I do not buy IPO (initial public offer) shares?
Record shows that almost all the projected profits are not achievable.
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Discussions
Be the first to like this. Showing 36 of 36 comments
https://klse.i3investor.com/blogs/koonyewyinblog/2017-12-18-story-h1452366728-Hengyuan_Reminds_Me_of_Supermax_Koon_Yew_Yin.jsp
Hengyuan Reminds Me of Supermax - Koon Yew Yin
Author: Koon Yew Yin | Publish date: Mon, 18 Dec 2017, 10:46 PM
As you know, I have posted a few articles to recommend readers to buy Hengyuan which you can find in my blog.
Today it went up Rm 1.06 and many of my followers wanted to know what they should do. Should they sell and laugh all the way to their bank?
This situation reminds me of Supermax in 2010 during the HINI fever epidemic. I also recommended people to buy while I accumulated so many shares that I became the 2nd largest shareholder. As shown on the price chart, it went up from Rm 1.20 to above Rm 6.00 within 12 months.
The above chart shows that the price has gone up more than 400% within 12 months. From my long experience and observation, I notice that if 3 persons bought the same share and at the same time, each of them will get different result.
A day trader would be very happy to sell if he got 100% profit.
A short-term investor would likely sell if the price went up 200%. In fact, many weak holders would sell especially during a temporary price correction.
Only serious investors will not sell and super investors would dare to buy some more.
My remisier from Maybank Investment Bank, Ipoh can confirm that my wife and I bought 230,000 shares today. I strongly believe it is still very cheap in terms of P/E ratio. I cannot find another share with such good quality selling at such low P/E ratio.
Can you recommend me one with such good quality selling below P/E 5 ?
2021-11-09 09:38
"As I said never buy any stock in anticipation of future profit."
Then why tiap2 hari pagi sampai petang recommend AYS dan Hiaptek? Kalau bukan untuk future profit, nak derma bagi CEO makan angin ke?
Tangan kiri cakap X, tangan kanan buat Y.
2021-11-09 09:49
Amboi...this trader try to peg...try to approach KYY spread out recommended stocks at the forum so this trader can run fast fast...
So desperate...so kesian...
wkwkwk...kekeke...hehehe...
2021-11-09 09:50
Next month more selling pressure before closing 2021...
No more window stressing for this year...
In fact worse performance than 2020 during pandemic if you measure the "real market & individual performance"...
Amboi....
2021-11-09 10:07
Posted by CharlesT > Nov 9, 2021 9:34 AM | Report Abuse
This Socxi Jame doesnt know Koon Bee was the black hand behind HengYuan party few years ago....goreng sampai hangus
Ans. I am sure Jame know and hope history will repeat again.
2021-11-09 10:07
https://www.tradingview.com/symbols/NYMEX-D1N1%21/
Haha just bought some at 4.24, see whether can earned some kopi O money.
2021-11-09 10:26
" Record shows that almost all the projected profits are not achievable. "
projected profits = corn stuff to corn our hard earn moni ?
2021-11-09 14:22
Strongly advice sell (curi curi tell you...Keyman188 very rare asking people buy or sell any stock)before too late...
Don't expect can go back above 1600 level anytime...
High possibility can see 13xx by next year...
2021-11-09 16:28
At this market momentum...very strong selling pressure...
Once market up slightly...very fast can see strong selling...
2021-11-09 16:29
Never buy stocks in anticipation of future profit - Koon Yew Yin. Uncle Kyy You don’t follow your advice. How I can follow your advice?
2021-11-09 16:37
Uncle already margin call at ays, hiaptek...
MANA Ada mood entertain stock lain....
Sure kena hamtam la
2021-11-09 18:21
Hengyuan Reminds Me of Supermax - Koon Yew Yin
Author: Koon Yew Yin | Publish date: Mon, 18 Dec 2017, 10:46 PM
2 weeks after kyy wrote this article, hengyuan started free falling from its high and never came back again.
2021-11-09 20:59
If ppl does not buy in anticipation of future profits, then why are investors buying shares ?
It is that "hope" springs eternally in all humans. That is what drive the markets.
Who wants to buy in anticipation of future losses ?
2021-11-10 09:40
Isn't successful investment about predicting the future correctly with the information and tips that you gather? If you predict the future wrong (like many on glove counters) then you go Holland, its that simple.
Investor A predicts Top glove earning to peak in 2023, he goes to Holland holding
Investor B predicts Top glove earning to peak in 2021, he cut win or loss early, and he doesn't go to Holland.
2021-11-10 12:09
According to Oxford Dictionary, invest is define as put (money) into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit.
2021-11-10 13:37
Malaysia share market just 20 percent counter invest;80 percent counter is Gamble ! Malaysia share market no long term invest.....when had more profit better sold.....n don;t listen n follow too much Economist,Share Analyst said..buy n sell;you will very Dissappointment n lost more money.
2021-11-10 14:57
马来西亚的股市只有10-15巴仙适合中长期投资 ！80 巴仙以上 都是 “投机或赌的成份 ”！投资马来西亚的股票当有赚了不错的利润；卖掉永远没错 ！也别太听信 ：经济家，分析师的话去跟着买卖股票；你会很失望和亏大钱。。。。手套股就是一个列子 ！它给许许多多投资者一个 ：非常昂贵的大教训 ！莫以为有分红股和给不错的利息就是好股。。。。
2021-11-10 15:11
If Uncle Koon follows his logic of not buying stocks in anticipation of future profit, while looking at PE ratio, why isn't he promoting glove stocks? Turning a blind eye?
SUPERMAX with PE 1+, HARTA with PE 3+??
Why the obsession with AYS?
Such lack of objectivity make it hard for the public to trust Uncle Koon.
2021-11-11 07:58
stay away from his recommendation..it is a sign to let go...still holding Tomei ar Uncle? maybe that is the motto rhymes...never buy stocks for anticipation of future profit (means buy to lose??). Tomei flattish only since July how ar..buy Crypto also can go makan angin makan besar liao if talking about long term.
2021-11-11 11:30
Uncle KYY... what you said what you bought does not jive ? I know you have heavy position on AYS [ you said so], so it is logical for you to promote AYS. However your arguement got to make sense. The comparison is flawed.
2021-11-11 18:59
In reality, Petronas Dagangan up up up, AYS down down down! Haha… We all know your hidden agenda…
2021-11-12 16:51
The industry with the best profit margin today is Oil Palm companies. I'm sure this Geezer is still in slumber promoting his stock without realising that the construction business is not thriving due to Covid-19 and AYS is a steel supplier.
2021-11-13 10:03
What's the point of buying growth stocks then? If it is not based on anticipated future profits
2022-04-28 14:53
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
CharlesT
This Socxi Jame doesnt know Koon Bee was the black hand behind HengYuan party few years ago....goreng sampai hangus
2021-11-09 09:34