Cigarettes is a must business maintain in Malaysia...and all over the world....if you keep pressing cigarettes.......once their competitor 'dadah' taking place then you only know....
Well, once upon a time BAT used to be one of the investor's favourites on Bursa Malaysia especially with its consistent dividend yield. Back then BAT was representing one of the top 30 market cap stocks in FBMKLCI index. In fact, its stock price was the highest among FBMKLCI index components. Peaked at around RM 72 per share, BAT's share price has since fallen to multi-year low at around RM 15. Unfortunately, the fall in share price was mainly due to the huge decline in sales and profit throughout the years.
Exactly. However, it still doesn’t warrant the share price of 1 share to be less than a packet of Cigarettes :-| Fund Managers are just waiting and timing the “perfect” bottom fishing entry price to have a weightage in their funds for good dividend yield (albeit reduced basis) and high potential Capital Gain.
No stock operators will play on such high value stock. It seems like the “real bottom fishing price“ of 14.54-14.62 already established & unlikely to be re-visited. Some Funds already initiated their buying in today based on this morning Volume and price increased despite for some profit taking by Ikan Bilis that bought at the Lows. Other funds will be “panic buying” in due course as current price still very attractive:-)
In the last few weeks when its share price was falling, there were lots of negative comments that surfaced, ie some claimed this is a sunset industry, chartist said its resistance broken and warned more new lows in the pipelines, news paper highlighted foreign fund selling, retailers pat on their back and said they are so clever not owning any BAT shares, etc.
This was the time the smart local funds can snap up as much as they want at a bargain. We ikan bilis can ride on this recovery.
@ abang_misai Looks like we are the brave souls & King of Ikan Bilis :-) I have accumulated even more than you as I could not resist the excellent bottom fishing price the last few trading days to accumulate even more. Trust My Intuition - The Best Is Yet To Come :-)
Once the vaping ban news is officiated, the price easy soar up to 18-20, and slowly hike up to 25-30 marks by 1H2020 after seeing the influx of revenues from the effect.
Christmas comes early ? I am dreaming of a White Christmas up in the alps of Switzerland/Austria. It will be a wonderful panoramic view from above once BAT soars further past 20 :-)
Good closing @ up > 5% (15.36) with good volume (~ 1.5m v average volume of ~ 400k in the last 4 weeks) and 1st. Day of trend reversal. More importantly, it is no longer a falling knives situation as a firm bottom seems to have been established. Augurs well heading into 2020 :-)
At ~ 1.5m volume transacted today, it is certainly not Ikan Bilis trading but real IB/Funds moving into position/weightage for First Mover advantage. Last Call @ 14.54 yesterday and let’s watch BAT soar heading into 2020 :-)
BAT wings just unclipped yesterday and it will take time for it to gain it’s strength & soar thereafter. Sellers minimal and IB/Funds are patience so as to pick up from weak holders.
Market gyrations are good so that the market can be vibrant and noises/negativity give opportunities to make monies. Otherwise, it will just be a lackluster market.
That’s the beauty of the Stock Market. Differing views and opinion. Strong holders beat weak holders & Big fish eat Small Fish :-) We might be Ikan Bilis but we can be strong and beat the big players too.
@ abang_misai Although BAT is an excellent investment even at current price, it is important to always maintain a diversified portfolio. On bottom fishing approach & opportunities based on portfolio re-balancing position available in early November 2019, a good diversified portfolio will include BAT, Sunway, EcoWorld, Top Glove, SuperMax, SP Setia, IOIPG, IHH, PLabs, SKP, LHI, PCCS, Petron, Maybank, ABMB, Star, MYEG, Scicom, KESM & D&O. Happy Investing ;-) :-)
Thanks @panorama1 for sharing. Obviously you have your own reasoning when you bought the stocks you mentioned.
My portfolio are the rock-bottom stocks, ie BAT, Genting, Ytlpower, Tunepro, Ecoworld, DKSH, Wcehd, AWC & Cjcen. All these stocks were bought at their multiple-year lows.
Recently made my money by disposing prlexus & Ewint which I bought them at their bottom and switch to BAT, Genting, Ytlpower & Tunepro.
I follow Sifu Howard Marks’ philosophy, ie buy low to control risks. If 2 or 3 of the stocks I own rise 100%, I will make a lot of money because I know the others in my portfolio will not suffer from any significant drops simply because I bought them at their bottom.
I made a lot of money by avoiding mistakes (buy high). If you have 1hr time, please listen to what Howard Marks has said in this video. https://youtu.be/L_HWRwIOcg4
Thanks abang_misai We have similar “bottom fishing” investment philosophy albeit different selection of portfolio of stocks. Let’s make good money together :-)
I disposed off with hefty gains in Astro, Inari, Armada, Velesto, SP Setia (Round 1),PCCS (R1), SKP (R1), VS, ATA, SuperMax (R1), Hartalega, MBMR, TuneProtect, IHH (R1), CIMB, Inari, Aeon, MTAG, KNM & Air Asia previously using the same strategy. The capital gains enable me to have a widened and bigger investment portfolio.
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....
JN88
11,670 posts
Posted by JN88 > 2019-12-17 10:27 | Report Abuse
Cigarettes is a must business maintain in Malaysia...and all over the world....if you keep pressing cigarettes.......once their competitor 'dadah' taking place then you only know....