U can compare their revenue with their profit. If u have a friend intro this biz to you are you willing to invest? Or is there other business u can invest coz of better margin? If yes then can put money to it.
well, i agree and not agree with your, Eric. based on calculation you might right. but again it depends on 2 conditions i would say. first of all , do you/ the company own that amount of money? if don't, how u gonna earn that so call 4 %? second, the amount of the money/revenue. for example, the egg distributors earn only 1 or 2 cents for every egg, try to calculate the percent, but can you see the volume? just sharing and happy trading =)
Besides, the high dividend yield most of the time can only be found in the companies in mature stage of life cycle or they are not expanding. eg FLBHD dividend yield is high and low P.E, low volume, they only sell woods, and no intention to grow yet.
Eric Fong sifu, you really sifu mah. you know how to calculate profi margin 4% and better put the money in FD. The MD and directors dunno how to do business. They should close shop, put money in FD and kiao kar.
FLB i think their business is on mature stage already. Their shareholders dispose stock on 13/4/2015...at price RM1.60...that means their value at this level only...what really good now is their dividend only...and they have a very healthy financial status...no borrowing and give dividend...also they are producing electricity for themself and selling it as well...that good for reducing the cost...Good ROA & ROE.. i think they will have share buy back in future...
What need to take note is they are doing mostly USA business so their risk is on foreign currency especially nowsday too much of fluctation on USD/RM...
Also they are taiwanese boss so i think most investors not so prefer it as their reputation is not so good in our stock market area...especially china boss as well..
Actually not so familiar with plywood business so i cannot say anything about their future prospect...you need to search online for this business...
Even Bonus issue , the stock price will adjust according ? beside it look cheap and more liquid in term of number of share , can please explain what other benefit of bonus issue ?
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....
Eric Fong
1,201 posts
Posted by Eric Fong > 2015-05-10 23:30 | Report Abuse
Means their competition is a lot in the market