too optimistic about market as a lesson, dont ever undervalued market reaction and power and of course i still a beginner, anythings i say wrong pls correct me haha
Good buy: It has the recurring income from Goverment of RM3mil per month, and its hotel business are generating profit. Beside that, its CMS system has more n more subscriber. Dividend is expected on July, after the company received the RM66mil lump sum payment from government. It has acquired two piece of land in Melaka at very cheap price.
Good bet: Datuk is currently lobbying on two big project, so anytime there will be good news coming in. Digistar share price is still at low level, it has more potential to rebound. Datuk has been accumulating the shares from open market for two years d, it is time to goreng. Digistar is under the Mainboard Technology Sector, please look at its kawan-kawan performance. a) Dataprep - A loss making company, surge up from 11sen to 43sen b) D&O - Always hanging at 30 sen, suddenly surge up to 73 sen c) DNEX - from 24 sen to 40 sen
Cold Eye always said, when you buy a stock, you must ask yourself:-
Is this company profitable? Have it made profit in the past? Will it make profit in the future?
Answer:- The company used to be profitable, but after it start its hotel development and JKR concession project, it become loss, because it has to incurred the bond interest during the construction period. This company will made profit in future, because the concession project has been done, and it start to received the monthly fixed payment from the Government, and it hotel business start to generate profit. Furthermore, it investment on the CMS project has start to bear fruit, as there are more n more customer subscribe for this services.
1. 良好基本面的公司 (good fundamental) - Digistar has good business (i.e. Concession business, CMS business) and good asset (i.e. Prime land in Melaka, Hotel Property). If you look at its inventory, you will realised that it has almost 60million worth of hotel property categorised under its inventory. I ask Datuk Lee before, have the company plan to sell it? Datuk said, company have decided to hold it, so that company has more bargaining power when they want to make some changes on the Hotel. For example, recently Digistar has proposed to all the individual holder to allow the company to convert the swimming pool area into Ball Room, so that it can attract more customer or corporate customer.
2. 稳定成长/赚钱的公司 (growth/profitable company) - With the 15 years concession, Digistar will definitely profitable for the next 15 years.
3. 发放稳定的股息 (growth/steady dividend declaration) - Digistar will start paying dividend after July 2017. Why after July 2017??? Because last time when they issue the bond, one of the criteria is Digistar can only pay dividend after 1 year the project completed.
4. 未来计划正面 (positive growth/good future prospect) - Digistar is currently bidding on some Government project, and it has high probability to secure the project.
5. 手握多现金 (> cash on hand) - Digistar currently has RM60million ++ on hand, and it will soon received another RM66 million lump sum payment from the Government, being payment for supply and installation of equipment for the JKR building.
6. 良好的现金流 (> free cash flow/good cash flow) - With the concession business on hand, Digistar will received RM3 million per month from the Government
7. 少债务 (< debt/borrowings) - Digistar has high debt, but this debt is incurred for the concession business, and the concession business is generate more cash flow for the company, so it's debt is healthy debt.
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....
heng0202
983 posts
Posted by heng0202 > 2017-03-16 16:42 | Report Abuse
too optimistic about market as a lesson, dont ever undervalued market reaction and power and of course i still a beginner, anythings i say wrong pls correct me haha