That's ridiculous bring goods back to US manufacture. Think about it, Apple iPhone/Macbook that manufacturing in China bring back to US, it will be sold at very high price due to higher cost. So for Nike as well, that will never happen =)
RM 6 is only PE 10. Please take into consideration that : 1). Magni is a net cash company, with dividend close to FD interest. 2). Magni is a growth company. From 2013 to 2017 Revenue doubled. 3). Magni has additional capacity coming up in 2nd half 2017. Magni already set the right footing at Vietnam. Prolexus only plan to follow lately. 4). Magni supplies to NIKE. Revenue of NIKE never went down in the past, not even during 2007 - 2008.
Any investments comes with risks as well. Don't forget that Nike's revenue alone is more than 78%. Although they have long term relationship, Nike has more than 400 other manufacturers across the globe. This means many others can do what Magni is doing. Nike can switch manufacturer with just a snap of the finger. Magni's PE also never exceeded PE of 10 before.
True there is growth. True there is good track record. True that it looks undervalued compared to its prospects. But make sure you are aware of the risks. Protect yourself as well. Make money safely.
Why sell Magni? First growth phase by this june 2017 with increase capacity of 6m pieces on top of the existing 35m will be 41 pieces and so at least 15 % increase in revenue by sept 2017!
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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....
WiseVictor
148 posts
Posted by WiseVictor > 2017-02-07 14:59 | Report Abuse
That's ridiculous bring goods back to US manufacture. Think about it, Apple iPhone/Macbook that manufacturing in China bring back to US, it will be sold at very high price due to higher cost. So for Nike as well, that will never happen =)