To implement mega projects i.e BM, we still need cements which YTL Cement & Lafarge will benefit. Using the same logic, we still need fiber optic cables and need more cables especially for NFCF.
Big Shark Yes. China is exporting cements. If Malaysia import too many cements, country trade surplus will be smaller which is not good for MYR which eventually affect Msia sovereign standing. Supply of cements from both YTL Cement & Lafarge are ample and more than enough for our local infrastructure demand. I think government will given priority to local player and benefit the local eco-system. In the case of NFCF, Msia does not has 5G technology capabilities and make sense to rope in Huawei. For fiber optic cable, local player also capable to produce. Conclusion wise, RM4.2 billion for cable business is HUGE ENOUGH for everyone be local producer or China producers for that matter!
2. As such company is still in teething phase of finding its niche in THE DIGITAL ECONOMY
3. To survive management has done its utmost to raise capital. Looks like few banks are willing to finance this start up. So Netx raise its capital by
1. Issuing Esos to Netx employees as high as 4 sen. They raised rm6. 5 millions
2. Then by private placements as high as 5 sen
3. Finally mcquarie Bank invested rm20 millions in Netx shares at 4 sen a piece
All of them are holding Netx shares as high as 4 sen to 5 sen
Now Netx has very little borrowings and still got Rm37 millions in Cash
Rm37 millions is about 1.2 sen per share BUT netx is so bombed out that is share price has even fallen below cash value
4. As value investor Calvin sees Netx as a potential buy for these reasons:
A. At 1 sen with Nta of 3 sen Netx is selling at a whopping 66% discount which is more than Ben Graham requirement of 33%
B. Of the 3 sen nta 1.2 sen is pure cash
C. Netx could be like hibiscus stilling looking its port of gold here and there till hibiscus struck oil
D. So netx has a very very good survival and prosperity chance going into THE DIGITAL ECONOMY FAT YEARS OF THE NEW IT AGE FOR MALAYSIA
E. TODAY EPF IS GOING ONLINE. THE FIRST IN THE WORLD TO GO INTO THE CLOUD OF CYBERSPACE
F. NETX OFFICIAL WEBSITE STATED THAT IT HELPED TO BUILD TELEKOM INFRASTRUCTURE IF TELEKOM GETS RM11 BILLIONS OF THE 12MP JOB FOR FIBERISATION THEN NETX WILL GET SOME VERY SUBSTANTIAL JOBS
5. ALL THE EXPENSES OF DIRECTORS (NO CE0 WILL SAVE ON HIGH SALARY) ARE LISTED IN TRANSPARENT MANNER
6. MY RESERVATION WAS NONE OF THE NETX DIRECTORS OWNED NETX SHARES. BUT THEN I DISCOVERED SOMETHING
7. DIRECTORS OF NETX ALSO OWN SHARES IN ASIABIO. AND ASOABIO HAS BOUGHT TENS OF MILLIONS OF NETX SHARES FROM THE OPEN MARKET IN AUGUST 2019
8. WHY INVEST SO MUCH IN NETX BY USING ASIABIO UNLESS THEY ARE SANGUINE ABOUT NETX PROSPECTS IN COMING BUDGET
9. BECAUSE OF THE ABOVE FACTORS CALVIN THINK THERE IS A 70/30 CHANCE NETX WILL BOTH SURVIVE AND PROSPER GOING INTO YEAR 2020
10. WHY YEAR 2020?
BECAUSE YEAR 2020 IS THE YEAR OF THE DIGITAL ECONOMY
YEAR 2019 HAS BEEN A VERY VERY POWERFUL BULL RUN TIME FOR OGSE STOCKS DUE TO PETRONAS RM30 BILLIONS CAPEX
SO WITH RM21. 6 BILLIONS CAPEX FOR THE NATIONAL FIBERISATION THE BULL RUN BATON WILL PASS ON TO INTERNET RELATED STOCKS FOR THE NATION OF MALAYSIA
Anyway it is all about investment thesis. There is no outright right or wrong......until award announcements made by goverment or local telecom companies. In the meantime, the is a pocket of opportunity for day-traders or punters from now until the announcement day.
Keep mentioning Mukhriz selling Opcom but the naysayers keep monitoring this stock..haha. Why no one wondering where Mukhriz keep selling but the price keep pumping. Also go and see how many stock still Mukhriz holding.
Future Prospects Opcom’s performance for the remaining period of financial year ending 31 March 2009 will be buoyed by the infrastructure spending by telecommunication companies. Management aims to supply up to 50% of the fiber optic cable requirements for the Malaysian market. Over the near term, implementation of the HSBB project will be a key earnings driver for the Group. Opcom has submitted bids for contracts to supply passive components of the project, such as fiber optic cables and related accessories. The ten-year roll out period of the HSBB project will ensure a steady stream of revenue for OPCOM. There would be an added growth impetus once TM formalises its MoU with Iskandar Regional Development Authority (“IRDA”) to provide broadband telecommunications infrastructure that will cater to approximately 718,000 commercial and residential premises within Iskandar Malaysia. Opcom is also making efforts to build its export sales. The Group has been working closely with its technical partner, Ericsson Network Technologies AB of Sweden (“Ericsson”), in the latter’s bids and proposals for contracts in Asian countries such as Vietnam, India and Singapore. Opcom has submitted their own bids to supply fiber optic cables for projects that Ericsson is vying for and the Company expects to receive supply mandates in the near future. Since March 2008, new contracts/awards secured by Opcom include: 1. April 2008 - a RM1.5 million purchase order from TT dotCom for the supply and delivery of fiber optic cables. 2. May
Since March 2008, new contracts/awards secured by Opcom include: 1. April 2008 - a RM1.5 million purchase order from TT dotCom for the supply and delivery of fiber optic cables. 2. May
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....
apanama
3,796 posts
Posted by apanama > 2019-09-25 08:21 | Report Abuse
dont buy OPCOM above 70sen..buy OPCOM @ 40 sen..:)