Many Petronm investors seems to be worried about the RM 14 billion investments which tends to make Petronm in serious debts . Oil Refinery is a capital intensive business just like Airlines which needs to invest heavily in new planes when it expands . In 2016, Airasia had RM 11 billion debts and churning out eps of about 60 sen to 70 sen per year for 2016 and 2017 respectively. THe current PE of Airasia is about 8 ( very similar to Petronm ) . There are at least 10 analysts who recommended a buy for Airasia with the latest from Public research at RM 5.40 , DBS at RM 4.80 and Macqureine at RM 6.30 . THere gave a target PE of about 10 . If Petronm invest 14 billion and has an estimated earning before tax of RM 2.4 billion ( US 600 million) , the eps after tax is at least RM 6 per year . A PE of 5 will give Petronm share price at RM 30 .
You have chosen a right company to park your money. But you believe what other said than what you yourself believe. Then your success or failure is determined by others not you yourself
Do not believe those sifu who said expansion is no good. Including David and future eye because because they are not business man. Quarter results will prove them wrong 9 times and right 1 times, slightly better than belief 4 ekor.
BORROW MONEY TO BUY SHARES IS DEFINITELY NO GOOD FOR YOU AND ME BORROW MONEY TO EXPAND THE BUSINESS TO BRING IN MORE EARNING THAN THE COST OF OPERATION IS GOOD.
I am very disappointed with them. They are too careless, did not do their homework well.
Only stockraider, probability, David and future eye said it is good for Hengyuan bad for Petronm. They are not wrong, they are telling you to sell petronm and buy hengyuan where they had already sailang all their money
Why the IB do not cover Hengyuan. Write nothing about Hengyuan? Hengyuan never supply them enough information they want. Why IB only cover petronm, petronm is a gentleman, whatever you want to know he tell you
Ask yourself a simple question Where do you get all the information about Hengyuan? Stockraider and probability! the rest are just copy cats including kyy
"never buy a stock that you do not dare to buy more when the price drops but fundamental is strong"
The fundamental of Petronm is not only strong ,but it is stronger and stronger as it grows. the management has proven this.
1. zero borrowing 2. net cash 3. few hundred millions FCF every year 4. consistent earning every year 5. well integrated business model 6. big expansion plan to bring the company to next high level of growth 7. Excellent corporate governance
where can you find a better company that meet the above criteria in bursa ?
A lackluster performance but hang in there folks. To quote Herbert Hoover - "prosperity is around the corner". Unfortunately when he said it, it never happened.
Just a little history lesson to divert away from the misery.
Now we do not see our gain is around the corner But we see the corner is not far or unreachable If you play it right, then you win more when you have arrived at your corner
haiz, all my money bought in last two week,now lose a lot+no more money to average down my price.everyday just watch the price keep dropping + don't know need to cut lose o not but now cut lose too late ady
If it's IBs, then it's likely that those who play on margin borrowing & contra traders could not meet their financial commitments. Such selling often leads to the price dipping below the fundamental value.
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....
newtrend
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Posted by newtrend > 2018-02-06 16:42 | Report Abuse
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