The most compelling stories can create the most overvalued stocks. If you add low interest rates to the mix, you have the perfect recipe for a bubble. Focus on the fundamentals of the business, and remember no stock is worth an infinite price, no matter how good it is.
Many FB or YouTube sifu looking down on MPI, asking you to sell… now you know, you r cheated by them… perhaps they r secretly buying your cheap MPI shares… I don’t know… do you own homework, you will be just fine!
Buy on weakness. MPI is good for a short-term technical trade (1-2 months). The only fear is if Russia suddenly drops a bomb on Ukraine or between China and Taiwan. Geopolitics will be a huge theme in 2023.
Semiconductor industry has been militarised. Countries are boosting semiconductor manufacturing capabilities as a means to improve their bargaining power on the international stage. The growth pace of the semiconductor industry is expected to slow, as companies downgrade FY23 earnings guidance, earning estimates by analysts come down 15% - 20% by 2H23' and amid a high interest-rate environment. Semiconductor companies remain an integral part of any value investor. It is the same as investing in Oil and Gas during 2018. Expect some small rebounds but don't expect to be rich like investing in Google. That will not happen anymore.
If you have kids, ask them to go study electrical engineering and work in semiconductor. Intel is paying RM5k including bonus for their fresh grads. Applied Materials in Bayan Lepas, Penang paying RM3.5k. Lam Research around RM4k. Doctor/lawyer cannot make money anymore haha. Or become prop trader/ECM like pang72. You ask pang72 how much he earn as a trader.
Nowadays traders also don't make a lot of money. High turnover. Look at CGS-CIMB and Kenanga prop traders. A lot left and new people came in. After a few months, they will all leave again.
Remember that countries need chips for their weapon also. Chips are not just found in iPads or smartphones. Which explains why semiconductor companies have not even crashed despite the recent rout in FAANG and big tech. I am definitely still bullish on MPI despite the challenging macro environment.
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....
James_Bond
3,420 posts
Posted by James_Bond > 2022-11-04 08:59 | Report Abuse
M going holidays, good luck! Cheers!