Its going up coz its undervalued and probably still a lot more upside. I see most ppl here are happy except a few sour grapes that probably stop commenting coz they couldnt stand being wrong everyday

I think this can still go and at this point i dont know a better safe stock to invest in that hasnt already gone up.

jlex11 i will only comment here and not in glove forums coz i dont want pour cold water especially when im not holding the stock.

Harta at 70x and Topglove at 50x is rubbish at the current prices. They are only sustaining coz our stupid fund managers spend too much time on entertainment that they dont know what else to buy so its herd mentality. Imagine that Alibaba PE is only about 40 times and Google PE 27 times. Which you think has more potential to grow profits ?

These are glove companies that are actually contract manufacturers for medical groups where prices are negotiated every quarter. Expansion of capacity takes 3-6 months or longer. Is there Tech involved in glove manufacturing ? Go for factory visit then u have your answer there.

Traditionally we have a lot of glove manufacturers due to raw material latex. Now that everyone is moving to nitrite gloves, glove factories can technically be anywhere in the world as machinery lines can be automated and dont need much human labor.

Thats why i dont trade on especially stocks im comfortable to hold. Once you sell, you might not be able to buy back. Sometimes you get it cheaper, sometimes times you dont and you might end up being the idiot in the room. The dividend anyway is within 1 day price moving average ( up or down ) and its on a upward trend. So just think about the bigger picture

That in theory is correct that the share price should adjust by the dividend amount. The difference is when an stock in on an underlying uptrend and its perceived to be undervalued, the drop might be only for a short while and might recover sooner than you think.

Also the difference to me is that i would have gotten the cash dividend in my bank account instead of higher paper profit and i don't lose if it rides up all the up when it opens. Assuming if you sell today, you might not be able to get exact 7 cents cheaper or more on ex-date.

If you wanna huat, do to the opposite of what the expert says

I dont know what you guys think. but companies have their factories burnt down normally isnt a very good sign of management / integrity. Yes there are cases were it was due genuine cause of fire but these are more rare if u ask me. Remember this is a low risk industry for fire.

This is just another contract manufacturer using CNC machines with no real technology

Dont worry its back up already despite market being down

With the current oil prices at historical low, being an downstream user is definitely better than being an integrated player. Is anyone doubting that Petronas group is now suffering badly right now ? Is there transfer pricing to PCHEM and will this change ? What is the avg cost of oil production for Petronas ?

Why did PCHEM report a substantial drop in profits ( since 2018, it has dropped every quarter except Jun2019 ) to a low in Dec 2019 its a worrying underlying down trend but im not going to go into details. This is before MCO. They have the same financial closing as LCTITAN but the latter already reports 1 month earlier consistently. Lets see what PCHEM reports end of May.

No need to argue. You buy GLC producer, you pay 16 PE ( based on 2019 results ). LCTITAN is 7-8x ( based on 2019 results ) and has higher cash per share. Both are expanding, doesnt matter is one is bigger than the other, what matters is the EPS to shareholders and dividend. If you think 16 PE is cheap for PCHEM please go ahead.

xterrorsin thanks of sharing this

don't get emotional and always eat humble pie. I've been in the financial industry for a long time and still I always remember to stay humble

xterrorsinx hope u can make some. times are bad now but it every downturn another door opens. think positive and how to win

Remember 90% of retailers lose coz funds whack everyone. So I always think of how we can make from them

kelvin17 depends on your risk appetite but this is a good and safe stock if you ask me. Since the market tanked, i only bought 2 stocks. LCTITAN and SURIA both are net cash and have low PE. Both also have some competitive adv due to barriers of entry and i think there is sufficient upside.

In this market please dont buy construction, property development, building materials,O&G no matter how cheap.

Someone said LCTITAN is in a shit industry with structural issues. There are only 2 players in Malaysia and our govt gave some carrot for them to setup here and they are here to stay coz this is a profitable business long term else they wouldnt be doing a plant expansion for another 2b+.

Based on current price, its only the net cash per share ( you take 4b cash / 2.2b shares roughly ) so your getting the business for free and this is not an ordinary trading or development business. Its high barrier to entry and you can be sure that Lotte Chem Korea will support in case of anything.

This is the chance that many ppl wait 5-10 years for. Make sure you invest wisely and you make a very good return. Market has already gone up so you have to becareful with your stock selection and dont chase over priced stocks especially those in Tech and GLoves. But thats just my view.

