Mi Equipment: Reaching Price Stability

After several weeks of being highly active and even oversold, at one point closed at RM3.32 on Sept 19, Mi Equipment has regressed to a fairer value of RM2.91 today.

At its peak of RM3.32, its price represents ~134% increase from its IPO price of RM1.42. While the fundamentals of the company is rather solid, the pace of the increase and its peak value do not reflect the real ability of the market to interpret the fundamentals of the company. Rather, the counter has been a speculators' pit for several weeks.

I indeed had regretted not selling some of my holdings when it was above RM3, and use that proceeds to reinvest in the counter after it has normalized, or even in other counters.

Despite it all, I am really satisfied having made the IPO subscription, and having had received a dividend payment of 3 sen.

In the midterm, I expect the company to perform well at least till 2020 as the new factory in Bayan Lepas will be fully in operation.

Beyond that, I lack the information to form any opinion at the moment.