Is it worth to place a bet?
Let's look at the revenue growth for the past few years:

31 Mar 17 - ???
31 Dec 16 - 58 million
30 Sep 16 - 56.2 million
30 Jun 16 - 51.9 million
31 Mar 16 - 44.3 million
31 Dec 15 - 41.5 million
30 Sep 15 - 39 million
30 Jun 15 - 37.5 million
31 Mar 15 - 34.9 million
31 Dec 14 - 33.5 million
30 Sep 14 - 32.4 million
30 Jun 14 - 30.4 million
31 Mar 14 - 30 million

People are worrying to hold shares before announcement of QR today. Run or stay? :D

Buy and hold based on fundamental of the company attached with low PER and good future prospect. We just ignore short term TA noises. If TA really 100% accurate then nobody would talk about FA now.

It seems that Manufacturing margin was being squeezed by higher input costs of sugar and coffee ingredient for the 1st Qtr 17.

Lower NPL is expected in Banking and Finance sector. It is very like RceCap would post good profit.

NPL:
Maybank - down
CIMB - down
MBSB - down
BIMB - down

PBBank - stable
Aeoncr - stable

RHBcap - up

There are main sifus in i3.....more than me and you mentioned....I feel small here cause I could be good at playing with figures. Not to forget stockraider, my sifu. He is playing higher level of ball game. wakaka.

abangadik. You skill is better...you can see deep inside the business of a company. Don't pretend la....There are many teachers here sharing good information like KC, OTB, Icon, Probability, Moneysifu, Gaininvestor, bones....

Tan. Rcecap is traded at PER 9.7x ( 1.9 / 0.196) at price 1.90 .

Abangadik. You look too high on me....I'm just a farmer in kampung. Wakaka

Tan.

EPS = Earnings / Share
PER = Share Price / EPS ratio

Guessing time. What's the EPS in upcoming QR?

PER: 9.5x

EPS
31 Mar 17 - ???
31 Dec 16 - 6.52 cents
30 Sep 16 - 5.62 cents
30 Jun 16 - 5.40 cents
31 Mar 16 - 2.12 cents

Sensitivity Analysis: EPS for 31 Mar 17
EPS 7 cents - PER 7.5x
EPS 6 cents - PER 7.9x
EPS 5 cents - PER 8.2x
EPS 4 cents - PER 8.6x
EPS 3 cents - PER 9.x

kukuman. It's confirmed by you...may be you got a spy there. wakaka.

Signal is given by the CEO... He acquired 400k of shares through exercising ESOS at price 1.3 per share in April 2017. He has not disposed the shares until now. If he doesn't has any confidence in the company financial results, he would not have exercised the ESOS. Why not wait until lackluster QR announcement and exercise at cheaper price later so as to pay lesser personal income tax. Bear in mind, the company would include the difference between the market price at date of exercise and Exercise Price in his EA at the end of the year.

Good to see you here, Moneysifu. Miti has just started investigating anti dumping of cold rolled stainless steel (CRSS) imported from overseas. It could another catalyst to this industry if anti dumping duty is applied to CRSS.

By looking at the rising trend of Gross Profit Margin, LeonFb is very likely to report higher profit in upcoming QR announcement.

Current PER: 8.6x

Gross Profit Margin
31 Mar 17 - ???
31 Dec 16 - 17.6%
30 Sep 16 - 14.5%
30 Jun 16 - 20%
31 Mar 16 - 10.9%

EPS (cents)
31 Mar 17 - ???
31 Dec 16 - 3.20 cents
30 Sep 16 - 1.78 cents
30 Jun 16 - 3.74 cents
31 Mar 16 - 0.2 cents

Eggs are hatching. Eggs price are trending upward plus RM strengthening.

A loan stock offers a yield more 7% per annum. Quite yummy given the prospect of the steel industry. This loan stock is much better than those junk bonds selling in US. wakaka

The management was a bit incompetent in engineering works. They are not good at this area but they engaged an outsider to conduct a special audit....so not really that bad la.

We will only run when a counter is turning from gold into a shit or the price of gold astronomical high. Lol

老莊還在, 有誰敢在太歲頭上動土 ．

At the current price 77 cents, LeonFb would probably trade at PER below 7x after announcement of QR by this month.

The price is so strong today. @@

The shares are still undemanding....patient waiting for the QR announcement.

