NHF has just waken from a slumber; yesterday up 32 cents, now as at 11.10 a. m. up 22 cents. Any Sifu can predict trading price for NHF up to end of the month??
The company is confident of double digit growth this year. Managing director said before he valued the company at the PE of 20, that means the share price should be ard rm 8. Looked at small cap companies such as jhm, kesm and ajinomoto. All trade at PE of 15-20.
Instead of hoping for RM5.00-5,50 for NHF, we are now getting RM4.36. What happens? Is there any change in management, policy, directors or operation. The answer is obviously NO! Then, why such a drop in term of percentage? Only sentiment and human feeling that we can fathom. Ha Ha. Let us wait for another Quarter result for better assessment.
When you compare the past 10 years ROE of NHFatt with those of my 2 reference Bursa car companies - BAUTO and HLInd, you will conclude that the parts companies are not doing as well as the vehicle manufacturers. For more insights of the Bursa auto sector go to "Are there opportunities in the Bursa auto sector" in my blog
@Dehcomic01 PE is more important than ROE, ROE basically has no meaning in gauging whether a stock is overvalued or undervalued because it doesn't involve the actual current market price.
People tend to judge whether a company is good or bad only. there is no use if company is good but market price already overvalued, it makes it not worth to buy anymore no matter how good the company itself is
Parts factory will boom in these few years frm expert perdiction. Cos a lot of foriegn car company especially ev car enter malaysia market. These ev car also need to buy car parts locally as imported parts need to pay extra logistic n tax. This will definetedly benefit local car parts producer like apm n nhf.
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....
mincai
155 posts
Posted by mincai > 2017-06-07 21:56 |
Post removed.Why?