Many investors are attracted by the excellent accounts and price charts of AYS and Malaysia Steel to buy these shares. As a result, their share prices continue to go higher. But be careful!
AYS is selling building materials and Malaysia Steel is manufacturing steel bars for the building construction industry. I went to their websites and I captured the pictures of the products they are selling as below.
Like some property companies, these companies are showing very good profit which came from sales concluded in previous years. If you look around, you can see there is currently an oversupply of properties in every town and city in Malaysia.
You can be sure the share prices of property companies will remain depressed for many more years.
Buying shares of building materials companies is the same as buying shares of property companies.
AYS business
Malaysia Steel produces steel bars for building construction
All the people who have bought these shares are expecting the share prices to go higher as they expect to see these companies report increasing profit in the next 1 or 2 years.
Can they report increasing profit in the next 1 or 2 years?
All I can say is only time will tell.
