who are the smart cookies to sell down in millions b4 suspension? insiders? who knows the damage of 500 cnc b4 suspension? who knows lost of 9 mths or longer productions earlier?
A fire broke out at Notion VTec Bhd's main manufacturing plant in Klang at about 2pm today, which has affected its wholly-owned subsidiaries — Kaiten Precision Sdn Bhd, Notion Venture Sdn Bhd, and Autic Mekki Sdn Bhd.
The company has assured that all assets “are adequately covered by insurance”, and that sufficient insurance coverage has been taken for consequential business loss. The full financial and operational impact as well as consequences of the incident will be announced later, it added.
Two ways to stabilise the share price.First company buy back their own shares heavily. Second, privatise it. Small fish won't throw their shares on Monday because their cost is high. Big fish had thrown their shares on Friday at higher price. Monday possibly will be technically rebound. I guess can be close at 83 cents.
Juin, I feel your idea is the silly one...victor explained a way of thinking....he said ways to stabilize, he didn’t say what will happen...the silly part you q to buy 50c , if drop more then better wait till stabilized then buy... very silly to predict the future and choose price...might drop to 10c then how...you loose simply?
2012 Dec fire incident damaged 100 CNC machines with insurance compensation more than 30 m. Within year 2013 or even after results turn bad except insurance claimed ...... 2017 last few days ago fire incident damaged 500 CNC machines this time really serious this might affect more than 50% revenue and customer might cancel orders and switch to other vendors customer relationship might be affected and time to regain confidence .... restore the operation might even takes time and cost including order and import machine .... go thru all necessary audit and certificate process ..... even fire consequential loss insurance can only cover 60 to 70 percent of gross profit as 2nd time claim and this might ended up with net losses in following qtrs ...
For share price .... this might be continue downward trend until stabilise at certain price level .... low can be lower again .... might have a rebound during this downtrend ...... dont want to say how long it will go ..... anyway ..... 500 machines damages is not a small issues in terms with customer relationship in delivery schedule, re arrange with other subcon to cover work also increase costs 9 months time and costs for reinstate back to original condition
i read someone posted at fb saying that : " bad news are good news"... it just such a joke...although the company can claim for insurance on machinery, so what about production>?? when there is no production, where is the revenue come from? I personally think that Notion will drop to RM0.3- RM0.4 range....
The Co had announced that it is adequately insured for the building, and plant and equipment, and consequential loss, it mean :
Under consequential loss coverage you can insure for a determined period (6 to 18 or longer per industry specific) for protection of:
Loss in gross profit for no production due to disruption and no sales arising after fire (sales would depend on your historical sales and budgeted or forecast sales). Loss in gross profit (sales minus all direct cost)
Payment of salaries and wages on Co's payroll basis ( rational being if u are not manufacturing or doing business, u still need to maintain ur workforce while rebuilding ur building and getting plant ready)
The consequential loss is to protect and maintain the profit as if the Co is operating as like there is no fire. The the objective is to maintain similar profit even if u are not doing business. However the Co has to endeavour to restore back its operation at earliest possible time.
Even if u do rent a new premises, u are covered for the increase in cost of doing business. It is too details for me to elaborate.
The Co got to endeavour to take actions to minimise the claim. Example by sub contracting it out (provided the Contractor is a approved qualified vendor by Notion customers) in this case Notion is transferring it to other subsidiaries. The higher cost of sub con is also covered in the gross profit protection. Provided by the action of sub con does not result in Insurance Co paying more. If more Insurance Co will say u may as well do nothing.
Thus do not panic and throw your shares, just look at Comfort, Karyon, CCK and other Co that had fire and ultimately claim back the sum covered. The claim may take 6 to 9 months to resolve.
The Co could also use this claim amount to revamp its operation and production process to buy newer CNC and LATH machines to improve its efficiencies. To me it is a short term pain and long term gain.
customers cannot wait to get parts.....loss of business and customers can never be insured....also insurance have many hidden clauses and will not be able to claim in full amount....only equipments can be claimed in full.....prospects all gone....9 months is a long time and during commissioning period...customers all gone to other competitors
Malaysia market is not good, once the company is in bad time is very hard to recover. US market is over bought anytime heavy profit taking might happen.. Just be careful not only this counter..
Dear investor 9999 , the short term pain can be painful. I think will drop next week asx more sellers emerged. Looking at 30-40c range. My 2c opinion. TAYOR.
Dear Ming the fire n damage has crippled the production n revenue. Yes the company can build again. But mean time many will sell the stock. Iexpect gap down to 30-40c next week
The safer to bet if morning limit down at 0.40 then look for afternoon session to catch the lowest point possible. I see the forum many say 0.30 then probably oversold position so chance will bouncing back right!
so much speculation on the downside of the business and price the company if have any PR shud clarify instead of let speculation went wild one poor PR job
500units in d building , only 150 units serious damaged . News from machine supplier . Many machine supplier already standby supply machine to Nvtec , machine not a big issue , and they hv 2 months stock , enough time set up new line for new production in 2 months
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....
ilovehits
3,955 posts
Posted by ilovehits > 2017-10-21 22:02 | Report Abuse
I see so many people if NOTION limit down.