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Jaks Resources - Can I still buy at this price ?
This question pops up every time you see Jaks' price rallies. Everyone is afraid to be caught buying at the top yet eager to bite a piece of the pie. 
The answer is a lot easier if you are looking to buy into an established company because its profit is stable. All you need to do is apply a price-earning ratio (PE) which you are comfortable with and determine if the current price is acceptable to you.
However, for Jaks, I m sure you are interested because of its power plant in Vietnam which is yet to show any operating results. 
Now you are faced with multi-dilemma, 
  1. You believe the power plant has good potential but unsure how much it is really worth. 
  2. You believe the price may go higher but you are afraid the price has rallied too much over the past 12 months. 
  3. You prefer to wait for price correction, but the price continues to rally.
  4. DK66 said it is worth a lot but Mr Koon Yew Yin said it is hopeless. I don't know who to believe. 
By now you should realise that Jaks' price has gone up because its power plant is getting closer to commercial operation.
Since nobody has the right answer to how much the power plant is worth to Jaks, it will remain that way until the full year results from operation is released in 2021. Therefore, the price of Jaks during this period will not be guided by the valuation of the power plant but driven by news of power plant progress and commissioning. At current stage, the construction risk of the power plant is virtually gone. You will only hear news of power plant firing up, turbine successfully tested, successful synchronisation with the power grid and plant's reliability successfully tested and finally achieved COD. It is widely known that optimism will push share price higher.
Hence, It is clear that you have to make a decision now. 
  1. Believe in KYY and leave, or
  2. Buy now and set a comfortable cut loss point, or
  3. Wait for the operation result in 2021 and buy if the price then is still acceptable to you, or 
  4. Others (Please specify)
I hope the article is helpful to answer "Can I still buy ?"
Thank you

P/S: This article should not be regarded as a buy call but rather a call for decision making.

Charlie Munger's Big Lesson: Prepare for Opportunity 
What is the most important personal quality an investor can have?

Patience... followed by pretty aggressive conduct. It is given to human beings who work hard at it—who look and sift the world for a mispriced bet — that they can occasionally find one. And the wise ones bet heavily when the world offers them that opportunity. They bet big when they have the odds. And the rest of the time, they don’t. It’s just that simple.

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