2020-08-09 18:45 | Report Abuse
@blood7, greetings..i dint mean buying tech stocks is the future mega trend. I meant technology will continue to advance to improve people's life and contribute to a sustainable future, hence the invention of 5G, IoT, AI etc..and these i meant, are the mega trend. If we are able to ride with this trend, the return will be just like we invested in Amazon 10 years ago when e-commerce started to get trendy..the question is, are we able to find these stocks?
2020-08-09 18:34 | Report Abuse
@ Philip, ic..i got what you mean..i dint know in order to be considered as a tech company it has to be disruptive or game changing, or has to be a market leader. So yes, your definition is different than mine. For the first time i go to search what does technology mean, and your definition maybe a little too stringent.
Is Osram which is the world largest led producer considered a tech company? if so i dont see why D&O is not, since they both are doing similar business, and have their own technology in terms of product, process, packaging, etc..just that D&O is in a much smaller scale..
Automation does apply a lot of technologies, adopting scientific knowledge from electronics, robotic, AI, mechanical, electromechanical aspect..Penta and Vitrox are doing well in this sense and widely accepted by customers worldwide for their products..they are not neccessary disruptive, but continue to satisfy the industry bit by bit by innovating and improving their products from time to time, by applying technology they possess.
Talking about pricing power, this is the advantage for developing country like us to grab, why not? In fact the net margin for both the companies are not compromising, ROE as well. They have their own set of competencies. And i believe trade war looks to brighten the prospect further.
I can't see why they are not entitled as technology stocks..i do notice there are companies in the Bursa relating themselves as one but in fact they are not. But i do give credits to local companies who have big potential to advance well in technology sector. I also hope local tech companies can one day being grown to the like of TSMC or Foxconn (wishful thinking but who knows? Malaysia has great talents if we stop messing up politics and be merit based). That's the greatest return to the shareholders as value/growth investors, just like your patience paid off by QL and Yinson, and now have faith on Pchem.
2020-08-05 21:29 | Report Abuse
hmm...they are all categorized under tech sector in Bursa.
Industry 4.0 is a big topic comprised of a lot of sectors. Technology is the core. What i was trying to say is that these companies are able to ride on the wave for the tech they possess.
What they are selling is not the point, the point is the technology and the patents they possess that are valuable. It's not what they make that matters, it's how they make. All the future trend including automation, 5G, IoT, VR/AR, etc require power, sensor, complex circuit design etc..these application come from electronic chips..and these chips are made of semiconductor..these are all technologies..
Is TSMC considered tech stock since it's selling wafer chips only? Obviously we don't interpret it this way right?
U sound a little arrogant but maybe I'm just being sensitive.
2020-08-04 22:25 | Report Abuse
Just my personal view..
Tech stocks are proven resilient in the current market condition. The valuation is becoming very rich though. Personally i appreciate Vitrox for its consistent high margin and ROE, and Penta for almost the same reasons. In simple term both are doing automation business which fits well to the current trend of automation in the manufacturing technologies (industry 4.0). The most important is the growth prospect is there. I also think D&O has a bright prospect for its full range of automotive LED products, continue to capture business win from world-renowned car brands, and the trend of increasing LED/car for applications like projection, car to pedestrian communication, fancy ambient lighting etc. It's now the world 5th largest automotive led supplier, and start venturing into led driver IC.
Anyway I'm sure with your knowledge and business sense you will be easily expanding your circle of competence to technology sector.
2020-08-02 11:51 | Report Abuse
Thanks for the sharing. I personally think this is a wonderful portfolio consist of oil and gas, construction, property, poultry, but will consider adding tech stocks as an obvious future mega trend. But still can see the return is impressive throughout these years..
2020-07-13 23:23 | Report Abuse
I'm surprised with the attacking comments like i have an influence to the stock price movement. And the point i want to convey was totally diverted to whether it's 100M or 300M per quarter..but this is merely an example. The idea is, the stock price is fragile in the sense that is built based on the sky high sentiment. One may argue it's backed by super bright prospect. Yes. Now that the expectation has been set to so high that a small little negative news is enough to collapse the price. Experienced player may take cover and run in time. How about inexperienced players who swim naked?
Price vs Value.
Trading vs Investing
Trading is when you buy with lower price and expect to sell with higher price
Investing is about finding good business, value its growth and be a shareholder.
Both ways earn money. Just different approach.
To me currently buying glove stocks is more like trading rather than investing.
Those who has already made a good fortune from glove, congratulation! Remember to take cover.
