http://www.rvia.org/?ESID=currentmonth RVIA’s March survey of manufacturers found RV wholesale shipments finishing the first quarter of the year on a very strong note. Monthly shipments reached 47,579 units, an increase of 20.7% over the February monthly total and of 16.8% over the March 2016 tally of 40,740 units. This represents the highest monthly total ever for shipments on comparable record.
Plywoods prices have being increasing for more than 20% over the past 5 years. Plus Recreational Vehicles make a family of four a huge budget of more than 50% on holidaying outdoors. Over the years the sales if RVs' have being increasing by at least 20% in the US, especially for the younger generations. The future earnings prospects on average CAGR should be around 15%. If the next quarter has an average earnings growth of 20%, its share price will be Bullish. Good luck!
My sifu have studied so many these type of company with concentration of customer....his conclusion, if it is rightly manage it is a success.
example;
1. Classic scenic doing extra welll with single customer. 2. Tienwah with BAT also did very well 3. Hengyuan servicing just Shell company 4. YTL power service tenaga national. 5. Gamuda with their MRT project 6.Dufu service western digital & seagate
All the above indicates the concentration of customer....but they still did well.
If u examine FLB, this company ever since it is listed, it has done extraordinary well, with its profit growing and it is link to real hard solid cash generation every year building up.
The business sheet has been strengthening, now with such a fine realiable supporter, why take risk to switch to another supplier ?
Thus i say concentration of customer, not only all risk but there is a good opportunity too.
Btw Out of Rm 1.60 you invest in FLB, rm 0.90 per share of flb is real cash and balance rm 0.70 is operating assets which generate Rm 15 to 25 million pa or eps of rm 0.15 to 25 pa per share.
if you have too many distributors, you will create a price war for your own products. Try to imagine, if you are the only one own flbhd products, you can sell as high price as you want. :)
Stock is cash rich... Good earnings... Goes up because it is undervalue and has good fundamentals.... Wait patiently for the coming quarterly report...........
Those who hatred this stock and always wanted to sell lower even when they could sell higher are already out.... So, it would rise steadily.... hmmm.... just my thought...
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....
investabc
129 posts
Posted by investabc > 2017-04-25 21:50 | Report Abuse
Director is buying again