HUAAN
The first stock that we going to share with everyone. This stock is very hot among retailers. It will always appear in top active volume since last year September 2017. Like and follow our page if you have any question please ask us. https://www.facebook.com/TCapitalGroup/
1. Huaan is a producer of mellurgical coke. Coke is strongly demanded in steel industry as a result last year was a good year for steel industry like ANNJOO, MASTEEL & SSTEEL. Besides, last year September 2017 HUAAN achieved a great turnaround with strong earning. The stock price rally more than 300% to 400% from 0.03 to 0.665 peak.
2. The reason why we shared this because mostly stucked at high pricing and complaining why the earning improving but share price keep dropping everyday from peak. Now the share price is 0.335. Many retailers complaining this stock is undervalued. Basically we wanted to bring a message to everyone is that before the quarter result reflected the share price reflected first. Look at the share price rally from 0.03 to 0.665 from September 2017 to January 2018. The rally already reflected the future earnings. This is why the stock price doesn't continue rally. Moreover, their earning for each quarter is not sustainable. Some quarter is within expectation. Unless their earning in next few quarters can bring surprise to everyone it will rally above 0.665.
3. Moreover, their business is not sustainable because fluctuation of coke pricing is very volatile. High operating expenses contributed lower profit achieved in this latest quarter result. Do not forget if a company is good enough it will take time to prove their company can constantly make profit and grow in future 2-3years.
4. The next point we would love to highlight is too many retailers involved in this company. The share price rally 300% to 400% in less than half a year. As a result, when your share price is over rallied than your company earning. Even the next quarter result is sustainable but not surprising enough like previously. The share price will not continue to rally. A very good example that a stock can rally nonstop for years like KERJAYA. They proven their company can sustain and grow each quarter. This will attract more sophisticated investors and institutional investor to get into this company but not only operators frying share up in short time.
5. Last but not least, strong company will perform and rally back if they continue to grow in future. Patience required in stock market. Temporary ride on the company is never wrong but do not get stuck in high price because you will might end up loss your capital to the market. Do not listen to those people said how undervalued this company when they are already rallied more than 300% to 400% unless the company share price haven't reflect any thing. Retailers love to chase high and cut loss at low but doesn't know why they make loss in stock market.
Share it out if you feel this posting is good. Comment below if you need our opinions on other stocks. We will do more sharing for all the companies in bursa malaysia. By sharing with others, we will get stronger in future just like our logo empowering others. Thank you everyone.
Disclaimer: The posting on this page are for study and education purposes. It does not represent any recommendation to buy or sell. Please consult your reminsers or dealers before any action is taken. Any reliance you place on such information is therefore strictly at your own risk.
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