Posted by lching > 2020-03-05 14:53 | Report Abuse

low volume is the main consideration for me.

Posted by Philip ( 2.3% fatality rate, 80% recovery rate age 10-40) > 2020-03-05 21:39 | Report Abuse

A few red flags for me.

1. Any business with a good core that decides to diversify into property development makes me worry. Soft property market plus huge receivables is a big headache.
2. The impairments and late payments +90 days delay is worrying especially when credit impaired.
3. There are a few deals with suppliers/contractors of director related family members.
4. Development companies building high end properties should have much higher profit margins. This is impacted by high construction costs, which lead back to the director family member related suppliers selling at high price to company. I have seen almost every trick in the book and know how companies with a property development arm can do many tricks to funnel cash out of company in a legal way. I'm not saying kobay is one of them, as their manufacturing am is doing fabulous, but the red flags give me some cause for concern.

But other than that, their valuation, cash position and business growth is a very consistent increasing line.

It's your call to make.

Posted by Armada An Quantum Leap Stock In 2019/2020 > 2020-03-06 11:23 | Report Abuse

Kobay hmmm