Sekarang Malaysia foreign reserves ada USD 115b. Apa akan belaku kalau USD jadi sampah?

USD belum jadi sampah tapi MYR dah jatuh sampai 4.55. Celaka betul!

' Technology is the future'...except share price?

Relying too much on China market? Credit risks shows China represented 68% of the entire trade receivable in AR 2022.

Kalau USD jadi sampah...apa akan jadi MYR? tarak pakai...

Tunggu tahun 2024 dan tengok mana currency akan jadi sampah lor.

USD akan jadi sampah ke? hahaha

Reit would be the next theme as recession is approaching and Fed to start reduce interest rate by year end.

This cash rich sister company got more than RM 100 million in its piggy bank. Hahaha

Donation is too little. Need certain cash rich party to buy more shares before GE? Lol

May be its cash rich sister company will be snapping the shares after tomorrow. BJFood is a good example of share buyback almost hitting 10%. Lolz

Everyday, SEM buys back it own shares including today. Tomorrow buyback would be the last batch of hitting 10% limit.

Dragon. I based on the people view on the existing 7/11 stalls. The fact of its stalls is really outdated and dilapidated. No future. Lolz

How the share price goes up with the outdated or dilapidated 711 stalls? Disposing Caring is the only catalyst.

Money has been used up for investing in Caring business for the last 3 years. Time to take back the money and having a face-lift for 7/11.

7/11 need to have extra money to learn from Thailand 7/11. No money no face-lift.

7/11 is so old or outdated already with tiny little shops displaying their products. They need money for a faceoff to catch up with the trend.

https://www.google.com/amp/s/vulcanpost.com/787555/7-eleven-convenience-store-malaysia-7-cafe/amp/

If VT has the ambitious to go big in 7 Cafe business, they need at least another RM 400 million to expand the number of outlets to 1000 units. Tealive Malaysia got 800 outlets lor.

If SEM doesn't sell Caring unit, the company will be stucked in the middle of expansionary mode due to lack of cash.

Many have been shaken out especially retailers. Share buyback is the biggest supporter or behind the rally before collapsing. Low liquidity cause high volitile in share prices.

The problem is that investors don't dare to pump in more capital into highly geared SEM now.

RM 1.2 billion cash for Caring unit is good enough to SEM in the lowest scenario or pocket cash RM 1 billion (75% stakes)

The rest is secondary. First priority is to sell Caring.

In the end, disposal of Caring unit would be the best option available to SEM now.

When i read 'EBITDA' word, it reminds me of GPacket CEO using this word non stop to boost the prospect of the business in the many articles published by the The Edge few years ago. Lolz

The biggest problem to SEM now is lacked of cash to finance the growth of 7 cafe and Caring unit. Somemore, hiking in interest rates will squeeze existing the bottom lines level.

Not much choices to SEM besides disposing Caring unit to pare down the borrowing levels and the extra cash for investing in 7 cafe business.

Bear in mind that Lease Liabilities, in fact, is a borrowing in another term here. Look at the AR 2021 (Note: 7 Finance Costs), interest payment on lease liabilities RM 36 million in 2021 whereas Payment of principal portion of lease liabilities RM 137 million as shown in the Cash Flow Statement.

Be prepared for the worst of SEM bottom line if no deal done in Caring business unit. Lolz

SEM margin is low and non comparable to the Starbucks business with high margin. BJFOOD is able to cope with the rising interest costs.

What would happen to SEM bottom lines with the existing borrowing RM 1.4 billion in the rising interest rates environment for the next 2 years if the management do nothing?

To unlock the value of convenience stores business , degearing and improve its growth prospects , it seems that disposable of Caring is a better option.

With the existing gearing level, SEM growth is limited and won't be easy to borrow money for future rapid expansion especially cafe business. Besides growth bottleneck, rerating is obviously not feasible.

SEM has thrown RM 29.45 million for share buyback from 7 Oct 22 until now. They need another RM 3.5 million to snap up 2 million shares achieving the max 10% share buyback.

Why SEM wants to spend RM 33 million for share buyback rather than investing in 7 Cafe expansion?

SEM is highly geared in its existing Balance Sheet position. With the expansion plan of 7 Cafe from 100 to 150 stores, Capex is needed between RM 50 million to RM 75 million this year (assume average RM 500k per store). Now, the interest rate is escalating and they need more money to finance the expansion next year. What would the do? Borrow more money for expansion?

Extracted: 7-Eleven Malaysia is aiming to expand its own cafe store count to between 100 and 150 by this year, up from 28 currently.

Dubbed 7CAFé, the group has budgeted an investment of between RM450,000 and RM550,000 for each new cafe opening in a bid to reach the target, said Wong.

https://www.theedgemarkets.com/article/7eleven-malaysia-aims-expand-cafe-store-count-150-year

Article from the Edges :
7-Eleven Unaware of Reason for Share Price Rise
Publish date: Wed, 02 Nov 2022, 08:50 AM

Unaware of the reason? Lol

1. Share Buyback from 7 Oct 22 to 3 Nov 22 - 14.331 million shares ( RM 29.45 million ) @ Average price RM 2.055
2. Total Day Trade from 7 Oct 22 to 3 Nov 22 - 22.464 million shares @ 64% of the shares acquired by Share buyback
3. Besides share buyback, shares volume traded by other players 4.14 million shares from 7 Oct 22 to 1 Nov 22 (while price was riding high )
4. Exclude share buyback 3.05 million shares from 2 Nov 22 to 3 Nov 22, shares volume traded by other players 4 million shares

You dumped the tickets yesterday. No wonder la.

BJFood, SEM & Redtone have returned to the market interests. Ah Tan counters back to investors radar again?

Many US high tech semiconductor companies would post negative revenue growth starting 4th Quarter 2022. It would be slightly better to those low tech companies supplying equipments to China for producing chips above 16nm.

“China-based chip fabs that produce logic chips of 16-nm or below, DRAM memory chips of 18-nm half-pitch or less, or NAND chips with 128 layers or more will have to apply for licenses to purchase items from the US”

China contributed 39% in terms of revenue to MI for FYE 21. What would happen to the future prospect?

China contributed 34% in terms of revenue to Penta for FYE 21. What would happen to the future prospect?

China contributed 33% in terms of revenue to Vitrox for FYE 21. What would happen to the future prospect?

With the banning of chips below 14nm plus AI technology from US, Revenue of US semiconductor companies are expecting to drop between 10% to 30% started from now until next year. Bye Bye to the myth of 'Technology is the future' in the next 2 year.

Who has earned more opportunity for holding cash to fight inflation since beginning of this year?

Invest long term in commodity cyclical stocks to fight inflation kah? Good Good! Yummy to sh..k.

Holding plantation stocks to counter inflation is a myth? Or It is true with the condition of the validity less than 3 months?

Good time slaughtering energy commodity before US mid term election. It is the only way out safe the stock market from crashing as a whole.

Many metal commodity prices have slided to the reasonable level. The exception are only energy and food commodity prices remains elevated at high level. As long as the stubborn energy prices crashing within the 2 months, the market sentiments would turn into positive as FED doesn't have the urge to actions aggressively.

If the Fed actions are unable to tame inflation effectively even though rate reaching 4.25% by the year end, they will speed up the QT progress. Fed Balance Sheet assets was ballooned through QE from the base USD 4.2 Trillion in Feb 2020.

Currently, Fed has reduced the Balance Sheet assets by merely USD144 billion from Jun 22 to Aug 22 from the peaked USD 8.97 Trillion in April 22. More to go to kill the stubborn crude oil price and zombie companies plus crypto currencies at the same time.