I don't think anyone like to read a long story on how I had started my journey from nothing to something. Thus, I will straight to the point and let me tell you how to make a M in year 2021.
Investment is the key; working hard will not get you rich. So, it is still the same story here, invest in Stock markets.
The stock I am after is called JFTech (0146). This is not a new listed company and was already there many years ago. However, they only started to get better in recent years, after they finally settled their court case in year 2017 with their customer. Since then, they have applied a lot of Copyright to their services/products, to avoid the same mistake made.
Why do I choose JFTech?
There are many good stocks in the market. Few most popular in year 2020 would be Kpower, UWC, Greatec. They are all almost hitting 1000% gain in about a year duration. JF has surged from the lowest of about RM1 to RM5 today, total of 500% increase in year 2020. If we looked at the year before 2017, it was only priced at around 0.50. So there is already a total of 1000% since then. However, this does not prevent me from continuing buying them and support my own believe that, they can go much further up.
There are few reasons why I select JF.
1) Apart from PBBANK that proposing Bonus Issue of 4:1 (1 share gives 4 share), JFtech is the second best in history now. they are giving out Bonus Issue of 3:1 and come with two free warrants for each share you hold. I am not going for PBBANK although they had proposed 4:1; the reason is I believe all banks will not do good in future. Digital bank (and crypto currency) will emerge very soon and overtake all the banks, in year 2021. Furthermore, Pbbank now is unlike the Pbbank in old times, they are no longer that good. (another topic not to discuss here)
For the young generation (those that are aged younger than 60 years old now), may not know the real meaning behind Bonus issue. When a company managed to give a bonus issue of 1:1, it is already consider a very good company. If the company can give Bonus issue of 2:1 (example TopGlove), it is already one of the top company in history already. Imagine, JFtech is now giving 3:1 and with 2 free warrant, that is best of the best. It merely means the company has the capabilities to earn a lot and grow very fast in the near future. In order to issue a bonus issue, you need to have the fact that your company can earn a certain amount of profit and also have a strong reserved money. This has to be audited by the Security Community (SC) to approve your proposed Bonus Issue. Therefore, it is not like saying anyone can simply issue bonus issue, you must meet the requirements. In short, JFtech has proven themselves to be a strong earning company in the coming near future, and the approved Bonus issue justified that. It is one of the best of the best in history, in terms of giving Bonus Issue.
2) JFtech made some announcement that they will go to the main board maybe in year 2021. I have checked on the requirement to be listed on Main Market; It requires the company to have at least gain a Profit After Tax of 20 M in the past 3-5 years and the last quarter must be 6M and above. I have a look at their current earning, I think to get 20M in the past 3-5 years, JF has already met the requirement. However the last quarter is only 4M and they need to hit one quater with more than 6 M before they can apply to go on Main board. If they are serious about this (I think so, no one will officially announce that they want to go on main board but end up not qualify right, will be a joke if that happen), it means that they must already have the confidence to get one quater with profit after tax of 6 M in one of the 4 quaters in 2021. I guess they are already some confirmation on new award contract but not announce yet. This somehow guarantee that, their profit will at least increase 50% in the coming quaters.
3) The ex date of the Bonus Issue is 20th Jan 2021. With this announcement, the fixed exercise price of the warrant is 1.16. Based on the share price now, it was closed at 4.96 last Friday. Therefore, assuming if the price never move up anymore, after the Ex date, the price for each share will be roughly 4.96/4 = 1.26. This means that, the share price after ex is already exceed the warrant exercise price. It also means that the warrant is now "In the Money", it is worth 0.10 intrinsic value. However, this will not happen because, if the warrant stay only at 0.10, all smart investor will sell everything (sell house, sell car, sell pants) and sai lang the warrant. The warrant price cannot be 10 times from the mother share price, otherwise everyone will invest in the warrant and will become Billionaire easily. With this mathematic fact, I have come out with an assumption to predict the price in the coming few weeks. The assumption is that, the price will be above 4.96 on the ex date. My guess is that, it will hit around 6.40 on the ex date, and the after ex price will be roughly 1.30 and warrant of 0.60 each. In summary, if my prediction is correct, you should be able to gain a total of 2.6k for each share you hold now, assuming you bought at Rm5 now. When a free warrant is "In the money" it is like giving you free money, dropping from the sky, you just need to grab it.
4) Their recent big customer is Huawei. If you believe Huawei is a future product, you should be confident that JFtech will be doing good as well. In fact, they have started a factory in China now. The fact is that, Huawei is a big customer and you will never scare of worrying about your company revenue when you had secured a big customer.
I have listed 4 reasons why I choose JFtech above. Lets read on the below, one of the story that I have made up and see if it make sense and justify the above.
