Koon Yew Yin's Blog

Only profit growth can push up stock price - Koon Yew Yin

Koon Yew Yin
Publish date: Thu, 10 Mar 2022, 09:03 AM
Koon Yew Yin
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An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.

All materials published here are prepared by Mr. Koon Yew Yin

This is the most important and useful investment lesson which I learned from my mistake in buying steel stocks, namely AYS, Leon Fuat and Prestar based on low PE ratio.

Name

price

EPS Q4

EPS Q3

EPS Q2

EPS Q1

Annual

PE

AYS

52

5.26

6.51

8.50

4.45

24.7

2.1

Laon Fuat

79

8.53

11.34

9.76

11.65

41.3

1.9

Prestar 

62

10.03

7.21

9.59

9.45

36.3

1.7

 

The above table shows the name of the stocks, their EPS for each of the 4 quarters, annual EPS and PE ratio. Although all the 3 stocks are selling cheaply at PE 2, their share prices are dropping as shown by their down-trend price charts below. 

Investors might be tempted to buy AYS, Leon Fuat and Prestar because they have reported fairly good profit in the last few quarters. All of them are selling at PE 2. But they do not have profit growth.

Among all the stock selection criteria such as cash flow, NTA, healthy balance sheet, debt free etc, the most powerful catalyst that can push the stock price up is profit growth prospect. Never buy any stock if the company cannot report increasing profit. 

AYS, Leon Fuat and Prestar do not have profit growth as you can see their EPS in their last 4 quarters. As a result, all their share price charts are showing down trend below.

 

 

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Discussions
Be the first to like this. Showing 10 of 10 comments

amateurJR

Haha TDM got profit growth meh? Laugh die me

2022-03-10 16:33

SJSOON

Later this old man KYY will ask you buy Hibiscus. His words cannot buy one lah. What a shame.

2022-03-10 23:02

Sslee

In time of uncertainty do not chase any growth stocks but value the stock base on dividend yield.

2022-03-11 08:28

Sslee

qqq3 those stocks never pay any dividend yet like Jaks and Armada all sell down and of high growth tech stocks those with reasonable dividend still can find some support.

2022-03-11 09:22

Sslee

On plantation stocks, I hold Bplant, HSplant, Cepat and MHC for the dividend yield and increase profit due to CPO price increase.

2022-03-11 09:28

Sslee

qqq3 KYY today come out with another article "TDM's poor track record,"

2022-03-11 09:39

Sslee

qqq3 when is the right time to buy tech stocks?

2022-03-11 09:57

Fundamental Trader

After emphasize profit growth so much, then ended up picking TDM.

I start to wonder if he has dementia.

2022-03-11 21:29

peterparker69

Plantation stock make handsome profit but price is climbing too high. U buy in now will crash in time. Listen to this dickhead sure bring u to holland'

2022-03-12 09:21

Eric Lim

PE 2, YOY growth, what else are you looking for ??

2022-03-29 23:57

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