if his share want to come sure can go more then rm0.20. latest report already got hint^^ but~ always got but 1, move or not move not control by us ( mean AhJee's salary worker :P )
i totally believe LCTH will get goreng above 0.25 soon...Just look at d volume and a sudden spike to 0.19 for d past few days...Public spread of LCTH is only about 26% and FUYU investment holds 70%...I believe d worst is over for LCTH as at 0.185 it is trading at a huge discount to its NTA of 0.46 cts...Even its total cash per share is equivalent to 0.21 with zero gearing...It is time to give tis stock a value justification!!!
3rd quarter financial result just out, impressive! Hantam 200 lots (at least) when market open and hold until it announces 4th quarter result. Serious, takda main punya! Haha!
turnaround is expected to continue into coming 4th qtr result and i am very sure 4th qtr revenue sud increase in tandem with improved sales and margin...LCTH is surely undervalued at the moment...
closed at 0.20. managed to get 200 lots at a bit higher. with good fundamentals: cash, earning, asset quality, ok lah, just hold until it reflects fair value. expect dividend to be announced in 4th quarter next feb, then sure will fly one!
firstly the red flags, high receivable RM45m , losses for 2-3 years, negative cash flow from operations
the company have taken drastic steps to return to profit. To free itself from depreciation charges and lease commitment and improve cost effectiveness, the company have execute a sub-tenancy agreement to let out majority part of the factory to the puchaser Flextronics Technology and thus improve asset utilisation
and now the GREEN FLAG
As at 30 Sept 2013 Debt RM86,000
Cash RM67.225m Short term investment RM8.975 Total liquid asset RM76.2m or 21.16 sen per share
Recurring income every quarter receive RM1.8 to 2m cash from interest income/dividend/investment income
With the improved earning and huge cash pile, I see this counter has the potential to shoot up to 30 in near term. About 135 shareholders control > 90%, including me and some of my gangs. I believe most of these 135 cost of investment are rather higher than the current price. In the good old time, the price went to as high as 1. In bad time, last 2-3 years, the price dropped to as low as 0.11. How many of you bought it at prices < 0.15? I guess very few, as the traded volume during that time was very small. Even at 22 cents, not much of the shares are in the hand of minorities. In other words, those who have been holding LCTH for long time, especially the one with higher cost, definitely would not be happy to see the price in the region of 20, 30, and perhaps 40 and so on. The company now managed to turn its business back to profit making entity. And with positive outlook, I believe shareholders and nonshareholders will now pay more attention on it. In short, the price has gone up, and it will go up some more. How high it will go? It depends on us! Good luck!
Net cash position of 76 million with zero borrowing...somemore all the directors are chinese...Of cos they will find all measures to turnaround by heaven or by earth...Now they ve found innovative ways to cut cost by assets disposal...Now any increase in their revenue could raise net profits to greater height...Somemore not many investors are holding tis quiet stock...LCTH is surely a BUY from now on...
LCTH is moving steadily...Day high touched 0.23 b4 closing back to 0.22 with encouraging volume...I believe it should attract more trading interest by next month to hover between 0.28-0.30...3 yrs back, LCTH was trading above 0.30 several times b4 plunging into losses...Now tat it returns to the black tis counter sud return back to 0.30 with more encouraging and optimistic Q4 result...The Global economy especially the EU is on the path to full recovery i believe LCTH sud receive more orders from its existing customers or maybe securing new major customer...I hope tat tis counter will start paying back dividend again once they are on a solid ground as last time they were very generous with rewarding shareholders...
yes, i am well aware of the increasing receivable but the buffer of 18.9 sen net cash cannot be ignored. i have ask kcchongnz for his comment
Posted by kcchongnz > Nov 21, 2013 07:31 PM | Report Abuse
LCTH? Yes a typical Graham net net. A company which continues to make losses every year including up to 30/9/2013. Its value lies only in its assets.
As I am not sure about the quality of the assets in its investment properties, and investment in associates, I just assign 75% for properties and 50% for associates, receivables and inventories. Note the receivables grew a lot recently.
The net net value of LCTH is 25.5 sen, as compared with its closing price of 20.5 sen. Good buy.
However some caveats below:
1) It is bleeding cash. CFFO negative. So hopefully the net net value will not be eroding in the future. 2) What is the quality of this receivables which has been increasing so much recently? Is the allowance of 50% adequate?
LCTH may be better dead than alive for its shareholders. Just my personal opinion.
Global economy especially the EU has improved lately and it should sustain into a fast growing economy moving forward to 2014...Demand for plastic mould products should pick up strongly and it augurs well for LCTH...A strong US dollar is also another catalyst for better earnings for LCTH in the near term...If next qtr we see a big jump in its net profit, then LCTH should soar above 0.30 riding on a major turnaround story...This quiet stock will come back strongly one day...
From its price advance, i guess 4th qtr result going to be released next week should be a optimistic...maybe they might declare first and final dividend as well...
The Board of Directors of LCTH wishes to inform that the Company has today been notified by its major shareholder, Fu Yu Corporation Limited (FYC), which is listed on the Singapore Exchange Securities Trading Limited, that Mr Ng Hock Ching (the Offeror) has on 3 March 2014 made an offer announcement on a voluntary conditional cash partial offer (the “Offer Announcement”) to acquire approximately 10.3% of the total number of issued ordinary shares in the capital of FYC, other than those FYC shares held by the Offeree as treasury shares and those shares owned, controlled or agreed to be acquired by the Offeror or any party acting in concert with him, at the price of SGD0.09 per FYC shares.
Details of the Offer Announcement are available in the enclosed document. This announcement is dated 7 March 2014.
Soalan cepumas :.... bila Mr. Ng Hock Ching mau kasi voluntary cash pay out to LCTH shareholder sebanyak 40 sen sesaham pulak. Jawapannya .... selepas iklan ini. Jangan ke mana-mana.
FACTS: 1. LCTH FY2013 profit = 4.39 cents per share and NTA = RM 0.48 per share. 2. LCTH has > RM100 mil net cash or about 30 cents per share 3. Fu Yu Investment Pte Ltd holds 254,295,643 shares of LCTH or 70.64%.
If someone cannot get anymore (or difficult to get more) shares of LCTH from the open market, then the best alternative way is to get more shares of Fu Yu thru the way as mentioned above. Then thru Fu Yu, he may has a say on what LCTH is going to do. By the way, what do you think about the fair value of LCTH?
Since u said LCTH net cash is 30 sen per share ... obviously LCTH worth more than 30 sen lor ... i have been whacking LCTH non-stop and will continue to do so ... BIG MONEY COMIN' SOON ! YEEHAAAAA !!
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....
bullmania
33 posts
Posted by bullmania > 2012-07-27 11:29 | Report Abuse
can anyone here comment on this loss making LCTH...Is there a potential for it to return to the black???