Wednesday, April 16, 2014

Is it now a good time to buy MAS (3786) - privatised soon?

Some people say, when the stock price fall, it's the opportunity to invest in that stock. This statement is half true, the reason, it's not simply any stock may consider good stock to invest.

One example, if 5 years ago, a investor invest in MAS (Malaysia Airline System Bhd 3786.kl), after 2 right issues, he still making a lose of 67.47%.

On the other hand, if a investors choose a "five star" solid company to invest, for example, Public Bank (1295.kl), his total return in 5 years is 159.50%. Refer to my blog, how to become a millionaire by just invest into one stock and keep for 30 years!

Now, come a question from an investor. He ask, is now good time to Invest into MAS (3786.kl) since MAS having a "big problem"? If you are a teacher and someone ask, who will be the top 3 student in the class for this coming year? Guess what's the answer? I think you just need to refer to last 3 years' record, very high percentage, the top three students will remain the top 3 this year. (unless something unusual happen)  Just share the below interesting article: Is MAS worth a buy now?

Today, Maybank Investment bank came out another report, what if MAS is privatized? The report suggest that MAS become private and to list other profitable units as standalone. Then the question is, what will investor get to invest in MAS?

My personal view, no harm to put some money in MAS at this moment since there could be a spark in stock price. However, when the next quarterly report coming out, be prepared for the stock price to turn down again!
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