My main concern is on the impact of minimum wages, but believe that management can do something to mitigate it, and they did. So now only left with reason to buy.
last time I kept buying when see this "delay shipment" thingy. That time still doubt whether it is an excuse, but the sales realised in subsequent Qtr.
The whole fl property, plant and equipment only account for RM 30m. It is unlikely to cost significant capex to just purchase new machninary to process new size plywood. The other investment of more than 60m is liquid assets, likely is placement of fund for short term investment.
A clever business man will think this is lucky when the delay of shipment due to vessel can benefit by collecting payment with a higher USD rate. Don't be so pessimism when you look at only quarter report. Yes, it look bad in when you only see if there's earning improvement but underneath flbhd is a cash cow. Its cash flow is still very strong and i think most people under-estimate that it has no borrowings at all!! Cash in hand will be more and more... and as long as they give dividend which they are very capable, i say no problem. I will look forward Q4 results which will be very good (extra 11.8million sales + extra forex gain on receivables + plus better selling prices with higher USDMYR + dividend announce)
Let us not forget that management is currently in the midst of finalising a deal to acquire new machinery producing plywood with different sizes and specification which it's current production facility is unable to perform. Management aims to increase the sales volume to US market with the production of these sizes of plywood.
Patience is virtue, those who cannot be patient enough, feel free to sell.
If come down to Rm 1.20 to rm 1.30....raider also happy bcos can collect more....!!
If don come down stay at Rm 1.70....raider also ok...bcos if that is the case....it is selling pressure all gone...price can move up to rm 2.00 loh....!!
Long term investors strategy very steady mah....!!
i can see and conclude that whether u think it is a good thing or a bad thing, both parties agreed on one thing.. price will go down tomorrow. the ones who think its a good thing want to buy when the price DROPPED. the ones who think its a bad thing want to wait for it to DROP lower..
profit down... share price will be down like shit.... you will see at 9 am. profit down a bit only, share price down like lou sai. profit up a lot, share price only up a bit.
The delay delivery is not due to its business operations, it is due to vessel. As sabah shipping company do not have many vessel going to USA, there are not many things flbhd can do except to appoint other shipping company which might have the same problems too.
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 > 2016-11-21 20:09 | Report Abuse
The company is planning on increase products range ler...Revenue will be growing in the future