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Facts Checked on KOON Strategy


A posting signed off with a simple "KOON" started circulating on social group this morning with many questioning the validity of the post.

Spent a litte time to do Facts Checking resulted the following. Analyse and draw your own conclusion, any opinions are yours to make.


1. My strategy. Recently I told you to sell Supermax to buy AT which shot like a rocket. I posted 2 buy recommendations.

Facts : 4 posting published on his website and Facebook
17/11/20 - AT Systematization is losing support - https://koonyewyin.com/2020/11/17/at-systematization-is-losing-support/
15/11/20 - ATS is an exception to my stock selection rule - https://koonyewyin.com/2020/11/15/ats-is-an-exception-to-my-stock-sele...
13/11/20 - AT Glove production capacity https://koonyewyin.com/2020/11/13/at-glove-production-capacity/
10/11/20 - AT Systematization is the most underrated & unknown glove maker - https://koonyewyin.com/2020/11/10/at-systematization-is-the-most-under...

2. After last Friday AT Glove factory visit and the publicity it created, I expected the price to shoot but it only gained half a sen with more than 2 billion shares traded. The daily traded volume is more than 2 billion which means that there many big movers and shakers. Yesterday it failed to go up is a bad sign.

Facts - From his 1st article dated 10/11, the price was from 0.19 till 16/11 closing at 0.260 has rise 0.07 (gained 36.84%)
Recent Last Closing Prices
16/11/20 - 0.260
13/11/20 - 0.255
12/11/20 - 0.220
11/11/20 - 0.270
10/11/20 - 0.190

3. Today I will sell AT to buy back Supermax which has dropped 78 sen yesterday. Supermax 1st quarter EPS 30 sen.
Facts : Supermax financial calendar is from Sept 2019 to June 2020. Therefore, EPS for 1st Quarter 20 is 1.89. 30.58 was for 4th quarter of 2020. EPS for 1st Q of 2021 is also 30.58.

4. Assuming its EPS for the next 3 quarters is the same 30 sen, total Rm 1.20 per year. Based on PE 15 it will be Rm 18. If based on PE 10 it will be Rm 12.00. Yesterday Supermax price was Rm 8.00.

Facts : Supermax current PE 16.6X @ RM7.89. Thus if using PE15, the price is RM7.12 and if PE10 is RM4.75.


5. Every investor will open their eyes when it announces its 2nd quarter result in about 2 months in January next year. Imagine it reports 60sen or more.

Facts : The EPS value for last 2 quarters remained the same as 30.58. For the EPS value to double from 30.58 to 60, will need to either double the revenue or halve the share issued. Imagine how this could be achieved?
Q121 - EPS at 30.58 with revenue of 1,352,537 at 812,485 Net Profit (Margin 60.07%)
Q420 - EPS at 30.58 with revenue of 929,124 at 408,270 Net Profit (Margin 43,94%)



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