I think the company will have a better result in FY2018 and expect the US legal case to have a favourable outcome. With lower share price due to the bonus issue, the share appears to have more upside than downside. However the key question is the high PE.
"Will Warren Buffet or any prominent private like Navis Capital or The Blackstone Group or other re-owned international fund buy Jftech at this valuation? My answer is no for any astute investors who is worth his salt. Why pay so high for the future and it is not proven yet. "
I personally view Warren Buffett has a horrible track record of investing in technology companies because his philosophy is never touch technology counters. He lost billions in a fallen giant IBM and only started investing in Apple in 2016, way too late for a legendary like him and if he smart,he should have invested in Apple in 2007 when the Iphone came out, not 2016 and also Google, Amazon, microsoft when satya nadella take control or even facebook, but he didn't. He himself also admitted he was stupid for not investing in Amazon and Amazon now has a PE of nearing 300
Navis' philosophy is only invest in consumer and retails, technology is not on their cards. Even if there is a technology counter with very attractive number and metric, they are also not going to touch it.
instead of basing metric to determine technology counter, I personally think is much better to learn how to view technology counter from Don Valentine, Marc Andressen or even Ashton Kucher to see how they look at things. Adopting philosophy from people who don't invest in technology like Warren Buffett to evaluate technology counter is seriously flawed
This counter has been consolidating since late Sept. Not sure whether the coming Qtr results going the push factor for its price b4 bonus issue date is fixed in the coming EGM.
The writing is one-sided. But at least it gives a picture from JTI's perspective. Triple damage, if realised, may have a short term severe impact to to JFTECH's performance.
I also want to invest in a good patent protected company. I'm finding a good price entry and hope that JFTECH will stand strong for the time ahead.
Don’t go in .. soon they will issue placement ,then right issue ..all ace market did the same .. price too high ... Turnover less than 25m .. nett profit 6m++ ...
Sales growth from FY 2015 to 2016 from RM 19.02 mil to RM 24.67 (ie 30% growth). Q1 18 compared to Q4 17 growth in sales is 5% (growth for last 3 qts range from 5% to 10%). it is not a quantum leap Co to deserve a high forward PE 26.2
Profit of the Co for last FY 2017 and 2016 had been pull down by the legal cost incurred to defend infringement of patent in US court. Q1 2018 cost was minimal and resulted in it reported a higher net profit of RM 2.3 mil with Q1 EPS of 1.8 Sen
I have projected the FY 2018 EPS to grow by 30% (aggressive growth projection) using Q1 2018 EPS as a base. (1.84X4X 130%) to be 9.57 Sen. With PE 15 to 18, my JFTech valuation range from 143 to 172 at max.
Comparing to its current price of 205, it is far overvalued.
The share price of JFTech is just being manipulate by operators of funds holding it by buying a few lots to hold the price. Like today, 99.2K shares traded, the price push up 14 Sen,
Looks like any one is interested in JFTech even though its bonus issue of 2:3 to be ex on 27/12/2017. My main worry is the litigation on patent infringement which will be heard on Jan2018.
lol. The 4Q18 almost wiped out all the profit accumulated for the past 3 quarters. Dangerous this kind of counter. Unsustainable and unpredictable earnings.
Loss due to Provision for legal damage (6 million +). Business perspective is stable. 11 patents granted and 37 patents pending which are good for future. But Monday share price sure will be affected.
"The Board wishes to inform that the Court has made an order dated 6 August 2018 awarding JTI damages in the sum of USD1,514,299 and refusing JTI’s motion for attorney’s fees to be paid to JTI.
The Defendant has given instructions to its US counsel to appeal against the judgement of the Court and, if necessary, to apply for a stay of enforcement of the judgement."
I am not so expert in law. Do not know will there be any further damage which will affect future profit other than this time RM6 mil +
Somebody needs to inform admin to correct the wrong info published. This counter was listed as stamp duty exempted for 2019, but I just checked the latest list from Bursa, JF Tech is no longer in the stamp duty exempted list, it was in the list last year
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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....
Megaknight
25 posts
Posted by Megaknight > 2017-10-10 08:17 | Report Abuse
I think the company will have a better result in FY2018 and expect the US legal case to have a favourable outcome. With lower share price due to the bonus issue, the share appears to have more upside than downside. However the key question is the high PE.