Haha. This stock my sifu buy at 1.40 range leh. Then crazy one. Keep dropping! It's plantation good, log also good. What to worry. All stable cash flows business
Palm oil division still in red due to insuffient FFB production in order to achieve economy of scale and cover cost operation. Oil and gas mildly turnaround, timber, plywood ok, but round log decrease profit margin. Overall, poorer than expected result, but management highlight demand for plywood will getting higher due to its major exporter, Japan, upcoming Olympic. Balance sheet still in good condition in net cash position and back by solid NTA RM 2.90 , further assets claasified for sale still pending for completion to further monetize asset into cash, pare down borrowing.
Yup, It's true that July log production indeed increase by 50% if compared to last average 3 month. It however, need to sustain such high production for next 2 month, aug and sept to impact Wtk bottomline significantly.
Good fundamental figure and a lot buy call and insider news on this counter, but bad management, decided don't waste time and money on it, luckily i moved some modal from wtk to padini on last month..bye WTK...
1. Improving log volume 2. Better cpo price plus increasing plantation maturity 3. Selling non core property and business...to generate big cash. 4. Oil n Gas prices improving 5. Big Shareholder battle for control of wtk 6. Huge discount of NTA to share price 7. Net cash 8. Pan Borneo highway enhance land value.
I know....if people are risk adverse....this is the approach loh..to cabut kuat kuat loh....!!
But...thinklah...don let MR Market play trick on u loh...!!
If Mr Mkt panic....we suppose to buy mah....!! Not raider say....it is Benjamin Graham say loh...!!
U r not buying Rm 2.30 like KYY, u are buying at Rm 1.53 level...and still can accumulate with great value mah...!!
Just look at Airasia....sold down from Rm 3.00....to Rm 0.90....but rebound back close to Rm 3.00 within a yr...this how big monies is make mah...if u bought at Rm 0.90 level loh...!! Raider see FLB scenario similar loh...!!
according to recent prices timber and plywood prices should be high, but why wtk said timber logs prices were low. Furthermore, there's price war as well. Anyone have any insight on when timber logs and plywoods price war will end?
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....
asdf
366 posts
Posted by asdf > 2016-08-25 08:21 | Report Abuse
Plantation losing money.
major share holders' family dispute.
Having so much cash but still recording a financial costs of Rm 11.1 mil in FY2015