NFCP 1 involved 153 towers,but NFCP 2 involved 500 towers,i expect each contract will have multiple winner instead of one.
it is fine if redtone didn't win NFCP 1 at all,as the entire NFCP plan is just about to kick off,NFCP 1 is merely small slice of a big cake,MCMC will spend RM10-11billion on USP projects in 2019-2023,the capex on NFCP 1 alone should not more than 3% of the total capex.
so,no problem at all even redtone didn't get any single cent from NFCP 1,as many more bigger projects is underway,even current orderbook itself is enough to make sure redtone can continue to deliver fantastic profit growth in 2020.
joyvest,about why 6-9 month,it is because the NFCP 2 will be award after 31/3/2020,i expect on may 2020,and IDS business as well as RedtoneMex should able to return to black 3st quarter FY2020 onward,mainly due to RM130 million sri lanka hospital project starting to contribute positively.
as the possibility of double up in share price,i'll said it is possible but subject to three condition:
1.)win at lease RM600million new contract in total from entire NFCP plan.(profit contribution from MTNS division will easily more than double up from last year level.)
2.)IDS and RedtoneMex return to black,contribute not less than RM2 million profit per annum.(not only elimination of losses but earn extra profit too,so in total at lease RM 4-5 million extra profit.)
3.)TS business maintain its profit performance at lease.(contribute more than RM28 million PBT per annum.)
since all these condition is not too harsh and achievable,i think double up is possible but as i said,you'll have to hold your position and continue to monitor the actual progress from coming market news and quarter reports,make informed decision at all time,that is what every success investor will do.
thats why i said patience is needed as we have no control over share price movement,but when fundamental and prospect improve as expected,share price will rise eventually just we dont know the actual timing,6-9 month should be rational judging by current progress and profit trend.
of course it can rise anytime,but i cant predict as well as didn't put too much hope on the "sudden rise",the only thing i can sure is redtone still undervalued at current price level.
Without NFCP REDTONE FYR consistently very good However with NFCP will be marvelous and value added. Jump here and there are like without directions.
To move up need volume ,however the issue are ppls are holding and floating are lesser and lesser. Even interested parties try to provoke to sell,still fish not eating the baits.
The first buyer's que is very less hopping retailers to throw to 2nd and 3rd buyer's which are .. ???.. To buy up,not much seller's.Therrfore waiting for the right time when news out.
TSVT is not only smart but have RM and many buisness He is a good but stingy buisnessman and always use the law of probability.
Probablity tommorow the last day trading of 2019 or new year 2020 will play up.
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....
speakup
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Posted by speakup > 2019-12-27 09:06 | Report Abuse
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