As if less losses with each passing quarter, from almost RM 100 million 4Q2015, to over RM 45 million 1Q2016 and RM 18 million 2Q2016, should be a blessing?
Really in no mood to read the quarter report in detail now, will do that later tonight. Sigh!
As mention earlier, Puncak to record loss due to lack of core buisness to cover operating cost. These is consequence of holding cash but without profitable business resultant slowly burning cash hoard to cover cost running. However, part of the higher cost is also due to Puncak tender cost on several project and setback in underperformance of its subcontractor.
In short, Holding cash more than its share price is NOT a solution, neither, request company share buyback is also not at all to turnaround, as it will ending similar consequence to record loss, unless, company opt to cash payout and gradually heading to non buiness or delisted ultimately. The main culprit is company lack of core profitable buiness to cover cost
Being listed company, if wan to sustain, Puncak must acquire new profitable buiness to sustain its future, so long, the buiness is profitable ( imply the business Not only can cover cost operation, but generate positive income to its bottomline ) and the higher the generate ROE, the better, if materialize, Puncak financial will be able to turnaround.
As told, Puncak alrdy eying on triplc which hold concession and ready for another second concession commencement + owing Landbank. Although the acquisition is related party transacted, but, if Puncak acquire it at fair valuation price, then, it will be its first step in turnaround. The more profitable new buiness acquisition, the better it perform next. The closer example is what happen in KPS, follower Puncak will be next.
Remark: although I state clearly previously to obstrain comment here again, but, I hope today comment is my final last.. Thank you.
never understand, why's so many 'care' about me and ask me to sell?
hng33, I am sorry if my statement has angered you. I just meant to express what I know. While I have disagreed with you on valuation, I never disagree with your trading success. Otherwise, I won't be trying to sell at 1.08 and buy back at 1.06 previously. Not a success story to tell, given spread and quantity involved though, haha...
Final word for you....cash is meaningless unless payout as dividend or acquire profitable business in order for valuation to be peg on recurrent earning. Cash MUST BE USE, so that only then, cash can show its purchase power....
RM 1 invest in profitable business to earn 10sen net profit will allow market to give full and fair valuation for its RM 1 invested to be treated as assets value at RM 1 if peg at PE 10x, However, discounted valuation will be given if RM 1 is deposit as cash.
I have alrdy in profit triplc and KPS exposure to backup as pledge and to leverage on it to gear up to increase exposure in laggard Puncak. 26/08/2016 10:51
Sorry, Hng33, maybe my English standard not on par with you, I just don't understand what u trying to say here. LOL
What i mean is that i have bought many KPS and triplc when both of them on weakness, and now both of them already rebound back and in handsome paper profit already. Therefore, i afford to gear up to buy more Puncak on weakness, to repeat success again.
When KPS and triplc on selling pressure, weakness, many like to curse them.....but once selling pressure over and rebound back, many like it. It will happen in Puncak again.
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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....
r°Moi
5,802 posts
Posted by r°Moi > 2016-08-23 16:48 | Report Abuse
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Well.... 2 options
Trade volatility... if there is volatility
Wait for JV with puteri-puteri.. to court Hadi.. for Kelantan water concessionary