So now Icecream no more Godiva but Mat Kool Icecream.....Darn. Never in my life..i expect to see 40 cent now.. Fuyoo..... If announce reduce OR profit..sure gone liao...
Expecting to be 30 cents soon since Major ( Sei Tai Tin Wong) Glove dropping because of uncertainty Windfall Tax...
why Esceram need to follow gloves ? Esceram did not produce gloves. They manufacture formers and is indeed good news they have more buyers from China buyers. That's why they expand their factory.
Actually at 40-ish cents its a good bargain. when the new plant is completed the extra revenue should offset the share dilution & ASP drop. If China demand can maintain or grow further, it should be able to give 3.5 - 5 cents dividend per annum, Even if the share price drop to 30 cents, the dividend will offset the capital lost. The problem is the time cost because share price no momentum due to market lost interest. Perhaps if Esceram can give more more dividend in the next two years may be market will gain back interest. If the market believe China will destroy Malaysia gloves, Esceram should appreciate instead of dip. What if Malaysia gloves can prove their earnings after two years, and have a reversal rebound, will Esceram follow? Frustrated. Make your own call.
In the long run, I think Hand former business should be ok due to high growth in medical/pharma sector, and its business nature is not easy to duplicate. However now its the beating stage you need to endure. If you have no hurry to take profit, just relax and hold, if the share price drop the dividend will offset it. If you cant wait may be can consider to shift capital to tech stocks or EMS sector.
@Fujisnow, I share your view. If there is 600 m shares and profit is 60 m and with PE of 4 to 5, it's more or less there. However, if gloves mania comes back, we can enjoy a higher PE. The strong point is the dividend, they must pay an attractive %, then all good for long term holders.
But why the hell they follow glove trend ----------------------------------------------------------------------- The problem lies in their mgmt esp Captain Wong, whom dont like to engage in IR activities. Even when asked about their future plans, always give evasive and safe answers. IB and FM want to know somethg new about the co future plans..not those they oredi know. The mgmt attitude has to chg. The co has strong fundamentals and sustainable book orders for the coming year but for the co share price to go up, they need to engage in IR activities and differentiate emselves from glove...Good dividend, Shariah compliance & transfer to mainbod wld be able to entice insti to comein at the least. The co oso have to plan to diversify on new products within the ceramic industry.
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....
HamsterHuat
2,852 posts
Posted by HamsterHuat > 2021-09-28 16:35 | Report Abuse
thanks @clc689