All because of the iiinvestsmart in investlah website dishing out stocks which common people won't be interested. The only stocks which make the most monies are 2nd and 3rd liners undervalue stocks.
Since iiinvestsmart has not given the people of investlah proper guidance on good stocks - all the people of investlah forum have gone gambling with poor quality stocks. Many got burnt and stopped posting there.
Please be careful of this Hapseng, it already bias from fundamental stock become goreng stock. Based on the latest quarter report, the current asset/ current liability is 0.88<1 (Not Good). Debt/ Equity ratio is 0.8 (Not Good). The operating profit is only RM120.511million compared to previous year RM368.227 million which has drop more than 60%. The profit RM508.798 million actually is coming from selling properties. If excludes the non-operating profit, the actual eps is around 4 sen and the forward PE is around 23. Somemore, the sector of Palm Oil, Property, Oil&Gas and Automobile business is slowing down. The important point is the company always borrows debt RM 704.601 million to pay dividend, it is not a good signal.
Revenue increased to 1.1 billions but profit dropped to only 7.58 or annualized around 30 cents. At Rm6.23 Hapseng is selling at an expensive over 20 P/E. KLSE Blue Chip P/E only 17 P/E
A Red Flag As HapSeng Is Now Overvalued.
At Rm6.23 with NTA only Rm2.00 HapSeng is Selling 3X Price to Book Value. Another Red Flag.
And Current Quarter Borrowings Have Doubled to Rm1.435 Billions from Rm735 millions This spells trouble as So much more borrowing with lesser profit?
This Biggest RED FLAG IS THIS
NON CURRENT DEBT IS RM1.64 BILLIONS
CURRENT BORROWINGS & PAYABLES NOW BALOONED TO ALMOST RM5 BILLIONS!!
Last Quarter "Profit" Came from Asset Sale. And This Quarter again boosted by Increased Borrowings?
Yet Mr. Market greedily chased Hapseng Shares past Rm6.00 on such shaky & creaky manipulated tricks?
No wonder Company is Reselling Treasury Shares to Foolish Hands.
Check out these facts. Only those with careful and analytical can SEE THROUGH THE SCHEME.
The Rest Will Be Exposed To Great Danger in Coming Days
Remember Calvin's 3Rd Rule?
HE THAT IS LOW NEEDS FEAR NO FALL.
Always buy low and refrain from chasing High Flying "Hot stocks".
I strongly agree what calvintaneng point out the fact. It is true if go through the latest quarter report. in statement of cash flow, the operating cash flow is -RM651.299m, and company borrow debt again RM1086.189m. The company boss is very smart to play trick to push the share price up, eg: keep buying "share buy back", selling properties, selling business, acquisition, borrow debt to pay high dividend. Hapseng is overvalued now and in dangerous level now.
No need to kia see. As long as hapseng still continuously give dividen and showed positive profit and we are not a major shareholder. Anyhow, i still prefer to hold it because I LOVE Hapseng.
Word of caution: 2015 YTD profit, more than 50% came from non-operating item. But free cash flow is a more worrying sign, 3 years positive out of the last 10, that's why debts are ballooning. Last issue is buybacks, but i guess this happens to many companies. It is great to do buyback when it is RM1-2, but at current share price, it doesnt make sense to buyback, would be more appropriate to pay off their debt which is incurring 6-8% interest expense.
I used to own this gem from 2.x all the way up to 5.x....i consider it is a matured business.....not sure how much its venture to bornoil contrivuted how much to its revenue....unlike tecknology sector with greater growing potential..... i still keep this in my watchlist...waiting for next cycle....
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....
kktom
394 posts
Posted by kktom > 2015-10-19 18:35 | Report Abuse
Who was dumping so much shares,anyone one know wat s going on?