Posted by nikicheong > 2017-12-09 10:00 | Report Abuse

@Jon, don't fall for the "sunk cost" fallacy.

Posted by Jon Choivo > 2017-12-10 02:15 | Report Abuse

nikicheong @Jon, don't fall for the "sunk cost" fallacy.
09/12/2017 10:00

I'll raise you this,

1) Don't mistake volatility / downtrend price with risk

It's current about 6% of portfolio. It's currently trading at ev/ebit of 3 flat.i use it mainly as a starting point, and I can tell you, less than 3 companies is cheaper in Bursa using that metric, ignoring redchips.

If I did not have it, I would bought some, but probably more like 3% of portfolio and prepared to average down to a max of 6 to 7% .

I cap it to 6-7% why? It's textiles, commodity, cost focused, low price flexibility. At 15% roic, it should be worth at the lowest book value. If its not there I don't sell.

One can now argue that they are better opportunities in the market, but I'm too lazy just too move 3% of portfolio around just to resize.

The mistake I made was in sizing the purchase, and inability to do proper opportunity cost comparison due to lack of research, but all in all, this is one of my less stupid buys this year.

If it had similar results as magni and went up, would I have been right then and would you be congratulating me as well as yourself as you would have bought it going up?

I definitely did not buy it for optimal reasons, the first was coldeye say can buy, stupid reason, you must still do research.

Second was that it was close to all time low when I bought, and cheap compared to magni valuations. Again stupid, valuation must be done on a bottoms up basis and compared to all other opportunities.

At 1.2, I couldn't sell. It was at 3.6, low enough to be undervalued. At 1, low enough to buy more, but I like the size at this price, unless I get like a million tmr or it drops to below 0.9, I'll probably still won't be buying more.

Below 0.9, I'll add 1 or 1.5% more.

Posted by PotentialGhost > 2017-12-10 11:19 | Report Abuse

Nikicheong his hevea go to longkang already ,he faild to sell at a good time , really idiot

Posted by PotentialGhost > 2017-12-10 11:21 | Report Abuse

Only brainless people throw his share when market bearlish , buy on bullish , like nikicheong

Posted by RainT > 2017-12-10 13:54 | Report Abuse

Is it a buy to average down or sell to cut loss

Posted by Jon Choivo > 2017-12-10 19:39 | Report Abuse

Depends on the size of it in your portfolio, comparison your other opportunities etc etc.

Posted by RainT > Dec 10, 2017 01:54 PM | Report Abuse

Is it a buy to average down or sell to cut loss


He likes MHB, i also liked MHB, but now its up, need to study more, not too sure.

MHB is also at a very good price i think.

Posted by PotentialGhost > Dec 10, 2017 11:21 AM | Report Abuse

Only brainless people throw his share when market bearlish , buy on bullish , like nikicheong

Posted by WalalaSonono > 2017-12-11 10:21 | Report Abuse

Tiu! all these pokai sochai hold onto losses. Everyday also cry baby now change name to comment each time to fish for support. Pathethic!

Posted by uptrending > 2017-12-11 10:57 | Report Abuse

https://www.runningshoesguru.com/2017/08/adidas-taps-automated-sewbot-to-create-800000-shirts-per-day/

Posted by Jon Choivo > 2017-12-11 13:47 | Report Abuse

No need you to support one, keep dropping, im ok. I know its cheap.

Investing in stocks is in more ways than one, the arbitrage between the price and the intrinsic value of the stock, given time they must converge. We just use margin of safety ensure that we can stand the fluctuations in intrinsic value.


WalalaSonono Tiu! all these pokai sochai hold onto losses. Everyday also cry baby now change name to comment each time to fish for support. Pathethic!
11/12/2017 10:21

Posted by uptrending > 2017-12-11 15:28 | Report Abuse

Automation is the way going forward....

