Not sure if it is still relevant for you (since you ask this for almost 2 months).
I should not be too worried on the issue of cash flow. Yes, you are right to indicate that the net cash flow for operation is - RM29mil (cash outflow) for FY2018. However, if you look at the reason for the net cash outflow it is mainly due to the company's decision to increase the inventory level (which is normal given the new Bukit Mentajam factory that just started operation back in 3Q18).
The trade receivable has also increase from RM135mil recorded in 4Q17 to RM177mil in 4Q18. But if you look at the FY2017 annual report, you will see that 85% of the trade receivables is categorise as "neither past due nor impaired". I would only start to worry if the trade receivables categorise under "past due for more than 30 days" increased substantially. As of 4Q17 that category only represent 4.4% of the total trade receivable value. We will need to see the breakdown for FY2018 when the annual report comes out.
Hi @cricketlast , the FCF for Dominant for the past few years are really bad...all are negative.There are no cash coming in but only out... I accumulate this stocks since the price of 1.10... Not so much actually... But I am going to let it go tomorrow.... Not much room for the price to go up already.. the results seems fake without the cash flowing in eventhough the revenue & profit increasing.
Good to hear that you are still making money even though you are not bullish in the stock. Your profit should be higher if you take into account the dividend paid by the company during your tenure.
I guess your concern on the cash flow relates directly to the receivables which has gone up from RM110mil in FY 14 to RM177mil in 1Q19.
I was also worried previously of this increasing receivables but was reassured by the trade receivables ageing as of Dec 2017. RM 115.4mil was classified under "neither past due or impaired" which represent 86% of the total net trade receivables value of RM135mil.
Hopefully you will be bullish back with the stock once they improve their cash flow.
Good luck with your other investments. The current market environment is a bit bearish for investors. In my opinion, it is better that we stick to those companies that are strong fundamentally but is trading at a cheap valuation.
Will pick up very soon. Not to insults but logically sense, timber/wood demand is less significant impacted compare to others if you get me lol. By the way, the EDs take voluntary 30% pay cut starting Apr.
dominan is the only shares that still not rebounding despite other is rebounding from 19 March 2020 onward. Recently if you compare to the volume i think you can see the volume on April 7 onward is obviously higher than before April 7. Charting wise is stop the downside already, i believe in the near term should test 0.72 level, if 0.72 or 0.73 break up, the engine is start for uptrend. Morever company FA is not bad, each quarter giving dividend. If you said during MCO affected, maybe, but the price is already a big discount compare to previously ranging from 1.10 to 1.40. Genting also affected the most, but the share price also rebouding 50% from March 19.
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....
Desa20201956
2,286 posts
Posted by Desa20201956 > 2016-02-13 01:21 | Report Abuse
Weak financials and too unpredictable