harry.. please read the annual report and understand the profit margins of a refinery business... its a very fine margin biz and thats why they keep moving in and out of profits despite the huge revenue. Joanne is spot on the margin
GO revenue per annum is around RM200 million. So RM70 million is only about 1/3 of its annual requirement. On the flip side, the counterparty GO has signed with is Palm-Oleo (Klang) which is actually a subsidiary of KLK. I see this as good sign as other big reputable companies are willing to give GO a chance and deal with them.
I am expecting this counter will move within 3-6 months time frame. The company just utilized the money from pp to repair their factory. This is to keep producing and to meet the rm70 million purchase agreement. The warrant also will expire in aug next year. I foresee next 3-6 mths will see significant movement as the revenue and profit at that time already considered 70 million puchase agreement.
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....
BILLC
2,045 posts
Posted by BILLC > 2018-03-02 16:09 | Report Abuse
Don’t be silly,,,12 sen adalah!