Collect more tickets. BB has taken this opportunity to squeeze margin players.

Which finance counter can offer PER below 7.5x...Don't tell me buy only when the company has announced good dividends. Lol

abangadik. I sapu yesterday. Will top up more when the price go lower. Let those dividends players off load their shares before resuming heading north.

Cabut when the share price is overhyped. Where to find more undervalued stock with growth potential in near future like Leonfb. lol

QR announcement is slightly late. Better let people sell before the announcement rather than later. lol

Nil growth until they put their new factory into operation in next 6 months.

Good profit but top line growth is dented. sigh!

Prepare to sailang for this PER 7.5x counter. Waiting investors to reshuffle their portfolio a after QR announcement period before they pump more funds into Rcecap once the urge of undervalued is emerged.

Miti is investigating anti dumping cold rolled stainless coil imported from overseas. It could be a catalyst to CRC producers if the government imposes anti dumping duty.

Yeah. Economy headwinds ahead....Malaysia government would go bankrupt soon. Better run for life and invest overseas. lolz

Construction activities has been picking up for the past few quarters judging from the surged in turnover of piling companies ie Econbhd & Ptaras. Rebar producers are expected to do well in the next few quarters.

It's an opportunity to collect more since the company share exchanged at PER 7.5x and ROE 13% even though DY is low.

Price tumbled is within expectation given lackluster QR.

The short term traders have really put in very high expectation on this counter.

Top up more at this low price. Dividend investors are offloading their shares.

TP500. TeoSeng has not started putting its feedmill factory in operation. Expect to be ready in next few months.

Abangadik. You know la. I am conservative type. I put a lower figure to cover by backside just in case. lol

probability. I am not really sure whether they have done that or not...Inventory shot up by almost 80% comparing with Qtr 31Dec16.

Posted by probability > May 26, 2017 10:26 PM | Report Abuse

they could have put some overtime earlier...its not like you have 2 weekk CNY break. Can't they accumulate and stock their products and then sell in one go?

I am expecting USD against RM to slide below 4.2 by 30 Jun 17. lol

What's wrong with the CNY??? It is a norm in Mycron business cycle. Let's read the explanation in last year.

QR 31 Mar 2017 explanation:
The Group however registered a lower pre-tax profit of RM10.8 million compared with the immediate preceding quarter’s pre-tax profit of RM12.6 million mainly due to the lower sales volume (down by around 17%) achieved by its Steel Tube segment attributed to the Chinese New Year holidays saddling the current quarter.
Correspondingly, the Group recorded a lower net-tax profit of RM7.4 million compared to a net-tax profit of
RM9.5 million in the immediate preceding quarter.


QR 31 Mar 2016 explanation:
The Group’s revenue at RM142.5 million for the current 3rd quarter which saddles the Chinese New Year festive
period is around 1% lower than the immediate preceding quarter’s RM144.1 million. The lower revenue is
attributed to a 12% drop in sales volume for the Steel Tube operation (due to the festive holidays and raw coil
supply disruption from the cessation of Megasteel as mentioned in Note A11) coupled with the continued decline
in unit selling price for the tube products (down by 0.8%) and cold-rolled coils (down by 3%). However, the
higher sale volume (up 11.8%) achieved by the Cold Rolled segment lifted the current quarters’ revenue.

My target EPS above 7 cents so it's still below my expectations. lol

Agak. I hope to buy at price 1.83 on Monday. lol

Agak. I hope to buy at price 1.83 on Monday. lol

There are some positive news in poultry sector

Soy bean prices had gone up all the way up from US 1010 at the beginning of the year to US 1080 on 31 Mar 17. What happens to the soy price now?...plunged to US 940 or more than 10%.

RM is on the rising trend and gained 3.7% against USD from 1 Apr 17 until now.

