@observatory - thanks for your input. I checked the document you mentioned, and googled for the difference between the two items, and this is what got:
Sundry Receivables Definition: Small, miscellaneous amounts owed to the company by various parties for different reasons. Examples: Refunds, small debts, reimbursements, etc.
Prepayments Definition: Amounts paid in advance for goods or services that the company will receive in the future. Examples: Advance payments for goods, services, rent, insurance, etc.
Anyway, in the latest Q, the receivables have reduced to RM123.5 mil from RM151.4 mil a year ago. So, this is no longer a concern.
Hard to say as business is dependent on one major customer, not sure what is their moat. Also depends on what they do with the cash. If more of it comes out as dividends or share buy back and assuming business goes on as usual, will be worth more.
Don't need to say target price like broker..it's a waste of time. The biz is very simple and it's benefit from trade diversion. Do remember Magni is just one of the many supplier to Nike and it doesn't matter.. they have been doing this for so long.
Best gauge for this kind of business is DDM. Assume it continue to pay 4 cents every quarter (annualise) and discount it by 5% yield. That will be will roughly the price that i will pay to take over the whole co. This co is a turtle co and not suitable for goreng kaki. So dont need to look at here.
2.48 now. I view it as a window dressing as this counter sits inside portfolio of many dividend savvy funds, besides the div, the funds need to show a year end closing with growth in value.
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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....
ProfitBaM
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Posted by ProfitBaM > 2024-06-25 22:29 | Report Abuse
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