The drop was started in the morning... so what's its telling is the drop is related to general market sentiment due to 1MDB etc (which is very prevalent on newspapers during the weekend & tenaga today).... if SIGN had dropped only afternoon then it could be related to bad earnings, as pple would know when they submit to Bursa... bottom line, sign does not have enough liquidity to house the short term traders at present, so bounce tomorrow? possibly... but am a long term investor... daily noise does not matter to me...
Congratz all SIGN shareholders, I am sad because my paper profit decreased so much for today, however I am happy with SIGN Quarterly Result, let hope the share price go back to uptrend tomorrow, good luck for all the SIGN investor and trader, hehehehe~
Hopefully I can still buy tomorrow at this price thereabouts RM2.38 or even lower... Just look at the results.. 9mths EPS RM0.29c... even if I assume 4Q EPS @ RM0.07c, that would mean an annual EPS of RM0.36c... take a comparative industry average PE of 8X (CIMB says 10X), the intrinsic value of SIGN is RM2.88 minimum ! Potential gain of RM0.48 which is approx 16.67% gain... and... NTA is RM1.28... if the receivables are converted to cash and pay liabilities, that would push cash holding to RM50million (after RM5mil dividend)..approx RM0.42c per share... high dividend payout possible ! I have bought Sign @ RM2.30 & RM2.60... so I'm buying further coz I believe SIGN can achieve the target price easily over time... definitely NOT for traders ! Cheers !
Trading at a low trailing P/E, which is undervalued as compared to its peers. -Healthy balance sheet and cash flows. -Net cash position. -Potential higher dividend yield in future. Its high DY would certainly make it an income stock. - It is on track to meet our full-year forecast, despite the increasingly challenging economic environment. Its resilient earnings are due to a large secured order book, which will sustain earnings for the next 12-18 months. -Profit margins should expand due to growing of economies of scales. -It will sustain double-digit EPS growth for more than three years.
<<<Confluence of opportunities>>> -While the overall property sector is seeing signs of a slowdown, Signature's operations have just started to gain momentum. Signature's earnings will be supported by:- -Being the industry’s dominant player for modular kitchen systems (60% to 70% ofmarket share), the company is poised to handle most of the industry’s major contracts. -The strong domestic property boom particularly in the high-end market. Job secured this year should be even stronger than last year. -Favourable housing trends for premier kitchen players; -An intensified 11MP and IDR, hence, contributing to stronger Project Sales. -Rising demand and supply of luxury homes; -Increase in housing supply. -Management has guided that its current order book stood at RM160mn as at Apr-15. This outstanding RM160mn would be converted to revenue and recognised in FY16 and FY17. In the meantime, Signature’s tender book has hit a record high level of RM400mn, which can be used to replenish its order book, given the tender success rate of 50-60%.
Sign (closed at RM2.38 yesterday) is now trading at a trailing PE of 6.9 times (based on last 4 quarters' EPS of 34.4 sen). At this PE multiple, Sign is deemed very attractive.
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....
ethankin
153 posts
Posted by ethankin > 2015-05-25 17:54 | Report Abuse
Yes..earn 11.2 cents, dividen 4 cents