Advice from ChatGPT
If I were in your position, I would likely **hold** the shares for now. Here’s why:
1. **Long-Term Potential:** Despite the recent drop, S P Setia is a well-established company with strong fundamentals. The upcoming projects, particularly in Setia Federal Hill, indicate that the company is not only stable but also has growth potential in the coming years【9†source】.
2. **Valuation:** The stock is currently trading at a significant discount to its net tangible assets (NTA). This could mean that the market is undervaluing the company, offering a potential upside if the broader market corrects or if the company’s projects succeed【9†source】.
3. **Recent Performance:** Although the stock has performed poorly in the short term, the company’s recent earnings report was stronger than expected, and new projects could help in reversing the downward trend【9†source】.
4. **Market Conditions:** It’s also important to consider broader market conditions, which might be influencing the stock's performance. If the broader market sentiment improves, S P Setia’s stock could recover.
However, this decision also depends on your risk tolerance and investment goals. If you are concerned about further short-term losses or need liquidity, selling might be more appropriate. Otherwise, holding the shares seems prudent, especially given the long-term projects that could enhance the company’s value.
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big bad wolf OP : Based on the recent performance and news regarding S P Setia Berhad, the decision to sell or hold your shares depends on your investment strategy and risk tolerance.
**Current Stock Performance:**
The stock has been experiencing a significant downturn, with a 3.7% drop to RM1.04 as of today, and the chart shows a sharp decline of over 45% over the past month. This could be concerning if you're focused on short-term gains. However, this drop could also present a buying opportunity if you believe in the company's long-term potential.
**Recent Developments:**
Despite the stock's poor recent performance, S P Setia has been making strategic moves that could stabilize and potentially increase its value in the future. For FY23, the company reported better-than-expected earnings due to gains from land sales and cost-saving measures. Additionally, new projects are on the horizon, particularly the Setia Federal Hill development, which could drive future sales.
Analysts have mixed opinions—some see the stock as undervalued and recommend holding or even buying at current levels, given that it trades at a steep discount relative to its net tangible assets.
**Considerations:**
1. **Short-Term:** If you're focused on short-term returns, the ongoing stock decline and the broader market's reaction might suggest selling, especially if you're looking to cut losses.
2. **Long-Term:** If you're a long-term investor, the company's strategic projects and solid earnings in FY23 might encourage you to hold, as these could lead to future recovery and growth.
In conclusion, if you're risk-averse or concerned about further declines, selling might be the safer option. However, if you have confidence in the company's long-term prospects and can tolerate some short-term volatility, holding could be more beneficial. Always consider consulting with a financial advisor who can tailor advice to your specific situation.
Sources: The Star, Business Today.