After a while,market would realize that the cash alone Rm 423m is bigger than the market capital of the whole company Rm356m. Often times there is a mismatch between the value of the company and the price that the market has assigned to it. The market is efficient and investors are not ignorance. Very soon the pricing mismatch will narrow and someday even surpass it. May be weeks maybe months. This will happen when the management announce that it has found a way to use the money wisely and mightily for the expansion of its business that would generate new revenue and profit.
The main reason is there has been very low coverage by IBs on this counter. Moreover, the company has not been active on press releases. =========================================================================== After a while,market would realize that the cash alone Rm 423m is bigger than the market capital of the whole company Rm356m. Often times there is a mismatch between the value of the company and the price that the market has assigned to it. The market is efficient and investors are not ignorance. Very soon the pricing mismatch will narrow and someday even surpass it. May be weeks maybe months. This will happen when the management announce that it has found a way to use the money wisely and mightily for the expansion of its business that would generate new revenue and profit.
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....
strattegist
23,459 posts
Posted by strattegist > 2021-08-27 11:57 | Report Abuse
good example is CI Holdings... D.Joe superb..