The main reason on why Petdag can trade at extraordinary high PE valuation if compared to Petron is due to its extreme low liquidity 'tightly control' by state fund, further supported by consistent dividend. But, the discount given by market on petron is too big to ignore.
I believe, with current relatively low entry cost, margin of safety is big enough to cushion any further downside risk. In addition, with recent consistent profit making, petro have markedly improving financially, reduce borrowing, improve cash flow, resulting increased dividend payout
Whatever Q2 result had deliver, it have pass. Look forward for CERTAIN soar in profit, strongest Q3 result ahead due historical gasoline crack spread.
Therefore, its right timing to re-build back petron stake in portfolio.
Please bear in mind, we are dealing in stock market and each stock share price almost can change daily. But, company only can release financial result 4 time a year + occasionally news corporate development. Therefore, majority of the time, share price is influence by supply and demand, its very dynamic.
Therefore, stock share price can be bashed down by market force significantly if there is disappointment result, BUT, similarly stock share price can mark up significantly if positive development start kick in.
Thus, there is NOT need to curse stock when it get hit at all, as recovery is always in place to deal to neutralize selloff market force, regain back later. Its dynamic stock market
Value investors are not inclined to buy Petdag/petgas stocks at what they consider to be overpriced values (PE>20x), preferring instead to buy (Hengyuan/Petron) what they see as underappreciated and undervalued stocks (PE< 6x), at a bargain price, which, over time, next Q3 to perform well.
Activeinvestor.... that is for you to decide yourself. You can google for OBV and check the graph of it in RHBtradesmart. I wish i am correct cause i am adding in now. I hope the reversal in the OBV is correct. If not i only have my own hands to burn.
I dun set target price like all the sifu here at what price to buy. I see the OBV and decide to jump in or out.
By the way, remember for your future reference current operator buy with average of 8.4 to 8.8. If you are operator how much u want to earn before u start dumping. U have to observe and decide for yourself
My hats off to you guys for persisting based on calculated risks. Just keep cool guys, do not let euphoria make you fodder for those pessimist to hammer. As for whoever is in Raider's army, ask him for a promotion!
hng33.... you just proved what i said earlier this week. The one who promotes the loudest will be the first one to change tune and say they gain handsomely at the expense of asking people to go LONG when they decided to go SHORT.
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....
hng33
20,465 posts
Posted by hng33 > 2017-08-29 10:50 | Report Abuse
The main reason on why Petdag can trade at extraordinary high PE valuation if compared to Petron is due to its extreme low liquidity 'tightly control' by state fund, further supported by consistent dividend. But, the discount given by market on petron is too big to ignore.
I believe, with current relatively low entry cost, margin of safety is big enough to cushion any further downside risk. In addition, with recent consistent profit making, petro have markedly improving financially, reduce borrowing, improve cash flow, resulting increased dividend payout
Whatever Q2 result had deliver, it have pass. Look forward for CERTAIN soar in profit, strongest Q3 result ahead due historical gasoline crack spread.
Therefore, its right timing to re-build back petron stake in portfolio.