buy shares when you don't know how to look at the accounts? facepalm.. look at the short and long term debts, and the cash flow what do you think of the impact of mco and ban on incoming travelers on cash flow? even mm2h residents cannot return, how to replenish the unbilled sales for the high end properties? no construction progress means no cash flow during the mco, cost and overhead remains high, possible to replenish unbilled sales? other prop companies make virtual tours (at least something although it may not work well), symlife? doing nothing? can the cash covers the cost and overhead for at least one or two quarters? with the bad economic environment post mco, is it possible to generate sales? if nothing works out, how to raise cash? borrow? private placement? rights issue? many others asset or cash rich prop companies can easily survive zero revenue, high cost and overhead times, but symlife... difficult!
don't be silly to look at the pb, nta (almost every prop companies trading at historic low nta and pb although they are backed by high assets and NET CASH) don't be silly to look at eps, pe (it means nothing because it doesn't reflect the future) look at the cash flow and overhead, and possible means to raise cash (it is bleak for symlife, don't even bother to do a cashflow analysis, waste of time)
epf is aggressively selling down property counters because values has emerged in many other sectors, especially blue chips with better recovery prospects even those property counters sold down by epf has better values than symlife
recent push up from 0.2x to 0.4x is simply based on speculations ignited by PUMP AND DUMP syndicates. outlook of the company has been deteriorating even before the pandemic. the management has a hand in destroying the values (1) terribly stubborn on going against the tide of property trend, keep insisting on high-end property instead of switching to affordable, (2) did a rights issue and used part of the proceeds to pay dividend (terrible mistake, cannot fathom why), (3) overexpansion relying on heavy borrowings, (4) oversight in appointing the wrong contractor for twy, these costly mistakes contribute to the terrible predicament today
briefly checked the numbers, cost of business at least 70m a quarter, cash balance 47m, short-term debt 140m, long term debt 300m, debt to equity ratio ~0.50 (high for a small cap) possible to increase borrowing? if not, be prepared for another cash call
unbilled sales dropped from 1b to 495m (unable to replenish sales even before pandemic), twy gdv is about 500m, delayed and only started to progress in the past two quarters, so current unbilled sales is mainly from union and twy. in other words, sales from star residences (main profit generator for the past few quarters) has also ground to a halt. so, mco stopping all construction progress is gonna terribly affect the cash flow and forward pe because there are no revenue from progressive billings.
SymLife is a good company ..comes 2021, when Star Residence project OC , then we will see the repatriation of dividend from Alpine Return .... The investment in JV company of close to RM300M in the balance sheet will be converted to cash and be used to pare down their debt taken for Symphony Square.
However, fingers crossed....hopefully, they don't over commit for their Lembah Ledang project ....
Collect? No way!! There are so many better options out there. Don’t be blinded by emotions. Be honest to yourself, the book looks good? Recovery prospects look good? Any better options out there? Do not fall in love with a stock!!
I think the reason why this counter is dead in the water despite an impending record breaking quarter is because investors will not easily forget what tan Sri did on the share price.
Last time, the share price was hovering at about RM0.60 to RM0.80 range...then, Tan Sri purposely priced the rights at RM0.36 and many shareholders who don't have the means to take up the rights are caught...
Ad warned, reality should knock some sense into sweet dreams of die-hard supporters. Told ya sales are drying up, especially after contributions from Star 1 and 2 have been mostly realized and Star 3 sales hit the wall, expect next quarter to be much worse with the halt of all construction activities. With almost nil revenue from progressive billings and cost of business around 70m, expect loss of 60m to 80m for next quarter
Symlife is not making money from property devekopment. Almost its entire earnings come from its office rental business. Which is more stable than property development currently.
Property counters start attracting buyers. Notice this stock with good latest quarterly earning=4.04cents per share. Moreover high NTA= RM1.58 and ongoing selling of 6 parcles of land. Super cheap 58cents per share now.
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....
RedEagle
3,194 posts
Posted by RedEagle > 2020-05-05 22:12 | Report Abuse
Slowly tapau