I wonder how he based his BUY CALL. Hmmm... though Pantech is at a low PE but there is 2 criteria if based on FA should be out of touch as a BUY.
1st : Pantech profit has been dropping since year 2010 and 2011, she peak at 2009.
2nd : Pantech has been trading at max PE of 6 !!! when we are at bull run around end 2009.
When the call in beginning 2011 when the price is around 0.73, Pantech is trading around 6 which means is fully value. Given the 2011 EPS result has drop 6.45, if we were to use PE=6 as a guide, Pantech price should be trading around RM0.39 only. Now, you can see why Pantech has price has been trading lower & lower and as at 30/Sept, she is trading at RM0.42 only, hmmmm, I strongly believe she will reach RM0.39 in the very near future. Lets see, given the bearish market as at now and if she is not able to improve her business, my friend who bought at RM0.73 is going to HOLD for a VERY VERY LONG TIME with the miserable PAPER LOSS in her portfolio.
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