Naive Share Investor
Yen Global - From Zero to Hero
strykerjunior
Publish date: Fri, 30 Dec 2016, 05:07 PM
strykerjunior
0 11
I write because I feel that I have to write. My not-so-often used mail address - strykerstryker@hotmail.com but you can still get to me through this e-mail. I welcome feedback and comments regarding my posts. If you need me to write nonsense, do let me know too. I turn nonsense into substance.
It is interesting to see investors chasing a theme hoping to get on the gravy train before everyone else does. Anyway, this is the norm of everyday investing, where a neglected stock which was considered worthless to the mass suddenly becomes a sensation and celebration in a matter of a short while.
A meteoric rise from a low of 20cents to a high of RM1.36, who is not intrigued to follow the story or cooked-up sensation for the public to chase. Internet of Things (IoT) which is said to be the latest craze where everything from your pet cat at home to the community roadside light can be linked online and even your missing grandfather can be found with just a simple device with the size of a 20cent coin. That is provided that your grandfather does not use the coin to pay for a glass of Chinese tea from the restaurant down the road.
Anyway, coming back to Yen Global, the stock which used to be a zero but has claimed the hero position. Is it worth the money? Will it drop further or will it continue its ascend to the moon? Let's look at the NTA which is at RM0.17 from the last count. What about the EPS from the last four quarters? Well, it settles at -10.58 cents. Has it not made enough money from its IoT push as a pioneer in Cyberjaya? Continuous dwindling of NTA from 24cents as of 31st January 2016 to 17cents as of 31st October 2016 has to set an alarm in the mind of investors who are still long on Yen Global. Just because it has Gemtek Technology from Taiwan as the single largest shareholder may not make a difference.
From the government announcement in July 2015 "The selection of Cyberjaya as a 'living lab' for IoT technologies is part of the National IoT Strategic Roadmap that was recently launched by the Minister of Science, Technology and Innovation" up until now, nothing has changed on the ground. Bear in mind that this pioneer position is given only to Yen Global. How much longer should believers wait before Yen can turn around. Seriously, this zero to hero does not hold water. If I were one of the stockholders, I would dump the stock straight and run away as fast as I could. You can fool my grandfather, but you can't fool me.
Investments in technology company needs a huge capital and long gestation period before it can really turn profitable, provided it turns on the positive side. Since technology companies should be using EBITDA to evaluate their performance, then it is fair if we evaluate its figure here. It is unfortunate to say that EBITDA is still on the negative and the figure is getting bigger on the negative after each quarter. The latest stood at a whopping -39%. Now who is the Hero here sir?
A meteoric rise from a low of 20cents to a high of RM1.36, who is not intrigued to follow the story or cooked-up sensation for the public to chase. Internet of Things (IoT) which is said to be the latest craze where everything from your pet cat at home to the community roadside light can be linked online and even your missing grandfather can be found with just a simple device with the size of a 20cent coin. That is provided that your grandfather does not use the coin to pay for a glass of Chinese tea from the restaurant down the road.
Anyway, coming back to Yen Global, the stock which used to be a zero but has claimed the hero position. Is it worth the money? Will it drop further or will it continue its ascend to the moon? Let's look at the NTA which is at RM0.17 from the last count. What about the EPS from the last four quarters? Well, it settles at -10.58 cents. Has it not made enough money from its IoT push as a pioneer in Cyberjaya? Continuous dwindling of NTA from 24cents as of 31st January 2016 to 17cents as of 31st October 2016 has to set an alarm in the mind of investors who are still long on Yen Global. Just because it has Gemtek Technology from Taiwan as the single largest shareholder may not make a difference.
From the government announcement in July 2015 "The selection of Cyberjaya as a 'living lab' for IoT technologies is part of the National IoT Strategic Roadmap that was recently launched by the Minister of Science, Technology and Innovation" up until now, nothing has changed on the ground. Bear in mind that this pioneer position is given only to Yen Global. How much longer should believers wait before Yen can turn around. Seriously, this zero to hero does not hold water. If I were one of the stockholders, I would dump the stock straight and run away as fast as I could. You can fool my grandfather, but you can't fool me.
Investments in technology company needs a huge capital and long gestation period before it can really turn profitable, provided it turns on the positive side. Since technology companies should be using EBITDA to evaluate their performance, then it is fair if we evaluate its figure here. It is unfortunate to say that EBITDA is still on the negative and the figure is getting bigger on the negative after each quarter. The latest stood at a whopping -39%. Now who is the Hero here sir?
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This is purely my own opinion and write-up. I do not own any shares in any of the said companies. I do not intend to invest in any of the ones mentioned above.
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