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DXN (5318) : DXN HOLDINGS BHD.
ustadremy
Member Star
Posts: 2
Joined: Feb 2021
30 Jul 2023, 09:14 PMPost #1

Can this stock move to RM1?

i4value
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Posts: 612
Joined: Aug 2020
31 Jul 2023, 10:47 AMPost #2

Post Covid-19, the company had generated very good ROE of > 30%. But it is already trading at 3 times book value. I am not sure why anyone would expect higher prices from a fundamental perspective. 

ustadremy
Member Star
Posts: 2
Joined: Feb 2021
31 Jul 2023, 03:02 PMPost #3

Can this stock move to RM1?

bullbull
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Posts: 2
Joined: Apr 2021
03 Aug 2023, 11:40 PMPost #4

This stock will touch Rm 1

 

i4value
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Posts: 612
Joined: Aug 2020
29 Aug 2023, 06:24 AMPost #5

I am always suspiscious when a company ROE is > 30%. I treat it as too good to be and dig deeper if I want to invest in them. In the mid 2010 pre-Covid, the mean ROE of the Bursa companies (excluding those with negative ROE) was about 11%. OK I have not done a survey post-Covid. But I think 30% must by an outlier. 

1

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