Lately, penny counter, such as HARVEST ( i had never heard of for the past 10 years ) surge to near RM 1.90 from less than 0.100. besides this, DPS, TIGER, where all these company were making loss during pass quarters. Yet, all these company surge like there is no tomorrow.
whenever you buy a stock or counter in malaysia share market, the most important things are to understand that particular company in fundamentals follow by the technical trend.
when we talk about fundamentals, we always focus on -
1. outstanding shares.
outstanding shares will roughly tell us how diluted the shares, how high the demand from investors. one particular example is TAGB. 4 billion outstanding shares. the price hardly move since listing. thus, i will give this type of counter as rubbish.
2. EPS.
EARNING PER SHARE is very important in analysing the company profits. of course, with higher eps, that mean the particular stock is better. we always want to invest in a company that making profits. one prticular good company with good EPS is COASTAL, with a whooping number of 55.43.
3. PER
price earning ratio reflect how high we willing to pay for particular stock. in contrary to EPS, we prefer a lower PER.
4. BUSINESS NATURE.
I had always prefer businesses which specialised in oil and gas, properties, construction, shipping and consumers products.
i had never bought any counter that doing electrical such as unisem, IT, such EAH, complicated consumers products with typical mindset management such as BJCORP.
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