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8 comment(s). Last comment by mahmudkashimj 2021-11-18 20:00

Posted by Philip ( buy what you understand) > 2021-09-30 08:08 | Report Abuse

The first thing one should ask is not how much cash a business has, but what the business is going to grow the cash pile it has. Because as a minority shareholder you have no access to that cash, but simply whatever forms of dividends or share buybacks that the company is willing to do.

In this case the correct question is to ask why is the company valued lower than the nett cash it has?

The simple answer I can find is simply that the company doesn't make much money at all, and the earnings it has right now is simply by selling the plantations that it has for more prices instead of growing more (a trick that the old tradewinds manager seems fond of doing before, selling).

In any case would you buy a company whose central business model 77% is in the lpg business, and yet from 456 million in revenue, only makes 11+ million in profit? That is a gross profit of 2.4%.

Their ict telecommunications business is losing money, they are selling off the plantations they do have in agro.

So since we will not be able to access that pile of cash at all, and I fully believe management will be using that money to finance new business models( which may or may not be successful), the simple fact is you cannot value the company simply based on the cash they have which is the past, but try to estimate the future cash flow it will have.

That would be the real possibility of looking at why the share price will go up and how you will really benefit.

My 2 cents.


992 posts

Posted by cyeec2000 > 2021-09-30 08:42 | Report Abuse

Philip why you look good at awc? Instead uem edgenta


883 posts

Posted by Bizfuneng > 2021-09-30 08:46 | Report Abuse

Tq, Philip you have presented your logic with business sense.


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Posted by VTrade > 2021-09-30 12:00 | Report Abuse

No wrong.
Stay safe

Posted by Callmejholow > 2021-09-30 15:42 | Report Abuse

umno related mar


17 posts

Posted by hobobem > 2021-09-30 16:38 | Report Abuse

@Phlip so nice to read a good and competent analysis of the situation, in contrast to the article but with no insult and put down.

Posted by lifeisajourney > 2021-09-30 21:18 | Report Abuse

@philip, I do not disagree with your comment. It is definitely interesting to see what development this company has in the future given that much cash in the company currently.

However, if you notice, there seems to be DBT transactions these past few days. Seems like a few big blocks crossing at 0.60 cents. If the costs to new owners is at 0.60, i think the price now would be very very attractive, unless i'm wrong.

Posted by mahmudkashimj > 2021-11-18 20:00 | Report Abuse

We hope the new management will be play there role to manage the business well.

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