Posted by uptrending > 2017-12-11 16:48 | Report Abuse

https://www.reuters.com/article/us-southeast-asia-jobs/millions-of-se-asian-jobs-may-be-lost-to-automation-in-next-two-decades-ilo-idUSKCN0ZN0HP

Posted by Vincent316 > 2017-12-11 21:00 | Report Abuse

Next week will publish reasonable good result

Posted by Vincent316 > 2017-12-11 21:01 | Report Abuse

Buying more on tomorrow

Posted by fkser > 2017-12-12 20:31 | Report Abuse

target 0.75 run run run

Posted by Vincent316 > 2017-12-13 20:28 | Report Abuse

0.75 is the last support point...
Still depending on the comimg announce QR.
Let bet a profitable result coming...

Posted by Vincent316 > 2017-12-13 20:29 | Report Abuse

Accumulated on these level....

Posted by Eugenehclee84 > 2017-12-13 23:12 | Report Abuse

Maybe qr will out this Friday...expected good results

Posted by fkser > 2017-12-14 20:35 | Report Abuse

good results like magni

Posted by victor9999 > 2017-12-18 15:28 | Report Abuse

sell

Posted by reiki6 > 2017-12-18 17:04 | Report Abuse

disappointed :(

Posted by nikicheong > 2017-12-19 14:02 | Report Abuse

Some value is emerging. Very attractive. Buy for the very long term (3-5 years++) and it should be a good investment. Be disciplined and average down every 15% drop or something, and NEVER SELL unless the fundamentals deteriorate.

Posted by Jon Choivo > 2017-12-19 14:07 | Report Abuse

Wow. I think its about time for a top up.

Posted by Vincent316 > 2017-12-19 21:19 | Report Abuse

I would say 0.75 will be next support level if coming Result are bad... But I foresee is similar to last QR...

Posted by PotentialGhost > 2017-12-20 00:27 | Report Abuse

prlexus already oversold , check out whole stock , even company making lose money also never drop like this。don't forgot prlexus have more than 100m cash 。

look at notion and caely case , earning making lose and prospect not bright but price shoot up?

Why ? Because market already oversold。

Market will rebound in someday 。many stock already near 2016 bottom and some drop more than new low

Posted by apolloang > 2017-12-20 00:38 | Report Abuse

how to go up? even major shareholder dare not own a lot.top shareholder holding less than 10%

Posted by DreamHigh > 2017-12-20 11:43 | Report Abuse

Lol. they said close to secure a new customer soon. Let's see how

Posted by fkser > 2017-12-20 13:51 | Report Abuse

Cheaper wait 0.75

Posted by uptrending > 2017-12-20 18:03 | Report Abuse

The biggest concern for apparel contract manufacturers in the developing countries manufacturing for those OBM manufacturers like Aiddas, Nike, HM, Fila, etc is whether the former will continue to receive orders from the latter.

With the advent of robotic automation in apparel manufacturing spearheaded by softwearautomation.com, OBM may like to have their factories located at their market place. Now, softwearautomation.com can only service the USA market... and Ruyi group and Tianyuan from China are setting up garment factories, with full automation, in the USA ...

What will be the impacts ? Low costs of labour will be replaced by robots and efficient logistics ?

Posted by reiki6 > 2017-12-21 16:12 | Report Abuse

slowly drop... deep deep downtrend! *.*

Posted by Pilotsport > 2017-12-21 18:19 | Report Abuse

Ini couter epf hari hari juah...
Cirakat punya epf...kasih orang mati juga

Posted by Pilotsport > 2017-12-21 18:28 | Report Abuse

Ni operater makan daik punya

Posted by PotentialGhost > 2017-12-22 10:18 | Report Abuse

Stupid weak holder keep throwing their

Posted by PotentialGhost > 2017-12-22 11:13 | Report Abuse

Ya tp 0.10

Posted by PotentialGhost > 2017-12-22 15:02 | Report Abuse

Add some , only 0.90 , 2year back to 1.92 113%

Kikiki

Posted by Jon Choivo > 2017-12-22 16:18 | Report Abuse

Wow.

Hahaha i think i might actually get to top up.

Posted by Jon Choivo > 2017-12-22 16:52 | Report Abuse

Its a fabric mill, not a manufacturing plant. Its to supply fabrics to their plant.

GP Margin got no compression yoy, still 20%. I dont sense that someone is really fucking them on the margins yet.

