I have only bought 2 stocks in 2017 so far (as shown in my portfolio published 0n 6 Apr 17), TuneProtect is one of them and I am waiting for its Q1 FY17 results to confirm my assessment before adding more. It has just traded ex-divided of 5.2 sen.
While waiting for Q1 results, I am surprised to see the following from Aminvest. The concern on impact from opt-in ruling has been dragging its share price performance and its expansion plan to Indonesia market has not been progressing well. The recently confirmed expansion by AirAsia into China may have a spill over effect on TuneProtect. http://www.thestar.com.my/business/business-news/2017/05/19/aminvestment-research-starts-coverage-of-tune-protect/
http://investvine.com/airasia-ventures-china-cambodia/
Aminvest is ahead of me as I intend to do a write up on TuneProtect but would like to wait till its Q1 results is out first. I must admit research houses have better accessibility to info as compared to people like me and I am also kiasu what if after my write up, Q1 results come in way below expectation. The release of this report before results announcement, does that indicate a positive surprise? Is this opportunity to make quick money during reporting period - hmm, again, I would rather wait till the results is out. I am happy to see the fair value of Rm1.80 given by Aminvest basing on Price to Book (2x) while I use DCF to arrive at Rm 2.0 I noted research house mostly adopted PB for the valuation of banks and insurance companies and if using other valuation methods can arrive at about the same value, I believe the stock won't be mispriced for long. Let's see whether the market concur with AmInvest.
All the Research reports and smoky news flow before results announcement are part of Investor Relation communication strategies these days. Insider trading is hard to prove but definitely happening everywhere. Hence, as an outsider, I rather wait till I see more evidence in financials (though it is still not fool proof) in assessing the performance than to rely on promises, strategies or hopes by the insiders. I will not add more Tunepro for now until the strategies to counter 'opt in' ruling's impact is working. Of course, the fundamental of the company is not dented by lower than expectation Q1 FY 17 results but it's long term potential hinges on whether the strategies planned can deliver what is expected.
ReplyDeleteBought some yesterday and more today from 1.00 to 1.05. Market seems to read its Q2 results positively. Its on my watch list and I was triggered to buy earlier than I expected because market force is "putting pressure" on me to decide early.
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