Kent, good to see a long-term investor here. Good news is that despite heavy market sell-off today, PPHB's price managed to hold on steadily. Keep for the long-term for long-term holders and you will see TP 1.21 reached, provided earnings are consistent or better.
Low volume with price moving down is not a bad news. If its large volume sell-off then yes. Price now is not reflective of its current valuations and should trend higher should the upcoming quarterly results be good.
Let's just wait for the earnings result before making any rash move to sell this stock.
Of course you can average down if you have a good foresight for this company, say, impressive earnings from coming quarter. I'm quite tempted to average down too, but I have a feeling overall market sentiment will be positive next Monday. Let's see how it goes.
Fundamentally wise, this company is still worth holding and definitely an undervalued gem compared to its peers already trading at high valuations. With its many years of profitability without fail, I believe this stock's potential is much higher than what is bargaining for now.
I wonder if anyone realize the latest quarterly report, the earnings doubled. If no one noticed, that shows how unpopular is this stock, which is a good thing. No violent speculation, just steady appreciation and safe investment.
PE Comparison of same packaging companies with PPHB: MUDA Price=RM2.13 EPS half year =4.83 cents Estimated full year EPS =4.83 *2 =9.66 Forwarding PE =213/9.66 =22
ORNA Price=RM1.15 EPS half year = 6.66 cents Estimated full year EPS =6.66*2=13.2 cents forwarding PE =115/12.2=11
SCGM Price =RM2.36 EPS full year as of 23 Jun 2014=14.41 cents current PE =231/14.41=16
PPHB Price =RM0.870 EPS half year=6.03 cents Estimated full year EPS =6.03 *2 =12.06 cents Forwarding PE=87/12.06=7.21
Even if it drop back to 50 cents, as long as this company is earning money, making profit, I will keep accumulate and invest on it. Do you own research and study, trust your own view, be confident on profit earning company.
I like this company not only they are making money, but their guts in trying new business to expand their company.
that's why i bought into this company. but i'm just wondering about the share price action, whether it's economical to keep averaging down. maybe it's just purely based on human sentiment.
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....
joan23
33 posts
Posted by joan23 > 2014-07-31 17:10 | Report Abuse
agree.