KESM

KESM was one of the best performing Bursa Malaysia Technology stocks in recent years.

Not until the beginning of this month.

From a high of RM17.00 on Oct 1, KESM took a severe beating. Closing at RM10.38 yesterday, this marks the steepest fall of KESM since Feb this year. Not a very good sight indeed.

Although KESM enjoyed a three year consecutive increase in dividend payout, which very few Bursa-listed companies have achieved, it seems as if investors are still pessimistic about KESM's future prospects. (KESM proposed a final dividend of RM 0.06 two days ago, bringing its total dividend payout this year to RM0.185, its highest ever dividend payout in a fiscal year.) Probably shareholders are still spooked by the fall in net profit for the recent two consecutive quarters on a Y-O-Y basis.

In my view, KESM may continue its free fall to a range of RM8-RM9. Bursa investors are very technical -minded and base much of its buy/sell decision on charts. However, KESM slipping into the price range of below RM10 is a huge discount compared to its recent high. Not to mention its attractive PE of around 10. But then again, is KESM a falling knife that cuts the impatient bargain-hunters? Only time will tell.

*Screenshot from https://klse.i3investor.com/servlets/stk/chart/9334.jsp