As you can see there is already an oversupply of houses and condominiums in every town and city in Malaysia. As a result, the demand for water pipes will be much reduced. Buying Choo Bee’s share is the same like buying a property company’s share. If houses and condominiums cannot sell, household water pipes also cannot sell.
CONCLUSION: The good reported profit was from previous sales. If houses cannot sell, household water pipes also cannot sell and future profit will be reduced. That is why its revenue is reduced.Do not buy Choo Bee. If you have Choo Bee, you should sell and use the proceeds to buy other better stocks.
