Pohuat's latest qtr EPS is 7.66 so the conservative estimated full year EPS should be 4 X 7.66 = 30.64 cents. AS US and Europe market are recovering well and the USD will get stronger due to the coming US rate hike, its full year EPS should be much higher than 30.64 cents. Thus is fair value and TP based on the PE of 10 should be minimum at RM3.10
Today I bought 13 lots of Poh Huat at an average price of RM2.2392. I really hope the price correction is completed and can reverse itself in the next few trading days.
If really can go back to the starting price of RM1.80, then very good. By that time I should have collected 50 lots. I am just following the advice of my sifu (Mr Ooi Teik Bee in VS forum). Let's see what happens next.
No matter what lines it breaks, there is history candle stick to check. RM2.18 is the first support and RM2.02 is the second support. US still have not raise interest rate. Still got time to recover to RM2.40. When reach RM2.40 or somewhere near there, sell everything. Sure got some profit. If panic sell, sure lose money. The furniture stock theme play still strong.
USD index and USD MYR exchange rate is soft today, resulting the correction. The correction has started since lastFFriday when Yellen say it is too early to raise up interest rate on Thursday night. Good luck.
Lii Hen was featured in FinancialDaily (The Edge) today. PE valuation wise, it is better than Poh Huat while NTA wise, Poh Huat is better. On TA wise, Poh Huat has formed a "double top formation", which indicates bearish with 50% downtrending. Short term or margin players are advised to take profit first...
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....
calvintaneng
54,910 posts
Posted by calvintaneng > 2015-03-19 18:41 | Report Abuse
Not bad. Power huat result improved.