If you are hotel and resort operator, now is the bad time for your business.
However, if you have cash and resource to invest, hotel and resort is also the second best investment right now, right after glove-making and healthcare companies.
I guess Mikecyc is a day trader and had bought at highest price of 0.595 recently and suffered contra loss , get so frustrated and came here to spam to vent frustration ! Very common in i3 and many share investment forums, losers will normally came and vent anger and frustration when they suffered loss !! Jaks forum recently got so many F words here and there because many people suffered loss and frustrated !!
As I always say, if you are value investors and hold long term, the prospect is very good for ice cream :- Not only big 4, small 4 and tiny 10 etc rush to expand and replace their over-worked / spoilt hand formers, many players want to enter this juicy business nowadays .... glove makers are going to fight against each other for market share soon, BUT .... still minimal competition amonst this second liners hand former business... simply because it has been largely ignored by investors !!
Before common investors notice this, it is time to collect at cheap and wait to SELL HIGH to those realize later to panic buy !!
The more and more glove makers to expand or new players venture into glove making business, the only end beneficial will be none other than ICE CREAM !!
the next QR out around end July might not reflect that yet, but if the CEO 's outlook comment is good there, the price will SHOOT UP, the QR out at end Oct, 20, end Jan, 21 will be huge !!
Ppl want fast money and they are getting there from the big 4 + comfort. Esceramic is totally ignored for now cause the hot money is with big 4 and comfort.
Ice Cream best profit year is 2016, around 7.3 millions, EPS = 3.6, if they can repeat that (very likely or even better due to glove's boom time), and with net cash of almost 10ct per share, based on KC Chong's fair valuation of their PE shall be :- current share price = 40ct, minus cash per share of 10ct, net price for PE calculation shall be 30ct only ! forward PE :- 3.6 / 30 = 12 ! ( I myself shock to compute that !!)
comapring to present Top Glove / Harta PE= 85, supermax = 74, comfort = 53 ! I just read all glove companies (except Harta) have high gearing
just for computation, if they can repeat EPS of 3.6 per year going forward, valuation with PE of 20 (the most conservative) , share price will be 72ct + 10ct cash = 82 cts PE of 30, share price = 1.08 + 0.10 cash = 1.18 PE of 40 (crazy value as per glove but stil half of glove ! ), share price = 1.44 + 0.10 cash = 1.54
Ice cream share cap very small only = 200 millions, 2 big bosses controlled 45%, so public only hold 110 miliions, once put on burner for frying, one day can SHOOT UP to 0.60 already !!
PE of 30 is possible as this is not considered big 4. The P/B ratio is just 0.420/0.26 = 1.615. Supermax and TopGlove are trading at P/B ratio of 8.3++. Kossan is around 7.6 while Harta is at 14.667.
Conservatively and giving this glove theme play, a P/B of 4 would yield 1.04 for Esceramic. Hence with PE30 and P/B of 4, the value could reach between 1.04 - 1.18.
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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....
Mikecyc
45,527 posts
Posted by Mikecyc > 2020-05-28 08:48 |
Post removed.Why?