Even with price to book value metric alone this company is undervalued. So if they go bankrupt, as shareholders we will be well compensated.
Add that with the fact that this company has been around since 1984 and grew to this level because of the founder's effort and persistence, I believe it can grow further.
Pay attention to their supply chain and customer base as well. Nearly most of it is located in Malaysia or Singapore. Within their vicinity which is a massive advantage.
If Singapore does run out of bread since they are facing flour shortage at the moment. Singapore will have to loosen restrictions in its borders to import bread, and they definitely won't go too far to import bread from Indonesia so they'll go to their nearest, safest supplier, Malaysia (Covid under control here), or specifically Johor. And SDS is literally headquartered in Johor.
Their only disadvantage at the moment is their franchise business which I personally am not confident about, but due to Covid they will have to focus maximum effort on their bread production to satisfy demand. Keep in mind they also sell burger buns which has been flying off shelves in Malaysia thanks to Ramly burgers shooting up in demand.
Glove stocks have been shooting up for the past few days, but please think in economic terms what happens if there is a flour shortage in Singapore, low PBV, founder-led leadership and 36 years of market experience.
I bought shares in March, up by 30+% right now. And even if by any weird market circumstance they end up performing badly, stocks will crash and i will keep buying more because when they go bankrupt, after paying all creditors, they will have to pay shareholders. The largest shareholder is the founder. He will definitely want to be compensated well for decades of hardwork, he will definitely negotiate to liquidate at higher prices resulting in favourable returns even on the downside.
All of this is just my opinion, if you disagree with any of the points, feel free to correct me as it would be a learning opportunity for me as well.
for sure results is negative and is a trap for sure. Fund EPF and Kwap is try to goreng up and lure small ikan bilis to hook up. when a lot of small fish is hooking , they start reduce their stake.
Still undervalued, they IPO'd to pay off debt and accelerate expansion. Both of which they accomplished. They reduced their liabilities by 15 mill (proof for paying off debt). They increased their assets by 8.5 mill (proof for expansion). All this done despite declaring profits. Personally, I would have bought more shares even if they declared a loss, as long as they fullfilled the criterias they promised to accomplish while growing cashflow which they did.
yo yo yo you guys are going crazy, if a stock rises up too quickly, especially during a recession it will crash quickly, I love and believe in this company, but Investor sentiment is too crazy right now. I sold everything. Will come back when it crashes, and it will. Even the directors are selling off their holdings. Goddamn, I knew it will rise up but this is insane.
Roti together with curry....Sedapppp.....buy lahhh.....new support line is 295....daily trader lock up at 330..335...buang buang pun still win lahh...got some when it reach 295...hihihihihi
SDS's debt to equity ratio (47%) is considered high. SDS's short term assets (MYR29.3M) do not cover its short term liabilities (MYR33.4M). TP is 0.13 cents.
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....
IANFUJI
277 posts
Posted by IANFUJI > 2020-06-12 15:49 | Report Abuse
TP0. 26