Won't engage in personal attacks. Far more depth and maturity than that.

As I said, entered blindly following a friend. For small whiskey money. Then it tanked. I pulled out. Then tanked further, my friend consulted me. I did some quick econs research on it. Uncovered what I've disclosed. So that's all to all this....

I felt tickled to add here. Impressed by treetops imparting good insight. Beyond this, I say out now. Let time find it's footing...

Cheers & happy investing...

Akin to saying who cares about share price, when company making more profits. Retailers have their own grandiose dreams, but can't fight Econs 101.

Prior to the bonus cum warrant issue, there was 270m shares on issue. Your revered Captain Wong & Dato Tan team engineered the dilution to 650m or more shares now. Historical price of shares 9c ave, profits between 2-8m per year, but now EPS. Not to dampen one's enthusiasm, if one wants to project 50m or so ave profits next few years, that's an even monumental quantum over the superprofits the glove companies enjoyed.

One can take the best year's profit, multiple by 10x and get desired share price. The institutional investors are happy to price it at 3x PER of record profits now. As their long term predictions are closer to 6x next 10 yrs of profits.

Cheers, and happy investing

Yes, you are not wrong either. Hence each to their own valuation. As a preamble, I've walked away from this stock, made a few thousand lost back double. Small change to be honest. Riding on my "gambling streak" friend, he's still hugging his 3m shares @70c ave cost. Poor guy keeps ave down at every fall. He recently asked me how to study this stock .....


Guided him to a reasonable PER (6 or 8 or 10 years). I'm a manufacturer too, as boring a product as ES, certaiinly no rocket science or futuristic....If fact a too sharp rocket boom always leads to a major crash....

And if one thinks covid will last 10 years, then take 30.2m x 10 years = its market cap. Divide that by the huge (huge !!) paid up shares + warrants. That's your indicative fair price.

In his case, he felt maybe 1 more year of 30.2m followed by a sharp drop back to earthly profits. So him & I came to own timeline and valuation......

Just like covid, none is the wiser, each DYODD......

N.B: I'm not an active converser here. Stumbled upon Treetops posts, which I felt made the most sense....

The warrants were free and plentiful to all the substantial shareholders. At 20c conversion, they still double their money convert and dump....further diluting your shares and EPS. Which KLCI counter gets a 3x dilution of shares, and yet retailers are pegging them to some historical highs or stratosphere price.

I'm not trying to talk this share down. But just highlighting its fair fundamental value, while TreeTop's 2 post above have balanced both a FA and TA view to it.......

Best of luck guys !!

Precisely agree with TreeTopView above. I was blindly speculating in this stock, until I looked into the 1:1 bonus issue done in 2019, coupled with a 1:1 warrants issued. That severely diluted the shares, increasing the issued shares by 2.5 - 3 times. Dato Tan family and ES originating shareholders are extremely shrewd, they manuevoured the stock to ride on this covid, and they cashed out with huge gains. In the past they could never unlock its value.

Even in the best of past 10 years, they struggle to NP RM5-7m per year, so once this covid and glove boom burst, my guess is RM10m max of NP. So investors can easily calc their EPS, and apply their PER to it. For me shares worth 30-35c at most.

I guess retail investors here are eternal optimist, every morsel of news, bad or worst, they twist it to compliment themselves........lol

To add to below 2 commenters, it's not to KPMG's interest to submit to EY's request, By right EY needs mount a fresh review, independent of KPMG's base work, and done at half the speed of lightning too, as many parties critically await. Friday is deadline, surely SC will suspend if falls thru.

https://www.theedgemarkets.com/article/ey-accepts-appointment-serba-dinamik-independent-reviewer-while-cofounder-and-epf-dump-more

Enilec Mak A reply to RJ87.

EY is not going to be the auditor. Their role is just Independent Reviewer of the poins KPMG brought up. As of todate, SD has no auditor.

https://www.theedgemarkets.com/article/continued-profit-growth-fails-support-serba-dinamik-share-price-why

In all likelihood, share price drop reflects fraud.
Once it's proven, share delist.....