Posted by kianlim2004 > 2013-04-13 20:09 | Report Abuse

Kiasutrader, your prediction is baseless, this company CCM
manufactures mostly fertilizers and chemicals which are price
sensitive. It is a cyclical stock. If share price is RM1.20, its
PE ratio is 15, which is an average. Its long term prospect is
slow due to its high debt level of RM$550 million. If it is
only making something like RM50 million per year, then it will
take a long time to pay back the debts if it opted to maintain
a 5% dividend payout ratio. Its share price will stay like this
only until it can substantially increase its profits. Also, it
does not have freehold lands which is a plus to have if you are buying shares for long term investment. At least the land can increase in value over a long period of time. But for this company, all its fixed assets must minus depreciation over time, which reduces the real value of its assets. In my opinion, for the price of this stock to shoot up to RM$1.60 is quite possible!

Posted by hom3boy > 2013-04-23 19:57 | Report Abuse

Kianlim,why your statement is quite contracdic? first you try to complaint, end up, buy it