First question to ask is if they have world class products or not? if yes, moving into new markets takes time. Have some patience. After all the world is still recovering from pandemic.
they are just selling coffee product. it is not a high margin or difficult to enter market. competition is fierce. have you been to supermarket aisle that sells coffee product? they need volume. its a low margin high volume game. they need to expand into more international markets. but i think the management a bit lazy. no drive. hence share price is being punish for their incompetence.
they need to create more products, enter into more markets and change management to more aggressive and hardworking one.. Those old guards really too comfortable already.
Put it into perspective, only 1 director selling and not the main 3 founding directors. Mr Wong Tak Keong is an appointed CEO. And the disposal is merely PowerRoot Warrants. Probably in need of cash or other matters. Anyhow all these are merely speculations.
Changes in Director's Interest (202106043700243) Company Name POWER ROOT BERHAD Stock Code / Short Name 7237 / PWROOT Date & Time Announce 04/06/2021 06:07:22 PM Subject Changes in Director's Interest (Section 219 of CA 2016)
Content Substantial Shareholder's Particulars Name : WONG TAK KEONG Address : - NRIC/Passport No/Company No. : - Nationality/Country of Incorporation : Malaysia Descriptions(Class & nominal value) : WARRANTS
Name & address of registered holder
Details Date of Change No of shares Price Transacted(RM) Transaction type 04/06/2021 115,000 0.000 Disposed
Description of other type of transaction : Circumstances by reason of which change has occured
Nature of interest : Direct and Indirect Interest Direct (units) : 8,418,500 Direct (%) : 17.340%
Total no of shares after change : 0 Date of notice : 04/06/2021
Remarks You are advised to read the entire contents of the announcement or attachment. To read the entire contents of the announcement or attachment, please access the Bursa website at http://www.bursamalaysia.com
Changes in Director's Interest (202106023700270) Company Name POWER ROOT BERHAD Stock Code / Short Name 7237 / PWROOT Date & Time Announce 02/06/2021 07:00:01 AM Subject Changes in Director's Interest (Section 219 of CA 2016)
Content Substantial Shareholder's Particulars Name : WONG TAK KEONG Address : - NRIC/Passport No/Company No. : - Nationality/Country of Incorporation : Malaysia Descriptions(Class & nominal value) : WARRANTS
Name & address of registered holder
Details Date of Change No of shares Price Transacted(RM) Transaction type 02/06/2021 100,500 0.000 Disposed
Description of other type of transaction : Circumstances by reason of which change has occured
Nature of interest : Direct and Indirect Interest Direct (units) : 8,533,500 Direct (%) : 17.577%
Total no of shares after change : 0 Date of notice : 02/06/2021
Remarks You are advised to read the entire contents of the announcement or attachment. To read the entire contents of the announcement or attachment, please access the Bursa website at http://www.bursamalaysia.com
Diector Mr Wong Tak Keong arw disposing warrants.not mother shares.short term this counter doesnt looks good.but i bought today because this counter is have good fundamental .paying good dividend.nett cash. i will hold for. mid to long term.
I will be buying more if it goes below RM1.3. The all time low is around RM1.2 in year 2018. That year the result weren't as great too but the share price hovers between RM1.2 and RM1.9. FY2018 was merely earning PBT 9.4M with 1 quarter which is a loss. For this 2021, there's no loss making quarter. In conclusion, 2018 price point can be used as a nadir price point for PWROOT. Unless PWROOT continue to be loss making in upcoming quarters, any price point below 1.3 is the perfect entry. But who knows, it all depends on the value each of us see and the risk to reward ratio. For now, I see risk reward as favourable. In fact, I'd made a GTD order for a small investor like me.
Hahaha poor management…. jus bcs current they got problem only affect their quarter ,why not u give opinion what’s their management can do now if coffee and sugar price hike and Middle East vat15%
Their retained earnings left only RM5.7 million. Hence, with the quarter that doesn't generate much profit, they are not able to continue pay dividend. You need hv profit to continue to pay dividend. Hence, you can bid bye bye for now till they accumulate enough profit in the retained earning and then can start paying again.
Coffee, sugar and lastly dry bulk shipping cost has all skrocketed. It will eat into PW root margin. I guess that the reason their cost is so high last Q and PAT drop to 1M+. Upcoming Q might be on loss. So I think it i will wait abit longer. Maybe another 30% discount.
The warrant will be expiring in 2 yrs time but CEO has been on a selling spree. Warrant exercise price is RM1.54. Generally, i think his warrant is most free. So does that means that even CEO also not confident that the price will return to RM1.54 in 2 yrs time? At this price, at most, 10% upside but I wonder what is downside??.....The risk out weigh the reward at this point.
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....
stevenlowcb
30 posts
Posted by stevenlowcb > 2021-06-03 11:40 | Report Abuse
First question to ask is if they have world class products or not? if yes, moving into new markets takes time. Have some patience. After all the world is still recovering from pandemic.