Showing posts with label XDL. Show all posts
Showing posts with label XDL. Show all posts

Friday, 24 January 2014

Is low PE shares attractive?

In the stock market you must have some principles that can never be violated. e.g. never buy PN17 company, some people never touch technology shares, some people never touch shares with price < RM 0.10 etc. I have my own too, I will never touch a category of stocks. The table below says enough:

China stock in Malaysia

Look at XINQUAN, an earning of 30 cent ++ per year, but only traded at about RM 1? If this happens to only 1 share, then a closer look is required, perhaps it is really undervalued? But with so many "similar" stocks together, I doubt if they are undervalued.

Look at XDL recently:

3 months + of accumulation and selling. After profit is secured, all shares are thrown without any hesitation. With this kind of volume, I believe there is no way this share can go up to RM 0.60 again, at least for few years. (although with an EPS of 11 cent). The company did make an announcement regarding this: price movementBelieve it or not is up to you.

Another example: CSL, a not-long-ago listed on Bursa stock, doing stationery.


It was first listed nearly 2 years ago, with an IPO price of RM 0.95. It went up to RM 1.80 within 2 months, can be easily seen in top volume at that time. People will easily get into the trap, because people cannot tahan (cannot see) seeing a share keep on increasing. Then what after that? The price keep on dropping until now, to RM 0.80!

I touched once before during my 1st year in stock market.. It cost me 40%+ of loss in 8 months, I am lucky that I cut lost at that time, a wise move even if I look back now. This is a priceless experience, preventing me from further losses in stock market.

Bursa Malaysia investors, open up your wise eyes when choosing company.