Posted by i3lurker > 2021-11-15 13:05 | Report Abuse

are those EPS maintainable or was it one off?

Posted by Goldberg > 2021-11-15 13:30 | Report Abuse

Interesting Article.

https://streetanalystblog.wordpress.com/2021/10/31/genetec-one-red-fla...

Genetec, a local company that doing business related to electronic vehicles (EV) has its very great prosperous year. If we look at its 6-months stock price performance and compared with Tesla, Genetec’s stock returns is actually outperforming the American EV manufacturer as of 29 Oct 2021

Genetec also announced its stunning quarterly financial report (2Q) and proposal of bonus issues on 25 Oct 2021. If we look at its PL statement, we may get very excited, as the Y-o-Y net profit grew almost 4-times! However, if we look at its cash flow statement, it is rather disappointed. As of 30 Sep 2021, Genetec has minus operating cash flow RM 63 million.

This minus operating cash flow is mainly due to the trade receivables RM 99 million sitting on the book as of 30 Sep 2021.

(Source: Genetec’s Quarterly Financial Report as of 30 Sep. 2021)

As the accumulated YTD revenue as of 30 Sep 2021 was RM 99.591 mil vs. Trade receivable RM 99.159 mil, this indicates that Genetec did not collect most of the money from the customers over the past two quarters.

(Source: Genetec Unaudited Quarterly Financial Report 30 Jun 2018 ~ 30 Sep 2021, the Street-Analyst’s estimation)

The interpretation of this diagram is the higher ratio means the faster collection of receivables. In 30 Jun 2020 and 30 Sep 2020, the company seems had the same collection pattern in the period as the ratio dropped below 0.9 and 1.0. The latest ratio as of 30 Sep 2021 is 1.0, meaning that 2-months of revenue is not collected. Not sure if this is due to the covid-pandemic impacts.

I tried to email Genetec’s IR for this inquiry however did not receive any response at the point of writing this article. Based solely the analysis here, we also could not make any conclusion. Hopefully the next quarterly financial report and audited annual financial report can bring more clearer picture.

In a business, there are many scenarios will do the same situation, such as:

A lose credit terms provided to the customers
The customer has cash flow problem
Fraudulent accountings
etc.
No matter what the reason is, without any cash inflow, a company will face working capital problem to continue run its business. Subsequently the company needs to raise borrowings, or new capital injection. In the case of Genetec, it can also exercise stock options to issue new shares.

Furthermore, when a company could not recover their trade receivable from the customer, in accounting, a bad debt accrual or written off due to bad debt will be post to PL statement. Hence lower its earnings in the subsequent quarters.

As mentioned by the Genetec in the past annual report, its revenue is derived from two major customers, there is a rumor in the market saying that Tesla is one of the them. If it is true, I am just curious whether Tesla has no money to pay Genetec. Just a joke!

Posted by NatsukoMishima > 2021-11-15 15:07 | Report Abuse

From start to end people never told u that tesla is their customer , USA got many rojak EV company also , only your own talk n belief makes u feel good ! When i see the news 12: 1 BI , I cash out already , must remember top glove n heng yuen history will repeat !

Posted by NatsukoMishima > 2021-11-15 15:09 | Report Abuse

Cbina EV will beat tesla soon just like smart phone ! Tesla will drop back to usd 300 !

Posted by 1035834 > 2021-11-15 15:12 | Report Abuse

their sales figures equal to their trade receivables , if based on first in first out logic, then no money collected for this year , if the customer default their payment , the company may have the risk of wind up as their customers only focus 1-2 only. Also their debts keep increasing , unless products margin is super high to compensate the credit risk or no one will do this type of business .

