KLCI (3 years)
Bursa (1818) stock price (3 years)Correlation between earnings and stock price
Note: Figures in boxes are Bursa (1818) quarterly earnings (in millions)
Observations:
1. Bursa (1818) stock price is mimicking KLCI movements
2. Bursa stock price is generally high when earnings are high and low when earnings are low
3. Stock price do not 100% follow earnings
Conclusion:
1. Bursa (1818) could be a good stock to buy if one wishes to track the KLCI
2. However it is clear that the stock itself is somewhat cyclical.
3. Therefore it's strictly not a BUY and HOLD forever - type of stock.
4. One needs to buy at low prices (bear mkt) and sell at high prices (bull mkt) in order to profit
Comments welcome.
6 comments:
Bossie,
Where you get the numbers?
:D
itu earnings number (in million) per quarter
OMIGOD.... Bursa the saham!
Duh!
ehehehhehe
So, what's the correlation and conclusion random? :-)
Doesn't look very correlated to me. Sometimes, prices goes up first before higher earnings announced. Sometimes, prices goes down first before lower earnings announced.
thk u seng for the comments.. i will post some observations
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