ppl selling tguan because the price stagnant even downwards recently.
because some ppl found other value stock like superln iqgrp success johotin vitrox penta mmsv dufu dnex krono up multiple percent. yes. those value stock is fully valued or uptrend potential.
ppl dissapointed due to tguan no up but i think we shd have other than common since it is good time for collection. those went up we cannot chase because warrent said:
Patience: Anytime you find something that look like massive returns usually means massive risk. Pigs get fat and hogs get slaughtered.
Patience is truly a virtue. Take your time, dont try to get rich overnight. Never break your rules.
Individuality: I have often found that if I was doing what everyone else was doing...... I was probably doing it wrong.
Not to waste time on this stock since May supposed to be the month to release its financial reports . If the financial reports for May didn't turn out to be juicy , those who bought might got stranded and to wait for several months for the next results . But one thing l'am not too sure why the company proposed for shares buy back . Is it to force down the price to collect cheaply at this point where the stock price is still above RM 4 . Could be vice versa and got to wait for the game they know best .
During 2014, TGUAN announce right issues 2 shares for 1 loanstock and free 1 warrant for every 2 loan stock subscribed. At that time TGUAN have 105,211,500 unit of shares.
I assumed all the loan stock and warrant are fully convert and exercise by 2019, at that time TGUAN should have maximum 184,107,875 unit outstanding shares.
TGUAN pass 4 quarter net profit equal to RM 58,086,000, divided by 184,107,875 unit of shares can get EPS 31.55 SEN, the price now are RM 4.40 divided by 31.55 SEN we get TGUAN PER 13.94.
Look at Plastic Packing competitor’s PE as below ( I do not take in SCIENTX as SCIENTX major on construction):- DAIBOCI: 31.47 SCGM: 29.0 SLP: 22.63 TOMYPAK: 19.74 ADVPKG: 15.94 BPPLAS: 15.44 TGUAN: 13.94
What’s wrong with TGUAN? The MORE CASH, MORE REVENUE, and MORE NET PROFIT among their competitor but with LOWEST PE RATIO?
Is the market STUPID give TGUAN lower PE?
No, I don’t think so, must be something wrong with TGUAN.
TGuan is now having ICULS and Warrants. If you convert all ICULS and Warrants into ordinary shares, then, the P.E. is higher than most of its peers. Furthermore, TGuan is in an expansion mode and yet to be proven successful in its food and beverages operation. Time will tell if TGuan is better than its competitors in 2-3 years times.
I was quite lucky to sell off more than 60 % of tguan shares for the past few days with minimum losses and if l decide to hold on till today it might go worst as expected . I expected the usual 10 or slight increase in profits is insufficient to offset new machineries for expansion purposes
One thing the management are more concerned about the company future growth rather than minority share holder's . With this type of expansion l expect they need another 2 QR to achieve real profits . Dump first buy back later only when the time suitable
(i) volatile plastic resin prices, (ii) foreign currencies risk, (iii) lower-than-expected contribution from its China- based subsidiaries, and (iv) lower-than-expected margin.
Summary from an invitation talk by the Director
- control 12% rubbish bags sales in Japan, export 80% sales to oversea (Foreign currencies risk as the RM is strengthening) - bought 16 acres land in sg petani, plan double turnover in plastic packaging in 10 years stretch film export to more than 60 countries rubbish bags consist of 25% sales for the group PVC Wrap new factory with 8 lines production in 2017 (volatile plastic resin prices and lower margin) - R&D co NEWTON to help develop new products (new investment? uncertainty on ROI) - Tea and coffee division will continue to grow (based on the Mar'17 quarterly result, profit margin dropped drastically on these division) - Organic noodle (Golden Noodle ) and baby noodle to market it to china (lower contribution from China market as not easy to venture into China food market, expected to incur losses or lower margin from initial stage) - Marche master franchise business Opening soon in pavilion KL (never mentioned in quarter result) - Try to enhance branding by moving up value chain to avoid competing with SCIENTX (merged with GW Plastic in 2013) (vision 2020)
** in the pipeline to have bonus issue (too late to announce bonus issues as investors already fed-up
One day urine and three days shits is all investors in tguan learned a lot . 2morrow another monthly period day for Tguan shares . ...... red . ....red .....and a sea of red hibiscus . .....wtf man !
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....
Ryan88
1,327 posts
Posted by Ryan88 > 2017-05-24 22:56 | Report Abuse
buy before too late