Monday, 11 November 2013

Definitely Over-boiled

Boilermech is in my stock watch list since June 2013. This company is definitely worth investing in for long term. 

I discovered it too late.

In June13, its share price was hovering around RM1.40. PE ratio was about 15x. I thought it has over-boiled or overpriced. I hoped the price will drop to at least RM1.20 region.

Apparently I am wrong, its share price surged to RM2.50 in 5 months time after it announced its proposed bonus issue and transfer to main board last week.


Frankly, I do not expect Boilermech's share price to advance at such a pace. I think it will be slow and steady over the years.

At RM2.50, its PE ratio will be 27x, which is out of mind.

I did not buy at RM1.40 & Rm1.80 level. Never at any price more than RM1.40.

In summary, Boilermech is one of the cows that never comes home.

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