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Repeated opportunities with cyclical companies
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i4value
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28-May-2023 18:23
Yells: "i4value.asia" |
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I like cyclical companies because you have repeated opportunities to make money as the company performance and stock price move through the cycle. A good example is CSC Steel, a Bursa Malaysia steel company. The chart below shows its stock price and you can see the cyclcial pattern. The trick then is to ensure that when you go in, you have some margin of safety. One way then is to value the company before buying. The chart below shows the latest valuation. You can see that it is trading below its liquidation value as represented by the Graham Net Net.  If you want more details refer to my article Is CSC Steel one of the better Bursa steel stocks? |
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