Beware the value trap


Some of these value traps do have great embedded value but nothing has been done to grow this value sustainably and allow it to translate into actual healthy returns for shareholders.The firms should maybe seek new income streams, get into M&As or expand in a big way to new markets.

MANY stocks on Bursa Malaysia often appear cheap with a lot of upside potential but sometimes it’s just too good to be true.

These stocks often trade at huge discounts to their book values, have low comparative price to earnings ratios and trail far behind their peers when it comes to share price performance and yields.

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