Why does the analyst think the Revenue will continuously decline for the next three years? And, that the PE will remain well below 4.0 throughout the period? The analysis is generally positive; but no so the financial summary.

Two items mentioned during the AGM caught my attention: 1) Armada Sterling V will finally go into production in Q4 of 2022; and 2) the usage of a Combine Cycle Gas Turbine (not sure where).

I voted against the rights issue. I felt it makes no sense to dilute the shares that are performing so terribly. But good to know it is not being actively planned.

@Nikicheong - May I know under what heading is this JV income reflected in the recent financial statements? I looked at both the income and cash statements and I couldn't locate it.

Yet another solid quarter. If Armada were priced like Yinson -- at PER of 15 -- it would be selling at RM1.52 and not at RM0.42. Although the company's financial strength remains a concern, it is a much smaller one now than it was six years ago. Over the last six years, Armada has continuously slashed its debt level, essentially halving it. And, I also see the NAPS increasing by almost 25% in the last two years.

That said, the only issue, as I see it, is the lack of, if not negative, growth in revenue. Hopefully, the management would tell us later today how it plans to increase revenue and ROIC, which is hovering around 7%.

It depends on how many shares you have, and what platform you use. If you have at least 1,500 shares, then reinvest. If less, take the dividend.

If suppose you have 1,500 shares, you'd be entitled to 1,500 x RM0.25 = RM375 dividend. Of this, 1,500 x RM0.10 = RM150 could be reinvested at RM5.17 per share for 29 shares. Add RM13 stamp charges, etc., and your per-share cost would become RM5.62, which is slightly lower than the current market price. If you only have 1,000 shares, your per-share cost would become RM5.94.

Court jester it is, then. Cool.

@DickyMe - You clearly think Maybank is not merely a lousy stock, but a lousy company, as well. You are entitled to that opinion. What baffles me, however, is you hanging around here, with the shareholders of this, well, lousy company. Why? Do you see yourself as a some kind of court jester, perhaps? I could only guess. That said, I confess I would be the happiest camper if Maybank (with its fundamentals intact) tanks to RM5.80, as you predict. Why would it do so, though? Kindly share your insights. Thanks.

@Sardin - I wonder if the statement in page 9 of the report -- on the inventory build-up -- caught your attention. The management blames higher sales (doubtful), shortages in components (doubtful) and lack of shipment availability (possible). What do you make of it?

It appears the pandemic has forced FPI to embrace automation. In the 2019 AR, there is no mention of automation in the GMD's statement. Also, between 2018 and 2019, the total workforce increased by 13% from 3,331 to 3,749.

In the following year's statement, however, we see the following: "Focus on tactical investment and talent development to optimise business efficiencies and performance. Under my direction, tactical investments will continue to be made into selective automation that comprises self-developed jigs and equipment and new and better way of production methods ... to upscale its efficiencies ... and to achieve cost savings target." And, in that year, the total workforce reduced by 8% from 3,749 to 3,441.

This year's statement builds on the record, and says the following: "I pledge full attention in training and teaming up our employees to drive competency and excellence and boosting internal productivity and process semi-automation ... [and] ... continue to invest into selective automation that comprises automation machines, self-developed jigs and equipment, and to reengineer processes and optimise resources in order to allow the Group to reduce reliance on manpower." This year, the total workforce, as highlighted in previous posts, has dropped by 18%.

I find this progression encouraging.

Page 32 of the AR provides the detailed changes in the workforce by ethnicity and nationality between 2020 and 2021. We see the total workforce has reduced by 18% from 3,441 to 2,810. There is also a slight shift away from foreign workers -- from 73% to 71%.

@Desmond_of_KLSE - Thanks for highlighting the Wistron factory matter. Something to think about.

@Sardin - The trading for the past few days has been light; so, I wouldn't consider the sellers as motivated. It's probably traders using the Bollinger Band as a guide. They could also be treating the current level as the support, given it was the high point reached on 15 Feb.

As to your other question: I am not in the electronics field.

@Sardin - I did buy some back @ RM3.19. Since its high of c. RM3.80 (pre-dividend), the stock has shed over 10%.

Yeoh - I received the dividend on the 15th for my direct account, and 18th for my Maybank nominee account. Rakuten - not yet.

Mark - Bumi Armada and Yinson are two local companies that are in the FPSO business. The latter's EPS (before split) is 4x that of the former. While Yinson's PER is comfortable, Armada's PER is, well, 4. So, Armada, selling at 4x its earnings, is really, really cheap.

I am expecting the counter to dip a further 10 to 15 cents, although my TP for it is RM4.10.

Any idea what caused the sudden jump today?

I remember a time when the annual dividend was over 10 cents, and the share trading at around RM1.50. For long-term investors, the overall return has not been that great.

It is good to have comedians in forums. It gets dull otherwise.

There were quite a number of questions on this yesterday. Nothing is the answer. A number of shareholders were unhappy that the board members, paid RM200k annually, also receive RM3,000 as meeting allowance.

@TreeTopView - From where do you get this info on shorts? While I am familiar with shorting, I have never done it. I don't even know if you need to open a special account or sth.

ICAP continues to sell at 40% discount. As a retail investor, do I mind the City of London Investment Management Company (CLIM) investing in ICAP? No, I don't. ICAP's manager, Mr. Tan Teng Boo (TTB) blames CLIM for the massive discount -- that CLIM somehow depresses the price. It is a fantastic theory; one that only TTB understands and appreciates.

The High Court certainly wasn't amused with ICAP's stories, and yesterday rejected ICAP's application for injunction against CLIM. It has also ordered ICAP to pay the Defendants a punitive sum of RM30,000. Would ICAP learn its lesson? Unfortunately, no. It plans to appeal the ruling, and spend more time and money on the quixotic quest. :sigh:

In an opinion piece written in iCapital (which is Capital Dynamics Sdn. Bhd.'s newsletter) recently, there was an article called "The Ukraine Boomerang". I am not sure who wrote it. The author, clearly a Putin and China apologist, predicts how "2022 will be the year when the mighty Russian bear overwhelms the US stock markets and her economy". The article not only calls the invasion of Ukraine, a sovereign nation, "Russia's military operation", it also labels the democratically elected president of Ukraine, Mr. Volodymyr Zelensky, "Clown of Ukraine", who is apparently "playing with fire and putting the lives of 44 mil Ukrainians at risk". Go figure!

Long-time observers of TTB know that he has been a China-groupie for a long-while. It's one of his quirks, we've dismissed. But, having the read the article, I couldn't help but conclude that he has allowed his love of everything China to cloud not just his POV, but his judgement, as well. If the thinking behind ICAP managers is, well, so hidebound, how could ICAP ever convince investors to take a fresh look at it, and close the NAV-price gap?

I don't know. But, ludicrously blaming the West, or CLIM for that matter, for one's failings is not a winning formula, I believe.

ABMB turned out to be the best. It went up almost 50% in the last two quarters.

@jeffchan1901 - Mine was at Level 3 in Q2-2020, but it is close to Level 1 now. I shifted the proceeds to RHB and ABMB in Q4-2021.

@Wallstreetrookie - Where do you get their research reports from? I have trading accounts with a couple of the above four.

I didn't buy enough when the price dropped to 37 cents. For some reason, I thought the price may drop further. Foolish. When it rose instead, I didn't have the forethought to quickly buy. I bought quite a bit yesterday at 41.5 cents. But, I suspect, the price will hover between 40 - 43 cents a bit longer before it goes up. Perhaps those who know Technical Analysis could throw some light here.

LM - the current price of RM7.0 could be justified if Bursa returned a quarterly EPS of at least 7.25 cents. This number is lower than the last quarter's EPS, but higher than pre-pandemic levels. Given how excited the market is at the prospect of the BN regime returning to power, perhaps the heightened price is justified, no? (Before May 2018, Bursa's EPS was consistently well above 7.25 cents.)

The bank returned an average of RM0.11 EPS per quarter over the last three quarters. Assuming the same performance is demonstrated in the next quarter, and at PER of 10.4, the TP would be RM4.58. So, at RM3.64, we may consider the stock to be selling at 25% discount.

So, it is still a good buy; or for those who have bought it at a much lower price, it is still a keeper.

How many shares has FPI issued to its employees? So far, they have exercised upward of 5 mil shares, equivalent to 2% of the total, but it seems never ending. And, I don't think the employees are holding on to the shares.

With TTM earnings at 23 cents, at PER of 10, this counter should be selling well above RM2. Any idea what is holding the share price back? The price of steel remains elevated since last year.

What is triple switching? I saw the large infusion, as well. Over RM310 mil worth of shares traded in 10 mins.

As far as I know, ARMADA's profitability is very much intact. The Lukoil deal is likely to be affected, but this sell down makes no sense. I see this as a good opportunity to average down, although this level of price fluctuation makes the stock riskier.

Did they announce the DRP price? I didn't or couldn't find it in the announcement.

The primary issue, I believe, is this: At its peak, in Q3-2015, BAB had a confirmed order book of RM29 billion. This number now stands at RM13.6 billion. The optional extension period order book, too, is only RM 8.9 billion, as opposed to RM15.6 billion then.

This doesn't necessarily mean bad, as all seven FPOs have confirmed orders until 2024, but it is a concern, I believe. Hopefully, with the rising cost of oil, BAB is more successful in convincing its charterers to extend the confirmed order book to a significantly higher value.

Projections on speaker sales worldwide are rather rosy -- apparently the industry would grow above 16% CAGR. If FPI could maintain its market position, it would really create serious value for its shareholders.

@Sardin - Is FPI heavily reliant on foreign workers? We probably need to ask this question to FPI come next AGM. In its 2020 Annual Report, FPI talks a lot about automating and retraining staff, which is encouraging.

@sardin - any idea where FPI?s revenue growth is coming from? What is it an OEM for?

https://www.bloomberg.com/news/articles/2022-02-28/malaysia-s-cimb-is-said-to-incur-losses-from-payments-glitch

@lionel messi - why do you say “good riddance”? Also, are you saying the problem with Bursa is of its own making? Kindly clarify.

I still wonder: who buys 2 million warrants?

What kind of lame duck prediction is this? To me the two biggest factors are:

1) tightening monetary policy, which is likely have a negative effect; and
2) looming election, likely held in mid-2023, which is likely to have a positive effect.

On balance, however, I am optimistic about KLSE performance in 2022.

Statements like, "effective from Jan 1, 2022 until further notice", makes a mockery of the whole process. It means the decision is not based on merit but on politics. Given how unpopular the current government is, I doubt there would be any decision on this until well after the next GE. If so, what is the point of calling a scheme 'incentive-based'? Might as well call it politician-based lalaland scheme. Malaysia is suffering from serious lack of accountability.

@prudentinvestor - why do you say the share price is "is now poised for a sharp rebound"?

This is how I see the stock: Eight years ago, when Tenaga was selling at RM9.00, the TTM earnings were RM0.95 per share. Today, it is RM0.69. Unless this fact changes for the better, any rise in the share price may not be sustained.

With the current TTM earnings, and a PER of 10.7, the stock appears to be fairly priced. If the next Q earnings were to reach RM0.10, as suggested by @JKing, the TP at the same PER would be RM4.03.

@ǷearlꙌhite first wrote about SERBADK about six months ago, on June 8, 2021. Since then, he has written around 1,400 posts, all about SERBADK, and nothing else. Relentless.

A Full disclosure: I no longer hold any Harta or glove stocks. Sold out a few days back. (See my last post in this forum on Dec 6.) So, my views could be biased.

In the latest quarterly result, Top glove reported an EPS of 2.32, which is 65% lower than the previous quarterly EPS of 7.59. While the drop is steep, it is not as steep as the 72% drop, from 25.44, recorded three months ago.

Assuming the company maintains its current EPS, the TP would be RM1.58 (at PER of 17). However, I believe, that is the most optimistic scenario. I say so because the operating margin, despite dropping considerably, is still decent at 16.2%. Prior to COVID-19, the company's Operating Margin was around 11.5%. If we take that as the steady state, along with a Net Margin of, say, 10%, then the TP, at the same 17 PER, will be RM 1.23.

I don't think Harta is in the same boat. (Based on my reading of Harta's quarterly performance over the last few quarters.) Nonetheless, Top Glove will likely be a drag on Harta for a while longer.

Dutch Lady's last Qtr results are certainly encouraging. However, I think it is still too early to say if the company has turned the bend. While the Q-on-Q results are good, the operating margins are still low compared to 2016. This is the most critical factor, to me.

Does anyone here know what the company is doing to improve its margins?

@claptonisking - Sorry, if I weren't clear. I have a position in CIMB. (Bought into it following the March '20 crash.) Right now, I am on hold, but DRIP investing.