Since ppl here are curious why despite few quarters of Net profit growth but share price keep going down especially those that follow KYY half boiled rule.
LONBISC borrowing is high but not excessive. The reason for its sliding price is because of contracting EPS over long term. Don't look at Net Profit, but EPS because of its frequent share dilution thru PP. Apart from that is the company inability to generate real cash, hence resulting in zero dividend payout and constantly raising cash thru PP.
Total debt is about 386.85 millions according to The Wall Street Journal. Right now the market cap for LONBISC is about 90 millions. Cant imagine how much more PP need to issue to cover the debt.
On top of that, the accounting scandal issue still have not been resolved yet. The audit should be finished by July 2019. Until then, might be risky to enter.
One thing I am concerned with company that appoint too many family members into the key positions is that it limit the real potential of the business. Should hire real talent instead then can unleash real potential and bring in real profits.
Ok . Guys I need to tell a story . Ivan got watch a few food counter including bjfood appolo nestle fn oldtown last time. Because ivan believe food is very important for the world.
The story about bjfood. A few years ago when bjfood attack down to near 1.20 ringgit ivan keep average price. Many people started saying run bjfood vt magic no bottom will drop below 1. Ivan buy from 1.40 until 1.30 . Why because ivan see many ladies addicted drinking Starbucks . So finally I guess you all now what happened on my bjfood. Of course ivan already sold all bjfood because if not sold where got fresh money to invest in other Insas. Apm.affin . Tenaga. Inari.harta all use bjfood money to buy. Why buy London. Because we still can eat biscuits. Business future is oustanding super good results. Now the problem is the boss willing to share the money . If the boss is follow Sanichi Boss attitudes then I regret. AS WE KNOW SANICHI Boss . Sanichi is a cash rich undervalued company in bursa. But sanichi keep asking people money from ri and keep consoli once share price drop near 5sen. So we call Sanichi is King of right issue and also king of share consolidation in this world.
I only can said is very good results . Revenue can same as big cap . I dun want to attack any people . Just hope the people keep say this no good can see the new qr . As we know many good company get red bomb including king of transport in Malaysia yes I saying tiongnam logista also give loss qr . But ld is doing good and improving . So please dun miss lead people . If you want buy cheap just buy now 30sen . If you hope people panic sell after you keep saying bad just stop . Ld business is very good for now and future . As I said many times l earn many money on bjfood when people keep attacking bjfood. Food business until you die also is a gold business.
The Group recorded a revenue of RM121.6 million with profit before tax of RM6.1 million for the current quarter as compared to the revenue of RM109.0 million with profit before tax of RM5.7million in the preceding quarter. The profit before tax has increased from RM5.7 million to RM6.1million.
Profit increase to 6.1mil.
Negative cash flow but with FDs up to 8mil still a hinge.
LONBIS need to come out with a better solution for their high debts and receivables. So far, sales of biscuits are good. But to settle the debts need longer time.
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....
Daily8
3,858 posts
Posted by Daily8 > 2019-05-07 17:20 | Report Abuse
Once the private placement completed, will see clearly the direction of the company.