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One the thematic play today is that a some Bursa tech companies will benefit from the US “trade tiff” with China. Notion Vtec has been touted as one such company. Over the past few weeks its market price had jumped more than 4 or 5 times.
If you are investing based on this thematic play, you might have missed the boat already. Its current price of RM 1.68 per share has run ahead of its long term business fundamentals.
One of my concerns was that over the past 12 years, the Group generated RM 128 million PBT. A breakdown of this PBT showed that the operations did not generate any profit. Rather the bulk of the profits came from non-operating sources specifically insurance claims. https://i.postimg.cc/SN4x0sS9/Notion-VTec.png
If one year ago you could tell that its current performance was due to HDD, then you would be more credible about projecting the future. The reality is that we don't really know how the business will hold out over the next decade. The past provides a good base. Projecting a rosy future can lead to misleading valuation
don't be such a sour grape...by relying on the past data for a so call long term investment strategy you should just keep your money in a FD...unless you like to live in a high rise condo with a faulty lift...
