drop back also no worry, director proposed 10% share buy back, director last week also got buy the share, the company will had a better quarter in 2017?
A company that has average quarter earning power of RM 17.86m and that MASSIVE DEBTS RM 205.257m and also total liabilities of RM 388.027m.
U don't need to be a genius to know that is a bad-looking set of numbers. When it owe the banks means it still owe & have no choice but to pay back the owed money debts.
EVERGREEN Cash: 160,308,000 Total borrowings: 205,257,000 Total liabilities: 388,027,000
Take the latest 4 quarters net profit results: (17.483m + 16.88m + 16.459m + 20.619m) / 4 qtrs = 17.86m averagely Net Profit per qtr. Evergreen earns RM 17.86m of Net Profit per qtr.
How many quarters to break-even? Answer is 12 quarters at least with that earning power!
U better don't teach wrong things to people here. U cannot say use the RM 160.308m cash to pay down all debts and look at that angle. The major reason Evergreen company does not do that is because it needs large cashflow to run the operations. That reason alone sends the stock into a long-term downtrend.
y a lot hater here, evergreen stay strong now and y keep compare with hevea, hevea now drop 0.02 and evergreen drop 0.01, why should we scare, yesterday raise 0.05 now drop 0.01 and say evergreen go to Holland, what brain is this, kids mode again? =) all kids 0.05-0.01 = 0.04 pls, use brain turn and count pls
CKCS joke of the day =) used Starperform then use Hevea and then now use CKCS, how many name u wan to use =) kids still kids, using a bad calculation, noob theory, noob maths
EVERGREEN Cash: 160,308,000 Total borrowings: 205,257,000 Total liabilities: 388,027,000
Look at above figures taken out from latest qtr report. The cash is not even enough to tackle entire liabilities. The company basically gets pass by each quarter with cashflow money only. Fundamental problem of high debts is not being addressed with any fruitful plans. No catalysts for re-rating.
Its earning power is just RM 17.86m per qtr averagely. This figure is based on the latest 4 quarters results.
To break-even, it needs 12 quarters of sustainable earnings. Ask yourself, is the earnings sustainable? 95% of revenues from ONE product segment only MDF. All eggs in one basket? Woah!
Does it not need to raise more money from shareholders or increase borrowings in the next few quarters to cushion itself from any unforeseen circumstances such as raw materials costs increase, lower demands for MDF products, etc? These are main risks.
VERY LOW STANDARD ANALYSIS LOH...!! WHY 12 QTR BREAKEVEN LEH ?? NO NEED LOH....2 QTR GOOD ENOUGH...LOH...BCOS EVERGREEN GOT MASSIVE RM 160M CASH MAH....!!
EVEN IT TAKE 12 QTR OR 4 YRS TO PAYOFF GROSS RM 206M LOAN WITHOUT USING THE CASH IN HAND OF RM 160M...IT IS ALSO GREAT MAH....!! ASK YOURSELF IF U BORROW MONEY TO BUY HOUSE...U REPAY FULLY IN 4 YRS TIME IS IT NOT GREAT LEH ??
THATS WHY RAIDER SAYS....NO MATTER HOW U SEE....EVERGREEN IS A GREAT UNDERVALUE INVESTMENT LOH...!!
CKCS, the depreciation amount contributed per quarter is already 15million. Evergreen has very strong cashflow to pay its debt, they certainly have the ability to pay off all the debts within a year if they want to. You need to see beyond from accounting net profit, to its non cash items & cash flow and its cash on hand right now. Healthy balance sheet and strong cash flow, i would say.
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....
ignissimia
1,055 posts
Posted by ignissimia > 2017-04-10 17:14 | Report Abuse
What a beauty