Anyway, ES Ceramic was the one and only "growth" stock that I was chasing, with the trailing 12 month and 5 year PEG ratio of 0.48X which made it very attractive to me. I got bitten here, maybe in the future I stop looking for growth stocks. My "value" stocks (limited downside risk, potential upside catalysts) like Bumi Armada and Tenaga Nasional have fared much better.
I hold to my stake for now, and will top up in the future should there be a major selloff. In periods of distress when ES Ceramics drops below its book value I will put it on my watchlist as the balance sheet management is good.
Per CEO : Migration to Main Board ( statement after FY 2015 AGM )
“It is a natural process. Within three years we should be able to do it if we continue to grow like this,” executive director and CEO Wong Fook Lin (pix) told reporters at its AGM yesterday.
On dividends, Wong said it will not declare dividends for FY16 due to the capital expenditure (capex) needed for its automation plans, which he said will take up quite a lot of cash.
“We will look at it next financial year (FY17). Hopefully by then we will have an idea as to the capex for the automation initiative; how much is needed.
“We are mindful of the importance of rewarding shareholders for their loyalty and we will consider it after taking into consideration our cash flow as well as future needs,” he said.
Esceram management seems cognisant of the fact and mindful that shareholders' reward is important.
dont worry lah........ its just a blip.......all the glove companies are increasing capacity to stay competitive..... malaysia has the biggest glove producing companies in the WORLD.
Esceram need to sell product at "more competitive pricing". Most likely implied that glove giant are pressing down the selling price due to better bargaining power.Esceram need to accept no choice. 2017 CEO commit for few million capex for automation, so far not yet see the progress yet. Purchase of PPM just seen less than 1M per quarter
Mahorse, yeah I think hibernate. It will probably get a second chance in the coming quarter. If it doesn't hit ROE of 3.5% I will sell, no point holding cause if the ROE can't keep up with the book valuation then it is overvalued. I will also sell if it hits RM0.48 for whatever reason this Q. Exit with no loss then.
I will say if you don't want to sell, don't buy either for the time being. This stock was actually running ahead of itself. I made a mistake buying at such a value. When I bought I just saw at RM0.465 it was at a low point. Didn't do much analysis. In fact now I have to revise downwards to RM0.33 my re-entry point to average down at 1.5X P/BV.
Damn. What a mess! Still think long term this company will do good, but might need to suffer some pain in the short term.
For longterm investor is an excellent company......... net cash, acceptable ROE, although margins reduced but still not that bad. I think during that period they sold more of lower margin products....
cheery, it's just that some institutional investors don't have a mandate to invest in the ace market. So if this goes on main board it will be more attractive to local/foreign institutional investors. also it's like graduation man!
please check their agm, i consider huge fund inside compared to other ace counter despite no dividend payout. Therefore if this year still no dividend and share price continued dropping and furthermore their new venture need another 3 years to see the result, i foreseen more fund will take profit.
New IPO: Building management systems (BMS), solar thermal systems and energy-saving services provider, Solar District Cooling Bhd aims to list on the Ace Market!
MQ Trader 791 views | 5 d ago
0:17
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
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....
Tong Mun Hoe
22 posts
Posted by Tong Mun Hoe > 2017-04-27 12:07 | Report Abuse
good timing to top up ?