MASTEEL (5098) - Malaysia steel stocks.....buy, sell, hold?

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 i3 sifu and  fee collecting sifu OTB has recently put Hengyuan ( before the latest results and even after)  and multiple steel stocks Masteel, Lionindustry, Choo Bee as his principle focus.

It is just too bad or is it  bad luck that Hengyuan and steel stocks fared very badly since his recent recommendations and doubling down on his opinion with latest update.

Lets focus on Malaysia steel stocks here.

Masteel just reported a 70% drop in Q on Q earnings and the share has been dropping since. Clear sign of margin squeeze and price increases did not match up with cost increases. This is indicative of more bad news to come especially since all  the steel stocks have an extended run prior to that. Surely, a case of reality hitting overly optimistics opinions.

But instead of cut loss based on moving average charts ( OTB's TA), a sifu who has invested so much emotional energy and reputaion on it cannot get himself to issue a sell recomendation......so let me do it for him.



Its a big thing when both Southern Steel and Masteel in their results release refered to a new Kuantan mill as potential threat in their future margins. I wil advise all readers to Google, Alliance Steel , Kuantan and do your own research before you follow OTB to put more of your  good hard earned money following bad money already invested in steel counters.  How do you like a new Megasteel and Perwaja to compete with your beloved Masteel in the near future? No other shares to put your money meh?

Do not forget the disaster in supporting Hengyuan all the way from $ 19 to $12 presently.

Traits and character cannot change. The same traits that allow OTB to succeed at times are also the same traits that leads to disasters in the wrong times. Stupidity and stubborness some times pay off in the stock market...it is called randomness and luck factor.

You want to invest with a stubborn attitude or you want to invest with a flexible attitude? The choice is yours.

The definition of a stupid person is one who doesn't believe the truth and continues to believe in llies.

The truth......people are selling steel stocks partly due to Trump tarifs as more will get into Malaysia if they cannot get into USA cheaper
The lie......no effect

The truth......low PE and good results is no protection against losses in stock market
The lie.......low PE and good results must keep.

Good results and low PE quickly turn into high PE and bad results as soon as the environment changes.....Business sense is a good guide., not historical published results.

Good fund managers are guided more by business sense than by published results as conditions change.

The conditions for recent high margins no longer applies................you can already see that in Masteell results.

Do not let sifus with reputations lead you by the nose....Sifus have their past to protect......you have your money to protect.

In recent days, the combination of Masteel results, Trump tarifs and disclosure of potential threat from Alliance Steel has drown out the promoters shouting low PE . You have to realise that people who sell an over promoted stock are not stupid. Definately Alliance Steel is a game changer in the long term for long term investors. For shorter term investors, you have to recognise that the negative momentum is not in your favor.

It is easy for bloggers and sifus to say buy when no money is involved. Ask those sifus and bloggers to sailang if they are so sure.
Ask to see prove they sailang.



People come to i3 to promote their stocks and to defend their stocks. That is normal behavior. I3 is usuallly not a place for  intellectual discussions and independent exchange of opinions. Beware that all buy opinions in i3 are biased and these people have vested interest. Unlike this blog and my sell opinion. In Malaysia, short selliing is not allowed and so you can say sell opinions in i3 are without vested, biased,  and financial interests.


One more thing.........


Final decision is yours is no excuse  for not having a complete  and fair analysis of stocks being promoted including the risk factors and likelihood of negative impacts....what is the meaning of final decision is yours when OTB is promoting his stocks with one sided opinions? He can wash his hands?

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