Stock Name: BAHVEST (0098)
Entry: Buy above RM0.51
Target: RM0.55 (7.8%), RM0.59 (15.7%)
Stop: RM0.48 (-5.9%)
Shariah: Yes
Technical: Breakout-pullback-continuation

BAHVEST has formed a breakout-pullback-continuation pattern above the EMA9 level with high volumes. The MACD Histogram has turned green, but the RSI is slightly overbought. Price may advance, targeting the RM0.55-RM0.59 levels. Support will be pegged around the RM0.48 level.

They seems to be on lowered trend and now just in something like that for example. For how long it will really be there. I do recommend to buy soon if you have at least some of this ability there. It could really be much better then. Be prepared.

https://menginvestlife.blogspot.com/2019/08/007-bahvest.html BAHVEST

You may think that this is a proxy for gold. There is no evidence for this. So any price movement is just sentiments driven.

Are you better off investing in gold than in a gold proxy such as Bahvest? 

To answer this question, I compared the gain from gold compared to Bahvest based on the short-term situation ie 2019 to 2022.

From 4 Jan 2019 to 26 Aug 2022, gold appreciated by 8.5 % CAGR. If you have invested in Bahvest, you would have a compounded annual total loss (capital gain + dividends) of 5%. Yep. The share price of Bahvest declined and there was also no dividend.

On such a basis there is no advantage to investing in Bahvest. Bahvest is into gold/silver mining. Studies from other parts of the world suggest that it is better to invest in gold than in gold mining companies.

For more insights on Bursa gold proxies, refer to “Are there Bursa proxies for gold?”

Over the past 6 months gold prices have gone up by 18%. How have the Bursa gold related companies performed?

The top chart shows the share price gain for the 4 Bursa companies with gold-related businesses. The bottom chart shows that maybe there is still some potential for gold price to go higher.

You can see that except for Niche Capital Emas, the other 3 have outperformed gold and the KLCI. What does this mean for the investor?

• You can of course interpret that Niche Capital Emas and Poh Kong share price has yet to catch up.

• You can also conclude that when gold price goes up, the share price of these companies go up much higher.

For more insights go to Are there Bursa proxies for gold?