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[KNM] Is this stock worth to continue holding on to?

Hi all, my O remisier was the one who asked me to buy it at 2.63 saying their firm is buying. It seemed like a very bad choice and I'm stuck ever since. Is it worth for me to hold on? I don't mind for long term but I am not familiar with their prospects in the O&G equipment-will they rebound after a year or 2, or u think it's another SCOMI or Green Packet that'll never grow than RM1.00? Appreciate your expert advice pls.
marco.. i don't mean to question your decision, but whether you are a trader or investor, whatever your remisier says, you have to take it with a pinch of salt. you have to do your own homework on the stocks recommended as to its fundamentals at minimum. if your answer is going to be "i'm not familiar how to do it" or "i don't know anything about stock" or "i buy and sell based on my remisier recommendation", then in my humble opinion is that you deposit your money with a professional fund manager and study how and what they invest in. meanwhile, read up research analyst papers on stocks which will give you an insight detail of the stock.
ok, having said that, back to knm... the slide is due to the huge ~rm115mil loss posted in Q3 due to operating impairments which resulted into a year-to-date loss of ~RM86 mil. the question is "is this a one-off thingy or not ?".
imho, there seems to be cost management issues that still persists and the loss might extend to Q4. however, the TA charts seems to suggest that its in a oversold position, hence like to see price support at rm0.95. i'd sit on it....
but... frankly, i dont have the stock, so thats just my 2sen opinion.
Frankly speaking, we've all made bad trading/investment decisions before (I still have my Scomi @_@), it's just how bad is bad, and what we learn from it. For me, KNM should eventually get back to being profitable, it still has a lot of projects in its stable. Their abysmal performance this quarter is mostly attributed to poor cost management and lower job recognition. They do have an outstanding job order at approx. RM3.3b, so it's unlikely to go bankrupt any time soon.

Thus, the decision of whether to cut loss or not will still be up to you. Your loss margin is already very high, so even cutting loose now would still result in a bad loss. KNM doesn't give much dividends, so your only reason to hold on to it is to wait for it to appreciate back to a level that you can consider selling, which I think won't be happening for at least half a year or so (depending on global economic condition).

On KNM, there is some good news amidst this.

The Company have decided on a 50% profit payout as dividend effective FYE 2012 (next year), so, with an order book of ~RM3.3b, you just have to look back at their announcements on contracts won and look at its details to figure out when its executable and work-out its estimated profits into the various financial year ends.

Once you can estimate its dividend yield, + capital appreciation potential, then the decision to hold or cut will be depending on your personal risk profiling...


ps... or you may swap counter to Dialog.... ;D
hi ramsyll,

can 1 give u 50% of what i dont have?

Malaysia education is really a failure...
hi Bud,

i would say, if someone u trusted lie and cheated u for the first time, u can give them benefit of doubt, it may be wrong timing, misunderstanding etc. for the 2nd time...maybe still can have little faith, for the 3rd time, u r the fool, its your mistake to trust him.
bottom line, is the company run by crooks?
and is it investable?
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