History will repeat itself for this share. All investor lost interest cut lost and price drop to pitiful level. Then owner privatise at super low price and laugh to the bank.
Current price 68s My sympathy to those who bought at RM1.10 (IPO price) and got stuck there! Cannot disagree that your bad comments above are indeed justified or warranted. But at current price, there may be VALUE in LHI. Chicken price has since improved from the lows of Mar 2020 caused by the pandemic. Many smaller independent chicken farms have since closed down, exacerbated by relatively high feedstock prices. Demand from hotels, restaurants and cafes has been dismal but there should be light at the end of a long tunnel, on this supply and demand equation. Luckily LHI has its own feed-mills, their latest Philippines feed-mill should be in production by now. They also have their own feed-mills in Vietnam and Indonesia. Their Baker’s Cottage looks like quite successful judging by the number of people going to buy their RM11.90 chicken [No need to cook – dinner’s ready!] [KFC & McD do not have their own chicken farm so their input price is higher!] Lastly US giant food processor Tyson Food last month bought MFlour’s 49% poultry business [Dindings] for a whopping RM420m [MFlour cap is RM921m] If 49% Dindings is worth RM420m how much is sum-of-parts LHI companies in Indonesia, Malaysia, Vietnam, Philippines and S’pore worth? You work it out ....
Are you the victim of the last round of pump and dump? Look at CCK, same industry but already fly from 0.55 to 0.70 now. Don’t waste time on this counter. Lose money then just move on.
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....
Jeffreyteck
4,247 posts
Posted by Jeffreyteck > 2020-09-09 12:18 | Report Abuse
Not bad, still can see reasonable supports.