Nobody is bothered by the low profit margins of Masteel?

1Q May 2014, sales 337m, but profit only 7.28m (2.1% margin)
4Q Feb 2014, sales 351m, profit only 5.4m (1.5% margin) etc.

Not saying the price won't go up. Just asking for feedback and wanting to learn more.

With such low profit margins, there is no 'margin of safety', which is one of the key requirements of Warren Buffet etc.

Ryan Chong - Thanks for the feedback and advise. Good points indeed.

Posted by Ryan Chong > Jul 31, 2014 09:29 AM | Report Abuse

horriefic why u go buy a hope? there is many counter better than aax with earning money, why dont buy those real earn money company than a making loss company and expect for a hope? now is bull market, u go expect a hope for 1 year or 2 years, i dont think it is a right way to do in bull market

Guys, any thoughts on aax? I don't normally buy loss making companies, but I heard that many MAS staff are resigning and joining aax. Also, many people choosing to not buy mas tickets and are now buying aax tickets instead. So looks like aax will see increased sales. Comments?

Thanks Seph. Appreciate the feedback.

I also bought decent amounts of pjdev-wc, partly thanks to your comments on it. One day, if opportunity permits, I belanja makan and drinks!

Seph,

Need your feedback. Is Sona still worth holding? Am in the money a little bit on Sona, and had a tp of 0.60 due to the salamander deal, but now wondering whether I should just sell because of the upcoming Reach ipo that will overshadow Sona. What do you think?

Thanks.

Ps. I manage to get some Reach shares from a friend who was allocated Reach shares!

I am a newbie, so I may be mistaken. Just sharing some notes and opinions. I have invested in Seal at 1.00 and 1.34 (today bought more!) prices.

See: http://www.thestar.com.my/Business/Business-News/2014/04/05/Seal-the-deal-Penang-developer-aims-high-with-RM800mil-Queensville-project/

Assuming GDV is at top range i.e. RM1b. Then assume gross profit of 25% (is this too high?), then gross profit for the project is RM250m. Of this amount, DBKL takes 20%, leaving RM200m. Of which Seal takes 60%, giving it RM120m. Seal has to pay RM36m for the land, so balance is RM84m. Divide that by total shares of 221.4m, that gives about RM0.38 per share gross profit. Of course, this is very high level calculations based on the news article.

Quarterly profit ending 31 March just announced. Rev of 19.55m. Profit of 3.12m. Very good results!

OTB,

You write articles on a regular basis? I too would like to subscribe to your articles. How do I get on your subscriber list?

Thanks,
Wong

Anybody has an answer to this:
When there is a bonus issue for the mother share, what happens to the warrants? The mother share price will drop (eg. 1 for 1 bonus, then the mother share will theoretically drop by 50% because you now have 2 shares instead of one), so the warrants conversion price be adjusted? Or, do you also get additional warrants as well?

When there is a bonus issue for the mother share, what happens to the warrants? The mother share price will drop (eg. 1 for 1 bonus, then the mother share will theoretically drop by 50% because you now have 2 shares instead of one), so the warrants price will double up? Or, do you also get additional warrants as well?

Thanks for your advice

warrior,

I don't think I am good, that's why want to hear feedback and advise of others as well. Of course ultimately have to make my own decision.

This counter makes like 0.19-0.20 per year. Price is howevering around 0.20-0.22, so the PE is like 1.1!

From what I can see, it's balance sheet is healthy.

Close to a billion in revenue, and over 200 plus million net profit. So a large company that has healthy margins, and very profitable. And gave out a divident of 0.016 in May last year (about 7.5%).

So why is the price of this counter so low at PE 1.1? Do people actually think that the financial reports are totally fraudulent/fake? Normally, such a company should be a put-all-your-money-into-this-counter. So what's the story here?

Thanks.

Me so considering selling all my pac-rim at 0.50 (entry price 0.40), then buying back if it drops any lower. Take some profit first. Is this a good idea? Or better to just average up if it drops further (which may not happen)?

Thanks Seph.

The nicknames you guys give for the counters are totally undecipherable!

Seph,

Can you share pac-rim is shortform for what counter? Want to have a look it.

FYI, I went into PJD-WC at 0.40 (based on your comments), and am still holding. Am appreciative of that!

Thanks.

I noticed that Minetec has been very active these past few days, with over 90% buy rate! Somebody is just buying buying buying. What gives?

A quick check at Minetech's quarterly reports shows that it has decent revenues, but terrible profit margins (less than 1% profit margin), which is not a sort of company I want to invest in. But was wondering why the sustained 90% buy rate? Any ideas?

Thanks inwest88!

Sifus, may I ask what counter this Crystal a lot of you are referring to? Thanks!