Dolomite share price is unlikely to drop below 50 cents for a very simple reason. Controlling shareholder and director will not pump in over RM1.5 millions to convert his warrants into ordinary shares by paying 50 cents per warrant. Furthermore,China steam and electricity plant has started making money selling to the State owned Electricity Board effective from July 2015.
Dolomite will soon publish its 4 Q result; I believe it will be good, otherwise controlling shareholder and Director will not convert warrants into ordinary shares to the tune of 5.25 millions shares by paying RM2.625 millions cash on 2 occasions (i.e. on 22/12/2015 and also on 13/1/2016)
The accounts department for Dolomite gave such justification below.
The profit before interest and tax of the thermal power generation segment for the year under review is RM 0.115 million compared to loss before interest and tax of RM 3.744 million in the previous corresponding year. The profit before interest and tax in the year under review is mainly due to gain on foreign exchange of RM 4.694 million.
The Group posted a pre-tax loss of RM 8.741 million compared with the preceding quarter pre-tax profit of RM 9.175 million. The pre-tax loss for the quarter under review is mainly due to loss on foreign exchange of RM 11.951 million compared to gain on foreign exchange of RM 12.051 million in the preceding quarter.
Last quarter's foreign exchange gain RM12.051 mil, this quarter become loss of RM11.951 mil. Looks like they are actually investing in a very uncertain market and the forex is highly fluctuate. Besides, still no revenue has been generated even the thermal power generation should be started the business at July 2015. 6 months without any power been generated. It is not an easy task to deal with those authority in China.
Wow very explosive indeed. Luckily did not buy woh .. One seriously wrong call. Indeed better to leave penny stocks and write about > RM1+ stock instead.
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....
kiasu_trader
343 posts
Posted by kiasu_trader > 2016-01-29 12:38 | Report Abuse
on profit 3k+ now