thx loong for the info. so i guess many ppl selloff their share and gain the profit. now price so low i assume they will collect more since LBS has a good potential in future.
I think the most important lesson for the day is that for everything you read online, especially blogs and forums, take it with a big table spoon of salt!!
This doesn't just refer to comments by yanyana, but everyone else, including myself...LOL
Anyway, market is expected to correct even further. FYI, we are back to the level b4 elections. I think we'll head further down south.
I've exited all my positions last Thursday when the market collapsed, all broke my exit points. Took decent profit on LBS @ 1.75
Yeah market is expected to head down for a while mostly due to panic. I don't see a reason why counters with low western foreign ownership to experience major sell down apart from market panic. The 30 KLCI counters need an overhaul. I liquidated most of my positions APART from LBS. It better live up to expectations.
Hi all, don't forget about the underlying value of this company. Unlike a lot of companies which do not hold much value if liquidated, this company still have many assets and future cash receipts to look forward to.
I think many of us are confident that LBS has great underlying fundamentals. But regardless of how strong it is, if the market in general dips, including the West and also greater Asia, then that will cause a domino effect and more likely than not, LBS will also be plunging down.
Thus, the question, assuming it is clear that the market is heading down in the near future, why jump in now even though one knows the fundamental is good?
@DrPitchard: Actually I think everyone agrees with you. I am not sure of the intention of valueguru above but it does not sound to me that he is asking people to buy now. Personally I'd ask people not to sell at a loss due to market panic for a good value company. Every single sell down just provides that much more resistance on the way back up.
RNAV/share LBS at current price of RM1.57 is trading at 69% discount to RNAV/share of RM5.05 (Source:CIMB 01 Aug 2013) and the industry average is 25.3%. If it corrects to 40%, it should be valued at RM3.03 per share OR RM3.77 according to industry average of 25%.
Not inducing anyone to buy/sell. Remember Warren Buffett did incur losses in some of his initial buys but made back many times later. NTA on the current set of accounts does not reflect the true value. When was the last time the company did a revaluation of the M'sian properties?
To me , this week will be correction week.........this aslo good for us as all counters resuffle and re-start their new journey again. It better than market hit by foreign fund.
@Qiii.. you have a point there. do you reckon that the QE tapering, US forces moving into Syria and the loads of report about Asian crisis looming may further delay any possible good news which LBS plan to uncover (should they have any good news in their mind). All these could lead to a long cold winter
euscilyn has a point that Sept may be a good month for LBS..seems like she is more than an analyst. but all the big negative things are also happening in Sept. hence, this correction can spiral further
@spongebob: How I wish I could answer you. Unfortunately I am not in a position / knowledgeable enough to provide expert comment on that. I also do not work in / for LBS. All I notice is this piece of logic (non expert view).
Americans had to invest. Fed printed money (QE) but if Americans had invested in US = slow growth. Therefore they choose emerging economies i.e. ASEAN, Asia in general. When US economy is better, US companies will do better i.e. US stocks will rise. Americans will repatriate funds from emerging markets and invest in US stocks for higher growth / support own economy. However does that mean ASEAN economies are not doing well? When they repatriate funds, they will buy USD and sell MYR - so obviously exchange rate will be affected.
Look at CPO physical market now. From a low of RM2,2xx earlier this year, it is trading at RM2,439 today and futures contract for Sep delivery is back to RM2,500 mark although palm oil production has increased. This means demands (exports) had a higher increase. Global economy is recovering well.
One more thing about QE is, they are just thinking about printing less new money (tapering) this year and stop printing new money next year. Current liquidity is still there.
Last point is does LBS have a lot of American money invested? So who is there to repatriate funds and back to where? IMHO, price consolidation is a must but over reaction due to panic is not warranted for LBS because I share the view that it is very much an undervalued stock. Do you know of a lot of counters that usually pays 2.5 sen annual dividend only but pays special dividend of 3.2 times the annual dividend + promises special dividend for the next 4 years?
good one Qiii... you managed to calm my 'spongy' anxiety for a while. i just have to believe this is a good counter as i have invested all my monies in it. it's my retirement plan instead of cooking crab burgers my whole life.
Crab burgers - yummy :). Before I continue, i have to say, equity investment is a risky business so the risk is yours. Similarly, the profit (if any) is also all yours :)
l think this is right time to re-enter this counter, the price will recover soon, u saw the price from this morning day low rm1.56 and recover to rm1.61... buy more will earn more.....
yea...don't panic...and think logically... LBS has no foreign fund....the only sell is either you or me.... if we don't sell...the share would not drop....think carefully and stop the selling....the foreign investors had done enought damage and don't we add on to that... support our market....
Buy or sell is own judgement, if you think you do not have any holding power, sell. if you have good prospect on this counter, hold. Don't affect by others and ends up blame ppl for wrong advice. No one pointing a gun on you and ask you to buy or sell!
sound silly some one always say it will rebound, this and that ....bla bla bla...... and some one say will drop further.... 1997 crisis is back...bla bla bla....
Actually on the technical front, LBS is still on an uptrend.
The 20-day SMA is still above the 50-day SMA. However the price today has just crossed below the 20-day SMA. The daily MACD had a crossover the signal line but still trading in the 'bull' territory. The daily RSI on the other hand is near to oversold area but the 4-hourly RSI is showing a 'hook' which could potentially indicate a reversal.
To be positive, more under valued counter out there. Do more homework to determine the right time start to accumulate on potential counter.of course LBS is one of the potential counter........
normally ,market will move up n down, if u think it is good stock, hold on to it n will be get profit later. KLCI still above 1700, n 1997 crisis KLCl below 300 point.
1997 crisis, KLCI i guess was based on 100 stocks. Today, KLCI base on 30 stocks. Definitly it will not go down to 300 pts, how low is the KLCI and how long will be the correction period, nobody will know. High risk high return, invest within your affordability level. 2008 crisis, few US giant banks went bankrupt, 2013 any banks will go bankrupt?
simple logic, when market up and sustain too loog it will drop seriously and prepare for next up trends, the only critical things is what is best time start to accumulate..........
@jasoninvet "normally ,market will move up n down, if u think it is good stock, hold on to it n will be get profit later. KLCI still above 1700, n 1997 crisis KLCl below 300 point."
The very fact that it is above 1700, that is the damn worrying point. It is ultra high. FYI, the main economies within the region (South East Asia), all are down, YTD. STI (Singapore) = -1.57% SET(Thailand) = -4.57% JCI (Indones9a) = -6.37% KLCI(Malaysia) = +2.82%
Even greater Asia powerhouse economies are also down YTD SSE (China) = -4.69% HSI (Hong Kong) = -0.71%
The only exception is Japan, which is up 31.51% YTD. But they too, have corrected more than 10% from the highest point in May 2013.
Anyone want to bet that Malaysia will be negative YTD soon?
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Posted by Ck Kean > 2013-08-27 10:20 | Report Abuse
thx loong for the info. so i guess many ppl selloff their share and gain the profit. now price so low i assume they will collect more since LBS has a good potential in future.