The company just settled the remaining RM27mil debts owed under the Commercial Papers Medium Term Notes (CPMTN) programme in March or April 2016, become the net cash company. Hopefully, the company will start to reward its loyal shareholder with higher dividend for FY16 after that.
If the company is willing to increase its dividend payment, its visions to achieve 60sen by 2 years (2018), the duration to achieve could potentially shorter. I hope RGB Management understand this.
1) with current growth, is it possible for the EPS to go up exponentially from around 2 sen to 6 sen in 2 years? 3 folds, possible? 2) directors "claim" that the share price will go up to 60sen? How sure are they? haha... unless they fry up themselves, right?
PE is now 13-14.. for such small cap company with "some but not exponential growth", is it undervalued?
Over-concentration in Cambodia back in FY07 has caused the group suffered greatly. Today, the Group seems to have diversified its operations by making its presence in more than 8 countries, but in fact, it hasn't. Based on the latest Annual Report FY15, segment from Philippines and Cambodia contributed 67% and 12% to the total revenue respectively. In terms of geographical non-current assets, Philippines and Cambodia's non-current assets made up 32% and 50% of the Group total non-current assets. When we look into the TSM Segment, where greater risks lie (due to the risk-sharing nature), most of the Group TSM concessions are located at Philippines and Cambodia. To clarify, we don't see geographical diversification as one of our checklists in making our investment decision. However, for a company like RGB that subjects to high regulatory risks, geographical diversification matters.
Besides that, more people nowadays go online in search of entertainment they used to access in other ways, and gambling is no exception. It is believed that online gambling will be taking more market share from traditional gambling, due to several advantages it offers including convenience, comfortable, anonymity, privacy etc. And compare among few forms of gaming, slotting machines are definitely more replaceable by online gambling due to the gaming nature. This is a risk investors should consider if they are planning to invest in RGB for a very long period.
still too concentrated in 2 countries Philippines and Cambodia... Philippines president is now fighting against drug, will he fight against gambling next? that is a question to think of.. will the Cambodia club-house shut down incident happen again in Philippines? that is 67% of total revenue, more than what they had in Cambodia back in 2008 (it was 37% only that time)
MRapolo, it is indeed good for RGB to turn into net cash position.. but investors like growth, big growth of earning.. so if the growth is moderate, can it justify for 60 sen in 2 years?
What about the risk for too concentrated in Philippines? WHat is the Phillipinnes president bans gaming in club house again like what happened in the past in Cambodia? At current stage, its business is yet to expand significantly to other countries... still early stage...
haha.. John Lu... u must not understand one theory (for value investing).. if i have doubt in a certain share, i would not buy... unless u r a pure speculator, which i think so...
thanks Wuh Hou... unfortunately when we speak out truth (sometimes harsh), it is hard to be accepted by the supporters here.. nvm, if they can take the risk, just go ahead.. there is no defienite right or wrong in investment.. good luck
some ppl prefer to cover their ears and eyes and live in their own world (pretending they can't listen or see it).. that is fine.. these ppl will never improve, trust me
see how i proved him wrong in evergreen forum.. and he dares not even answer my questions.. keep diverting the topic.. how pathetic he is.. sigh and speechless
see how i smacked him with facts... and he is such a coward who dares not answer my question.. keep running away and diverting the topic.. and keep telling the same old grandma story (manipulated)...
MRapolo......this company very stingy. 1st 9 months of 2016 ebitda already RM54m. Just 1 quarter cash coming in is more than enough to kowtim 1 sen dividend. Give out a part of the Quarter 4 in-coming cash lah. No need to touch the existing cash mountain
haha... many ppl do not think in a deeper way... Duterte can ban online gambling today, what is the next step he may do?
Just think: The reason why Duterte wants to ban online gambling is because this can be illegally accessed by under-aged children..
Same thing may apply to club house where control is not as strict as casinos.. in 2008, Cambodia banned gambling in all club houses due to this reason...
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....
eky7931
39 posts
Posted by eky7931 > 2016-12-22 11:09 | Report Abuse
The company just settled the remaining RM27mil debts owed under the Commercial Papers Medium Term Notes (CPMTN) programme in March or April 2016, become the net cash company. Hopefully, the company will start to reward its loyal shareholder with higher dividend for FY16 after that.
If the company is willing to increase its dividend payment, its visions to achieve 60sen by 2 years (2018), the duration to achieve could potentially shorter. I hope RGB Management understand this.