Posted by i3lurker > 2021-11-15 15:17 | Report Abuse

when

sales <=> Receivables

This means credit period = 365 days ?

hmmm

no need for me to draw bones in pictures

tsk tsk



Posted by 1035834 > Nov 15, 2021 3:12 PM | Report Abuse

their sales figures equal to their trade receivables , if based on first in first out logic, then no money collected for this year , if the customer default their payment , the company may have the risk of wind up as their customers only focus 1-2 only. Also their debts keep increasing , unless products margin is super high to compensate the credit risk or no one will do this type of business .

Posted by i3lurker > 2021-11-15 15:21 | Report Abuse

only 2 customers?
Musk madly dumping Tesla shares like no tomorrow coz unable to compete with China EVs

more than 1 million China EV cars sold with hundreds of factories in China involved.

same thing happened when all Malaysian factories producing DVD players bungkus tutup kedai and dvd factories only exist inside China.




Posted by NatsukoMishima > Nov 15, 2021 3:09 PM | Report Abuse

Cbina EV will beat tesla soon just like smart phone ! Tesla will drop back to usd 300 !

Posted by Maxsuper > 2021-11-15 15:25 | Report Abuse

...... once below 40 it will be 20% off high.... bearish counter n prepare for diehards to claim dy sold at peak....

Posted by i3lurker > 2021-11-15 15:40 | Report Abuse

with Tesla on the way down
(Musk already voted by dumping billions of his own Tesla shares)

peak at 50.00 is confirmed.
looks like will never achieve 50.00 again just like Heng Yuan 17.50

Posted by Stockisnotfun > 2021-11-15 16:10 | Report Abuse

Will drop until bonus issue. Make sense

Posted by wiser_dude > 2021-11-15 16:20 | Report Abuse

When is the BI?

Posted by Loh Kok Wai W > 2021-11-15 16:36 | Report Abuse

got more profit never sold PITY......glove counters is one example.

Posted by calvintaneng > 2021-11-15 16:37 |

Post removed.Why?

Posted by ooi8888 > 2021-11-15 16:42 | Report Abuse

aiyoo, people are looking for you up & down in kurang power

Posted by Stockhunter88 > 2021-11-15 16:46 | Report Abuse

Careful lor, promoter sudah lari

Posted by NatsukoMishima > 2021-11-15 17:05 | Report Abuse

1 day rm 1 drop until end of dec enough already ! Then restart the game frm rm 2 - 3 !

Posted by i3lurker > 2021-11-15 17:09 | Report Abuse

sounds like TopGlove dropping!!!

:)


Posted by NatsukoMishima > Nov 15, 2021 5:05 PM | Report Abuse

1 day rm 1 drop until end of dec enough already ! Then restart the game frm rm 2 - 3 !

Posted by i3lurker > 2021-11-15 17:10 | Report Abuse

its parri passu for sure coz TopGlove also gave out BI just like Genetec

Posted by Thks1956 > 2021-11-15 17:14 | Report Abuse

All these keyboards warriors just waiting below 40, remember to buy below 40 ah. Don’t just type, poor people. No money to buy. Wait for BI la

Posted by Benhobenhobenho > 2021-11-15 17:31 | Report Abuse

Is this the start of trend reversal for tech stocks just like glove last year

Posted by Newbie_123 > 2021-11-15 17:49 | Report Abuse

phenomenal rise from 1.68 to 50. It's 2,876% rise. Ppl still not contented & hope for 100. Greed will kill u all. Reality sunk-in #endofgenetec

Posted by wiser_dude > 2021-11-15 17:50 | Report Abuse

Keyboard warriors = chicken feed penny stock players

Posted by Newbie_123 > 2021-11-15 17:53 | Report Abuse

the TSLA hypes hv reached its peak. Probably the next 10 years huge EV growth potential will bring this counter back to its ATH @ 50. Don't need a rocket scientist to see the daily downtrend now

Posted by i3lurker > 2021-11-15 17:55 | Report Abuse

looks like it

Musk started dumping heavily, very heavily.....that should tell you what's happening in tech stocks

but as usual many in i3 forums call Musk a pakchee....
and Tesla a much smaller company than Genetec...