Those who has not. Need not feel sad. Observe the entire process, develop critical thinking, sharpen your investment knowledge, don't miss in the next round as there are still plenty of opportunities.
Buy what you understand and win. You will be able to replicate the results.
If you buy something you don't understand and win, whether is good luck or bad luck, who knows?
"Ricky Yeo You don't get rational discussion out of euphoria. As Ben Franklin said, appeal to interest, not reasoning. And it isn't in the majority's interest who, either have made so much money on gloves stocks, or just getting into the game to hear information that goes against their interest."
2020-07-13 23:21 | Report Abuse
That's one good common sense point.
"Ricky Yeo Another thing to remember is there is a 'rush' of stockpiling gloves throughout the entire supply chain from manufacturers like Supermax all the way to end users i.e hospitals. That is why there is such a margin expansion. No one know how much 'backlog' orders are in the supply chain now. Everyone is afraid of not getting their orders so natural behavior tells you to 'over-order' just to be safe, hence creating a massive backlog from distributors, wholesalers to manufacturers. That is why you see all manufacturers ramp up productions to meet the demand. However, when COVID settles down (a possibility that can happen even without a vaccine), how long would it takes to clear out those stockpile coming from the backlog, that is a big thing. So what you can possibly see is Supermax has such an outstanding quarter after quarter of $300 mil and suddenly revenue collapse when everyone realised there are too much stockpile that they have to stop ordering from Supermax or any other manufacturers just to clear them off."
2020-07-12 16:07 | Report Abuse
I believe most of you have made a good fortune out of this stock. I congratulate you sincerely. If you have a kind heart you will continue to make money.
The estimated earning might be ignorant from your perspective because an IB even predicted 350M earning the next quarter. But will it maintain this record high earning the subsequent quarters is another question. Imagine if you were a glove buyer, you have no choice but to buy higher ASP stocks the first few times because it's urgent, but in the background you will definitely be all out to source worldwide few cheaper suppliers to keep the cost down, else you will most likely be screwed. And the supply will catch up eventually. This is business 101. My point here is not to predict the EPS correctly, but more to an idea to point out where do we stand in the current situation. I actually hope the IB is right. But the key point is, is it sustainable? Do we have an exit strategy?
A cold water at this time is definitely potong stim. I'm sorry. But you have to understand there are so many new and young investors in the market now are losing rationality to the glove craze, and wrong mindset is instilled that making money is that easy without realizing that this is actually not a market norm but unprecedented and exceptional one. This will be harmful to their future investment journey when they made money at this kind of situation, overestimating the ability but underestimating the luck factor.
Some say i have ill intention. Yes. But my ill intention is to myself. Because i'm holding the same stock like you too. I believe it will continue to head higher in short term because looks like the sentiment is still intact. But I'm trying to balance myself between greed and fear. Period.
Let's promote rational discussion.
2020-06-10 18:51 | Report Abuse
does anyone know why is the qr report not released yet?
2019-01-03 16:04 | Report Abuse
Lanesra i tend to assume there are some wise consideration behind until proven otherwise. doesn't make sense..
2019-01-03 15:49 | Report Abuse
What is the rationale of still exercising warrant at 1.32 when the current market price is only at 0.70++?
2018-12-14 15:43 | Report Abuse
might be one of the reasons
Blog: Why I invested in Serba Dinamik, Kpowers and SCIB
2020-10-19 23:01 | Report Abuse
Thanks for the good insight. I agree on the qualitative aspect which no doubt the leader of the company has vision and clearly knows what he is doing and where he is bringing the company to.
But I was looking for an answer on your #2 question on growing revenue along with increasing late receivables but to no avail. This is something i would worry about especially in this cloudy oil future due to the pandemic. There is a claim that the longer payment term is a trade-off of higher profit margin, but comparing with its closest peer Dialog, the margin doesn't look better. In addition, we all know obviously the debt is huge, which many may argue that this is necessary for future expansion and growth. The problem is, a closer look found the net operating cash is at the low side (18%-32%) of the net profit consistently for the past 4 years (with public disclosure), and operating cashflow is constantly lower than investing cashflow but still giving out dividend every year, i see the debt (inflow from Finance activity) will become more and more huge until a point it's not sustainable, if he failed to do anything to mitigate the risk, like improving receivables, or reducing dividend(no one likes).
Yes, low share price doesn't mean the company is bad, but there must be something the investors don't like about. In this case I'm one of the interested investors but concerned about the quantitative aspect. This perhaps justifies the low PE comparing to its peer. but i stand to be corrected.