Comfort is the most earning listed company in FBMKLCI or lowest PE in MALAYSIA. Anyone can list a company that has lower PE(PRICE PER EARNING)) than Comfort?
If you have to wait for IBs to write proper reports on stocks and help you make big money, you can wait until the cow comes home.
From my years of experience those who do their own research make bigger and faster money than those who rely on recommendations from broking houses or IBs.
Ask around and you will agree with me. I have never taken any share tips from IBs and broking houses since I started trading in 1989. And I don't miss anything.
PE= Share Price / Earning in one year. One year got 4 quarters. Comfort latest quarterly result, Profit=37.75cent. Share market always look forward to future earning. Comfort production keep on increasing and even gradually drop in ASP, the revenue will cancel the drop in ASP. This can be proved by the latest comfort revenue and profit margin. Let says comfort earning maintains for 4 quarters at 37.75cent.
COMFORT PE= COMFORT share price / earning in 4 quarters. COMFORT PE = 181 / (37.75 X 4) COMFORT PE = 1.21
COMFORT is the lowest PE listed company in Malayisa (or the best earning listed company)
Anyone can challenge Comfort is not the most earning company in Malaysia? Can you tell me one more listed company that its earning is better than Comfort in Malaysia?
U are right @invest_888. Your case is the base case. But looking at hartalega performance for the previous quarter, the increase in net profit is insane. I expecting the next 4 quarters for the PE to be above the base case. Even if that's true, we will have to see who will be willing to push the price up.
The ASP will taper off but I strongly believe the total profit from the operations will still continue to go up. Simple reason: the increase in profit from bigger business volume more than offset the decline in the ASP
No factory owners with the right mind would want to expand their production capacity if they end up having shrinking profits.
Increase in total profits is what that matters most and not the declining ASP, unless the ASP is expected to drastically drop to below its marginal cost which is very unlikely.
I dont understand what is everybody making such a big fuss about?
When at this rate, NTA is expected to be nearing 2 by end of this financial year.
Moreover, minimal debt, heavy in cash.
Even if ASP takes a dramatic hit by 50% next financial year, P/E is still around 5-6.
How many cash-rich company with sustainable business model/profits that is valued at P/E of 5 to 6?
Finally, covid is here to stay indefinitely for another year at least. What kind of business will not be impacted negatively, more so flourish under these conditions?
Semiconductors? Comfort which has a quarterly profit of 27 times of genetec is valued at 200 mil less than genetec.
The truth will prevail, the more it sinks, the happier i am as it allows me the opportunity to amass further. In the end, fundamentals are what it takes. These cartels can continue to write negatively about gloves, and try to boost other far-fetched semiconductor companies, but when MCO is often imposed production and profits for these companies will still suffer.
am thinking with so many cash on hand, what will be the company next move? keep expanding in glove? (market will get saturated by matter of time). if no plan perhaps just give beautiful dividend... as both factory closed for 2 weeks, guess will taken up their inventory, could plan for another factory at other place.
Looking at the way the WB have been traded last 2-3 weeks, it is quite obvious that someone is collecting them big time. Having bought quite a large quantity they are expected to be sold at higher price to realise their profit. It is unlikely that they are just being kept in the safe.
The quarterly results are expected to be good and this will help them to sell at higher prices.
The signs for the mother share are not so clear because the volume traded was not very high but then the prospective PE multiple is expected to drop further which will make the mother share look very cheap and very attractive for investors to pick it up. So the price of the mother share is expected to move up too over the next 2 weeks.
The WB has a 5-yr life. It is normal for syndicate to buy and sell the warrants during that 5 years. It is extremely unlikely for them to sell all their warrants during the recent run-up to abt 73 cents and walk away and not coming back.
The syndicates are also traders and it is normal for them to sell high and buy back when rhe prices come off. That is their bread and butter.
I would not take that pessimistic view or else Comfort is working towards closing its factory. Definitely the operators are bullish with their business and having to manage the business and investors relations is part and parcel of their daily work. I believe the operators know what they are doing or else they would not be cash-rich and embark on expansion plans.
Warrants always move faster in percentage terms and that explains why WB is actively traded at 12 mil units now compared to 2 mil traded on the mother share.
For a bullish counter, the investors are generally attracted to the fast return on its warrant.
If u plant palmoil u need to wait at least 5 years to fruits mah...but rubber gloves....6 mths already set up can produce rubber gloves already loh!
Posted by stockraider > Aug 12, 2021 3:47 PM | Report Abuse X
U see gloves is simply a cincai easy produce commodity product mah!
Newcomer like mahsing with no previous gloves experience....within less than 6 mths....already become a major gloves producers in the country with few billion capacity mah!
Like that, how leh ?....that means many competitors on the way mah!
Mahsing venture into glove business that announced on 15Oct2020. Before 15Oct2020 Mahsing had already spent time on preparing many works to venture into glove business. Until today, Mahsing still can't get significant profit from this glove business. https://www.thesundaily.my/business/mah-sing-ventures-into-glove-makin...
Most probably, end of the year Mahsing might start to see some good profit from glove business.
Comfort PE is less than 2. The most profitable listed company in Malaysia. If you are value investor you will buy it. The glove demand is still very strong amid the spread of delta variant, covid-19.
KLSE is a different type of share market, the value of share price not determine by P.E ratio of the company but on the interest of IB and major trading syndicates .
Example : Comfort P.E ratio 2 Nobody complains and ask the question why so low ? Harnlen PE ratio 1.85 Nobody complains and ask the question why super low ? D & O P.E ratio 83.34 Nobody complains and ask the question why so high ? LKL P.E ratio -43.7 Nobody complains and ask the question why super high- ?
So, what is the reasonable forward P.E ratio ?
Conclusion : KLSE don't always apply P.E ratio to determine the value of share price.
To trade well in the shares of a particular counter one needs to know the company very well. It must be close to your heart like a " 2nd wife". Must understand the fundamrntals of the company, the trend of the price movements and be able to " feel" and understand the prospects of the company and the sector the company is in as a whole.
As an individual investor and with so many things to look at, focusing on just a few companies makes more sense than the Efficient Portfolio Theory of 17 stocks which never make sense to me from day one.
This is only my personal view and I don't expect many to agree with me. Different people have different approaches in share market investment.
But whichever approach one adopts, nothing beats the habit of reading the latest news on the happenings in the companies you are investing in.
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Invest_888
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Posted by Invest_888 > 2021-08-09 09:12 | Report Abuse
Comfort is the most earning listed company in FBMKLCI or lowest PE in MALAYSIA. Anyone can list a company that has lower PE(PRICE PER EARNING)) than Comfort?