I think the automation thing mainly works for fast fashion, where you need flexibility and you cant do gigantic orders. Ruyi, bought over a retailer, i have a feeling they want to do their own fashion brand.

Cost base for very large quantities is completely different compared to smaller orders. Given that cost base of machines of 0.33 cents or RM1.32. That seems pretty close to the prlexus's one currently.

uptrending Fabric Mill
Building construction cost RM54 million
Facilities construction cost RM27 million
Machinery and equipment Rm33 million

Disproportionately low investment in machinery and equipment, how much automation is the new mill ?

Posted by noah > 2017-12-22 23:30 | Report Abuse

GP Margin got no compression yoy, still 20%. I dont sense that someone is really fucking them on the margins yet.
-------

Yes this fabric plant will definitely benefit Prlexus in the long run.

But in the short term horizon it will drag Prlexus down.
It will burn the cash pile of Prlexus (ALL their Right Issue gone plus previously conserved cash)

Prlexus market cap is 163m
The fabric mill alone cost around 119m
As you can see the fabric mill alone cost 73% of Prlexus market cap, which is shocking.
Never imagine a fabric mill will cost this much, at least for its Prlexus size.

It's not hard to anticipate a loss in initial stage of fabric mill operation, in fact the management also admit this issue in AR report.

Their word, not mine.
"Nevertheless, it is expected that the fabric mill
will incur higher depreciation and start-up losses in the next
financial year mainly due to lower capacity utilisation at the
initial stage."

Posted by sawa > 2017-12-26 09:44 | Report Abuse

I agree with noah lol serve the idiot right again

Posted by sawa > 2017-12-26 10:40 | Report Abuse

Collapse new low! Who still hold this is real sohai 0.6 coming

Posted by shareinvestor88 > 2017-12-26 16:32 | Report Abuse

Are u saying sell ?

Posted by fkser > 2017-12-26 21:33 | Report Abuse

AMEN

Posted by Vincent316 > 2017-12-26 22:16 | Report Abuse

0.75 is support point

Posted by RainT > 2017-12-26 23:21 | Report Abuse

Latest qtr cash around 104 million

If with the capex expenses coming about 119m , this company soon will turn into net debt

So high cash pile is not the strong reason now for PRLEXUS

Profit to drop due to start up costs and higher depreciation and cash pile to drop due to coming capex ...

Prospect look not favourable

Posted by noah > 2017-12-26 23:46 | Report Abuse

RM119m garment factory is simply way too ambitious for a company with RM160m market cap.
they should start with a smaller scale eg. RM50m and scale up phase by phase.
incur less initial start up cost and depreciation.

Posted by sl3ge > 2017-12-27 08:12 | Report Abuse

why quarter report hvnt out?

Posted by PotentialGhost > 2017-12-27 09:41 | Report Abuse

result never out never know , if you know you already bought hengyuan in 2.50 。can you explain why notion shoot up back from 0.45 to 0.66? Even next 2 year very worst prospect , prlexus 0.90 is a good bet

Posted by Dolly_Chai2 > 2017-12-27 10:12 | Report Abuse

RainT... your statement is not correct. If you look at :
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5606877

they have already spent RM33.3million (allocated fund from rights issue) for the fabric mill.
So they will be spending less for capex this year.

Posted by Dolly_Chai2 > 2017-12-27 10:13 | Report Abuse

i can understand that there are many "noble/just my 2 cents" ppl who pretended to be so kind to give you good advice to sell... if not, how could they bottom fish at much lower entry point? haha... think about it yourself...

Posted by uptrending > 2017-12-27 13:12 | Report Abuse

The real threat: ODM like Nike, Adidas, HM, Fila etc, move apparel production close to market places like USA and Europe where the market is for efficient logistics and they could even reduce inventories to nil or close to nil... all the contract manufacturers will lose orders.

Now funds are selling even at such low prices...

softwearautomation.com is the real threat !

sorry and not asking you to buy or sell !

Posted by PotentialGhost > 2017-12-27 15:56 | Report Abuse

Thx uptrending suggests , maybe you should go to magni page give magni shareholder a warning . you can save them in hell ,magni shareholder will thank you and pray you like jesus。