I am surprised to see the oversold of so many good counters.
Plastic and polymer are derived from Crude oil so the Cheaper the Oil price the cheaper it is to make plastic & po;ymer products. So Nylex's profits will increase more and more as Crude Oil gets cheaper and cheaper.
It's like this,
If fish prices drop only fishermen suffer. When we go buy fish from market we will get cheaper fish and save lots of money.
And who will also benefit?
Japanese restaurant who sell sushi. Due to cheaper fish they will make even more money.
Mr Market sold down nylex in a time of weakness. Just buy and average down slowly.
Nylex should benefit from cheap oil.
Last time I bought cenbond at 50 cents and Muda at 60 cents. After buying Mr Market sold down cenbond at 45 cents and Muda got hit even worst at 35 cents.
See. Later cenbond crossed rm2.00 and Muda did even better when it crossed rm2.50
I don't think Nylex will go down so much. You see, Company has NTA over Rm1.60. It can dispose some assets or even revalue it and pay more dividend. Currently, it is already paying 2 cents dividend.
However, if Mr. Market should go crazy and oversell Nylex to 30 cents, I shall be very happy to sell one house and buy up even more Nylex shares.
This was my experience with Muda.
When Dynaquest first recommended Muda at 60 cents in its Monthly Digest I bought it. Muda was giving a 2 cents dividends then (similar to Nylex now).
Then to my surprise Muda dropped all the way to 35 cents. But it was still giving 2 cents dividend. So I loaded up even more Muda shares as it get cheaper.
Then Muda went up, Up & UP to Cross Rm2.50 one fine day.
The same goes for Nylex. Oil & Ringgit have fallen a lot. Nylex shares have moved only a little. So at the moment Nylex is still undervalue. If it gets cheaper just buy more.
I first bought Nylex at 55 cents. Sold just above 60 cents. I bought back again from 61 cents to 63.5 cents. I am happy to note that Dr Neoh is on board.
For Mulpha I bought at 39 cents. Sold some over 50 cents. Still holding 50,000 shares. I saw TOP BOSS MR LEE buying above 40 cents. So I think at current price Mulpha is undervalue.
its profit eaten up by high taxes payment of 1.2 million (maybe ,GST etc) fr year 2015:otherwise if not for taxes it would have been profitable at 3 million+ 2015 compared to 2.9 million + 2014 ... despite other costs increase (Finance ,administrative charges)
Looks like a disappointing quarter for Nylex. The behaviour is just like Kfima in those days. Erratic and weak. Interspersed with growth. That was why many avoided Kfima when it was only 35 cents then.
In any case there is still a growth. And from year quarter ago its NTA has risen from Rm1.56 to Rm1.68. So we should not be too concerned with quarter to quarter or even a year's growth if the longer term growth is still intact. Nylex has been around for 20 years already. And I think it should be around for the foreseeable future.
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....
fukrai
168 posts
Posted by fukrai > 2016-01-19 19:39 | Report Abuse
bye nylex!!!! chow faster,hihihihii! up or down, dont look back, let it be