hmmm indeed both FACB and PMCORP business income is not impressive, but financially there is a major different. FACB is trading below it's cash per share value, but PMCORP is not. Although both company are cash rich, but if you are valuing them based on cash level, then FACB is undervalue, but PMCORP is not....
This FACBIND cash issue has been repeated like 10X over the past 2 years already. MD already hint NO SPECIAL DIVIDEND in last AGM, still ppl hope for it.
how can up if FACBIND dont want to share its cash with shareholders? for the past 2 years many have bought FACBIND expecting a big special dividend (including me), only to be disappointed by MD denying it.
i wont be surprised if in a few months time, another genius decides to promote FACBIND again saying high cash pile, blah blah blah. Bones is not the first one, and certainly wont be the last one.
High cash pile is useless if not shared with shareholders!
if i borrow money from bank to buy in RM1.6. and i get RM1.8 cash. RM0.2 is free and haven't calculate other asset, which worth RM0.7. Can it be RTO play? market sure give him a correct price in future.
There is absolutely no reason for Facbind. to trade at this level (RM 1.24 per share). Its deposits with banks + cash and bank balances + available for sale investments ( 339 million Karambunai shares @ 7.5 sen a share) are worth more than RM 176 million or RM 2.06 per share. The company is totally debt free. I think investors probably have no faith in the company management.
I believe that only about 50 million Facbind shares are in the hands of the public. The company needs to use up only a third of its cash reserve to mop up all the public shareholdings.
hmm, power plant in China is the main contributor, bedding also not bad but associate assset impair down 8m, i think it is Karambunai. Nevertheless, cash burn a bit only, making net asset rm2.4, cash net all debt still around rm1.5 I gv facb a "hold" rating
Trend is much more important than the underlying potential of the company . Certain stocks with strong net assets and cash rich remained stagnant and undervalued as compared to some high flying overvalued stocks which are at risks , yet investors preferred to choose due to its continuous uptrend with strong buying support in returned for better profits that counts !
to ask the management to return the cash is unlikely but the shareholders of facb ind should propose to the company to distribute in specie shares of kbunai in the ratio of 1:4..
Surprised that investors are willing to sell Facbind for only RM 1.01 per share. Its net cash holdings ( RM 148 million) and its available for sale investments (KBunai shares still worth at least RM 15 million) are already worth over RM 1.90 per share.
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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....
chean1984
470 posts
Posted by chean1984 > 2014-08-28 08:43 | Report Abuse
another dissapointing result