My market view
STEEL hype by KYY and OTB
milosh
Publish date: Sun, 13 Jun 2021, 09:42 AM
milosh
0 24
Killing my extra free time by sharing ideas.
For more check out my blog: http://miloshtrading.blogspot.com
<i>These articles are not trading recommendations, just expression of my personal views, please do your own "homework" when deciding to invest! I am not licensed advisor by SC and I am not recommending any action to buy, hold or sell. All articles here are based on publicly available data from Bursa Malaysia. I do NOT profit from it in any possible way.</i>
For more check out my blog: http://miloshtrading.blogspot.com
<i>These articles are not trading recommendations, just expression of my personal views, please do your own "homework" when deciding to invest! I am not licensed advisor by SC and I am not recommending any action to buy, hold or sell. All articles here are based on publicly available data from Bursa Malaysia. I do NOT profit from it in any possible way.</i>
Mr. Koon Yew Yin shared a short but really insightful post on steel industry which I think is really worth your time to read. Mr. KYY wrote his article to support OTB, so I write main to support the support! No really I fully agree with what was written, just that our preferred stock picks may differ, my pick is LSTEEL as their profits seems to me more “stable” and predictable. Previously I wrote a post on LEONFB HERE, which you should definitely check out.
As always I would like to stress this is not a trading recommendation, just expression of my personal view, please do your own "homework" when deciding to invest.
LSTEEL:
Prediction 4QR EPS: 16+ sen
Target Price based on P/E Ratio of 8: RM 1.28
Market Price 11 June 2021: RM 0.705
LEONFB:
Prediction 4QR EPS: 30+ sen
Target Price based on P/E Ratio of 8: RM 2.4
Market Price 11 June 2021: RM 1.21
From the above, it looks like no brainer to buy into any of these with LEONFB higher UP potential, if you think their EPS growth will continue exponentially. Even with current trailing EPS, both are very undervalued.
More posts on my BLOG.
Disclosure: Im holding LSTEEL
Disclaimer: Im not a professional financial advisor or a financial analyst or an economist or an accounter.
This is not a trading recommendation / advise, just my personal view
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Discussions
1 person likes this. Showing 25 of 25 comments
btw. in this case PEG ratio can be even more interesting/informative, if we are expecting EPS will continue to grow... but the level of future growth is very speculative
2021-06-13 11:44
When China makes U-turn in dumping steel products to the world, investors will start to regret that leopard will never change its skin.
2021-06-13 13:33
short: if that happens, but even if yes, impact is questionable as recovery and orders backlog will still play a significant role
2021-06-13 15:08
billc: masteel EPS is low & growth very slow too compared to others in the sector:
EPS: 0.85 + 1.83 + 1.87 = 4.55 sen, if next QR EPS will increase to 3 sen, trailing EPS will be 7.55 sen X 8 (target P/E) = target price RM 0.6 ... I think its obvious.
2021-06-13 15:38
billc: explanation of EPS and P/E Ratio: https://miloshtrading.blogspot.com/2021/06/understanding-basics-profit-margin-eps.html
2021-06-13 15:53
but nothing else to buy meh? u know when steel prices will come down meh? what is the demand curve in Malaysia
2021-06-13 16:01
cost driven not demand driven.... how much can these companies benefit?
2021-06-13 16:02
why can't people just buy companies that are growing and in good industries? why buy so many steel counters?
2021-06-13 16:05
qqq: I just presented my opinion on fair valuations based on earnings, if you are interested in other stocks/sectors I wrote about many actually: http://miloshtrading.blogspot.com
2021-06-13 16:14
for a long time people also look at Serba as low PE low risk high reward shares.... but turn out to be a mistake
2021-06-13 16:34
Posted by Sslee > Jun 13, 2021 6:26 PM | Report Abuse
U.S. President Joe Biden and other G7 leaders hope their plan, known as the Build Back Better World (B3W) initiative, will provide a transparent infrastructure partnership to help narrow the $40 trillion needed by developing nations by 2035, the White House said.
So all building material price will increase so are many commodities price due to every country printing more money.
2021-06-14 08:45
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Post removed.Why?
2021-06-13 10:46