24 people like this.

57 comment(s). Last comment by kcchongnz 2016-01-09 19:25

3EMWE

105 posts

Posted by 3EMWE > 2016-01-08 01:11 | Report Abuse

no single ratio is perfect but rather ratios should be use collectively to give a bigger picture to the puzzle.

Icon8888

18,658 posts

Posted by Icon8888 > 2016-01-08 05:40 | Report Abuse

Nakata the info is tracked down one by one. I know the date I wrote the articke, so I dug out the price, the latest previous Q profit (when article published) etc

Mat Cendana

2,331 posts

Posted by Mat Cendana > 2016-01-08 12:39 | Report Abuse

@Icon8888 Thanks for this very useful and informative post. Plus your analysis. This is something which requires a lot of time and energy, not to mention a lot of brain power. Whether an individual agrees or not, and to what extent, is secondary. But I must say that this kind of post adds value to i3investor. Makes it worth the time to come here. You get an "A+" for your efforts. Very much appreciated.

Posted by tuniamasingh > 2016-01-08 12:41 | Report Abuse

Uncle Koon is the best......

khingjoo

11 posts

Posted by khingjoo > 2016-01-09 11:18 | Report Abuse

Once again a big Thank You. Your selection of shares for 2015 has been very successful and make a lot of people richer in this group. Of course not many people can afford to buy all the shares! Hope some have not selected the under performing shares.

kcchongnz

6,684 posts

Posted by kcchongnz > 2016-01-09 19:25 | Report Abuse

Icon8888,

I feel a little strange that why you exclude those stocks below which can be explained away from your already small sample size.

"Of the remaining 8 stocks that the price hasn't gone up proportionate to profit growth, 7 stocks can be explained away (blue highlighted), only 1 stock cannot (yellow highlighted)."

For example,

"WTK - Before profit growth, the stock traded at high PER (backed by high net assets per share). Strong profit growth only brought PER down to a more reasonable level. As such, investors did not chase the share price up substantially."

The above exactly explains why strong profit growth is not necessary follow by share price increase (unless it is being gorenged), because this profit growth has already known by insiders and their friends that the share price has already gone up way before the announcement of strong profit growth.

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