Gave useless leap market stock, no one wants to buy. Only high net worth people could trade. High net worth people also won't look at these leap market counters la
Manage to break even only, disappointing results and who was the who said this is a responsible counter that always give dividend regardless of making money or not, haha
Was surprised to see that the company's revenue didn't grow in 1Q19 given the tax holiday period. Worst was the compression of gross profit margin (from 61.1% in 1Q18 to now 55.4%) which signals the very competitive market of high end products which includes other well known brands. Operational or EBIT margins has dropped by almost 40% from 4.4% in 1Q18 to only 2.8%.
I don't think you can use the 12 months trailing profit to come up with a PE valuation. The best is to wait for another 1 or 2 quarters to see if profit margin level recorded in 1Q19 would improve or not. I personally think that it would actually come down. Don't see how physical retailers like Bonia can compete with online platform like Lazada, 11Street or Shoppee.
The only relevant metrics that we can use now is the book value. Total net tangible asset to shareholder is RM0.43 per share which values the company at only 0.6x BV. But unless the company decided to liquidate or disposes of some of its assets, it might be a while before shareholders can actually "benefit" from the discount in book value.
Currently given the depressing market outlook there are a lot of companies that are currently trading at a discount to its Book Value. One of the company in question is MBMR. The company is a direct proxy to Perodua via its 22.6% interest. Valuation is cheap at only 5.3x PE (based on target FY18 PATAMI of RM145mil. 9m PATAMI is already at RM106mil). PB is low at only 0.5x BV. 4Q18 results is expected to be higher than 3Q18 and last year 4Q17.
Directors dissecting the company and acquiring it super cheap before privatizing it at an even cheaper price. They issue out CRG which had 8.5 sens NTA out of Bonia and placed it under LEAP market and now acquiring it at 2 sens!! Shareholding increased from 1% to 5% in just about a month. Very sneaky.
Very smart owner, put CRG under Leap so that those received the stocks can only sell but can't buy, as leap counter is only for high net worth individual. CRG can only go down but not up in the near term, whereas the owner could buy bonia at a much cheaper price too after the demerger. One stone to kill two birds, really smart move and good timing in execution under bear market.
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....
darkxfs
2,121 posts
Posted by darkxfs > 2018-11-07 09:16 | Report Abuse
sold already left 50k