The market is so high on steel theme....sleeping also dream of rebar...lol

This is another high potential turnaround steel company neglected by the market. lol

The main purpose of having hybrid production is to take advantage of the situation. With low prices of coal, Anjoo can't stand a good chance by using blast furnace for producing products at lower costs. Is it not good to Ssteel.......unless the information supplied by Solaris is fictitious. lol

Good news to Ssteel....

Posted by solaris80 > May 21, 2017 12:31 PM | Report Abuse - from Ann Joo

News has been confirmed this was unscheduled break down. They are facing some technical glitches of blast furnace. Their blast furnace supplier from China "Tangshan" was reluctant to provide any technical support to them as they is a court case on going. As such, manufacturer is looking for technical expertise from overseas. Thing has become more complex now as they have wasted almost three weeks and still unable to resolve the issue. As such, they will take this chance to proceed with major overhaul. Hope management can resolve the issue asap.

The government won't intervene much cause the ponzy scheme is merely happening in Chinese communities. That's why so many scams are thriving in Msia.

Abangadik. It's so nice if they shut down their Engineering division. wakaka

I don't know if there is any further provision in onerous contract...and this is the risk I got to take.... A matter of Risk and Reward.

Melewar is traded at 34 cents was mainly due to its sucking Engineering division. It won't be cheap when Engineering division suffer minor losses. We don't even know whether there is a reversal of provision for onerous contract in future. I feel comfortable a bit as special audit has been conducted.

Melewar got nothing....errrrr but 71.4% stakes in Mycron. Mycron is controlled by Melewar. lol

abangadik. When I see you here...means share price up up. wakaka

Agak was always playing yoyo here and grabbed at cheap prices quietly. lol. Anyway, Congrats guys for being patient with LeonFB. Announcement of QR is around the corner.

Agak bro. I just said "Buy Buy Buy" to paperplane. It sounds similar to " Bye Bye Bye". I did not know he had taken my message seriously. lol

MAsteel Go go go

Ssteel follows An Joo up today. Tomorrow it may follow MAsteel up, Mycron up, Csc.... non stop follow up up.

Aeoncr is traded at PER 11x and Elkdesa exchanged at 12x. RceCap is very likely to trade below 8x end of this month. lol

paperplane. Buy Buy Buy....Why miss this opportunity. Better QR is on the way plus new factory contribution kicking in soon...

abangadik. You are right. Government servants need more cash to shop car, clothing and groceries before raya. RceCap Go go go

Better get the Management to appoint auditor to conduct a special audit or forensic audit for the huge losses suffered in year 2016. It could be due to irregulari....

Aeoncr and Elkdesa have reported better profits. RceCap is on the way to deliver better results.....Many would flock into this counter soon.

This upcoming quarter high potential of better QR than last year. Next QR, the company will show huge gain from disposal of land. haha

I apply theory " “Be Fearful When Others Are Greedy and Greedy When Others Are Fearful” in Melewar. wakaka

safewinner. You take a look of their P/L by making a comparison between Melewar and Mycron then you can only understand. Do your homework la....

Congrats CharlesT. Your Mudajaya is going to beat Jaks soon.

The signal of showing good profit is very clear for the next few quarters unless Mycron cannot perform well.

abangadik. I cut and pasted information in the latest QR. Don't worry. The investors and traders would change their view when the company starting show good profit. If you believe that Mycron has good prospect, why not for Melewar. Melewar owned 71.4% in Mycron.

As stated in latest QR, the Engineering division will only incurred minor losses in future as full provision has been taken into account and supported with special audit report. The future of Melewar is rather bight given the good prospect of Mycron.

QR 31 Dec 2016

The Group’s engineering business suffered significant losses for the current quarter as the Engineering subsidiary recognized additional expected losses on onerous construction contracts ahead of their completion. (Refer to Note A5). For the remaining financial year, the Engineering subsidiary will focus on completing the aforementioned construction contracts within the budgeted losses and unlikely to take on further engagements. Barring any further overrun on budgeted cost-to-completion for these projects and the discharge of contractual obligations thereof, the Group is not expecting further material negative contribution from the Engineering subsidiary apart from its overheads and debt-service costs for the remaining financial year.

Whilst it is possible that the Group’s steel businesses’ performance may eclipse its engineering business’ performance in the 2nd half of the remaining financial year, this would unlikely be enough to surpass the Group’s current year-to-date losses. In this regard, the Group’s prospect outlook for the remaining financial year remains at negative.

Melewar is a high potential turnaround company in steel sector. Its top and bottom lines are almost completely correlated with Mycron from now on. The valuation in term of a PER is less than half of Mycron if you exclude losses in Engineering segment. Buy while many are not interested in it.