TQ 4 sharing, nice analysis! My thought is d low margin implies a very competitive biz, holding it for long term will be really to bet on the ability of the Mgt to do wonder...?
Few ways for the company to improve, reduce cost structure and increase selling price. Selling price is determine by the market forces hard for the company to intervene. Only way is cost structure which CCK did by integrating the entire value chain. As a result, the profit margin increased from 2% to 3%. I am confident the coming Q, CCK wont disappoint. Many are wary because they are not familiar how to value the company following the bonus issue. If they read carefully, they will know CCK is clearly undervalued
Advise to all who read our article and entered CCK at 64 sens, please note CCK has done very well with 30+% return in 5 months. Those happy with profits, do not forget to take profit. Those who intend to hold and ride, do not do so solely because of CIMB's report. While CCK is fundamentally sound, the earnings will have to improve gradually every Q to reach CIMB's TP. Which means if you hold, must be prepared for long term investment horizon.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
8illionaire
497 posts
Posted by 8illionaire > 2017-01-26 15:13 | Report Abuse
No.