The profits of this company is improving QoQ, that's why just up 100% ma... What is the logic cannot buy after up 100% .. As compare with others penny stock, Frontken have better fundamental and the price was not goreng-ed too much
From the annual report, Taiwan segment contributed ~48% of Frontken total revenue. Malaysia & Spore just 27% & 15%. One thing very interesting is Taiwan New Dollar(TWD) is very strong recently. That is a big forex gain!
Do you even know what the company is doing? How many percentage of sales come from semi-conductor segment? How many percent come from oil and gas industry? Which area of oil and gas they are in? Write an article to push the price? Haha
This is a constructive opinion and criticism. Feel free to ignore if disagree.
From a neutral standpoint, simply slapping a industry PE 15 to any technology stock is extremely dangerous. If such method is applied, then all technology stocks in Bursa would have been highly valued at PE 15 for a long time. The fact that it doesn't clearly shows you something.
First we must ask ourselves, on what basis should Frontken command a PE of 15? Is the business lucrative? Is it a market leader? Does it have moats or other competitive advantage that others doesn't?
Second, what is the return of investment or equity? In layman words, if I invested Rm 1 in this company, how much do I expected to earn back on my RM 1?
Remember, high valuation equals to high expected future returns. If the expected future returns cannot deliver, then it does not deserve a high valuation.
By asking ourselves the right question, only can we get the right answer.
One more thing to share, no one will look at the counter even price traded at PE 6 times during BEAR market & everyone will chase the same counter even price traded above 15 times PE during BULL market.
1. "Let's market decide, what I think or what you think is not important. I can simply shout at target price of RM1, it does not matter. If one never read reports & do his analysis before buying, all advices are useless."
Ans: "In the short run, the market is a voting machine but in the long run, it is a weighing machine." - Benjamin Graham
If you have been in the market for a long time, you will know that the market flip flop all the time. From extreme bearish to extreme bullish.
What the market decide in the short term may not be the true reflection of a value. Depending on the judgement of other people in the market (a.k.a market forces) is no different in betting in a horse race - where the payout are dependant on how many people bet on it. It is the worst imaginable way to build your wealth stably and securely.
That is why you must have a thorough analysis of stock, and stick with it till the end, even if the market disagrees with you in the short run.
2. "One more thing to share, no one will look at the counter even price traded at PE 6 times during BEAR market & everyone will chase the same counter even price traded above 15 times PE during BULL market. "
That is why so many people missed the fortune at the bottom of a bear market, and also why so many crashed and burned at the peak of a bull market.
"Only when the tide goes out do you discover who's been swimming naked." - Warren Buffett
Only by asking ourselves the right question, can we have the right answer - the true value of the stock. Like you say "I can simply shout at target price of RM1, it does not matter.", but what is the point if your target price is wrong itself? Food for thought, my friend.
To success in stock investment, one must read books, news, reports & do homework, as well as accumulating buy sell shares experience (practical experience).
But the truth is, no matter new or old birds, not many of them have time/habit to read books/reports/financial statements, they prefer to trust the news that they heard.
I have more than 25 years investing experience & didn't make any killing mistakes in 1998, 2001 & 2008, so I understand your good intention of sharing, but I doubt many will truly understand it. That the reason of 10% & 90% story.
Apollo Ang - fronken not penta, if every counter can be like penta whole msia nobody working,cannot compare like that.mark my words in 2 years fronken also will not be double from now. 19/05/2017 22:26
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Posted by KLCI King > 2017-05-19 15:17 | Report Abuse
FRONTKEN - Target Price 55 cents, 100% upside