Certainly, the next 2Q is unlikely to be able to beat last year. The Tax Rate is much higher now, the Forex is much lower now. This eats into it's Net Profit. But that should not be the reason why you are buying this stock, cause if you are, you are doing it wrong. Very, very wrong.
The reason why you should be buying is simple, "Focus on the downside and the upside will take care of itself". - Mark Sellers. You are buying this stock because it's cheap enough, and the bad news already factored in the price. When the downside is limited, it makes a lot of room for upside. Understand that "Wonderful companies become risky when people overpay for them.” - Peter Lynch
Also Understand that timber is also a form of commodity, and is subjected to reversion of mean. When you buy at the low now, when it reverses to the mean, is how you make a profit. Some call this contrarian. I call this simply known as "Investing".
Plus, real fundamentals don't fluctuate day by day, not by forex, tax rate, etc. That's not how fundamentals works.
increasing material cost and tax expenses is a big headache for this company. but you still can pray hard that there is good forex gain to cover the extra cost. good luck
Bro aeric, eps 9mil last q3. 4.5mil is forex gain. It has nth to do with the business. Ask your fren. Any improvement on the revenue? I am more concerned about the growth of its revenue. :)
@chl1989 The fcf is damn superb lah. 13mil average per annum. But ppl do not appreciate that. Ppl just look at earning :)
Hahaha! I've finally found someone who has the same view as me. 知己啊!Cheers!
Current Ratio is 12.85, Quick Ratio is 9.70, Financial Leverage is 1.08. No debt, Tons of cash and liquidity. High FCF generation. "Focus on the downside and the upside will take care of itself". - Mark Sellers. In the worst case of financial crisis, FLBHD won't bankrupt.
The only issue is it's Cash Conversion Cycle is a bit high. I can only say, one man's trash is another man's treasure.
At current level of valuation, cash flow and cash on hand, no growth is required to propel the share price. The only thing to watch out in the short term : KYY dumping.
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....
tksw
12,831 posts
Posted by tksw > 2016-09-02 09:28 | Report Abuse
when the staff cost rise, normally the bosses will squeeze the workers ler