As someone who has visited press metal plant in bintulu recently, I thought the reason why press metal is a 56 billion ringgit company and alcom is a penny stock would be very very clear.
Cost structure, management, access to customers and margins. 1. Cost structure - power supply from an ESG approved hydro source negotiated at much lower rates than tnb and cheap labor and cheap land agreement with Sarawak government which is the biggest costs in any manufacturing center is a huge huge difference from alcom scale. Peanuts versus elephants.
2. Management - very well managed company which supplies to the largest electronics company in the world, and major European and American companies versus a company which if not for shortage and inflation will be loss making and unable to compete internationally.
3. Access to customers - cash and reputation is king. Who do you think wins? 4. Margins - for all the reasons above, press metal has huge and wonderful margins.
For these reasons I think buying alcom is a silly idea born of speculation in penny stocks. Anyone who buys penny stocks deserves everything they get from it.
What matters is who makes more money vis-a- vis share price ( ie PE ) and who reward shareholders more with dividends in the recent past and next few years.
Geezer says undervalued but so many stocks are also undervalued in Bursa. Even Anal-Lists recommendations from brokerage houses don't go up, what makes Geezer thinks he's mediocre pick will succeed. This Geezer has KARMA to answer to.
When uncle promotes a new counter, u know he lose his pants in the previous stock he promoted. Indeed I also wonder does he ever feel embarrassed furnishing people with all the misleading info. I bet people like him will not feel ashamed anymore. Just pity his family who will receive bad karma because of what he does
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....
ming
2,087 posts
Posted by ming > 2022-02-21 19:42 | Report Abuse
Profit mostly from property sector leh ..