IS IT GAMEOVER FOR THIS LOGISTIC COMPANY?
Investors are generally favouring the Transportation & Logistics sector as several indicators – such as container prices, Baltic Dry Index as well as oil price are gaining traction in terms of prices.
As a matter of fact, our local Transportation & Logistics Index had increased for a total 12.5% since May 22nd last month, what does this tells us as investors?
Typically, this indicates a “hot sector” that investors are favouring and for traders, money are easier to be made here than other sectors. That being said, one company’s share price had been left behind despite the company being a promising logistic player in the market, and this company is TECHFAST HOLDINGS BERHAD (KLSE:0084).
TECFAST had begun their journey to venture into supply of Marine Gas Oil (Typically being called MGO) since March this year. As we know, the prices for oil would gradually recover as economic activities are recovering, and this spell the same for MGO – especially that we know how busy the off-shore activities are.
Some of the logistic companies’ share prices had take off due to analyst covering them, for example FREIGHT, TNLOGIS and the recent HARBOUR. But why hasn’t TECFAST got into the spotlight?
As we can see from the quarterly report, probably this was caused by the lack of clarity on the revenue, earnings contribution from the new oil bunkering sector. However, the management did actively update investors on numbers of MGO delivered to their client and this would be reflected in their upcoming quarters moving forward.
So, why hasn’t TECFAST’s share price moved?
The historical share price movement of TECFAST has proven extremely volatile and it certainly is not for the weak holders. This is possible due to some operators that are trying to manipulate the share price by pumping it up during the hype of news and sell down immediately. Obviously, such act would only benefit the operator itself and harm the investors as well as the reputation of the company.
Nevertheless, the key ingredient for good investment return is to be patient. Once TECFAST had great results turning in, it would be the time for investors to return. The company share price had maintained around the 29.0 cents level despite the market volatility.
Stay strong, and I believe this is definitely not game over for TECFAST!
https://klse.i3investor.com/blogs/valuefinder2021/2021-06-21-story-h1566967033-IS_IT_GAMEOVER_FOR_THIS_LOGISTIC_COMPANY.jsp
