Bullish momentum is raging, and the influx of hot money has ushered in spring for undervalued stocks!
There has always been a saying in the stock market that the Five Poor, the Six Terrible, and the Seven Turns Out. However, the author still believes that a brief downgrade/pullback for good companies is inevitable, so they will not deliberately open positions in May.
How hot is May 🔥 Naturally, everyone feels that it is not unusual for some popular stocks to rise 30-50% in the past month. However, this wave of bullish momentum has also benefited some single-digit PE companies that have been underestimated for a long time.
CCK is a frozen retail food company from SARAWAK in East Malaysia. The company's branches grew from 72 in 2022 to 75. Sales in all countries grew steadily, and sales from Japan grew by almost 100% in 2023.
Although there was a one-time profit in Q3 2022 and Q4 2023, after deduction, the company continued to grow for two consecutive years. CCK has been in Single Digit Pe for a long time in the past 2 years, and is far behind its peers. Malaysian stocks are booming this time, and the value of CCK has finally blossomed due to the influx of hot money. The stock price has risen 42% in the past month.
Furthermore, the shipping company Harbor has been making huge profits in freight rates for the past 3 years, although profits in the past few quarters have been affected by falling freight rates 📉. Recently, however, business has begun to improve, and profit Qoq has recovered. Coupled with soaring shipping costs in Europe and the US, GDP recovery and export growth in Q1, HARBOUR, which involves transportation and integrated logistics, was also seen by the market, and its stock price has risen 22% over the past month.
PPHB is also similar to the above two companies. Net cash and long-term undervaluation, its own business includes paper packaging and hotels. Although full of cash, they are not willing to pay dividends, so they have always been ignored by the market. This round of hot money poured in, and the valuation was only 5.44 after rising 21% in the past month.
KSL and AVALAND in industrial stocks have also risen in waves before. They are also growing and undervalued. Stock prices have also risen 18% and 14%, respectively, in the past month.
After the May results are released, some stocks that have risen too much may profit from arbitrage and need to be corrected before moving forward. Some of the capital may flow into companies that have yet to rise or are undervalued. What other companies do you think will benefit?
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投资座右铭：价值为主，技术为辅，心态之上
在股市拥有超过10年的经验，主要是通过科技以及制造出口领域累积财富。
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