the main losses from engineering division, remember the recent contract is tanjung bin power plant project, is it this project cause the losses? what mean onerous project?stated in A5 clause"For the current quarter, the Group’s wholly owned Engineering subsidiary has to make an additional loss provision of RM11.7 million on-top of the loss provision made in the preceding financial year of RM7 million for an onerous project. The change in estimate is attributed to cost developments of the project over the current quarter which could not have been justified in the preceding financial period."
To be frank, at a NTA at RM1.35, one quarter loss is nothing to Melewar. It will take many quarters and years for this amount to dwindle. When the public resort to panic selling, it is a norm for share price to fall drastically because of the dearth of buyers at a specific time. Only the wise collects and waits. Such a sad case if you resort to panic. A knee jerk reaction, a loss of capital, and after some time, things will go back to normal. How much lower do you think Melewar can go with an NTA at that price. Please do not forget who owns the majority stake in Mycron and the financial performance of Mycron. This is just the start of Mycron's profit.
Nobody want to buy at 42c?? Nobody want to buy at 41.5c? Nobody want to buy at 41c? I will buy all...cold eye sifu said: if a stock drop and you dare to buy mean you are chosing the right counter...i keep buying
i really dont understand why would u sapu The Engineering segment’s negative contribution to the Group will likely persist for the remaining financial year, as the engineering subsidiary gives focus on completing its contractual work obligation within the revised cost budget which contributed to the onerous contract’s significant loss provisions to-date.
"The engineering subsidiary is engaging the client to seek variation claims, and any positive resolution arising from the aforementioned may improve the prospect of the Group for the remaining financial year." lol
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....
Wai Hoe Chai
37 posts
Posted by Wai Hoe Chai > 2016-11-28 22:32 | Report Abuse
the main losses from engineering division, remember the recent contract is tanjung bin power plant project, is it this project cause the losses? what mean onerous project?stated in A5 clause"For the current quarter, the Group’s wholly owned Engineering subsidiary has to make an additional loss provision of RM11.7 million on-top of the loss provision made in the preceding financial year of RM7 million for an onerous project. The change in estimate is attributed to cost developments of the project over the current quarter which could not have been justified in the preceding financial period."