As you can see Dayang share price has gone up from 60 sen to Rm 1.71 within 7 weeks because it reported increasing profit in last 3 consecutive quarters. Its last quarter ending Dec 2018 was 10.13 sen and its coming quarter EPS should be higher than 10.13 sen.
The 3 financial institutions have downgraded Dayang from buy to sell because the price has shot up too rapidly. As a result, the price dropped 24 sen with only 36 million shares changed hands which indicates relatively few people wanted to sell. Of course, some novice shareholders were shocked to see the price dropped like a bomb.
However, all the 3 financial institutions, including Mr Ooi Teik Bee and I agree that Dayang’s profit for 2019 should be better than 2018. If you are a serious long term investors, you just sit tight and do nothing.
Many people have asked the following questions:
should they sell tomorrow so that they can buy back at cheaper prices?
should they buy some more since it has dropped 24 sen?
should they just wait for the announcement of the next quarter result?
It is very difficult for me to give my advice because I cannot be sure that the price will not continue to drop. Moreover, I do not know your financial position and your risk appetite.
If you are not a short-term day trader, my advice is to do nothing and if you have some more buying power, buy some more as soon as the price starts to change from down trend to up trend.
On the other hand, if your average cost is low, you may like to sell some to take some profit and take the chance of buying back at cheaper prices. But you have to take the risk that the price might start to go up at any time tomorrow.
I wish I have a crystal ball to be able to tell you the future.
In fact, I would like all these 3 financial institutions to openly declare if they have Dayang shares and whether they are using this devious trick to buy some more shares at cheaper prices.