Better switch to Vivo(also construction stock with high order books). Only 18.5 sen. Just like you go shopping in Aeon, Tesco, Giant,etc don't you love bargain?
Gadang is approaching the end of the trend. Many people are quoting its low PE as a reason to buy into Gadang big time. But investors are ignoring the red flags where the order book could not keep up with revenue. Gadang PE may be low but when the earnings are cut by halve in 2018, this stock is gonna correct. Gadang will still go up, thanks to the speculators who trend follow. Remember what the smart does early, the fool does in the end. Smart people are already trimming this position bit by bit.
Sell on strength. 50% of Gadang net profit comes from property developments sold during the hot years. Future property sales are unlikely to come online soon and margin is gonna be much lower. Gadang looks fully valued to me. In one or two years, its profit gonna crasg at least 25% with or without MRT 2 contracts.
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....
tksw
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Posted by tksw > 2016-10-28 09:02 | Report Abuse
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