3Q results shows profit this year is quite steady,albeit slower,but still making progress, forward PE around 5. A lot of companies suffered heavy losses or profit drops drastically this season.
Q3 revenue & profit better than q1, revenue slight better than q2 but profit slight drop from q2. Consider flat for this year but share price has plunged to record low. In fact if u look at the asset, even if u completely discount all the cash take it as fake, the asset of factory & machinery which the auditor can see by eye already adds up to rm > 20 cts. This is way above the 13.5 cts. If xdl were to close shop today and the boss had run away with all its cash, just by selling its factory can get back > 13.5 cts . Not to mention the listing status, the brand n the business.
Q3 revenue shows revenue continues to increase steadily though slowly for this year. Profit slight drop due to increase in expenses. Results are realistic, PE is low at 5.3, with solid asset backing. China shanghai composite has surpass 2500, then 2600 in a week. HK listed china share also starts to move. Is only matter of time operator will goreng this stock, 1 week, 2 or 3, if u can hold
The downside bottom is 10cts, this would be half the worth of the 1.2 mil sqft factory valued @ 20cts, everything else would be a bonus. The upside potential is 50cts or > if the accounting figures r true. Meaning at current price 13 cts, u r betting 3 cts loss against a potential win of 37 cts or more. Not bad a deal.
Whole klse market collapse mainly due to oil drop which drags down the ringgit. Fundamentally this actually is good for china based stocks as they r valued in ren min bi. So ringgit drops, china stock in ringgit shd rise. And when oil drops china consumers got more money to spend so china consumer counters shd rise in long term. Though fundamentally for xdl is good, but general market sentiment is very bad and many just follow the trend to sell in panic. When selling cools down, xdl will bounce
Ringgit big drop is big negative for klse but actually is big positive for foreign companies listed here as their values are in foreign companies, especially china company as ren min bi is strong. So say if RM drop 3%, china stock in ringgit should theoretically up 3%. But the market does not see this yet. Soon when investors cool down after panic, they will realise this.
Gold so low now no one go and swarm gold outlets. XDL so low now does not mean value buy. Plenty other attractive good counters bargain for money rather than put your money in XDL.
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....
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Posted by 244009 > 2014-11-11 14:35 | Report Abuse
mid nxt week