This article was written at 31st July 2011.
I transferred it from the investment forum to here,
translated it into english,
and added some latest opinion about AEON.
Old article:
December 2010.
There was holiday for one month of my university,
many people chose to work part time during holiday,
but I chose the road less traveled,
and studied about subjects that we were going to learn for final semester after holiday ended.
I decided to be well prepared because I heard that those subjects for final semester will be super hard.
As a result,
I spent the most relaxing semester in my university life,
my classmates always came to me when they didn't understand something,
and I achieved the best semester result in my university life....
Oooops, sorry for out of topic....
Anyway,
while I was preparing for final semester during the one month holiday,
I also started to learn about share investment.
Basically everyday....
I went to search information about share investment from books and internet.
I read Cold Eye's articles,
also from the investment forum I read articles by:
8k, Nifong, Hutu, Erge, Thermofisher, 8years, tan81, Nightkid, tyche6.
Then I decided to start with fundamental analysis.
So now the question is.....
which company should I begin with?
I asked myself:
"If I can open a shop, what kind of business I would like to do?"
My answer was:
"I want to open a shopping mall, inside it can be any shops that I like."
So my choices are.....
AEON and PARKSON.
Personally I prefer AEON more since I always went there,
so my pick was AEON.
Of course later I also studied about Parkson.
At 1st,
I went to Bursa website to download their latest annual report and read.
How I read?
Well.... just read only.
From the 1st page until the last page.
Anything I don't know, I googled.
I am determined to finish reading this annual report.
After reading it,
I realized that AEON has good fundamental,
revenue and profit were good,
new shopping centers were lining up to open,
still a lot of potentials.
Erm, GOOD.
Buy?
Wait...... let me read other annual reports first.
So I downloaded AEON annual report for year 1999 from Bursa website.
Oh no!
AEON lost money at year 1998!
Then I calmed down and thought.....
financial crisis landed at Malaysia at year 1998,
so is forgivable to lose money,
and AEON still distributed dividend to shareholders that particular year.
Some more the next year 1999 AEON earned a lot of profits,
more than to cover the lost at year 1998.
Okay good,
so I decided to continue studying about AEON.
Later my university holiday ended and I went back to schol,
at the same time I spent two whole weeks to finish reading AEON annual reports from year 1999 until year 2009.
I also went through quarter financial reports for the pass five years which equivalent to 20 reports,
and recorded down important numbers on excel.
In this process,
I learnt how to read the important points only from annual report,
thus increased my reading speed.
At the same time,
I opened a CDS account,
and bought AEON shares near the end of January.
I only spent around 30% of my investment capital and I bought at RM6.33.
(after bonus issue is RM1.5825.)
What happened later?
The share price dropped.......
It dropped until RM6.10,
then something bad happened!
Japan earthquake plus the danger of nuclear leaking,
so Malaysia share market was bearish,
AEON dropped until RM5.77,
I lost around 10%.....
After a few days,
I went to the nearest AEON shopping mall and walked around.
It was friday afternoon,
AEON business was good, a lot of customers,
so I was filled with confidence,
went home and bought more AEON shares.
Even today(31st July 2011) I still holding those AEON shares,
thanks to AEON,
I received more than one hundred passive income this month.
The end of old article.
Those AEON shares,
I hold it until year 2014,
the share price rose to almost RM16.
Then bonus issues and split,
AEON shares from one share RM16 became 4 shares RM4.
(I can't remember the exact price, but should be around that price....)
As a result,
my cost of AEON shares became one share RM1.50 only.
Someone I know who also acted as my "contrarian indicator" in share market,
"realized" that AEON is so "cheap" at RM4,
so he bought some AEON shares,
and dreamed that AEON will "rose back" to RM16 again in a short time LOL.
I was alerted,
so I decided to sell 16% of my total AEON shares at the price RM3.96.
At December year 2014,
I saw AEON share price dropped until RM2.79.
So I bought some thinking that it will not drops any further.
But AEON profit kept on dropping,
So at October 2015 and January 2016,
I almost sold all my AEON shares at around RM2.70,
left a little bit for souvenir~
The cost money that I invested at AEON was around RM5000,
I earned RM4300,
5 years.
If only I sold all at RM3.96 last time,
I can earn another RM4000 more..............
but yeah is too late to regret now.....
I didn't expect that GST will creates such a scary impact at AEON........
Well,
I earned less RM4000, not RM40000~
So no need to be very sad though~
Thanks for reading.
I don't provide any buying/selling suggestion above,
please make your own investment decision and be responsible with it.
