Bursa Market is all set to get better in 2020 due to strengthening the Chinese renminbi. There are several Multinational Companies that are reducing their investment exposure in the Chinese manufacturing sector and are moving to oil and gas as well as IT industries in Malaysia as a good destination for investment and good returns.
At the same time finding investment ideas on the stock exchange is not easy. Several parameters and factors need to be considered before any investment call is made. Also, you need to keep a look at Share Trading Picks before considering any investment.
While institutional investors lookout for steady and long term gain, retail investors lookout for stocks that have received little attention despite good profits i.e. undervalued stocks.
Stocks are generally undervalued based on their price to book ratio (PB Ratio) and Return on Equity (RoE). PB Ratio can be a good measure for identifying Stocks Picks with potential that are undervalued and might prove to be a good bargain.
That said, it is also true that Stock prices sometimes do not reflect a company’s underlying fundamentals due to a number of factors market sentiments, growth potential. Some companies do well financially but for some reason remain hidden and fail to get investors’ attention.
On the other hand, some companies may be incurring huge losses but its share prices may be rising due to market speculation and investors’ attention.
Therefore, we recommend investors to research well about the company, subscribe to Stock Signals and regularly go through Daily Stock Picks before making any investment.
Here we have compiled a list of Bursa Stock Picks that can be a beneficial investment for you –
Top 3 Malaysia Stock Picks
#1. Mieco Chipboard Bhd
The company is one of the country’s largest manufacturers and distributors of chipboards. The stock has a PB Ratio of 0.36 and a decent RoE of 22.57%. The company’s stock is quite undervalued and can be a good Stock Pick for investment.
#2. DKLS Industries Bhd
The company is a major construction player in Malaysia Market. The company has a PB ratio of 0.4 and RoE recorded was 11.32%. The shares are quite undervalued but the company can benefit from several mega construction projects announced this year. This can lead to increased in the price of shares making it a good investment.
#3. FoundPac Group
The company is presently engaged in the business of design, development, manufacture, marketing, and sale of precision engineering parts. The company has a PB ratio of 0.4. Also, the Return of Equity remains quite high at 18.02%.
The company can gain from good growth of the electronic and electrical segment and increased global semiconductor industry. This makes it a good investment decision.
Final Word
We are of the opinion that current economic conditions are constructive to corporate earnings and thus a good opportunity to make a positive investment in Bursa Market.
Also, target these undervalued Stock Picks in Bursa Malaysia Market that can be a good bargain in given market conditions.
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