Ill try to explain this briefly. If you read the cashflow statement :-

Loss of -205m

+ main non cash items
depreciation 134.6m
write down inventory 81.3m
impairment from associate 35.1m

So you end up with a small operating loss actually of 28.5m after the rest of items. Which means the bulk of the losses are accounting losses, not cash burn.

After working capital changes, net cash after operations is 270m ( similiar to previous period ).

Did anyone notice that cash and bank balances already increased despite the loss to 4.03b from 3.91b ?

So now you know why there are big buyers when others are just shouting on the side line

What people like Huatexpert ( or shall i say SuayExpert ) keep repeating on negative data but they fail to understand why markets today are holding even at the peak of the corona virus and low oil prices

Dow Jones drop yesterday was insignificant. Do you know how much 24k points is from the peak before Corona ? Its only 30% or less. Thats how bullish world wide markets are now and they are many reasons why this time is diff but if your lazy and refuse to read, and still want to think you know better than just sit back watch and curse..

People still cant get over the fact that price went up despite the loss. If the market proves that what you think is wrong, perhaps your analysis methodology needs a serious overhaul

See the quality of analysts in the industry. No mention on what are the ASPs upside, and worst they do sensitivity analysis instead and cut ASP by 10% and cut sales by 15%. No mentioned that raw material price drop when oil price was 65 USD per barrel in Dec 19 to present level of about 20 USD.

They talk about core loss of 218m from oeprations but without taking out extraordinary write off inventory of 80m.

When price is up, you will console yourself and hope it drops. When it drops, you lose your balls dont dare to take action. Then when it goes up you curse again. So actually when do you actually win

You all say last chance to sell or it could actually mean last chance for you to buy. Negative people will never see opportunity at their door and they whine and complain that things are unfair all their life

At current price 1.7, dividend is still good taking into account you only hold it one more week.

Just be patient. Another 2 weeks to a 1 month they will finishing clearing

titan can share cimb report thanks

The loss was smaller than expected and 80m of the loss was due to write down of inventory. One-off item, non recurring.

IF you want to be conservative just look at conversion / processing margin ( from raw material to finished goods ). But that would be accurate coz selling prices are also increasing in this case

From old article.
https://www.channelnewsasia.com/news/business/lotte-chemical-titan-debuts-on-main-market-of-bursa-malaysia-9022556


Lee said the company today is the largest integrated producer of olefins and polyolefins, as well as the sole producer of butadiene in Malaysia, and the largest polyethylene producer in Indonesia.

Although LCT may face competition from the Petronas Refinery and Petrochemical Integrated Development (RAPID) project, he noted that the industry is in a strong demand growth area, and the market should be able to fully absorb the supplied materials.

If they privatize, big funds are the losers going in at IPO at RM6.5 and now exiting about this price. Not sure if SC will allow that to happen. I would think parent co is buying back some shares now and planning to push up the price and sell some back at a higher price to comply with shareholder spread.

For those that keep thinking that a loss must always result in a gap down in share price or since first quarter EPS is negative price should drop, I hope you start doing some homework on equity valuation, just google it. People look future earnings, future growth and the loss was expected.

If you so worried about this, you have more than half of KLSE that will be reported losses / bad results for Jan to Mar2020 coming soon, and most of them are not even net cash with tons of borrowings. PCHEM is similar industry, same financial closing and has downtrend in profits 2-3 quarters before this. Lets see what they report. Sapura NRG had mt everest of debt, reported a super result yesterday did you not understand why it didnt drop ?

terrorsinx nice analysis but i think SC will grant them extension and not let them privatize

Suddenly so much interest in this counter. Some of the info that some of you are guessing about, is in the IPO prospectus and every financial update but many prefer not to read and just comment anyway. There is a plant expansion for another 2.2b which is due to be completed in 2023. After all their investment they still have excess cash coz of the retained profits all these years.

If you dont know, better to keep quiet, read more and eat humble pie instead of making silly comments and embarrass yourself later.

They are hoping prices to drop coz their miss the boat

https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=209196&name=EA_FR_ATTACHMENTS

Bottom of page 22.

If you read the notes to theannouncement, 80m is write-off from inventory which i treat as extraordinary item

Huatexpert if you dont even hold the share, why so much noise from you..You sound like sour grapes that miss the train and keep cursing and praying it comes down every day. Ill give you A+ for being consistently wrong the past 2 weeks

Go back to your O&G counters and spam there.

Huatexpert not in hurry to buy, selling not over yet....
29/04/2020 2:46 PM

Prices come down not because of a loss but coz its something not within expectation. Now world wide market accepts that there will be losses across every industry with the covid. if its news / expectation already built in, will the price still come down ?

