When I saw Hua Yang fair value RM2.76 from CIMB, my eyes pop out and I nearly fall off my chair. But on second thought, why should I be surprise?
Hua Yang fair value by CIMB is almost 200% more than Hua Yang share price when I first posted on Hua Yang in November 2010. That is ALMOST 200% upside. But then I told myself, why should I be surprise, this is possible because of Hua Yang PE ratio, which is very low.
Hua Yang share price has gone up more than 50% recently. Congratulations to those who have bought it.
Therefore, I would strongly recommend investors to invest in stocks that are low in PE ratio. Some will argue that low PE ratio is not enough, growth is also important.
Anyway, up to individuals how they want to evaluate a stock. For me, I am using PEGGY Method, which evaluate stocks base on PE ratio, growth, gearing and dividend yield.
I have posted few articles on Hua Yang for the past few months. For more info on Hua Yang share, target price or new, here.
For more info on PEGGY Method and my blog, here.