Icon8888 will not comment if CI Holdings can be purchased or not at certain prices, simply because his reputation will be at stake. Perhaps, he will answer if he is still holding CI Holdings at current price or not. Sifu Icon8888, please write more articles on CI Holdings after the 3QR is released. Thank you..
Its amazing how this company can accumulate so much debt aka borrowing. Which bank in its rights mind would loan so much money for a general manufacturing company.
Haha ! It needs working capital to ramp up the sales. As Africa is far away and shipment takes 2-3 months to reach, it needs bridging financing with bank borrowings... Revenue growth is very good and EPS per Q is already more than 7 sen...
This year EPS may exceed 30 sen per share... Dividend hopefully more than 10 sen per share.. hehe..
Insiders bought at much higher prices 2.50 and above...
Edible palm oil is Malaysian produced products in abundance. Marketed to more than 100 countries worldwide... Revenues and earnings has gone up by leaps and bounds.
It is consumable products require by the masses daily ... should command PE of 15 times....hehe
Revenue QoQ increased to RM738 million from RM654 million.. an increase of RM84 million.. net margin improved to 2.12% from 1.48%...
Borrowing stand at about rm240 million... current liability decreased by about rm50 million and current asset decreased by about rm20+ million...
Business is growing exponentially... if margin improves further, there will be net free cash flow or if the revenue stops increasing exponentially, the collections will pare down receivables and will have positive free cash flow...
CI Holdings must not only increased its revenues, it must also improve its cash flow and margin in order to attract more investors. EPS may show improvements; gearing is still very high and because of such concern, this counter market price cannot move up positively.
They are embarking on high risk with palm oil business . offlate nearly 400 FCL has been directed by East Africa customs to get reexported back sighting that have not complied to quality standards.further their margins getting deteriorated due to stiff competition
Palm oil business is not high risk. The risks may include poor quality control, foreign exchanges, stiff competition and large capital outlay for long export markets.
I bought a little of this @ 1.38 early Oct '19 to attend meeting. Collected Intercontinental Hotel packed lunch(hi quality delicious!), 2 bottles of cooking oil, 8c dividend & today, after securing the 10c dividend, I SOLD 40% of my shares from 1.64 down to 1.57
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....
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Posted by 1901 > 2016-08-24 12:50 | Report Abuse
slow-slow go-go