If I currently don't have any yet, I would choose 2 and make sure to follow through with cut-loss just in case. This way, downside limited but upside as per your imagination.
PureBULL, thank you -------------- PureBULL ... Good write-up: In Nice n easy tone n yet simple n neat, not those super LONG to con everybody n the writer himself. 13/02/2020 3:35 PM
Most will see the price going up from 0.4 to 1.5 in 12 months as excessive but failed to see that Jaks' price was already 1.84 in Jan 2018. Price trend was distorted due to huge forced selling.
At that time , it was in a different scenario even though the power plant was still quite far away from completion . The super investor with powerful $$$$$ was the mover of price at that time . Now , we are waiting for powerful $$$$$ to come in . It can be any one , from local and foreign . Once the powerful $$$$$ come in , Jaks will shoot up earlier ! ------------------------------------------------------ DK66>Most will see the price going up from 0.4 to 1.5 in 12 months as excessive but failed to see that Jaks' price was already 1.84 in Jan 2018. Price trend was distorted due to huge forced selling. 14/02/2020 8:54 AM
Unless one can correctly estimate the future earnings of the power plant for the next 25 years, you will never be sure whether the current price is too high even though it is trading at historic high now.
The rational logic is the price will continue to trend higher in the mist of growing optimism and awareness on Jaks due to its power plant achieving commercial operation soon.
I m not implying that it will go up forever, it won't.
The 1200MW power plant is a huge investment project, it won't go unnoticed. It is already the most widely picked stock in the 2020 stock pick competition.
Jaks has earlier signed a MOU to acquire a solar farm in vietnam but the deal fell through. I presume the management is still seeking other solar opportunities in Vietnam.
Buy at 1.50 and cut loss at 1.10 (important technical support), you lose 0.40
DK66 has derived an average valuation of 5.40 using 5 different methodologies.
If DK66 is wrong, you lose 0.40 If DK66 is 30% right, you break even. If DK66 is 50% right, the price hits 2.70, you make 1.20. (IBs like to discount 50%) If DK66 is 100% right, you make 3.90.
So, is it wise to risk 0.40 for a most likely 1.20 gain and a potential 3.90 gain ?
Use your wisdom.
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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....
Travestor
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Posted by Travestor > 2020-02-13 14:26 | Report Abuse
If I currently don't have any yet, I would choose 2 and make sure to follow through with cut-loss just in case. This way, downside limited but upside as per your imagination.