BOM is going to buy MWG after sharp decline in market cap

by finandlife25/03/2020 20:49

MWG is known as the super stock in Vietnam. Most of fund has to hold MWG in their portfolio if they don’t want to underperform. But everything collapses very quickly. Market capital was 50 thousand Vietnam Dong, equivalent 2 billion US Dollar at the end of 2019, but now its market cap is 31 thousand Vietnam Dong, equivalent 1.3 billion US Dollar. The price shrink 40% in 3 months. That’s really crazy.

We have followed the MWG's fair equity and market cap to determine the GAP day by day. This sharp decline creates the biggest GAP between market cap and fair equity in the history. It never be easy to predict the future, no one can be sure the earnings of MWG in the next three year, especially in this Covid 19 epidemic situation. But the huge drop of price in the very short time may trigger new players.

BOM is going to buy 2 million shares. That is necessary, and we expect to see they can keep the fast growth in the coming years.

FINANDLIFE

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Stocks

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I am an Investment Manager at TOP 2 Securities Co., in Vietnam. I started working in investment field as a junior analyst at a Fund in 2007. I have more than 12 years of experience in investment analysis. I have a deep understanding of Vietnam macroeconomics, equity research, and seeking investment opportunities. This is my private Blog. I use this Blog to store information and share my personal views. I don't guarantee the certainty. And I am not responsible when the user uses the information from the Blog for trading/investing activities. If you have any questions, please feel free to contact me via email thuong.huynhngoc@gmail.com. 

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