Monday 29 September 2014

Lesson From Trying To Save A Few Cents

I wrote quite a lot about BJAuto in this blog even before it was officially listed.

If you look at my portfolio and transaction history, apparently I have never bought any of its shares.

At IPO price of 70sen, BJAuto closed at RM1.82 on its debut day. This is 160% higher than its IPO price. 

The IPO price of merely 70sen gave an "illusion" that its share price was already very high at above RM1.40.

After BJAuto released its magnificent FY14Q2 result 2 weeks later, I set my target price at around RM2. So there was actually still 25% of upside at RM1.60. 

However, I still hope that its share price will drop lower, as the PE ratio used to calculate the target price was 15x.

Personally I am very optimistic about Mazda's future. Though in Malaysia it is still not on par with other established brands like Toyota, Nissan and Honda, I strongly believe that one day it will become as popular as those brands.

Besides, being unpopular now also gives it a huge potential of high growth.

I'm confident because I'm a fan of Mazda. I know how well Mazda will do with its new design and engine. I'm sure that going forward, Mazda in Malaysia and Philippines will only grow at a great pace.

I did not buy BJAuto's shares even though I know that its PE will drop sooner or later due to its high growth potential.

It turned out to be true as BJAuto keeps releasing better and better financial results, along with better market share of Mazda vehicles.

Now BJAuto's is trading at RM3.40. Those who successfully applied for its IPO and resisted the temptation to sell at more than 100% gain in the first day will gain 386% in just 10 months.

For me, I can only rue the somewhat funny decision not to buy BJAuto's shares early.

Actually I did attempt to buy BJAuto's shares, with buy order placed.

I can remember the day clearly as I was working outstation for that whole week. At that time, I only have access to internet before 9am and after 7pm.

BJAuto's share price fell quite significantly from RM2.15 to RM2.04 on 21 May 2014. I predicted that it would drop further and I decided to buy at RM2.00.

Why RM2.00? It's just because I think it is a nice number which is also a psychological support.

So I queued my buy orders at RM2.00 before the market opened on 22/5 and 23/5. They were not matched as the lowest the share price hit was RM2.02. 

On the very next week, I was about to leave for a holiday trip to China. I didn't attempt to buy BJAuto at that time because I would not be able to monitor the market for a week.

I came back from China on the 3rd of June, only to witness BJAuto's share price jumped to RM2.10 on the very next day, and it never looked back from there. As a result, my appetite to buy BJAuto also faded from there.

Why didn't I just put my buy order 2sen higher? Now I can only watch BJAuto's share price going further up to more than RM3.

Anyway, if I did not work outstation or did not go to China at that time, surely I would have already bagged BJAuto's shares at RM2.00.

This proves that I have no "fate" with BJAuto's shares.

At this stage, a few cents of difference is still important for me. I hope that one day this can be changed...


  1. Hi BD,
    I believe a lot many investors have the same experience, me too.
    The opposite also could happen, there were times I rushed into buying because worried the price might shoot up soon, but the price came down in the subsequent days instead.. so, both scenario happen and will still happen :)

    1. It's true, this thing will happen again. I write it out just to "release the emotion", besides sharing the experience :) Anyway, high growth might overwrite high PE, this is what I get.