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14-06-2024, 01:03 PM
One the thematic play today is that a some Bursa tech companies will benefit from the US “trade tiff” with China. Notion Vtec has been touted as one such company. Over the past few weeks its market price had jumped more than 4 or 5 times.
If you are investing based on this thematic play, you might have missed the boat already. Its current price of RM 1.68 per share has run ahead of its long term business fundamentals.
One of my concerns was that over the past 12 years, the Group generated RM 128 million PBT. A breakdown of this PBT showed that the operations did not generate any profit. Rather the bulk of the profits came from non-operating sources specifically insurance claims.
![[Image: Notion-VTec.png]](https://i.postimg.cc/SN4x0sS9/Notion-VTec.png)
I have other concerns to suggest that the market is currently sentiments-driven. Refer to Notion Vtec if you want to see details of my argument.
If you are investing based on this thematic play, you might have missed the boat already. Its current price of RM 1.68 per share has run ahead of its long term business fundamentals.
One of my concerns was that over the past 12 years, the Group generated RM 128 million PBT. A breakdown of this PBT showed that the operations did not generate any profit. Rather the bulk of the profits came from non-operating sources specifically insurance claims.
I have other concerns to suggest that the market is currently sentiments-driven. Refer to Notion Vtec if you want to see details of my argument.