This Gadang value trap many people already, the management really dont care about the shareholder. When company in good business, dividend still remain low, when business not good they reduce dividend payout. Share price drop from 1.2 to now 0.54, management keep do nothing but director keep buying. If you look into the trading record, every time share price drop like purposely press down the price. I already quit from this counter with loss -45% (after hold for almost 2 years), need wait until the up-trend confirmed then only will consider buy back. This company has it's value, low PE<6, high NTA, earning money, huge project book order at 1.5bil (able to sustain for 3 year revenue) and also the Capital-21 value no yet fully book-in. Quarterly earning also good at 2-4 cents, MRT2 project still on-going, TRX project also on-going.
Ya, I felt the company purposely press the price down, I realized the support queue will suddenly disappear with no transaction made. Moreover, EPF disposed with higher volume than director, sure cant push the price higher.
Value Investing is just contrarian by nature...n bound to have paper lost n bear the uncertainty of unfavorable counter...with big margin of safety. By the time the last unanswered details are found...the Price already Risen...patience n discipline are crucial plus averaging down...where it not n consider foolish by traders. Value Investing is easily to understand but very , very difficult to execute fully. Follow your own temperament n understanding of its business model. TQ.
Security Analysis stated that intrinsic value are approximately only n it's Imprecise... where Net Current Asset Value is a proxy of liquidation...n from there you estimate its security value...for GADANG after all it's liabilities plus minus its private placement liability...come to around...<@0.60 per share. TQ.
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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....
WiseVictor
148 posts
Posted by WiseVictor > 2018-11-29 15:44 | Report Abuse
I buy some quantity today, quite good deal =)