I understand that some may be impatient, but if something gets more and more valuable with no change in the price, just buy more.
Personally, i don't think i will beyond reinvesting dividend, because its close to double my second largest position, and i have other things im thinking about and buying.
But ill be holding.
The key thing you guys need to look at, is if there is a new boom in the government servant personal loan space (this is bad, because i dont see civil servants or their salaries increasing much), is rcecap starting to act very aggressively?
If the growth in revenue or profit is more than 10%, ill be quite worried and studying hard, because i dont think you should be getting those growths level unless you lower standards by alot.
Right now, average loan size is Rm18,000 instead of RM15,000. Im not sure if i like this or if its a good thing, or neutral.
=== Tan Issac all time high earnings but share no moving ,why??? 26/02/2019 18:46
The CEO has said this, and on more than one occasion before:
Loh, however, is not writing off the possibility of RCE growing as strongly as before. “I think it’s a bit too early to tell [with there being so many uncertainties]. In the past, we were more aggressive [about growing]. But you will notice that the focus now is more on quality loans. We have to be more responsible in the way we extend facilities to government servants. We can actually ‘turn on the tap’ and continue to do what we were doing, but then, you’d have higher non-performing loans (NPLs). So, that’s why, if you look at it now, it’s steady growth [that we’ve got now],” he tells The Edge.
For the third quarter ended 31 December 2018, the Group posted a higher revenue of RM67.0 million as compared to RM64.0 million in the corresponding quarter. This was mainly contributed by higher interest income backed by expanded loan base and steady growth of quality loans portfolio from its consumer financing segment.
Pre-tax profit of the Group was RM35.5 million, representing RM5.5 million or 18.3% higher than the corresponding quarter. This was contributed by lower allowance for impairment loss on receivables.
EARNING SHOOT UP DUE TO MORE QUALITY LOANS AND LESS BAD DEBT.THUMPS UP.
Recently I bought @ RM1.50 and sold @ RM1.62. But today buy again bcs this financial result earning/profit keep increasing. The profit is consistently increase over 7 quarters. Revenue also shows increasing. Well manage company. Its major shareholder is Ambank boss. Ambank also score well.
I have no idea why people keep selling rce cap , even profit keep increase stable and good dividend . They still sell everyday . Good good . They brain only left sell word.
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....
GLNT
566 posts
Posted by GLNT > 2019-02-26 18:20 | Report Abuse
Well done RCE!!!