For the past few years it gave div. about 8 cents as the first and final div. at the end of Dec. But this year it gave the first interim of 5 cents, so I expect a final dividend of 5 cents or more this Dec. since the earning will be better.
Why the directors keep disposing their shares? Shouldn't the directors purchase their shares if they feel that their company's future is good? It's frustrating.
with the average FCF of last 2 qtrs. (note: not taking the latest which is about 20% higher). And then only using 2% higher growth rate than FD for next 5 years, and then bringing it down to FD level in 5 years for perpetuity value calculation...
FLB buys Lumber (COGS) and sells plywood,veneer, etc (SR) like a middleman.
Between SR and COGS there is Margin which acts like the rubber flexible joint connecting the two it drags COGS along with SR eventually.. COGS lags behind SR by certain period.
Every time selling price (demand) goes up, its an opportunity to make fat Margin which eventually dissipates.. as the lumber (COGS) providers will also hike up price later due to demand.
Its not the absolute price that matters, its about FLB using this opportunities to make fat margin.
They had proven they can survive while it was down trending for years (rubber in relaxed state).. It should be much easier when the demand goes up (rubber being stretched).
Rosmah.. everything starts with household demand..(like what we have seen for hevea, latitude. homeriz)
If there is a good demand for wood based products, like plywood, veneer and etc....it would eventually cause the price of Lumber or the Hardwood logs itself to go up... (supply and demand concept)
If you check in IndexMundi, the trend of price between Hardwood logs and Plywood is exactly the same..
(1) My simple layman conclusion is if the Lumber price is going up, its because the demand is going up.
(2) However, it could also be due to scarcity (unavailability of Logs)..that will have detrimental effect on FLB Margin.
I doubt its the (2) effects as you know about hevea, latitude, homeriz very well...
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
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....
damagpie
281 posts
Posted by damagpie > 2015-09-28 14:28 | Report Abuse
what is otb tp?