I have Metco at an average price of 220 Baht and Rcl at 71 Baht.
Please comments about these two stocks.At what price, do you think that they are fully valued? I'm planning to sell Rcl when its price is over 100 Baht(P/E=7 if EPS = 14 and P/BV=1 if BV=99) and Metco at 300 Baht (P/E=8.33 if EPS=36 and P/BV=1.95 if BV=154). All comments are welcome. I'm interested in investing in Insurance companies. Any insuarance stock to recommend and reasons to support . Thank you for all comments!
METCO has limited upside comparing to RCL, which business line is far more stable and predictable. METCO may suffer serious revenue drop if the technologies change rapidly, or if someone comes up with a better technology to produce electronic components with lower costs.
RCL, on the other hand, is quite stable in terms of earning. The business is definitely uptrend, while the operation is very solid. Risks are considerably lower with higher potential. The only issue I don't like in RCL is its massive debt of over 4 billion baht.
My recommendation is to sell METCO at 270 to 300 baht, unless you are very keen on technology and digital/electronic products. RCL may be slower in terms of capital gain, but I think it is worth holding.
My opinion can be biased, bewarned, as I just pick up RCL at 93-97 baht, while my METCO averages at 140 plus.
Thank you CK for you valuable comment! I guess I should reconsider my selling position for RCL. Recently, there was information that Rcl service fees would be raised and I believe that this would boost its revenue but two drawbacks about Rcl are its huge debt and forex risk (part of its income came for forex gain). Those are the underlying reasons why I want to sell. Frankly, I always make mistakes by selling at a cheap price. I really appreciate your comment.
บันทึกไม่สำเร็จ