Company registered an increase of cash balance despite lower profit. Cash per share equal to 32 cents/share from 30 cents/share in 2015. The issue is with the forex volatility of which whatever unrealized gain/loss could be reversed in the coming result. Anyway, it all depends on your investment objective, for short term player, you may sell if you have the stock or stay side-line since the earning is not good and the current market is weak. For long term investor, since the DY is attractive, you should at least wait for the coming quarter to confirm your investment if you still holding the share.
Its because of unrealised forex loss of roughly 3 million. Operations closed at 31 dec 2015 register currency USD at 4.2 whilst closing currency of USD at 31st march 2016 was at 3.9. The difference accounts for the increased of administration and selling expenses by roughly 3 mill. Next quarter we would see ramp up of USD currency at 4.1. Thus we gain from unrealised forex gain in the next quarter. Bare in mind these are not losses or gains, just translation. Looking at 1stQR in reality we sold goods worth more than 3 mill but due to bank negaras currency translation its marked under forex loss.
Thus, looking at gross profit. We actually did better the 1st quarter. 6 mill gross profit for q1 2016 compared to 3.6 mill gross profit 1st quarter 2015. This was due to getting more projects from same customer. This is what management planned all along for upcoming years and its reflected in the qr!
I just spoke to management earlier. Very good and friendly people
a hammer candle at the support together with big volume, this TA show the counter will turn their down trend.So, tomorrow will be a big green candle...probably back to 0.670...
base on the exchange rate as of end march 3.91, the normalised EPS for LCTH should be around 1.5 EPS per quarter. With cash/share of 28 cents after minus off the dividend pay-out, the fair value of LCTH with PE10 should be 8.8. Unless RM continue to strengthen to below 3.91 in Q2 which I think would be quite unlikely knowing FED is going to increase the interest rate.
Sadly all the short term player only looking at current quarter EPS which caused the panic sell recently. Today most likely lots of margin call force sell. Short term looks very bearish and very likely more force sell is on the way.
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....
topseeker
222 posts
Posted by topseeker > 2016-05-16 13:56 | Report Abuse
i still believe it will performance good on next quarter .