When the US and the EU are enforcing their trade barriers with China and the "older" chips required by the US and EU will push the price of this "older" chip up that Siltera is producing.
DNEX will be attractive to bargain on weakness for rebound upside towards the upper Bollinger band (50sen), with a confirmed breakout to aim for the 38.2%FR (55sen) and 50%FR (62sen) ahead, while the 200- day ma (40sen) limits downside risk.
vinceAust, you are right in saying "Theta can't have both at the same time right? Let them have the Municipal Council Project, we on the other hand get the National Project😆". I would say the chance is gstting higher to get NIISE.
What can affect the performance of DNeX in the near term? Malaysian Government's policy, Resolution of the conflict with CGP on SilTerra, Cooperation with FoxConn, the new UK labour government's policy on North Sea licences, NIISE and other ongoing projects.
You're right, that 0.45 is holding is still good and trading side ways until something comes. Unfortunately side ways looks like the best case until so, what if it's being pushed down once more before an ultimate rise. Are we buyers or sellers then at 40 😅
Reading what Zafrul said about the semi-con plan, Foxconn plant looks difficult. He's saying fab plants will come in Phase 3 or 4, and we haven't even started Phase 1...
29th May 2023, announcement was made to extend the MOU w Foxconn by a year to 16th May 2024. Since then no announcement of further extension. Last it made the news was in Oct'23 where DNEX said proposal to govt made. That's...10 months ago news and 12 months ago they would have made the proposal, and it has been 2 years without progress? 😂
CGP Silterra by now should be a non-issue. Can hope there's some goreng once there's resolution. But from the beginning it wasn't that big of an issue. The idea is Silterra is sooo valuable both parties want control and it's ultimately between 45 or 55% ownership. No one seriously thought MITI will revoke Silterra's license either way. The problem is Silterra has been bleeding ever since. There has been various statements made on RM600M being invested into Silterra's expansion and apparently work done. However details scarce - we can't see from financial statements when or how it's made, and cannot see the apportionment between CGP and DNEX on said investment made
Labour win should hit Hibiscus more than DNEX. DNEX's saving grace, next year Msia's late stage oil fields start pumping. It's still a concern, as DNEX's bottomline for the past 1.5-2 years have been heavily reliant on Oil instead of tech gosh.
There are countless other MOUs. Got Arabian, got Korean. DNEX not shy to claim King of MOU title 🤣 Market talk is several large scale tenders were made for overseas smart city as well, so not solely reliant on NIISE
Silterra has sucked up so much cashflow for capital investment. To be fair, they did a good job keeping the fab running and revenue rising. Cashflow is strong. Look at it, it's not a co in distress, very healthy cashsflow. The cost is of coz low margins and net net actually negative margins
Oilfield they have raised funds through the last placement. This may not be enough. They need more deals before a spin-off.
Even tech services, NIISE will require a sizeable capital outlay. That's still why it is more credible than Theta. Theta has something like 20M or so cash only last quarter. Scary if they get NIISE save for more funds raising
So DNEX really needs more cash despite more cashflow. Best to start planning for it now. Go issue a 1 for 3 warrants X and give it to us. We exercise the warrants 3 years later give you 1B cash DNEX
DNEX remains very strong w Govt jobs. Don't forget how they got Silterra. They still hold the exclusive rights on the national single window trade facilitation. And your favourite chairman is always sighted next to Anwar or Zafrul. Semicon plan, remember when Zafrul asked industry for advice, it's your chairman next to Zaf, not Inari lol
Therein lies the problem. Despite the super bullishness across industries - construction, DC, Johor, etc etc has the federal Govt awarded even 1 sizeable contract since Anwar started talking? I think not. He has been instrumental in driving interest and bringing in foreign investments u gotto give him that. But if DNEX is relying on federal funds oops
It is slowly falling back down after the PP of 0.37, there is no purpose to defend the price anymore.........maybe even those PP one already offloaded all earning between 15% - 20% above......
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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....
kuningNo1
85 posts
Posted by kuningNo1 > 2024-07-09 14:06 | Report Abuse
@rainman jahatnya 😒😒😒