bought Eversendai at 0.43 sen, yesterday.
What?? Are you crazy for buying a down trending stock with cash flow problem? No, I am not crazy!
I am not a super duper investor with FA or TA knowledge. But I believe in my own assessment. I have had several trnsactions in Eversendai since 2013. Net result, managed to recover entire cost with profit. Last transaction, I sold @RM 1.27. Furthermore, the current price is almost 66% lower than the price I sold. Currently, I own some lots covered by profit, I like to call it, owning at free of cost. Buying now will further increase units and reduce average price.
Though fundamental analysis is important, it is just a "post-mortem". Events already happened and cost incurred. It only sheds light on how prudently the company was managed and resources spent. ANALysts like to ASSume that wisely spent money will bring in profits. It's no different than looking into crystal ball and predicting the future based on "number analysis". When analysis paralyses, they cover it up with "external factors" of politics, economy weather, Trump, Jim Carrey and Jackie Chan. Intangible qualities like honesty, prudent spending, patience, goodwill are vital ingredients for a business and are immeasurable.
Eversendai is a global player and majority of contracts come from Mid-Eastern countries. Dealing with middle easterns require some political correctness and patience. It is utmost important to maintain trust and relationship. Brash business practices will deliver the death blow to Eversendai because it has little support locally, though a Malaysian company. Some call it "Keling" company and that explains the cold reception in Bursa. These are untold harsh realities.
Eversendai like to be secretive and they normally release QR at the tail end of every quarter. They have a huge receiveable, close to a Billion which could be a steroid shot in their cash flow, if customers pay their dues. Eversendai seem to be not in a rush, so why should shareholders worry. That is how I like to think.
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**Since I am banned from commenting to even my own blog post and elsewhere, I shall try to reply to selective comments here.
value88 Eversendai is not a great company, but I agree with author that it is selling at "great" depressed price now.
16/05/2019 12:26 PM
I don't think Eversendai wants a "celebrity" status in the business world but to survive forever in this competitive environment. Indeed, it is at a "greatly depressed" value, thus it's worth taking risk and so the purchase. After all, even ANALyeasts disclaim with microscopic font that "Investment is a risky endeavour with potential total loss", so why not place a bet?
https://klse.i3investor.com/blogs/7777/206784.jsp
