I just afraid the valuation is not as high as previous partly due to trump statement that called Apple move its assembly factory to American. This may affected the Apple supply chain also if it really happen. Investor do not like uncertainty, we can see the share price start to react to trump statement. And we know it is extremely difficult to move Apple assembly site back to American as the supply chain is very mature in China and Asia region. But who know the silly president will do next?
I think is fair to focus on things that we can control.i.e. numbers. Things beyond control i.e. market fear, should not hinder the decision making process. It make the decision in-efficient.
Two things i noticed about Globtronics are : I) Globetronics used to have bad 1H and good 2H, so earnings would fluctuate wildly. ii) Its stock price movement also not aligned with quarterly earnings...one can notice that before Q2's bad earnings result, its stock price rose, and after Q2's bad earnings result was announced, its stock price rose further. Conversely, before Q3's good earnings result, its stock price declined, and after Q3's good earnings result was announced, its stock price declined further..
For the investor/trader who put bet by forecasting subsequent quarter's earnings (i.e. buy if expect next Q's earnings is good, and sell if expect next Q's earnings is bad), Globetronics would be a nightmare to them because one would not make money from Globtronics using this approach.
The next Q4 will also be good. Thus, its stock price will not perform ? Let's see how it turns out.. Anyway, assuming next Q's core EPS is same as this Q3, Globtronics is selling at 22x PE multiple now, which is not cheap.
We are excited at our prospects for FY2018 and beyond. The adoption of our light sensors into the new smart devices would be seeing a more pronounced contribution, as compared to only about six months of strong loading in FY2017. This alone would provide us with a very strong foundation base for the upcoming year.
Everything is change in short time,all new information n situation need recalculate against to make sure the answer can match the share performance now."Add oil"!...
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....
Flintstones
1,762 posts
Posted by Flintstones > 2018-11-01 12:56 | Report Abuse
I scare. YiStock stock picks are high hanging fruits to me