They have no borrowings and a 4b cashpile. Are you worried buying below cash price per share. How many companies are net cash in this amount

what is more important actually is what is coming for the next 2 quarters.

Might take awhile for Urusharta Jemaah to clear. Still has 20 m shares, assuming 1m day is which higher than avg, we have to wait another 20 days.

Btw dividend yield is now at 4.7 at current price. Even if price drops after ex u only held it for 2 weeks and there is upside

What I wanna say is think big and think about how to make from the funds coz retailers hardly can push pricds.

kelvin I actually bought for dividend coz it's better than fd at 1.22. you can check my post when I said I in :-) about 2 weeks ago. I hope everyone makes ya

The counter less than 2% today and your asking ppl to cut loss or take profit. Dont worry I won't ask what's in ur portfolio and why u didn't cut today

Funny how some people get a thrill from whacking other retail investors. The money is out there

Ok. I bought in at 1.22 and i bought in coz it was good dividend yield, its was a low PE or 5-6 times then and net cash per share of 1.7.

I didnt expect the share to run so fast and im holding this for at least a while longer. I have patience and i do look at fundamentals. I look at cashflows at a few levels and i dont agree that some ppl use FCF just based some theory ( some take net cash from operation before working capital, some after working capital, some after investment cashflows ). i look at many factors including sales growth, margins, etc and potential growth most importantly.

If you look at net working capital assets, you should also lower your discount coz a large portion is cash which should not take any discount.

End of day no point to argue on theory the only thing that matter is results. if you consistent make money just continue.

Im only commenting to share what i know because i doubt anything i share will have an effect on the market coz everyone here is just a small time player. If i can share and help someone, why not. thats my sole intention.

If only it was so simple to analyze stocks, just use NWCA and apply to the whole KLSE easier. And if that was true, you wouldnt be wasting time posting in a retail investor forum.

You dont look at one formula and say that is fundamental analysis.

Foker good. Dont buy then. Go buy something else. I wont comment on any business with those general statements but anyway good luck

its not price pushing down. Look at the overall market today

Means they are financial reporting is better than Pchem. They have same financial period but Pchem will submit 60 days later. So you will hear bad news from LCTitan 1 month before you see Pchem bad results.

Financial year ending Dec. Means they got 60 days to submit QR after that but it seems they do it within 30 days.

QR is end of May 2020. Not this month.

Always remember this. For someone to win, someone must lose in the market. So you need to do better than the funds and other short term traders then you will win long term.

I wouldnt call it bad management. They are just conservative. How many ppl can sit on 3-4b cash and not spend / invest it. Just look around all your friends and their companies. How many can resist buying real estate, stocks, etc or over expanding. How many of your friends have real cash pile right now ? Did LCTitan not make profit every year and still gives a dividend to shareholders ?

The real answer to everyone cry and hue is the demand for the stock since IPO and this is coz Lotte Chem has 70% stake already. Did they sell down ? Im sure they would have increase their stake if they could. Im sure the thought of privatization was mentioned when share price dropped to 1.20 when cash per share is 1.7. Lotte Chem Group is top 30 worldwide player, you cant expect to understand what is their strategy and what they are doing behind the scenes.

Its the all the funds that lost money are cursing since IPO and unlike what you think, they thrive on short term speculation, insider deals and insider trading to earn your fund return. Now some of the funds are probably thinking this coming dividend is even better than FD at this price and probably why there is some interest again.

Huatexpert Tell us something we dont know. And for the last time, please go and read more instead of commenting with wrong facts. LCTITAN quarter announcement is due 60 days after Mar 20 which means before 31 May 20 but Apr 20.

No company is going to have a good first quarter with the exception of maybe Glove industry and healthcare. What is important is not crying over the 1st quarter which is already done and looking forward for what is installed for the next 3 quarters. Does future earnings look exceptionally good enough for LCTitan to cover its first quarter?

Dont worry even if it doesnt fly just relax. it has gone up 30% plus. Every stock needs time to stabilize after going up or down a fair bit. Its the nature of the market. Let demand and supply adjust accordingly

This is a defensive stock in my view with limited downside. Upside might not be as good as other counters but I wanna sleep well through all this uncertainty. Apart from this, what other stocks can you really buy now that is not overpriced.

Just sit tight wait. Worst case you get your dividend which is already better than bank FD.

I dont think we will lose much holding such a defensive counter and PE is low anyway with dividends. Anyone can share update on JV development Gabung AQRS for the Jesselton Waterfront project

Definitely undervalued. Only issue is why we think demand for this stock will increase now. It has been a steady counter for years and I can only see upside.