Go figure it out yourself


Posted by Benhobenhobenho > Nov 15, 2021 5:31 PM | Report Abuse

Is this the start of trend reversal for tech stocks just like glove last year

Posted by Vaccineyes > 2021-11-15 18:01 | Report Abuse

Whether its short term or long term, Genetec won't fail. Buy and hold

Posted by i3lurker > 2021-11-15 18:43 | Report Abuse

to me Genetec share is still only worth RM2 to RM3 per.

anything above is just pure unadulterated Pump and Dump. Its a controlled counter that managed to escape.....

Financials are way worst off than Gloves.

Posted by Newbie_123 > 2021-11-15 18:45 | Report Abuse

BI ex date will further dilute the share value. Are u expecting the rise like previous daily uptrend when there are 13x increase from current NOSH? More retailers joining the party and volatility level will be higher. God bless :P

Posted by Newbie_123 > 2021-11-15 18:48 | Report Abuse

Those that bought from 35 onward better cashout to salvage your earning. Ain't u seeing your peers from 40ish got burnt chasing the TSLA dream. Talking bout Hold The Line, Malaysian investors is not like W/Strbet @ Reddit :P

Posted by i3lurker > 2021-11-15 18:49 |

Post removed.Why?

Posted by Newbie_123 > 2021-11-15 18:50 | Report Abuse

Investors here will jump ship when profited 20%

Posted by Newbie_123 > 2021-11-15 19:11 | Report Abuse

no offence, only bailout from Institutional investors will stop this downtrend

Posted by Thks1956 > 2021-11-15 19:13 | Report Abuse

Talk as if you think it’s the truth, no money buy go back to penny stock la. Waste gas

Posted by dompeilee > 2021-11-15 20:42 | Report Abuse

lol...biggest promoter keep shouting 'BUY'!!! @ 47+...now...

Posted by hantamking > 2021-11-15 20:50 | Report Abuse

Pang72 nice boh?

Posted by Vaccineyes > 2021-11-15 21:18 | Report Abuse

Big boss bought 40k shares. Sign of a great run coming

Posted by Thks1956 > 2021-11-15 21:20 | Report Abuse

Mr Chin (Director) buys 20,000 units from open market today. I wonder why! Get ready to fly tomorrow?

Posted by Vaccineyes > 2021-11-15 21:27 | Report Abuse

Yes, time for recovery

Posted by wiser_dude > 2021-11-16 03:18 | Report Abuse

Trrow will shoot up .. queue to buy in morning .. 46 coming trrow

Posted by Lucifer999 > 2021-11-16 09:26 | Report Abuse

this is good...slow and steady

Posted by Jerichomy > 2021-11-16 10:31 |

Post removed.Why?

Posted by Stockisnotfun > 2021-11-16 10:47 | Report Abuse

Yup you are right. I do advise you all who miss the boat can look after BI rather now.

Posted by Thks1956 > 2021-11-16 10:59 | Report Abuse

Game over

Posted by staypositive > 2021-11-16 11:11 | Report Abuse

Director kena trapped

Posted by gemfinder > 2021-11-16 11:14 |

Post removed.Why?

Posted by Jerichomy > 2021-11-16 11:16 |

Post removed.Why?

Posted by Jerichomy > 2021-11-16 11:26 |

Post removed.Why?

Posted by Jerichomy > 2021-11-16 11:28 |

Post removed.Why?

Posted by Yezzy99108 > 2021-11-16 11:37 | Report Abuse

Will keep dropping until market sentiment is positive which is unlikely to happened until 2022. Bye Bye and thanks for the great journey

Posted by Yezzy99108 > 2021-11-16 11:40 | Report Abuse

even this multi baggers stock unable to sustain the rise coz investors are cashing out fearing for the upcoming country uncertainties.

Posted by Jerichomy > 2021-11-16 11:43 | Report Abuse

No lar…this company PE 100…you think made of Gold meh