I was monitoring this very closely and was calculating the cost I had to pay in SGD. As we know USD has strengthened a fair bit against SGD and in USD terms it had went up 3.7% since I bought my first lot a few months ago at USD 57.10.
I decided to bite the bullet and placed a queue order at USD 46.50 when the market price was around USD 46.70. The price went back up and closed at around USD 48 today. Oh well, missed the boat on averaging down on this counter but let's see how it pans out next week.
Based on the data I have analysed from Bloomberg for this company and relying heavily on one metric which is purely the relative price of the company vs its historical mean, the price should be around the range of USD 58 instead. I shall not bore you with my further analysis of the other ratios and analysis of the market ecosystem of its related companies (which span across Indonesia, China, HK, SG etc) but I am fairly confident of the future potential of this company to revert to its mean 'value'. Shall therefore keep a close eye next week when markets reopen.
Signing off
Transitioning Stock Investor
The boat might come back if we wait. I'm monitoring too :)
ReplyDelete:) pretty sure it will. Glad to know someone else has interest in the same company as well. Found the sell down due to factors such as the recent removal of the stock from the STI, perceived weakness of its stake in Astra International + concerns of a strengthening USD (as Jardine reports earnings in USD) to be overplayed. Also, a strengthening USD is a good tailwind for us investors given that the counter is priced in USD. Let's see when the boat floats back in!
ReplyDeleteBtw budget babe, i've just added your blog to my list of fav blogs to follow. Cheers! :)
ReplyDelete