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Gadang........another angle
stockmanmy
Publish date: Thu, 24 Nov 2016, 01:41 AM
stockmanmy
0 76
Trade at your own risk. I am here only to vomit out my feelings
Gadang.
Finds it fascinating and interesting discussions going on with postings and opinions from Calvin, KYY and OTB.
I think it is easy to teach people to promote shares, to push shares......not so easy to teach people to have critical thinking.
But if this is going to be a forum, better start accepting comments, negative as well as positive. Too bad if it hurts the feelings of those holding the shares that are commented on in a not so positive light.
Here goes.....
As for the profits...........
profits from construction
Revenue 4th quarter 2016 $ 105.7 m
Revenue 1st Q 2017 $ 42.1 m
PBT 4thQ 2016 $ 8.3 margin 7.8%
PBT 1Q 2017 $8.4 margin 20.0%
From the annoucement:
For the current quarter, revenue decreased to RM42.14 million as compared to RM105.74 million in the corresponding quarter of the preceding year. This was mainly due to the completion of some projects. However, profit before tax for the current quarter increased marginally to RM8.41 million as compared to RM8.30 million in the corresponding quarter of the preceding year. This was mainly due to higher margins achieved for ongoing projects.
note............it is common that upon closing the contract, , the margin is extraordinary high and not to be repeated.
note............it is extraordinary that Gadang has allowed its construction works to finish and construction billings to drop by 60%. Good contractors plan ahead. They don't let that happen. Have you seen billings of good contractors Gamuda and IJM drop by that much? The nature of mobilisation and profits recognition on progressive basis means it is not expected for Gadang to recognise large profits rest of the year.
It is very tough to repeat the $ 124 m PBT achieved last year. ....looking at its order book and and the property division.
Facts.....with an order book of $ 600 million only, it is a smallish contractor....and grossly overvalued after the run up.
Hope.....The company is said to have tendered for $ 10 billion of works.....
Facts vs Hope........Your call.
Profits from development are to be valued separately and cannot simply apply a PE ratio to development profits.
In the last few days before ex....many have bought for the free warrants and bonus.........now, sell to who?
moral of the story....no free lunch. Its still fundamentals.
Bull market, more shares makes more money....bonus and free warrants makes even more money.
Bear market......bonus and splits only makes you lose more money.
I probably have to chop off mine if this Gadang can make more than the $ 124 million profits from last year.
Facts vs Hope........Your call.
Critical thinking is a valuable commodity. It can mean the difference between rich and poor.
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2 people like this. Showing 11 of 11 comments
Gadang will report reduced profit at end of this financial year. The price will surely fall further. .Be smart to follow KYY golden rule.
2016-11-24 01:49
Mayb he is but the timing he tell is very suspicious... Why he dont post it b4 the ex date but post immediately on the ex date? Think about his real intention.
2016-11-24 01:53
And the way u back up KYY sound like u are one of his many followers that help to create fear and panic.. I will advise anyone that reading this please do your own homework and make decision by on your own research and not by somebody words.
You got nobody to blame only yourself if u choose to listen and never do your homework. Invest on your own risk.. Cheers!
2016-11-24 01:58
There is too many loophole in the FA itself
And they existed so that the other can abuse it
One thing for sure is director has better idea about the business itself
When they start selling it, we must be very careful.
2016-11-24 02:59
How about KYY's FLBLD, VS, canone, etc? These companies are not performed very well. I doubt he is good. Maybe he is just promoting himself like tin kosong.
2016-11-24 04:26
another angle as suggested by the title? same angle with KYY. running dog.
2016-11-24 08:46
If someone shared their insight or evaluation neutrally; I don't see any reason to bash or label the poster. If anyone disagree with the poster's evaluation or info, then by all means post your comments and provide your reasons why you think otherwise. That is what constructive discussions and forum like i3 for.
2016-11-24 11:02
critical thinking
in times of crisis, developers and contractors die first/
2016-11-26 01:06
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stockmanmy
I do think KYY have been trying to tell you guys to be careful with this.....even at his own expense.
2016-11-24 01:43