Invest in Cash Rich Stocks in Bursa Malaysia



Buying stocks of Bursa Listed companies that are sitting on a cash pile is a very interesting market strategy. The cash piles offers protection during economy downturn and the chance of getting bankrupt is rather remote.  There are many companies in Bursa sitting on a huge cash pile but traded at a market price even below net cash per share. Why people don like cash rich stock ? 

                      The common view is that huge cash holding in a bull market means failure to grab opportunities or grow the company. As a result, there a quite a number of stocks trade below it net cash per share currently. Please refer to the blog below. 

http://mybursatop10.blogspot.sg/


Based on the rank, FACBIND is rank as number 1 cash stock in Bursa. It has 148.5 million cash with zero debt. Base on it current outstanding shares in market which is 83 million shares, the net cash per share is RM1.79 while it traded at RM1.09 during press time. The market price is significant below it cash per share price. Is it too weird ?  We have develop a ratio which divide the market price with net cash per share and the lowest the ratio the better of the share.