Jaks Resources - 1,200MW Jaks Hai Duong Thermal Power Plant
It took me a while to decide to publish this piece of writing. Finally, I decided that I will say this for one last time and I have to say it now before it is too late.
"This is my final wake up call !"
"Sifu, can i still buy at this price ?"
I was frequently asked the above question when the share price of Jaks went up from RM1 to RM1.57 early this year. Before the rally took shape, I called for stong action at around RM0.50 and another time at below RM0.80, the calls were largely ignored.
Even though above RM1, the price was still well below my first target price of RM2.50, I advised to take long position despite the risk of correction from the sharp rally. When Covid19 hit, though I have advised to take position with cut loss strategy, I believe some had to cut position and suffered losses. Although many had held on with confidence, the last six months were quite unbearable as the share price was more than halved. The rights issue further dampened sentiment and Jaks' price remain depressed while many stocks had recovered from deep losses.
However, those who followed my early calls hardly suffered any losses and mental stress.
Therefore, it is always safer to act early when the price remains depressed instead of chasing into rally.
So, why am I writing this ?
I m writing this to remind those who are waiting to buy Jaks that they should make up their mind now ! This is because;
- The right issue exercise has been completed with 128% oversubscription rate.
- Unit 1 of the 2 x 600MW Hai Duong Coal Power Plant has successfully completed its final 336 hours trial run to be certified for Commercial Operation Date (COD). Unit 2 will be completed within 3-4 months after Unit 1 achieved COD.
- Jaks' share price is still undemanding.
My function here is just like an alarm clock. I make buzzing sound but to wake up or not is entirely up to you.
It is entirely up to you to decide your action. Some may prefer to wait for price correction, some wish for "safer" price, some dare to chase into rally, some prefer to wait for financial results, and some wait for buy calls from Investment Bankers.
You may refer to my blog for my earlier articles on Jaks' valuation. Please pay special attention to the following article;
"Jaks Resources - The Most Reliable Earnings Guidance for JHDP".
It is your responsibility to make decision in your best interest, but please do not ask me again if you missed the boat again !
If you have anything to ask me, please ask now. If I know, I won't hide.
Remember, opportunity knocks but once.
Disclaimer : This article is purely for information and opinion sharing purposes. You should not make your decision base on the writing. You are strongly advised to seek independent verification and advice.
View original article