Great results. PER dropped to 7.7x at price 1.83. Who want to sell at cheap prices on next Monday? wakaka

Comparison in PER:

Aeoncr - 11x
ElkDesa - 13.6x
MBSB - 26x

It depends highly on EPS to be announced today. When EPS is higher than 6 cents, share price may trade above 2.5 easily in near future. If EPS below 3 cents.... then you know what would happen la. lol

Is it worth to place a bet?
Let's look at the revenue growth for the past few years:

31 Mar 17 - ???
31 Dec 16 - 58 million
30 Sep 16 - 56.2 million
30 Jun 16 - 51.9 million
31 Mar 16 - 44.3 million
31 Dec 15 - 41.5 million
30 Sep 15 - 39 million
30 Jun 15 - 37.5 million
31 Mar 15 - 34.9 million
31 Dec 14 - 33.5 million
30 Sep 14 - 32.4 million
30 Jun 14 - 30.4 million
31 Mar 14 - 30 million

People are worrying to hold shares before announcement of QR today. Run or stay? :D

Buy and hold based on fundamental of the company attached with low PER and good future prospect. We just ignore short term TA noises. If TA really 100% accurate then nobody would talk about FA now.

It seems that Manufacturing margin was being squeezed by higher input costs of sugar and coffee ingredient for the 1st Qtr 17.

Lower NPL is expected in Banking and Finance sector. It is very like RceCap would post good profit.

NPL:
Maybank - down
CIMB - down
MBSB - down
BIMB - down

PBBank - stable
Aeoncr - stable

RHBcap - up

There are main sifus in i3.....more than me and you mentioned....I feel small here cause I could be good at playing with figures. Not to forget stockraider, my sifu. He is playing higher level of ball game. wakaka.

abangadik. You skill is better...you can see deep inside the business of a company. Don't pretend la....There are many teachers here sharing good information like KC, OTB, Icon, Probability, Moneysifu, Gaininvestor, bones....

Tan. Rcecap is traded at PER 9.7x ( 1.9 / 0.196) at price 1.90 .

Abangadik. You look too high on me....I'm just a farmer in kampung. Wakaka

Tan.

EPS = Earnings / Share
PER = Share Price / EPS ratio

Guessing time. What's the EPS in upcoming QR?

PER: 9.5x

EPS
31 Mar 17 - ???
31 Dec 16 - 6.52 cents
30 Sep 16 - 5.62 cents
30 Jun 16 - 5.40 cents
31 Mar 16 - 2.12 cents

Sensitivity Analysis: EPS for 31 Mar 17
EPS 7 cents - PER 7.5x
EPS 6 cents - PER 7.9x
EPS 5 cents - PER 8.2x
EPS 4 cents - PER 8.6x
EPS 3 cents - PER 9.x

kukuman. It's confirmed by you...may be you got a spy there. wakaka.

Signal is given by the CEO... He acquired 400k of shares through exercising ESOS at price 1.3 per share in April 2017. He has not disposed the shares until now. If he doesn't has any confidence in the company financial results, he would not have exercised the ESOS. Why not wait until lackluster QR announcement and exercise at cheaper price later so as to pay lesser personal income tax. Bear in mind, the company would include the difference between the market price at date of exercise and Exercise Price in his EA at the end of the year.

Good to see you here, Moneysifu. Miti has just started investigating anti dumping of cold rolled stainless steel (CRSS) imported from overseas. It could another catalyst to this industry if anti dumping duty is applied to CRSS.

By looking at the rising trend of Gross Profit Margin, LeonFb is very likely to report higher profit in upcoming QR announcement.

Current PER: 8.6x

Gross Profit Margin
31 Mar 17 - ???
31 Dec 16 - 17.6%
30 Sep 16 - 14.5%
30 Jun 16 - 20%
31 Mar 16 - 10.9%

EPS (cents)
31 Mar 17 - ???
31 Dec 16 - 3.20 cents
30 Sep 16 - 1.78 cents
30 Jun 16 - 3.74 cents
31 Mar 16 - 0.2 cents

Eggs are hatching. Eggs price are trending upward plus RM strengthening.

A loan stock offers a yield more 7% per annum. Quite yummy given the prospect of the steel industry. This loan stock is much better than those junk bonds selling in US. wakaka

The management was a bit incompetent in engineering works. They are not good at this area but they engaged an outsider to conduct a special audit....so not really that bad la.

We will only run when a counter is turning from gold into a shit or the price of gold astronomical high. Lol

老莊還在, 有誰敢在太歲頭上動土 ．

At the current price 77 cents, LeonFb would probably trade at PER below 7x after announcement of QR by this month.

The price is so strong today. @@

The shares are still undemanding....patient waiting for the QR announcement.

The market is so high on steel theme....sleeping also dream of rebar...lol