Market Observations

Hevea Revisited

CorporateRobinHood
Publish date: Thu, 07 Jan 2016, 11:49 AM
CorporateRobinHood
0 0
Watching by the side the ups and downs of market.
Following Message
4 main pillars of Hevea's success :
 
1) Strong USD
2) Good management
3) sole Japanese market supplier
4) Cheap raw materials prices now
 
Let's ask ourselves here :
 
1) Strong USD : this factor has been largely, if not entirely, built into the prevailing market price of Hevea. RHBIB has predicted that the USD/RM will be rangebound between 4.25 to 3.90 for the rest of this year, with 1MDB issue tapering down. So, we should not take this into account any more upside in USD will naturally support Hevea shares price as we have already priced in so. In fact, any weakening of the USD will impact Hevea shares price instantly. It is a two-ways sword.
 
2) Good management: This is in big question mark now in view of what have been circulating in the market lately. Credit should be given to the writers for highlighting the operational side of Hevea.
 
3) sole Japanese market supplier : if the Korean containers issue blows up out of proportion, then it will be a calamity for Hevea, as it earns the biggest chunk of revenue from Japan and the Japanese is extremely stringent on quality. Japan can be where Hevea stands proud so far, but it is also its Archille's heel if not careful.
 
4) Cheap raw materials prices now : so far the only constant here.
 
 
When you have 3 out of the 4 main pillars rocking now, how stable can the ground be?
 
My humble opinion. Thank you for viewing.
 
 
 
Discussions
1 person likes this. Showing 5 of 5 comments

JT Yeo

You mention 4 pillars of success and you went and explain all of them as 4 pillars for potential pitfalls.

2016-01-07 12:21

Beza

When the management fight for their pieces of cake, they would not give sufficient cakes to investors. Sell lah.

2016-01-07 12:24

stanleyong

We should buy more of Hevea as the forces of good will prevail over the forces of evil. Look at Lii Hen.

2016-01-08 10:29

stanleyong

OTB, can you please repeat the reply from Hevea management on the court case and Korean consignment. Many of them have not read because you only post in one Hevea forum and the writer has it removed, i think. For the benefit of all those who has not read the reply and to counter false rumours, please repeat them in all Hevea forum, which i think there are at least 3 of them. We must not allow lies to prevail. Thanks

2016-01-08 19:17

stanleyong

Blog comment on HEVEA, Internal Cracks Emerging 亿维雅，股东内鬨
Author: robertl | Publish date: Wed, 6 Jan 2016, 02:38 PM


Ooi Teik Bee

Dear valued readers in I3,

I understand many of you are so worried about your investment in Hevea. In order to help you all, I take the initiative to write to Hevea management to clarify 2 items here.

1 - Court case
2 - 700 containers of reject (Actual is 700 m3 not containers).

Below are the answers to both items.

1 - Court case.

The court case is involving our minor shareholders in HeveaWood claiming no dividends after many years despite HB gave limited dividends. We are unable to pay as we have a loan governance to pay borrowers first. The case was won twice but the plaintiffs still brought it to appeal court. This is non issue if we pay up all loans in June this year.

2 - 700 containers of reject (Actual is 700 m3 not containers).

We had an issue that 700m3 of our PB to Korea were held up in Korean port over quality problem last October due to wrong testing method. This is resolved after our protest, our test, local labs, and Korean labs subsequently prove us right. The results are better that requirements. Thus all cargo cleared.

Dear valued readers, I am not siding any party here. I just get the explanation from Hevea management so that all my subscribers are happy with my explanation.

Since I have the answer, I hope to share with all readers here. If you do not believe, please ignore it.

I am not asking you to buy or hold the shares, final decision is yours.

Thank you.
Ooi
07/01/2016 22:03

2016-01-08 19:31

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