What a stunning rally of iFAST share price! Last year on this date, iFAST share price was trading at merely $1.05. Fast forward to January 2021, the stock had risen by nearly 5-fold. The incredible stock performance is certainly surreal for investors. After all, multi-baggers are extremely rare in Singapore stock market. Given the massive run up, investors must be wondering if the form of iFAST share price is sustainable. In this regard, should investors take profits and run for their lives?
What goes up must surely come down. This is a universal fact of life. Although the fairy-tale run of iFAST share price had given investors plenty to cheer about, I fear that this counter could have gone up way too “fast and furious”. When you have so much euphoria, it is a tell-tale sign of a massive bubble building up. Retail investors should be cautious of being caught with their pants down when the tide turns against them.
Since October 2020, SGX had raised three queries over the unusual iFAST share price movements. In view of this, investors must be cautious when trading this stock.
History has proven that iFAST share price is capable of self-imploding. On 4 December 2020, iFAST share price plunged from $3.90 to $2.70 on 7 December 2020. The swift collapse of iFAST share price was triggered by the announcement of the company’s failure to secure a digital wholesale bank (DWB) license from Monetary Authority of Singapore. Basically, someone yelled “Fire!” and investors rushed for the exit.
Indeed, the DWB flop had punctured the form of iFAST share price. But not for long as iFAST share price recovered to continue its spectacular rally in 2021. It seems that investors have short-term memory. In my opinion the moment of revelation could come on 5 February 2021 when iFAST will announce the full-year financial result for the year ended 31 December 2020.
Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in iFAST before. Whether iFAST share price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions.
iFAST share price a dream or nightmare?
In my view, iFAST share price is grossly overvalued. At current trading levels, investors should be wary of the counter blowing up in pieces. Net profit for 9MFY2020 amounted to a mere $14.2 million. This translates to Earning Per Share (EPS) of just $0.052. At current iFAST share price of $5.13, the Price/Earning (P/E) amounted to a staggering 98.6! This is certainly a mind-blowing valuation of iFAST and surely one of the highest in SGX.
To be fair to the management, iFAST share price is recently in the limelight because of [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]
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