Technical indicators are all pointing towards a sell call.
Below 200 SMA, breaking support levels.

The ability of JCY to pay 10c/share depends on whether they can make profits of approximately RM306mil/year. I understand we need to use FCF, however I agree with JT that depreciation is a good proxy for capital expenditure (capex usually more lumpy).

Their latest Q showed a profit of RM75mil. This amount is not sustainable due to:
1. Tax write back of RM5mil
2. Forex gain of RM15mil on balance sheet items which are one off (Q report shows RM30mil of total forex gain. Part of 30mil will be non-recurring BS adjustment, I asssume 50% don't ask me why, and another part will be in built into product margins in the future. Unless Seagate/WD demands a discount from JCY which is possible)

Therefore, if the RM maintains at RM4.2-4.4 to the dollar, they would be able to earn something like RM55mil/Q or RM220mil/year. For the past 4 Q, JCY has maintained a div payout ratio of 65% (I did the math).

Assuming 65% on RM220mil, payout will be RM142mil or 7.1c/share which is a respectable 10% at today's price.

This is not a buy/sell call. I may be well wrong on all of my assumptions. Just thought I'd share my two cents.

I personally think it will continue to trend downards due to all the technical sell calls until fresh catalyst emerges, such as a strong Dec Q. Let's wait and see.
My bet is a RM55mil profit and a 2c div.

thanks for the post

Chun Keat, do not be surprised if the company lands in the red for Q4
The thing is that they have been purchasing FA for the last 1-2 years to implement their real time DTTB but actually getting it to work has been difficult for them. I've been noticing that many of the TVs are not turned on in the buses. I suspect that they're working on the integration but it may take some time so there's significant risk there. The reason it's so oversold is because people expect prices to go lower.
Also, it could be because they suspect that the CEO has given up on this and is diversifying into other companies and that the whole bus in TV business is in ruin.

Take comfort that there was a private placement of RM9+m at 10c/share which means that someone out there is confident that the company can turn around and was willing to inject more cash at 10c/share

I'm really waiting for management to get the live broadcasting on the road. I'm guessing it's pretty difficult. A little worried because these days all the TVs on the buses are not turned on

Q results are out. looks bad as expected.
Curious thing about this counter is the private placement of 10%. I'm sure whoever's buying it isn't an idiot and knows something that's going on and is willing to pump RM9.5m into this company when everyone else is trying to get out.

This Company.. is one of the leanest company on the market.
Despite being a manufacturing which typically has low margins and low return on assets, this Company has really been earning thick margins while constantly pouring out cash as dividends.
It's ROA and ROE are seriously high.

I suspect that after the investment talk today by Icap, all the hungry uncles who need to throw their money somewhere may throw it into this counter.