If Choo Bee's prospects are dim in current business environment, why is it rosy for CSC Steel, which KYY said is great? If one is downstream, and the other is upstream, for the same final customer?
..2 reasons - Megasteel also produces CRC ( and HRC), now dead - crc products are used in a very wide base.....from electrical, electronic, mechanical, civil, you name it, they use it.....to support all the export assemblies in Malaysia too.
I'm not a runner for you, you and you. I have high regards for anyone are able to talk sense. My purpose of posting the above is to share with you the interesting observations I have made. Observations expedite learning process and that is the message I'm trying to convey.
Stockmammy analysis is wrong loh....when choobee do badly csc will also do badly too loh...!! Just look at today choobee share price gap down, csc share price also gap down loh....!!
The arguement on mega steel as a block buster for csc do not hold water loh..!1 Yes u r now...not force to buy from mega steel on raw material....but u r still subject to imports of steel products, that will still compete with csc and mycron mah....!!
So the condition of other steel industry players is the same as csc loh...!! Nothing special loh....!! Still need to compete with cheap china import loh....!!
Based on the above data, revenue has dropped 46% over 7 quarters almost quarter by quarter. This indicates falling business volume despite increasing international steel prices or product selling price.
There is this phenomenon that upstream raw material prices is increasing but lack of demand at downstream. This cost push inflation is always a bad sign for the economy, especially for downstream player like Choo Bee. This is because their raw material cost is going up but they cannot past down to customers as a result of lack of demand (slow down in property market), hence their margin will be squeezed. Also, their market share is very small and they are in very competitive industry hence it is even harder for them to pass on the cost.
If they r importing raw material from oversea after the closure of Megasteel, they are also in disadvantage due to weak ringgit.
Raider says MEGA...is not really a competitor...it is not an inefficient supplier of raw material force on to CSC mah...!!
The main competitor of CSC are mycron and cheap china imports loh...!!
Thats why raider says...choobee and csc are the same...they are in the steel industry...they face the same cheap china steel imports mah...!!
Mega steel is nothing special loh....furthermore csc share price already move to reflect good news, that the inefficient mega steel no longer force on its products to CSC loh...!!
Correctloh....it is all documenred here...mammy pls be a gentleman just admit ur dead wrong on choobee....and apologise to those u have harmed bcos of ur useless analysis loh...!!
Correctloh....it is all documenred here...mammy pls be a gentleman just admit ur dead wrong on choobee....and apologise to those u have harmed bcos of ur useless analysis loh...!!
Correctloh....it is all documenred here...mammy pls be a gentleman just admit ur dead wrong on choobee....and apologise to those u have harmed bcos of ur useless analysis loh...!!
our fellow blogger leoting's analysis is more correct. He said that it is true that property projects had slowed down, reducing demand for steel. But on the other hand, with imported steel now no more in the market, domestic producers suddenly end up with the other half of the market to enjoy. That alone is sufficient to keep them very busy.
I always said KYY's analysis is too crude and he always got it wrong when come to earning forecast.
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
Report Abuse
Please Sign In to report this post as abuse.
Market Buzz
No result.
Featured Posts
MQ Trader
Introducing MY's First IPO Fund for Sophisticated Investors!
MQ Chat
New Update. Discover investment communities that resonate with your ideas
MQ Trader
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
0:17
New IPO: O&G healthcare service provider, Metro Healthcare Berhad aims to list on the Ace Market!
MQ Trader 922 views | 6 d ago
0:17
New IPO: Life Water Berhad, a manufacturer of drinking water and carbonated beverages, aims to list on the Main Market!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
probability
14,490 posts
Posted by probability > 2016-11-30 16:12 | Report Abuse
sometime i wonder what KYY did to this buddyinvest & stockmanmy....