Price gone down basically because of capital repayment and special Divi, all these were financed by a 65 mill plus loans. So company has to pay interest to banks and repay the principle of over 5 mill plus a year. So with strengthening of RM, added to the principle and interest payments, I don't hope to see any cashflow for divi for next 12 years unless products sells exceedingly well with good margins and produce superprofits. No doubt company has cash, maybe tied up to banks for trade facilities. Down to 60 sens is possible. Interestingly, they have set up a subsi which controlled another subsi, all newly setup. Is it third party property and development injection? Or is this still in premature stage?
" As at 30 September 2017, the Group has a secured term loan of RM69.432 million which was utilized to finance the Special Dividend and Capital Repayment to shareholders which were paid in July 2017 and September 2017 respectively. The tenure of the term loan is for a period of up to 12 years and is secured by the Company’s leasehold industrial land."
Deposits,cash/Bank balances as at 30 Sep. 2017, = rm45.555 million
Authorised Capital Commitment for property, plant and equipment not provided for = rm23.801 million
may get reduced dividend but still can payout if mgmt deem fit
revised NTA is 86 sen, ALCOM is profitable , generate net profit rm4-5 million each Qtr, increased capacity expansion ready by mid 2018, new property dev. projects expected, would the SCLAND bosses let it drop to 60 sen ? (not sure how this target is arrived ??)
It needs donkey years to recover just bcos of one wrong choice and decision.l think many who bought this counter stock deducting capital repayment of 32 cents are still loosing about 40-50 % of their resources.
Not speaking out for anybody, but purpose of forum is for everyone to share relevant news tht can help us make money mah . Humans do have blind spots , can overdo, but we are responsible to not blindly follow ,
Easy to shoot down people, but does it make us more superior ? Let’s move on, big brother !
some aggressive trader will buy at this price 8.56 we, conservative trader will switch to higher timeframe to validate d consolidation(daily TF) if nothing there, we wait-(it can last for days, weeks even months) is a waiting game!
current market cap 114m buying 92m land with 500m+ GDV. Most likely they are planning to sell off the aluminium business in the future looking at the way they set up the structure.
this is a low risk, high gain short interval,.. 6 mths downturn just finished, new mgmt just ann. on 2/1/18 new game plan to have 2 prong business, existing business plus industrial property dev. (whc new mgmt is expert),
the new mgmt die die must show market approval mah !
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....
The_Reds
2,025 posts
Posted by The_Reds > 2017-12-19 17:15 | Report Abuse
haha..I open my eyes see how long they can tahan..