As you know, I have been posting several articles on VS Industry Bhd to encourage investors to buy its shares which went up from 30 sen in July 2015 to Rm 1.65 in Jan 2016, a phenomenal gain of 550% in about 18 months, as shown on the chart below.
The company’s annual report showed that I was a substantial shareholder. I am sure many readers would have bought and made huge profit.
I have started selling my holdings about 6 months ago and now I am no longer a substantial shareholder. Regular readers would know that I have not posted any articles on VS since I started selling. I cannot be dishonest to encourage readers to buy when I am selling.
I wish to inform you that Mr Ooi Teik Bee who is managing some of my funds, has bought one million VS shares at Rm 1.21 & Rm 1.22 per shares for me and I have also bought about one million shares at Rm 1.22 per share yesterday. Please be informed that we will be accumulating VS shares slowly.
My intention of writing this article is teach people how to make money from the stock market.
My reasons for starting to buy VS are:
1. I believe it complies with my share selection golden rule. It will make more money in the current year than last year and its projected P/E ratio is less than 10. Its first half year revenue and EPS were Rm1113 million and 7.58 sen. In comparison, last year revenue and EPS were Rm 1010 million and 5.38 sen respectively as shown below table.
2. The price chart shows its price started to drop since 4th week of Dec 2015. It dropped more sharply when the Ringgit started to strengthen. It has been consolidating in the last 2.5 months. Looks like the down trend has stopped and the worst is over.
3. As I said before, investors always over react to good or bad news. In this case, the price has fallen too much and too rapidly. It is a good buying opportunity now.
4. All the Investment Bank analysts who cover this stock recommend a strong buy with a target price of around Rm 1.65.
Koon Yew Yin 官有缘 - Why I am starting to buy back VS Industry Koon Yew Yin - 5th May 2016The company’s annual report showed that I was a substantial shareholder. I am sure many readers would have bought and made huge profit.
I have started selling my holdings about 6 months ago and now I am no longer a substantial shareholder. Regular readers would know that I have not posted any articles on VS since I started selling. I cannot be dishonest to encourage readers to buy when I am selling.
I wish to inform you that Mr Ooi Teik Bee who is managing some of my funds, has bought one million VS shares at Rm 1.21 & Rm 1.22 per shares for me and I have also bought about one million shares at Rm 1.22 per share yesterday. Please be informed that we will be accumulating VS shares slowly.
My intention of writing this article is teach people how to make money from the stock market.
My reasons for starting to buy VS are:
1. I believe it complies with my share selection golden rule. It will make more money in the current year than last year and its projected P/E ratio is less than 10. Its first half year revenue and EPS were Rm1113 million and 7.58 sen. In comparison, last year revenue and EPS were Rm 1010 million and 5.38 sen respectively as shown below table.
2. The price chart shows its price started to drop since 4th week of Dec 2015. It dropped more sharply when the Ringgit started to strengthen. It has been consolidating in the last 2.5 months. Looks like the down trend has stopped and the worst is over.
3. As I said before, investors always over react to good or bad news. In this case, the price has fallen too much and too rapidly. It is a good buying opportunity now.
4. All the Investment Bank analysts who cover this stock recommend a strong buy with a target price of around Rm 1.65.
http://klse.i3investor.com/blogs/koonyewyinblog/96035.jsp
