I have bought & sold Masteel in Its Cyclical UPs & Cyclical DOWNs for more than a decade already.
Let Calvin share his experience on a Cyclical like Masteel
When Pm Badawi came into power he cancelled many grandoise projects of Tun Dr Mahathir & that led to an economic contraction. He said Malaysia had no money then. That led to the protest of Tun Dr. M saying that Malaysia still has money from Petronas
Then Pm Badawi implemented a Huge Infrar project for the 9MP (Malaysia plan) for 2006 - 2010
See the Huge Amount of CASH Pouring into Infrar Jobs I sensed that there will be a Huge Demand for Cement & Steel
SO AT THAT TIME I WAS STILL A NEWBIE I BUY BOUGHT UP ALL THE CEMENT COMPANIES
I bought YTL CEMENT at Around RM2.20
Bought CIMA (Cement Industry of Malaya) at Rm2.40
Bought TASEK CEMENT At Rm2.90
Bought LAFARGE CEMENT at 66 sen (Whoa this one people were throwing and throwing by the Millions, tens of millions being sold when I was fearfully buying at 66 sen) Lafarge later merged from 10 lots into 3 with 20 sen Cash payout (After that LAFARGE ROSE TO OVER RM10.00; if only those dumb sellings know ahead of time)
Later TASEK Rose to Over Rm16.00 while Ytl Cement was taken private by YTL after price has doubled & CIMA also taken private by UEM
NOW COMING BACK TO STEEL. Steel was really tricker as there are so many many - Mycron, Melewar, AISB, Choo Bee, CscSteel, Ann Joo (Annjoo got 2 but later merged into one), Kingsteel, Southern Steel, Presar, Masteel & several others
Ha! Only later, much later, I found out that while All Cement Companies did very well generally the same cannot be said about steel
Only 4 Steel Stocks Shone in the end. All Long Steel Stocks for Infrar jobs while Prestar has Wheel Barrow & GUardrail for Highways
The rest of my investments in flat steel went nowhere and it was a waste of time and money
BUT I GOT AN IMPORTANT LESSON
So later when Next Infrar Boom Cycle Retarts I only go for Long Steel & Prestar
So Far It was Chun Chun
I bought Prestar again at 45 sen & Prestar gone up 200% in recent cycle
PRESTAR: PRE-STAR Or Before It Turns into A STAR PERFORMING STOCK By Calvin Tan (Perth, Australia)
I am now in Perth, Australia.
I first came to Perth about 20 years ago.
Then Perth was quite backward & rural.
Not anymore now.
I got caught in North Perth's Massive Traffic Jams.
And I SEE an Idea I want to share here.
I SEE the widening of Perth's Highway - leading to huge demand for more Highway Guard Rails.
Every time a rural road expands from 2 lanes to 4 lanes there is a NEED for 4 NEW SETS of Highway Guard Rails.
I can SEE So FAR From PERTH That With The Ever Increasing Number of Cars, SUVs, JEEPS, Buses, Lorries in Malaysia there will be the continual expansion of Roads into New Highways - Translating Into More Needs of Highway Guard Rails-
So HEY PRESTO! Or Rather HEY PRESTAR!
YES! PRESTAR CAME TO MIND.
PRESTAR - THE UNDERVALUE LAGGARD CONSTRUCTION MATERIAL STOCK THAT WILL PERFORM
MASTEEL - THE MASTER OF LONG STEEL PLAYERS FOR HIGHRISE BUILDING & MRT (Calvin Tan)
Dear Friends of i3 Investor Forum,
Annjoo Steel has given a set of exceptional results. By arbitrage Masteel should also be doing well. As such Calvin now advocate accumulating Masteel - the laggard steel stock with the greatest potential for upside.
SEE my past posts: