LAY HONG - Transforming from poultry player to New Consumer Star (moneySIFU)
https://klse.i3investor.com/blogs/moneymoney/173375.jsp

Market had given good rating 2 years back on the JV with NH Foods, now is it a good timing to go in at the price before JV?

It is a million dollar question that everyone may want to think about

Thanks, VenFx bro

The company is going to double up almost all its production capacity by this month and we are going to see an explosive future for Lay Hong.

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LAY HONG - Transforming from poultry player to New Consumer Star (moneySIFU)
https://klse.i3investor.com/blogs/moneymoney/173375.jsp

Ok, your guess is they will do right issue based what happened to other companies and not connecting the historical records & past years' situations to the current position, now I got it.

I respect your opinion even though I do not agree with you, I have highlighted my basis of opinion and you have spoken yours, nothing is impossible and so we will see.

It is confusing comments from qqq3, sapura is at the down cycle of oil & gas & it needs few years to recover.

Prior to recovery, it needs reinvestment & to spent capital expenditure to catch up the recovery.

But look here & not to be confused by qqq3 comments:

total current assets of sapura = 4.4billion
total current liabilities of sapura = 8.4billion

It is obviously Sapura has problems meeting its short-term obligations (current liabilities), not to mention to meet capex requirement to ride on the recovery.

That's the reason Sapura needs right issue.

agreed, value88, LayHong is in the end cycle of Capex, so if they didn't need cash call in the beginning or mid cycle of Capex, they would not need to do so now.

Anyway, I guess only. I can only use available facts that made public in reasoning my guessing.

You are right, Winklse88, I agreed with you. My focus area was Yap family can't get much additional finance in view of the price drop.

For business, plant & machinery are income generating assets.

For non-business, motor vehicle is a depreciating asset.

Hi robot888, biological assets means egg layers, chicken that are reared for laying eggs.

Once these chicken will be slaughtered for food processing purposes once they reach the end of the laying cycles, no wastage.

For the breakdown of the trade receivables, you can refer to the past years' annual reports, analysis of collectibility of these receivables have been disclosed in complying with the listing requirements.

Good closing for the day & week. Have a nice weekend to all, enjoy!

ramada (ilovehits) thank you for your comment.

It was my regular played song those days when I was still young :)

Thank you for your kind comment, Tsunami, KLCI King & winnerz.

Sharing is caring, hope the findings good for reading & decision making.

Thank you for your kind words, VenFx bro, hope we all can make money from stock market.

Agreed, qqq3, not all right issues favourable to owners, if they do not have financial resources in taking their portion.

Welcome, hebeds

Welcome, huggs1

I will write another article about future growth of Lay Hong over the weekend

Thank you for reading, all my opinions are guessing only

LAY HONG - Why The Directors Do Not Want Right Issue? (moneySIFU - Part 1)
https://klse.i3investor.com/blogs/moneymoney/173015.jsp

LAY HONG - Why The Directors Do Not Want Right Issue? (moneySIFU - Part 1)
https://klse.i3investor.com/blogs/moneymoney/173015.jsp

Hope it finally settled down

Hi VenFx, good to see you again :)

One thing I will never do is I will never buy warrants when the price is going down, it will get lower when you thought it is already low enough.

I will only buy warrant that is on the rise, because it will get higher if the mother share is doing well.

I don't encourage anyone to follow my way without having his own set of philosophy or trading mode.

I do not agree with you, Jeff88.

In order to invest/trade in stock market, everyone must do his own calculation based on certain assumptions & facts to estimate the possible outcome/goals.

When I bought Warrants in Ekovest & CAB, I targeted for Ekovest & CAB accordingly and thus estimating the possible prices for their warrants.

In my 2 cases, the outcomes were fantastic and far better than my initial estimation/expectation, the market gave higher premium for warrants during the bullish situations.

I will never buy any shares just try to guess/judge based on feeling or emotions and without any calculation.

With calculated risks in mind, I know what to do whenever & whatever situations arise. It helps me to decide if to hold on or to sell.

Good closing

My 3 months tp is RM0.80, it is slightly lower 15 times PE, let's see if it is reachable or not.

Oh, 1.7mil Q sell at 0.65 cleared.....

Welcome, steeelman, but you need to be aware that it is double edge sword. Once drop, it will hurt more.

Understand what are you buying & set a reasonable target.

While waiting for the result to be reached, keep reading along the way, it will help to wiser & better decision if to hold or sell later.

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Posted by steeelman > Sep 5, 2018 10:20 AM | Report Abuse
warrant i am newbie , will take some time to learn , thx moneySIF

Agreed with the point, during uptrending, warrant always gives much greater result. I tasted at ekovest & cab, which I earn more than 100%.

But the key is you must know your target & keep holding it with your belief coupled with the ability to hold. It will never be a smooth ride.

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Posted by sellselllsell > Sep 5, 2018 10:11 AM | Report Abuse
smart ppl buy warrant now lol

I don't know much about TA, but always try to learn their behaviours, what I do know is, once the trend overturned, they will jump in.

Is now the right time? Any TA people mind to share their views? Thank you.

It is no right or wrong, as long as you make money, then you achieve your goal of making money.

After study so much & in details, it is not my type to look for 5% or 10% earnings, it is wasting time considering the risks I am taking.

Congratulate those make money.

In my personal opinion, it is due to the perfect storm effect, all the bad news came at the same & short time.

It may or may not affect Lay Hong as the management has not responded publicly so far, it remains to be seen.

In fact, most cases that affected are those open house or small farms.

Big players are now operating mostly in so-called "Environment Controlled" or "Closed" house farms, which can have better control over diseases prevention.

To anyone concern about avian flu in Sabah, you may refer to Kelantan Avian Flu Event that happened in March 2017 (please google search for details)

And compared the share price movement and financial performance of CAB during & after the outbreak (you can also check others' as well)

CAB's share price movement after Kelantan Avian Flu Outbreak
https://klse.i3investor.com/files/my/blog/img/bl2510_cab_price_chart_during_kelantan_avian_flu_mar_2017.jpg

CAB's financial performance after Kelantan Avian Flu Outbreak
https://klse.i3investor.com/files/my/blog/img/bl2510_cab_financial_performance_during_kelantan_avian_flu_mar_2017_1.jpg

Thank you for your comment, r18, wish you doing good.

r18 aiyo, moneySIFU, I really admire of you. Which kind of person dare to buy in while others still in panic selling mode. Only the person who has far-sightedness and full of confidence can do this impossible job. Kudos! Kudos!
04/09/2018 18:29

If the company didn't ask for the right issue during the peak of capex cycle, why they need right issue now or soon since it is already at the tail end?

During the peak and as indicated in the Cashflow Statements of the Company, the Purchase of property, plant and equipment were as follows:
2017 - RM50,816,823
2018 - RM70,536,308

While in the latest QR, the capital commitment was RM30mil.
https://cdn1.i3investor.com/my/files/st88k/9385_LAYHONG/qr/2018-06-30/9385_LAYHONG_QR_2018-06-30_LHB-QR%20Q1-FYE2019_-854503929.pdf

Anyway, anything can happen in stock market, may be you will be right someday.

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qqq3 rights issue is more than likely
05/09/2018 02:18

I am also in the mid of writing an article from the point of view of accounting analysis over the past 5 years' financial performance & positions.

The Management had instead done remarkable good jobs in the past 5 years:

1. Able to maintain GP margin while growing revenue
2. Able to raise funds internally or elsewhere without asking money from shareholders in supporting the capacity growth
3. Debts equity ratio stable despite increase in borrowings
4. Ratio of Selling/Distribution/Admin expenses to Revenue remained consistent
5. Kelantan Bird flu outbreak vs CAB share price & financial performance (Mar ~ Jun 2017) (in replying the concern over the Sabah avian flu)

Another key area that I agreed most with Chicken King is the ending of latest Capex Cycle, of which started in 2016 after the JV of NH Foods Japan.

Well done again, Chicken King.

It is always privileged to be linked to those good people, thank you, r18.

hi paperplane, good to see you again, hope you are fine & doing well in stock market.

Thank you for such good sharing, Chicken King.

To me, the insight analysis over the 3 articles from Chicken King made reasonable sense.

I have been monitoring Lay Hong for quite sometimes, even way back before QL gave up on their pursuit in taking over Lay Hong. But the valuation in terms of share price had stopped me from making any move.

Until late when I saw the rapid decrease in share price over just a month plus time, I asked myself, how can such a good company with such strong branded products suffered such huge drop in share price?

It seemed like a perfect storm, all bad news came at the same & short time. Anyway, perfect storm good for those not in yet.

Then I decided to go in with 2 questions:
What is upside potential?
What is downside risk?

Bearing any external factors, the answers were:
Upside = huge
Downside = limited

I started to buy at 60 cents all the way to 53 cents.

Since Chicken King has written the business & possible potential growth, I will share my findings on the financial cash flows & needs with hope to help ease on certain guesses about the company may go for right issues.

Hi VenFx bro, good to see you again. Hope you are fine & as steady as usual & before :)

I had excused myself from stock market after last year's steel play.

I didn't see anything that suited me after that.

I was looking at Hengyuan too, but sadly I didn't understand the business, even though how good our bro Probability had explained fantastically.

On & off still come back to look here & there, but not much time spent.

Hope this Lay Hong is worthy for me to hold longer period. Please wish me luck, bro, thank you.

That's the main reason I saw the opportunity to move in :)

Thanks for sharing, ramada

Many have spoken about the company is in need of cash to serve the borrowings, especially the short-term borrowings.

If anyone can take a time to read the quarterly report @ 30 June 2017, the borrowings were as follows:

Long term borrowings = 42.3million
Short term borrowings = 142million

https://cdn1.i3investor.com/my/files/st88k/9385_LAYHONG/qr/2017-06-30/9385_LAYHONG_QR_2017-06-30_LHB-Q1-FYE2018_1809235038.pdf

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Compared to quarterly report @ 30 June 2018:

Long term borrowings = 96.5million
Short term borrowings = 153.7million

https://cdn1.i3investor.com/my/files/st88k/9385_LAYHONG/qr/2018-06-30/9385_LAYHONG_QR_2018-06-30_LHB-QR%20Q1-FYE2019_-854503929.pdf

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Why no one mentioned the company was in need for cash in 2017?

With the same situation, why many guessing now the company is in need of cash for serving its borrowings?

Please take note.

But personally feel Report from HLB was so unethical & unprofessional, even though it did help to push down the price yesterday.

Kept purchasing last 3 days since last Friday but get nothing today, price rebounded too fast today