continuing...
Since we know d avg FD rate is around 6.6 % or equivalent to PE 15 , this given us a guide to weigh how value buy the stocks u intended to buy r ^V^ theorititally no one wanted to buy stock with PE > 15 cos it given u return per annum less than 6.6%, why should u invest in something which is lower than avg FD rate ? further more , putting yr money in FD is zero risk as compared to putting yr money in stock (PE >15) that giving u annual return less than 6.6% !?
Take yrself as a biz man, if u want 2 buy up a biz, which company u prefer ? company with annual return more than avg FD rate or company return less than avg FD ? if less tha avg FD , why should u buy ? might as well put yr money in FD that given u zero risk ?? now u know why i said stock with PE stood around 5+ like masteel, onastel n plenitude r germ of d germs $$$$ !
R all d stocks with PE > 15 r lousy buy ? NOPE ! different industry has different PE. Banking (MBB, PBB ), gaming (Genting, resort, bjtoto ) n monopoly biz ( Tenaga, TM,Maxis, digi, Plus)usually having higher PE than others, they r not going to sell u their biz less than FD rate or PE at 15 ! that is for sure ! if u want to know why ? perhaps u should ask those who bought PBB, Genting, MBB , YTL 20 years ago n still holding till todate, ask them how much they hv profited from them ? FYI, they will not getting less than 15% return PER ANNUM !!! know what is 15% return equivalent to ? it is as same as PE 7 !! Hence, dont try to be smart n ask uncle lim to sell his Genting to u @ PE 15, he will definitely give u a right n left side kick on yr head or may be plus another twist kick on yr private part !
Conclusion, for safe play, unless it is a blue chip counter , otherwise, i will not buy any stock with PE > 15 for FA play ^V^
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