Good Day! We are now at the 2 nd month of 2012. The current market position, all short term, mid term and long term still showing position up trend for US and similar to all Asia stock market, including Malaysia. So, do not short the market, though we know one day it will crash after go up very high, but now is not the time yet!
Market is unpredictable, so don't predict, trade according to the trend. There are a lot of company stock moving high right now, you can enjoy to ride on it but remember to run fast when the party end.
Which company do you want to invest if there's 2 option:
- Company's earning is unpredictable, some time make profit, certain time report lost
- Company with stable earning and profit is growing
If you choose the 1 st one, be prepared to face the volatile share price. I prefer the 2 nd one if plan for long term with condition the company still can survive after 10 years. F&N is one of my favorite in this case.
As expected, F&N was badly hurt by Thailand flood last year follow by absent of Coca-Cola's sale. Last week's quarterly result already show the sign of slowness. I expect the share price will go down further... this is good opportunity for long term investors.
So the question now is how much F&N fair value after the lost of Coca-Cola? Since the profit decrease of 17% to 20%, the earning will fall back to one / two year's ago... in other words, let refer to what's the price at that time. One and half year ago, it was trade between 14.++ to 15.++. so make your own decision if you want to buy or not should the price appear at this range in next few weeks.
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