If u compare the segment report of Q3 and Q2, it seems that the steam/power segment is reporting a loss.... hope it is explosively profitable for punters like us!!!
2 x gearing is indeed scarry for trading company but Dolomite is different. Dolomite borrowed to finance its 100% owned steam and electricity power generating company in Shandong China. Talking of risk, the Bankers, (Maybank and others) are even taking higher risks than normal investors. We always hear of "no risk no gain"; only those who dare to take reasonable and calculative rtisk will be richly rewarded.
Dolomite has just disposed off its 50% + 1 share subsidiary company D' Marina for RM20/- millions as per filing to SC dated 20th November, 2015. High gearing will soon be manageable by 2016 as the cash flow from sales of steam and electricity will be utilised for repayment of loan taken for the project. I believed sales of steam and electricity will go full string effective from now. I also strongly believe what Icon8888 has written in his blog, - truthful and correct projection. Very soon Dolomite's earning will be exploded like a dynamite. Time will tell.
everyone with a slight knowledge of economy knows that an increase of revenue does not come only with increase price of commodities, but also sales quantity. In the circumstances of all mega construction projects that I know is all postponed perpetually, together with this company is once bankrupted and changed name, not going to take the risk
For 'pupu'. Your observation is correct! Our present state of economy is very bad and the trend is not getting better next year. However, Dolomite case is different. Dolomite has sunk into Shandong China steam and electricity project since 2011 for at least 197 Millions Ringgit and now it is generating income for the company. Soon the profit projection for Dolomite will be exploded along with prices
I just wonder if Icon8888 is referring to me or someone else. You are definitely my mentor; I am a newbie. Furthermore, I must say thank you to you for so readily completed the report on Dolomite. As a result of your good writing, this counter received the necessary catalyst and also enabling many investors to look at it closely. Judging from the volumes transacted recently, I believed many investors had zoomed into it already. I am still holding my Dolomite as at now.
For Icon8888, kindly let us know tp for Dolomite. Your description on Dolomite really fitting as the price of Dolomite has gradually exploited from 32 cents to now 50.5 cents (57%) at the time of writing.
Dolomite succumbs to profit taking today. Just my opinion to share with you, if you are still holding the share, please continue to hold it as this company shall report better profit this year than the last year. Kyy has advocated buying companies with this category, unless you don't believe this counter is going to gain on Shandong China plant.
For warrior, using 3rd quarter result as a simple guide, sales of elec and steam has reached RM12 millions (presumably not yet full production), and just times 4 you will get 48 millions; divide it by 263.5 millions you will get EPS 18.2 cents.for whole year. Of course, this is a very simplified tabulation, I did not include property development and quarry income for Dolomite, neither do I taken into consideration of subsequent sales of landed properties (51% owned) for 20 millions
Huang Jen Soong, director and controlling shareholder has converted 1,925,231 warrants into ordinary shares by paying 50 cents per warrant. This means that he paid RM962,615.50 to secure the ordinary shares whereas the market price on 22nd Dec closing was 47 cents. Do you think this is logical? Unless he knew that the company's share price is going to jump soon! Do you pump money into a company for 50 cents per share at the time market price is only 47 cents?
As written by Icon8888, Dolomite - earnings will be exploited like dynamite! Do you believe it? See how the Director behave? He did not talk much but his action has confirmed our view.
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