Part 2: Could the CAN SLIM® Strategy Uncover the Next Stock with 10X Returns?

Explore how our refined CAN SLIM® approach aims to pinpoint stocks poised for exponential growth

In my last article, I introduced a modified CAN SLIM® method, reshaped to decode today's complex market landscape, with a focus on Scomnet. Now, I'll further this exploration by evaluating Supercomnet Technologies Bhd's market valuation, examining its shareholder breakdown, determining the best entry point for investment, understanding where it stands in the business cycle, and conducting a thorough technical analysis using the nuanced SLIM principles. Can Scomnet be the standout investment with the potential for exceptional 10x returns? Let’s dive deeper to find out.

S – Supply and Demand

Individual investors dominate the shareholder structure of this public company, followed by professional advisors and mutual funds. Given that a large percentage of shares are held by individual investors, it might be a sign of strong confidence from the company's insiders or founders. 

1. Individual Investors dominate the shareholder structure, holding 66.98% of the outstanding shares valued at $142.22 million USD.

2. Investment Advisors come next, owning 10.09% of the shares, with a value of $23.80 million USD.

3. Mutual Funds hold 8.2% of shares, valued at $21.83 million USD.

4. Smaller percentages are held by Corporations, Sovereign Wealth Funds, Insurance Companies, and Government Agencies, ranging from 0.39% to 0.69%.

Investable Options. Investable medical technology stocks are scarce on Bursa Malaysia! The scarcity could mean that there are few alternatives for investors interested in this sector, which might increase competition for shares of this particular company.

Shareholder Composition. With individual investors holding the majority, and professional advisors and mutual funds following, it's possible that the shares are tightly held, which might limit supply. If these investors are long-term holders, they are less likely to sell their shares, thus decreasing the stock's liquidity.