I am helping myself & others to HUAT together... now TA confirm liao... whoever want to go in... NOW is the time... but I bought much cheaper because hold very very long time liao...::)
Warrant will reach 55 cents when mother share hit RM2 as what happens in May 2013, but I dare not to buy looking at paying premium over 50%. Whoever dun care about premium & just for trading purpose, can consider...:) Anyway, you measure your own risk...
Yes, not in the money, worthless... but assume the Johotin reach RM3.16 as what I propose TP, then, the warrant is worth RM3.16 - RM2.28 = RM0.88. Again, this is a prediction. If this really happens, then the return in the money for warrant assuming we buy at RM0.40 is (RM0.88 - RM0.40)/ RM0.40 = 120%. Again, if TP RM3.16 happens, then the return for mother share assuming we buy at RM1.75 is (RM3.16 - RM1.75)/RM1.75 = 81%.
Assume we buy a shoplot & after many serious considerations, we finally say this is a good deal. So how many units we buy? Answer is at least 2 units. Why? It takes so long to do a tedious study & so, when we get the right bargain deal, buy more. Unless we calculate wrongly, then no choice, cut loss... My strategy is when I am right, I will add more. When I am wrong, I will cut loss. No right or wrong, your choice. Anyhow, Huat AR....
arv18, FYI, I dun come from stockbroking industry. I am an independent, small investor, eager to learn all aspects on investment-related matters, especially stock. Yes, spread risk is important, I agree. To me, risk is measured by how well we understand an issue in terms of internal & external factors. I look for all critical success factors & critical failure factors... Doing so, can help me sleep well & eat well... ::) cheers, bro... let us harvest together in Johotin...
It takes 1 year to finish construction & move in to new factory & in operation. Why I say so, there is an article I read through when I did my R&D saying that. That is why I say another 9 months to go. But FYI, just like skpres, when the factory is confirmed to build up & demand is strong to take up the newly production supply just like skpres, market will price the valuation differently. Skpres takes almost 2 years in sideway before it finally moves up from RM0.40 resistance. Likewise, Johotin has been in sideway since August 2012 hit the price RM1.70. So, I strongly believe now is the time re-pricing come in. Wait & see.
Just visited the so called new plant, seem like not much activities there....only few pillar there... sure nothing to happen near future... bye bye Johortin..
Johotin net loss mainly due to the compensation paid for the product quality issue. But the problem is, what kind of quality issue that need to make this huge compensation? Is this only a short term issue, that will be resolve quickly? Then the price drop tomorrow will be a discount.
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....
arv18
2,661 posts
Posted by arv18 > 2014-07-08 17:07 | Report Abuse
looking good bro, looking good.