From recent price activities, it is now very clear that insider had performed pump and dump and i believe quite some ppl kena trapped. ESOS and shitty qtr, dont forget IPO 0.63. I will avoid this counter, at least for another 3 months. There is really no reason to rush in now.
Advancecon, the management system have problems. Late delivery of projects are bad for long term and will lose the trust of future contracts to be awarded. The WCE and Pan Borneo projects were delivered late, thats why resulted in lesser revenue and net profits. The Management of Advancecon, to begin with, are very suspicious to begin with. Its IPO was delayed twice in 2017 ( May deferred to July due to some irregularities with Securities Commission and BUrsa Malaysia). On top of that, to issue up to additional 15% of new shares as ESOS will further dilute its earnings. Medium to Long term outlook for Advacecon seems bleak, unless next quarter they show a tremendous increase in net profit.
"The Group's revenue for current quarter under review was lower than immediate preceding quarter mainly attributable to slower than expected progress for major infrastructure projects under the Group. In particular, progress was affected by delay in handover of project sites by the project principals and the occurrence of adverse weather pattern compared to immediate preceding quarter. The sale of construction materials was also affected due to reduced construction activities"
It is the delay of the project sites handover by the project principals to Advcon. Not the Advcon who caused the delay. Advcon cannot start work when the sites not handover to them. As they continuously awarded new projects, that will stabilize their pipeline. Hence more stable earnings.
Advcon stated it may takes 1 or 2 quarter to back on track. Within these 2 quarters, if they continue securing new projects, then may collect on weakness. No rush to go in. See where it land and stabilize first.
sulah beli sikit now diam diam luluk tengok saja, scare to buy somemore....very takut lagi ada olang ciakap the word "con" ya ya ya...correct Mancon..bungkus, pilecon...also bungkus but now the word con ada sikit baik leow , u see Econpile flying high
mahad13, why need 1 or 2 quarters to (get) back on track? Are they facing complex problems/ challenges? They said " delay in handover of project sites by the project principals". Can Advcon put up claim for the delay? thks for the clarification
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....
optimus9199
2,794 posts
Posted by optimus9199 > 2017-11-28 20:03 | Report Abuse
Margin compressed due to bad weather ad late delivery of projects