Story
Jftech has secured big contract with Huawei. They themselves knowing that Huawei can give them more business in the future. Therefore they have setup a factory and office in China. Huawei told them that, you got to be listed in the main board, to be my future long term business partner. This triggered why JFtech commented that they want to go Main board very soon. In order to go Main Board, one of the things is to increase the number of share amount, to increase equity. Therefore, that is the reason why they giving a 3:1 Bonus issue, splitting and more shares in the market, and giving free warrants. For them to fulfil the requirement to the main board, their profit after tax must increase a minimum of 50%. They must have bagged some contract which will announce sometime in 2021 before they go and apply from SC. Thus, if you analyse all this carefully, it is not hard to make a conclusion: JF profit will be increasing tremendously in year 2021.
Strategy
Before continue further, I think I should give you the strategy on how to play on this JFtech.
Simple, just buy and keep. I believe in 3 years time, it will return you over 2500% gain. I am predicting it hit back to 5rm price after ex date on 20 Jan, to be happened sometimes in 2021 (a bit too much... but I think that should be the case if JFtech is as good as what I think)
When the warrant price has less than 3% premium, you may consider to sell it and buy the mother share. Anyway, this might be too early to discuss as we need to be sure JFtech is really as good as what I had predicted and reach the target I had predicted first.
The question now is how to make 1 M in 2021. Answer is, you need to invest 225k. Assuming you bought JFtech at price of 5RM, so you get 45 biji. After Ex date, you get 45+(45x3) +90 = 270 biji (assuming warrant also count as 1 biji, but because u need to pay 1.16 to convert to mother share, and if the price is rm5, the 90 biji warrant actually worth only roughly 70 biji equivalent value. Therefore, to get to 1M with 250 biji, you need the price of 5 rm. So, if say, after Ex, the price keep increase until 5. With 5 x 250, you get 1.25 M. After deduct away what you had invested 225k. you left with about 1M ! This is not a dream, it is only 500% (x5) increase from today when you read this blog. If Greatech, UWC can do that with almost 1000%, why not JFtech. JFtech supposed to be a better one compare to UWC and Greatec. Thus, 500% should be sap sap sui to achieve in year 2021 (unless world economic crisis come)
Of course, you can adjust your target. If you wish to earn 100k, then you need to invest roughly 22.5k now (which mean you should hold 4.5 biji now). I believe this is possible to achieve in 2021. 500% is the target! In long run, I am expecting over 2500% return, worst case would be in 5 years time, but I think 3 years is enough. Hold it until you get 2500% profit if you are going for long term.
The facts
After reading until here, you might not agree with me. It sounds too good to invest. It is like money dropping from the sky right? if that is the case, why is everyone waiting for? I have also thought about this before and there is an answer to it. You will be surprised, because, money drop from the sky, not everyone knows how to grab it!
First of all, those big shark (big investor/group of investor like EPF or foreign fund) tends to not pick this kind of stock like JFtech. The reason is simple, they only go for stable and proven track records stocks. JFtech is still a young baby in the share market, with superb potential growth. The risk is still there. However, I am not saying all investor are coming from small fish (small fish mean people like us, 小kacang), in fact, most investor that hold this share now should be coming from medium size investors (maybe some local fund). One fact is that, when a good company gives bonus issue, it is basically hoping you to keep their share and you will only get the reward the next time they give you dividend or the price of the share increase after split (you got more unit now). Thus, it is actually delaying your profit and it becomes a longer term investment. Thus, not all big/medium investors like to put their money in such a long durations. However, those local fund that want to earn from it has already purchased what they wanted by now.
In terms of small fish, I have tried to explained all this to my family members, good friends (those that I hope they can also make some money with this stock), explaining the future, the fact of the company is strong, the best of the best bonus issue, but unfortunately, so far, only 3 have purchased and trusted me. Those that do not believe has a common comment:
"The PE ratio (Price per Earning) is now already hitting above 100, it is overpriced!" Then, they look at the graph and said, "already up 1000% since the start and 500% in 2020. Too Expensive!!!" "I wait for it to drop or correction, then only I buy."
Everyone replied the same thing to me. I have tried to explain that, the PE will drop when their earning increase; but that still doesn't help to make them put in some money. OK... I give up.....now I know why always Small Fish lost in the share market. Small fish tends to be 近视, only view things in short term. The most common mistake is, they look at the past and not willing to see the future. (past shows the price up so much and therefore consider expensive now, future they think it is not something that guarantee will happen)
I am not saying myself an expert, but I think I have learned quite a lot , keep improving my knowledge and with a cool mind, you can move in the right direction. The golden rule is that:
If you know something is good, you need to go for it. Waiting and no action taken will never get you there. Waiting will ends up nothing for you.
不看过去只看未来，不想错过就快点心动啦~
（没写错，是心动。你先要心动了才有行动嘛）
Disclaimer: this is not a buy or sell call ya ~
