Sime Darby: Impressive Rebound

The October bloodbath has taken a huge beating across the equities market worldwide. KLSE and a component of KLCI, Sime Darby Group was not spared.

As previously mentioned in another post, I saw the rapid fall of Sime Darby is an extremely attractive entry point for acquisition, given no known change in its business fundamentals (I'm a noobie retail investor with no inside knowledge, nor sophisticated tools to obtain the latest business data other than what's offered for free out there).

On Oct 26th, I placed an order for Sime Darby at RM2.05. I was surprised it was nonetheless matched. That day it closed to a 6-months low of RM2.10.


As of end of today, 8 trading days after, Sime Darby closed at RM2.50. A really nice (RM2.50-RM2.05)/RM2.05=22% jump.



I maintain estimate of Sime Darby's fair value at RM2.70 - RM2.80.

FYI I have previously acquired another round of Sime Darby shares at RM2.53 some time back, which translate to a (RM2.5-RM2.53)/RM2.53=1.2% loss. I still hold on to those shares.