their plywood biz r rather lack lustre... will the new development project turn their fortune around? the problem is that they do not have continuous projects on hand...
Eksons is a loss making company that declared a surprising 5 sen interim dividend. Usually this implies that the company is confident of a minimum of 5 sen EPS in the current financial year.
-Dividend yield at 6.7%, possibility of payment every yr with pressure from a few famous individual investors
-Net-net value at RM1.46 even after discounting CA by 70%
-Cash per share at RM0.96
-Average cost for all shares bought back to-date at RM1.29
-Adequate and consistent director remuneration, only looks high in FY '16 and '17 due to low profits
-No insider selling
-After normalising profits for one-off items, only not profitable from 2016 onwards, mainly due to shutting down of Sarawak mill which in turn is due to shortage of raw materials (external factor), not weak management (internal factor)
-Diversifying into Taiwan and Korean market shows management's commitment for turn around
-Considering the above 3 items, i have faith in the management
-Unlikely lower profits from further impairment as only RM4.7m goodwill left, other impairments are insignificant
-No dilution of shareholdings
-After disposal of land in 2014/15, cash balance shot up, hence net-net value shot up, however share price remains stagnant due to bad profits outlook, a classic net-net
but price keep falling from 1.40 to 75cts.....take dividend 10 years also cannot recover......tipu punya bursa,dividend punya counter mostly down like msniaga
Company is losing money thus expect no dividend..that is enough to overwrite all the pros above. Recent dividend is consider an one off after almost 5 years of drought.
Cash per share at RM0.96 compare to current price of 0.75. Unless the major shareholder is willing to sell the whole company or distribute it as dividend otherwise its meaningless to retail investor.
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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....
Tipster
752 posts
Posted by Tipster > 2018-06-14 09:51 | Report Abuse
Yes... as long u buy before ex-date