GTRONIC – Some Thoughts

THIS IS NOT A BUY/SELL CALL!

GTRONIC has been in my watch list for long time. However, I didn’t invest in it because the prices were rising too fast in the past. It was always overvalued.

In the past few days, I flipped my previous studies and did further validation on GTRONIC. I am still slightly puzzled. Just one poor quarterly result caused a huge dip in GTRONIC prices (5.3 to 3.3).

My guess is it was due to panic sell by individuals. Perhaps, they don’t even know how GTRONIC makes money.

I observed that since Apr, directors and EPF have been accumulating GTRONIC heavily. To be exact, EPF disposed a little bit of shares, but accumulation was much higher.

I am seriously considering to buy GTRONIC now.

4 thoughts on “GTRONIC – Some Thoughts

  1. To be frank I still do not know how gtronic makes money but I trust LC Chong and EPF. I acquired small amount at RM3.26, and might average down in future.

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  2. Hmmmm I thought the reasons have been made clear in the qtrly announcement and various other analyst or research articles covering Gtronic. The company’s qtrly results should only improve in at least 3rd or 4th qtr onwards provided they can get their new products up and sell it. So if we were to just solely rely and extrapolate the 1st qtr results on annual basis even the current price now doesn’t seem good. Should be lower. Even DCF and DDM should be discounted further.

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    • Yes, but there are many companies, that suffer 2-3 quarters of poor results, didn’t encounter such a huge sell down in a short period.

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