@Gaussian. You can be rest assured that I understand the concept of PE extremely well. One just couldn't have written 3 levels of CFA exams without understanding this simple concept. But, opinions on this do defer. So, let's just leave it at that.
In addition to that, my sense is, I believe the invisible hands of the IBs are at work. There will be 3 tranches of Structured Warrants expiring between Nov 20 & 30 with a total number of original issued shares of 400m. If all of them were outstanding, on paper, the 3 IBs would incur massive losses to the tune of Rm900m, based on settlement price of just Rm9. But of course, the IBs have mitigated this disaster. I am certain, they would have bought back most of the warrants by now leaving no more than 1m shares outstanding. This is not the only way that the IBs make money. They can also trade the Supermax shares just like you and me. And Supermax being one of the most fragmented share ownership amongst the big caps with the Thai Family being the only group to own above 5%, the IBs, with their expertise and overwhelming capital can easily swing the share price up and down. Such high volatility favors the IBs, but it scares the living daylights out of the retail investors. So, unless you're extremely good at trading the stock, it would be better to focus only the only 2 factors that count - Father Time & Earnings Visibility - and ignore the noises. All the best.
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Gaussian
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Posted by Gaussian > 2020-11-01 15:39 | Report Abuse
Do you understand the definition of PE?