Overpriced and overhyped stock. This company cant even produce a decent profit margin with a big revenue. If i m not mistaken, this company is mainly engaged in selling hospital beds, NOT GLOVES. Gloves have to be disposed when they are used while beds dont have to be. So there's no strong recurring income for LKL.
I also saw the news that LKL is venturing into the gloves business and noted that LKL has already acquired a contract to supply gloves to china. I have no idea where LKL is going to source the gloves from since LKL doesnt have a glove production line. I think LKL might build one in the future which would take about 2 years( according to hartalega director). But by that time, vaccine would already be made available and demand for gloves would drop like bricks.
It's funny that this stock has a PE of 77 and trading at around RM1 when the prospects arent that bright at all. Fair value should be around 50 cents with a pe of 40( glove demand hype taken into account).
I would rather buy topglove( PE 37) that has a better profit margin and prospects than this lousy company.
everyday is a limit up bcos easy to say when can't analyses just shout limit up, limit down, run, .etc so many such guys in all forums and same guys in all the forums
Cash is about 5mil and current liabilities is about 15 mil, long term debt 5 mil. You think LKL can expand in the near term? LOL.
If lkl needs cash to build glove production line, LKL has to borrow more long term debt, which would raise the risk of defaulting considering LKL is already owing so much short term liabilities.
actually i'm curious why you all say need more bed in Malaysia? This is 2nd wave, we already have higher numbers during 1st wave and we already secured the beds that time right? the beds are not like disposable need to throw after usage.. unless the 2nd wave is much higher than 1st wave then diff story
noobi3 .... at first I thought the same thing about beds for hospitals. However, from what I read later, I think they sell other healtcare related products. And it's a profitable company. Correct me if I am wrong.
regardless 2nd or 3rd wave.. my point is hospital still got bed la.. dont just hope on bed la.. like what Sunshine say, LKL supply other medical equipment as well.. lets look at overall business opportunity.. funny when reading comments that bed is running out lol
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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....
MickeyLimitUp
422 posts
Posted by MickeyLimitUp > 2020-10-07 15:30 | Report Abuse
Waiting at 0085 for this old man hahaha... Worst performing counter awarded to lkl.. congrats