Koon Yew Yin 17 March 2020
I have been watching Dayang plunging down like a hawk and I told all my close friends and relatives to sell all their holdings and hold cash.
It was at its peak Rm 2.95 on 21 March, about 4 weeks ago and it started plunging to close at 88 sen yesterday. It is most likely force selling will continue today. In fact, Coronavirus did not affect the share price because the pandemic started in December last year in Wuhan, China.
Our own political upheaval started about 1 month ago caused the panic selling. As a result, the price dropped so rapidly which caused margin call. The more they sold the more the price dropped which created more force selling. Force selling is a vicious cycle.
Yesterday it dropped 28 sen or 24.4 % to close at 88 sen. It looks like it will continue to drop today due to force selling. It has dropped to a ridiculous level thus creating a good buying opportunity.
2018 revenue Rm 937 million and EPS 17.2 sen
2019 revenue Rm 1,046 million and EPS 24.3 sen
88 sen divided by 24.3 = 3.6 P/E ratio
Last night Dow Jones crashed 2,997 points due to the spreading of the Coronavirus. The US investors are afraid that this pandemic will continue to spread for a long time.
Many countries already have Coronavirus. A few countries are shutting down their cities and a few are shutting down their schools.
Couple with the slump in oil price, all the major stock markets in the world are being depressed by Coronavirus.
As I am writing this piece, Dayang is dropping and within 30 minutes of trading it has dropped another 5 sen or 5.7% with more than 6 million shares traded.
Wah! Suddenly, it started to rebound. Currently many people are rushing to buy food and other necessary things due to the spread of Coronavirus in Malaysia. This bad news will continue to depress our local stock market further. No one know when it will stop dropping.
Investors who have buying power should carefully watch for Dayang to rebound and start buying Dayang. The best time to buy is at the pivoting point when it starts to change its down trend to up trend.
My advice: Remember after a storm, there is a rainbow. Every day you have 2 choices. You can choose to be happy or sad. You must forget the past and hope for a brighter future. Always choose to be happy.