Let me walk you through my humble experience for the so-called KYY Golden Rule a.k.a. "KYY Law" or in Bahasa I will name it as "Hukum KYY". There are so many "Laws" we learned in our secondary schools, e.g. Ohm Law, Newton Law, etc. It is worth pointing out that the "KYY Law" is more of an art than a school science.
Many would have thought the rule is satisfied simply when a stock fulfils the KYY's pre-requisite requirement by registering 2 consecutive growth of earnings in the last 2 quarters and its trailing 12-month PE is less than 10.
If it is so, then why Dayang is moving up trajectorially while other KYY-complied Ptrans, AWC, YOCB, Rcecap, Cresbld, Tguan, Favco and Turbo are not moving at all?
Based on my own 20-year experience, I have the answers to this mystery. KYY Law requires more conditions than profit growth to make it work, see below:
1. Prospect of the sector is bright
2. Earning growth for the next quarter is back by solid and swelling order book
3. The stock posted a "wow" result in the last quarter
4. Most importantly, for the rule to work, KYY must participate aggressively in buying the stock. Otherwise, it will not be called the KYY Golden Rule.
If you understand the above, then you will realise the reasons why others are still sleeping.
Good luck folks. TP Rm3.00 can be breached next 1-2 weeks.