Fbi999, your comment is correct. Yesterday one of the Gcb competitors which is JB Foods' share price also up almost 30%. Gcb another competitor which is Barry also performed well. All these indicate cocoa market is performing well this year. Look forward to good Q4 results and Gcb will distribute more dividend in last quarter.
GCB current PE reached 15x, over 12x. After the coming 4th qr. result , how the market will willing to give GCB's PE ? 1. 12x. 2. 15x. 3. More than 15x
current price is only for to shows the track record of the company, buying stock is buying into the future of it... if you think GCB future is bright or will do better in the coming quarter then the price will continue to go up....
I personally think 15x is reasonable because of the expected stronger results in near future. Assuming Q4 achieves only the same results as Q3, you can then work out target price based on 12x and 15x.
SO, U all is buyig GCB for future GCB's price. Just same as we buy house from Property developer in future price. Like, RM350k is actually future prcie. But we ( U and me) buy house from property developer. IN FACT can buy at RM280-300k,
THE acceptable price of GCB (RM0.122@PE 12=RM1.46 ) U may try to Q to buy after break the second support price 1.82 with minimum shares. After GCB break third support price, u just Q to buy 1.67 or below 1.67.
Cocoa bean price up to date is still below 2000 usd. So still very low and profitable to Gcb! With current strong demand of sales, please show us you at least earn 23 million in last quarter!! I am eager to receive more dividend from you. Haha
Personally I don't think Gcb output can increase 50% although Gcb this year brought over 3 plants. Gcb need time to do alignment, modification and expand the plant that he took over. For this year, I predict Gcb output can only increase 25%. Next year must be more. So 2018 s the time to see how high the price can hit!!
I personally believe Q4 result will be better than Q3.... so basically if you look back at the whole year EPS, it's basically a ladder keep climbing up... Therefore, i still believe target price of RM2.50 is achievable by end of Feb....
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....
VincenT Low
12 posts
Posted by VincenT Low > 2017-11-14 14:25 | Report Abuse
Megaknight where to check the Rhb report?