FYI, I buy back now more. This is one time deal, loss due to forex in US plant for expansion. Of course it cause by margin drop but it lagging time, ASP price.. not entirely business is bad. With current 5.50 & below, it cheap, some more 23sen dividend by next 2 wk ex-date.
the quarter result only drop 25% in profit due to unfavourable market.....the revenue is keep on increase....the future of this company is good....i will holding it for long term ^^
it climbing back slowly, Lctitan group hold 76%, with today more small retailer sell almost their share, our hard-earned half year profit wipe out, I believe it will stable within 6.00 range. Since macro economy on Q2'18 projected to be better due to tight supply & demand, it should be good to keep for mid to long term for 2018 year due to production capacity increase on TE3 & PP3 plants.
When wednesday market open, might drop further, the only bright side is dividend high.. but what for if next quarter also margin squeeze and forex market unfavorable ?
http://www.klsescreener.com/v2/news/view/372789 It was a bit of surprise yup but I am still positive.......those who have doubts can simply close book I believe the share price might go side ways for another 3 to 6 months.
Margin compression was mainly due to negative margin spread Ethylene-PE since Feb during 2 big steam crackers in japan down for SI. Slow down in Indon's operation was the only option.
temporary setback due to unexpected currency factors, and higher crude-oil price, for 1st-quarter off- target result,but positive factors are still simmering,with rapproachment between North and south Korea,business opportunities would be expanding,
strickly speaking the strength of Ringgit is artificial, shore up by bank negara just for election purpose, after that may weaken again,so the Lctitan second quarter result would be more accurate , reflecting the true picture.
Though having a positive mind is important, I would still need to warn the management of LCtitan and I hope that they listen. Fooling the investor is not a wise move, the loss of foreign exchange for ipo is a one off transaction or what I truly need y’all to clarify. Your increased in sale for another 15% is the only reason I stay and I am not happy with the result showing in your 1st Qtr report.
If not because of your stupid move without noticing, your share price should not be short this way...and with the increase of revenue and sales even with the forex loss your share price should stay around Rm6+.~ Rm7...
You may ignore my saying, and I may close book..... thus my dear management team in LCtitan I am humblely advise y’all as a investor to hope that y’all won’t make the same mistake again and deal with the business problem with honest.
Ps..You have all the time and strength to make it better with better fortune, better image, you are better than that!
Look beyond Q1 with improved lagging ASP, positive margin spread and hence the better plant utilization ares something for you and me to look out for in Q2 and thereof. Stay invested.
If the management is not transparent and honest its indeed very difficult for us, shareholders to invest in this company. Just a few days ago at the AGM everything painted was very rosy. Yesterday after results announced it was the reverse. Really unhealthy situation.
Listed companies whose result are bad tend to cohort with proxies to paint rosy pictures prior to result annnoucements to trap small investors. Always take info with a pinch of salt
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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....
lkoky
539 posts
Posted by lkoky > 2018-04-30 15:19 | Report Abuse
maybe now, we only understand the mindset of the company owners. How come they agreed to a lowered IPO price from 8++ to 6.50
Given the company performance... the Korean just cant wait to get rid of this company, albeit at lower price.