Do you know that Billions of shares of stock are bought and sold each day, and it's this buying and selling that sets stock prices. Stock prices go up and down when someone agrees to buy shares at a higher or lower price than the previous transaction. In the short term, this dynamic is dictated by supply and demand.
Ultimately, demand for a stock is driven by how confident investors are about that stock's prospects. In the short term, things like quarterly earnings reports that beat expectations, analyst upgrades, and other positive business developments can lead investors to be willing to pay a higher price to acquire shares. On the flip side, disappointing earnings reports, analyst downgrades, and negative business developments can cause investors to lose interest, thus reducing demand and forcing sellers to accept lower prices.
In the long term, the value of a stock is ultimately tied to the profits generated by the underlying company. Investors who believe a company will be able to grow its earnings in the long run, or who believe a stock is undervalued, may be willing to pay a higher price for the stock today regardless of short-term developments. This creates a pool of demand undeterred by day-to-day news, which can push the stock price higher or prevent big declines.
Sometimes demand for stocks in general increases, or demand for stocks in a particular stock market sector increases. A broad-based demand increase can drive individual stocks higher without any company-specific news. One example: The COVID-19 pandemic led to consumers increasing spending online at the expense of brick-and-mortar stores. Some investors believe this change is here to stay, which led to an increase in demand and higher prices for e-commerce stocks across the board. Likewise with O&G and Plantation. Brent crude oil was trading at US$86 (about RM357.59) per barrel, while crude palm oil closed at an all-time high on Wednesday with the benchmark palm oil contract for January 2022 rising by RM127 to RM5,071 a tonne.
The big picture is what matters
Long-term investors, don't much care about the short-term developments that push stock prices up and down each trading day. When you have many years or even decades to let your money grow, things such as analyst upgrades and earnings beats are irrelevant. What matters is where a company will be five, 10, or 20 years from now.
While a lot of ink is spilled about daily fluctuations in stock prices, and while many people try to profit from those short-term moves, long-term investors should be laser-focused on a company's potential to increase its profits over many years. Ultimately, it's rising profits that push stock prices higher.
So focus on the end game and ignore the noises. Elsewhere in the Deep Blue Ocean, all Energy Battleships and Supertankers plus Jet Fighters are cruising full speed.
The same with the Thick Green Jungle, all Plantation are Flourishing and Booming. Yesterday, one of Mabel Plantation gave Terengganu State Heritage Trust Board (LTAWNT) RM1.87 million its share of profit from the plantation and healthcare group. The payment was for last year's profit for the development of LTAWNT’s 1,336-hectare oil palm plantation by TDM at its Air Putih Estate in Kemaman. Earlier this week they launched the 6th Medical Centre. This will be complementary to the existing Medical Centre provided by Mabel Sunway and Sime Darby.
To SIR with Love..
Stock: [SERBADK]: SERBA DINAMIK HOLDINGS BHD
Oct 28, 2021 8:03 AM | Report Abuse
State or Government 4.4%, 147,000,000 shares General Public 4.8%, 162,240,114 shares Institutions 25.8%, 871,390,934 shares Individual Insiders 65.0%, 2,192,163,030 shares
To be honest, what we discuss here does not make any difference..
All of us only hold 4.8% of Serba. Usually the silence the majority are the main holders.
Congrats to those still maintain buy and hold this stock. Despite of pandemic covid-19 for these 2 years that whole Malaysia sekejap buka kedai, sekejap tutup because of lock down. Despite all of this, The Body Shop still able to maintain their 79 outlets in Malaysia & 39 outlets in Vietnam. Great isn't it?
Plus surprisingly, The Body Shop which before pandemic Covi19 was heavily rely on outlets revenue but in these 2 years they still able to get good cash flow (RM21.70m & RM32.29) and good cash from operating activities (RM22.94m & RM36.56m).
Just imageine, Malaysia reopening border is just around the corner with tourist, festive seasons... ofcourse their sales and revenue will be more than last 2 years.
Innature also have 273,000 loyal customer you know because this The Body Shop has operating almost 40 years old. The brand is quite strong to because they still make money even though pandemic, inflation, lock down.
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....