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Which stocks have the potential for massive growth? (Higher growth = higher revenue = higher stock price), they are Semi-Conductors, Internet of things, A.I., and Industry 4.0 stocks. These companies export their products and services all over the world, they are not limited to the small Malaysian market, therefore the growth potential is enormous once the economy rebound. A recent survey by CSG-CIMB reveals that most investors are bullish on the semi-conductor and technology sector.
Growing Revenue + Growing Market + Growing Profits = Growing Stock Prices.
USA Vaneck Vectors Semiconductor ETF Index Fund (SMH) is breaking out and on uptrend, verify yourself now!
These companies are "Buy and hold" type, for long term capital gains, not for trading or speculating.
These companies are well managed and profitable, reasonable PE, low debt or net cash.
CoVid has accelerated the adoption of tech.
Semi-conductor and internet will be the next stock rally once the glove bubble pops.
Please use dollar-cost-averaging investment strategy, don't gamble, don't use margin.
TheEdge - Global semicon manufacturing equipment billings up 13% y-o-y in 1Q2020, says SEMI
Tech (Semi-Conductors) demand powers Taiwan export order growth to 2-year high in June 2020.
Social Capital CEO Chamath Palihapitiya's case against stock buybacks, dividends.
Dividend stocks are companies that gives up on growing, they are telling the investors that we do not know what to do with the cash or how to use the profit to grow the company. In the long run, dividend stocks will lose market value. Good examples are YTL, Genting, Digi, Maybank, Public Bank, these dividend stocks gives good dividends but their market value over the years will continue to decline, remain stagnant or increase very little compared to growth stocks. Don't believe me, look at their 10 years chart, what is their capital appreciation since 2009's bottom? Go check the chart.
FRONTKN 0128 [ Precision Cleaning Services ]
NOTE: 5th August 2020 - Potential share buyback announcement [ Price Will Increase! Buy Now! ]
TSMC's subcontractor (Biggest chip manufacturer in the world), Frontken services their chip making machines. Apple outsource their chips to TSMC, and Apple is moving towards their own Apple Silicon chip, this means even more business in the coming future. A growth stock. Will we be using more or less chips? If the answer is more chips in everything from cars to smartphones, from TV to aircon, then invest now for long term growth!
Read: Precision Cleaning Services Market to See Huge Growth in Future by 2020-2028
DUFU 7233 [ Cloud Hard Disks ]
NOTE: 3rd August 2020 - Bonus Issue, Ordinary shares 1:1 [ Price Will Increase! Buy Now! ]
Hard Disk Spacer maker for Seagate, Toshiba, Western Digital. HDD is slowly being replaced by SSD, but with the super growth of cloud computing, HDD will still outsell SSD in the enterprise market because a 16TB SSD is 10X more expansive than a 16TB Enterprise HDD, and High Performance HDD for cloud servers uses 3 or 4 times more spacer components than the typical consumer PC. It is Estimated that Enterprise HDD market value will double from 2020 to 2025. Massive growth as more people get used to the new internet lifestyle. All digital content created and consumed online, including this website, video streaming, apps, gaming, eBooks, music and more are stored in the HDD cloud server. Will we be using more or less internet? If the answer is more and more people will use the internet daily, then invest now!
Read: Enterprise SSD vs Enterprise HDD [ Enterprise HDD shipment grew faster than Enterprise SSD ]
PENTA 7160 [ Robotic Automation ]
NOTE: 4th August 2020 - Bonus Issue, Ratio 1:2 [ Price Will Increase! Buy Now! ]
They are hardware makers, automation is one of their key selling point. As labour becomes more expensive, automation is the solution. They are the biggest robotic automation company in Malaysia with a global footprint. Study shows world population will decline in 2050, we are entering an aging population, this means we need more automate machines due to the lack of labours. Currently they are expanding into EV and the medical industry by offering automated equipments for the related field, potential growth as the company is always seeking to expand and grow.
Read: Pentamaster eyes new business to offset smartphone segment
FPGROUP 5277 [ 5G Networks ]
They make key test components for 5G. In the next few years, we will be moving towards 5G networks, this means guaranteed growth as the entire world gradually move towards 5G. Unlike 3G or 4G, the 5G network requires even more towers, this means the demand for their product will be high. Will the world upgrade their networks to 5G or continue to use 4G forever? If the answer is we will move to 5G, then invest now!
Read: FPGROUP vs JFTECH - This little-known Malaysian company may be a trade war prize
TIME 5031 [ Submarine Cables / Cloud ]
They own quite a number of internet submarine cables around the world. As more and more people use the internet, this means they earn even more money. They are continuously laying down more cables around the world. They are also moving towards cloud computing, data cloud, securities and more. Potential growth as more and more companies adopt the internet first policy. Will everyone use more internet or less? If the answer is more, then don't wait, invest now!
Read: TIME dotcom's International Submarine Cables