I received the following question from Vincent recently.
Hi Unclez, I have been following your blog for quite a long time, and I am impressed with your long term value investment. I have bought Presbhd before Bonus Issue and I sold it during last year December sell down in the view that the earning was reducing and PE was quite high as well. I then told myself to buy back when the price back to the reasonable PE, which might be around 20. But since then the price has gone up until now PE around 90. I missed the boat along the road, or perhaps I should not sell at first place. Can you enlighten me what strategy should be implemented when we are seeing high PE stock, why some stocks already traded at high PE still can go up, whereas some like Gadang before went up recently has Low PE last time but the share price didn't move much. I believe both Presbhd and Gadang have bright future growth, and I can categories Gadang was undervalued share with Low PE. But how about Presbhd and Dsonic? Hope to hear from you and appreciate your views very much as I am still learning in stock market. Thank you.