The price movement of Hengyuan has thought me a new investment lesson.
I have been slowly accumulating Hengyuan in the last 3 months. I dare not buy aggressively because I often see big institutional shareholders selling.
You can see below how they have been selling.
AMANAHRAYA TRUSTEES BERHAD – AMANAH SAHAM BUMIPUTERA 02-Nov-2017 Disposed 525,900 0.000 View Detail
AMANAHRAYA TRUSTEES BERHAD – AMANAH SAHAM BUMIPUTERA 01-Nov-2017 Disposed 386,200 0.000 View Detail
AMANAHRAYA TRUSTEES BERHAD – AMANAH SAHAM BUMIPUTERA 31-Oct-2017 Disposed 755,600 0.000 View Detail
AMANAHRAYA TRUSTEES BERHAD – AMANAH SAHAM BUMIPUTERA 25-Oct-2017 Disposed 8,400 0.000 View Detail
AMANAHRAYA TRUSTEES BERHAD – AMANAH SAHAM BUMIPUTERA 24-Oct-2017 Disposed 132,100 0.000 View Detail
AMANAHRAYA TRUSTEES BERHAD – AMANAH SAHAM BUMIPUTERA 13-Oct-2017 Disposed 203,600 0.000 View Detail
AMANAHRAYA TRUSTEES BERHAD- AMANAH SAHAM BUMIPUTERA 12-Oct-2017 Disposed 195,100 0.000 View Detail
AMANAHRAYA TRUSTEES BERHAD – AMANAH SAHAM BUMIPUTERA 11-Oct-2017 Disposed 215,800 0.000 View Detail
AMANAHRAYA TRUSTEES BERHAD – AMANAH SAHAM BUMIPUTERA 04-Oct-2017 Disposed 297,500 0.000 View Detail
AMANAHRAYA TRUSTEES BERHAD-AMANAH SAHAM BUMIPUTERA 22-Aug-2017 Disposed 300,000 0.000 View Detail
AMANAHRAYA TRUSTEES BERHAD-AMANAH SAHAM BUMIPUTERA 21-Aug-2017 Disposed 167,300 0.000 View Detail
AMANAHRAYA TRUSTEES BERHAD-AMANAH SAHAM BUMIPUTERA 18-Aug-2017 Disposed 81,200 0.000 View Detail
EMPLOYEES VIDENT FUND BOARD 03-Jan-2017 Notice of Person Ceasing 795,600 0.000 View
A new investment lesson:
Yesterday the price went up by 59 sen and today it went up by 15 sen. I cannot see any big seller. I should not be afraid to buy more Hengyuan even when I see big institutional investors selling. In fact, I have been buying at higher prices in the last 2 days.
My common-sense guideline:
I should have followed my common-sense guideline which is to buy at PE ratio below 10. Its first half year EPS was Rm 1.21. Even if the company did not make any additional profit for the 2nd half year, its PE is still below 10.
Mr Ooi Teik Bee has classified Hengyuan a Miss Universe stock and he expects Hengyuan’s 3rd quarter EPS to be more than Rm 1.00. We will be able to see this fantastic result before the end of the month.
I will continue to buy Hengyuan until I have exhausted all my funds. I believe it will continue its uptrend.
At what PE ratio would you rate Hengyuan?
