At previous article, I mentioned that I was panic selling from 13rd to 23rd March, and the financing amount of my SMF account dropped from 6 figures to just 4 figures only, my debt level was at historical low. Thus, my panic totally gone on 23rd March, I don't feel anymore burden like a stone pressing my shoulders, I felt like walking on the cloud on my way to hospital to have a check-up on my surgical wound~ HOWEVER, I couldn't fell sleep that night................. Because, I was having another type of panic attack. Previously, the shares market kept dropping and I kept losing more and more money, so I was panic and started Panic Selling. NOW, I was panic that what if the shares market already dropped to the lowest? What if the market started to bounce back the next day? I already lost more than 30% of my portfolio, if I missed the bounce back, it will be very hard for me to recover from the 30% loss of my portfolio! Another panic attack stroke at me, so starting the next day 24th March, I begun Panic Buying action. At 24th March: Since I am attracted by the dividend, so I bought more ELKDESA shares at RM1.18. At 25th March: Considering that a lot of companies can't even do business during MCO period, so I decided to buy back AEON shares which still can open door for business that time. Yeah, I bought back some AEON shares at RM1.04 which I sold at RM0.93 last time. Aiks.......... At 26th March: I bought back some ALLIANZ shares at RM12.50 which I sold at RM11.90 last time. Aiks.......... At 27th March: I bought back some AEONCR shares at RM8.54 which I sold at RM7.89 last time. Aiks.......... At 30th March: I bought back some ALLIANZ shares at RM12.60 which I sold at RM11.90~RM12.30 last time. Aiks.......... At 31st March: Based on the same reason mentioned above, I bought back some AEON shares at RM1.12 which I sold at RM0.93 last time. At the same day, I bought back some STMKB shares at RM3.29 which I sold at RM3.35 last time. At 1st April: I bought back some AEONCR shares at RM8.57 which I sold at RM7.89~RM9.40 last time. At 2nd April: I bought some KAWAN shares at RM1.02 which I already eyeing it for few years. At 3rd April: Since the shares price of KAWAN bounced back very fast, so I bought more at RM1.09. At 6th April: I bought back some STMKB shares at RM3.38 which I sold at RM3.35 last time. Also, I bought more KOSSAN shares at RM5.12. At 7th April: I bought back some AEONCR shares at RM8.82 which I sold at RM9.40~RM11.50 last time. At 8th April: I bought more TOPGLOV shares at RM6.44. That's all for today. Since I am more into long term investing, and all the buying & selling above happened not long time ago, so I will not comment anything about it. It is just meaningless to comment about short term performance if long term investing is the purpose. Anyway, this wasn't the end of my Panic Buying, I will continue writing it next time~ Thanks for reading. I don't provide any buying/selling suggestion above, please make your own investment decision and be responsible with it.
Today let's have a look at the latest financial report of NESTLE which was released few days ago. At the first look, I don't feel anything when there was a 1.3% dropped in revenue. HOWEVER, I was shocked that the profit decreased so much:
We can see that the rising Cost of sales and Operating expenses were the two main factors causing the profit to be reduced. The local sales dropped by 3.4%, but the export sales increased by 8.8% which surprised me:
The local sales dropped because of earlier timing of Chinese New Year, and the Out of Home Business which a lot of restaurants, coffee shops, mamaks all closed during MCO period. The management also mentioned that in order to protect the safety of employees, more PPE were bought and causing the Operational expenses to rise:
The company also contributed to some relief efforts and caused the expense to increase, and the effect of relief efforts will continue until the next quarter. I became more aware after reading this. Currently, there are some super high PE companies in the shares market, because everyone expected that those companies will achieve super high profit due to COVID-19 outbreak. HOWEVER, will those companies also contributing to a lot of relief efforts, for example kept donating its own products, and caused the profit to be lower than everyone expecting? Of course, this is just my speculation based on imagination. Together with the profit dropped, the management also released some good news. The CAPEX investment will be the highest since last 6 years, around RM280 million. It will be used to expand the capacity of MAGGI noodle production, and also a latest production line in Shah Alam in preparation for entry into a new high growth category with great future potential: That's all for the important points of latest financial report, if you feel like something is lacking, feel free to go to BURSA website to download and read it. NESTLE products always getting a lot of loves from Malaysian people, as the shareholder, we always feel happy when seeing that people buying NESTLE products while shopping at supermarket. HOWEVER, being one of the most popular F&B company in Malaysia, it also must bear with the social commitment and contribute in relief efforts, which caused the expenses to rise. Together with the impact of COVID-19 outbreak and causing the operating cost to be rising, as the shareholder, we will worry too. Investing at NESTLE now will make us happy and worry the same time, so it depends on your own decision to invest at it or not. Investment is always about doing own thinking, making own decision. Thanks for reading. I don't provide any buying/selling suggestion above, please make your own investment decision and be responsible with it.
