Weak holders worried on 4 things: 1. weaker coming QR 2. changes of directors/management. 3 Tguan plastic & F&B might incur operational losses. 4. foreign exchanges losses. These are likely reasons they took profit instead of holding for another 3-4 months for better clarity of matters. Imagine a prudent and conservative Board even provided allowance for impairment on receivables up to RM3.374 millions and yet investors are so afraid to see a slight drop in profits. Did they see the whole picture that FY 2016 improvement over FY2015? Even dividend declared has improved from 9 to 12 cents. I believe TGuan share price will trump up I n 2-3 months time. Thank You.
Look back to 3 months ago, during November 2016, the share price spiked from 4.0+ to 4.4+ prior to the announcement of QR. Subsequently, Tguan's announced decent result and the share price drop from 4.5+ to 4.2+. If follow the trend, the result is improved compare to last year, yet the share price drop from 4.8+ to 4.3+. I believe this phenomena is the management/insiders bought before the quarterly result/board paper and sell when announcement of QR. If management do not propose any corporate exercise, very unlikely it will break RM5.
If it drops until 4.00 I will buy more :D I think market are chasing growth now..so this type cinaman company ppl tend to stay away until up liao market will chase..just like LeonFB..Congrats Up_down!
Low premium to the mother share could be due to various reasons below:- 1) Dividend payout increased 2) Mother share not active 3) Warrant up from RM1.50 - RM3.30 within a year. 4) Profit is diluted due to LA and WA. 5) Change of management structure or Major shareholder choose to dispose WA and not convert it into mother share though no premium.
Sometime no need to think much... TG is still earning money year by year... not like others company losing money.. I just buy and keep as I trust their coming performance..
I bought a small amount of the stock today. The stock is very promising due to depreciation of ringgit. The company is still on a growth path. Now the stock price is very cheap. If the stock price drops more, I will buy more.
The problem here is the dilution effect of loan stocks... i have been diam dism collecting whenever price drop.. not much bullets already to keep on diam diam collect... Lol
I remember i read somewhere that TGuan managements want to grow Tguan to capitalize at RM1bil in 2020.. means the share price will be doubled up in 2020...
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....
HuatRex
2,617 posts
Posted by HuatRex > 2017-03-06 20:54 | Report Abuse
6 red long candles. Let's see if tomorrow will form another red candle.