paperplane is right, i dun think the "fake" EPS is sustainable... one-off gain of asset disposal and forex gain... core business (both ethanol and resin business revenue has fallen) are deteriorating...
they are a loser of weak MYR as most of their raw materials are imported while their sales are mainly in Malaysia..
some "super confident" investors here can continue to sing their songs and feel confident with this company but what i said is all fact..
in fact, they closed down a resin subsidiary recently.. and i had mentioned earlier, resin business is very competitive.. many MDF, particleboard, plywood makers are now making their own resin, and they even sell the excessive resin!
do you think their resin business will be sustainable?
and another concern is the new young CEO... do some research urself....
When the participant in the forum posted the CEO too young, it triggered me. I always believe age should not be used as the measurement of the individual capabilities but the experience & background more important. So I go check check
Walao er....The new CEO : MR GARY GOH SOO LIANG, Age 32
Working experience and occupation
He started his career as an investor relations consultant in Singapore and spent 3 months in Corporate Finance Department of OSK Investment Bank Berhad. Subsequently, he joined RHB Investment Bank Berhad ("RHB") in 2010 advising government-linked and corporate clients on fund raising and equity strategies. He left RHB in October 2016 as Section Head of Equity Capital Markets Department.
The captain only have experience in finance industry, how to know the chain supply & distribution?? latest earning result, he really make use his past experience for cosmetic touch up on quarterly result. Well done.
Unfortunately cosmetic touch up is not the one I'm looking for. I prefer quality earning on fundamental business - the growth on revenue & improve in earning margin.
"Words of truth are not pleasing. Pleasing words are not truthful" - Lao Tzu
Hexza so-called "growth" = disposal of asset + forex gain...
in fact, the core business revenue and profit has dropped...
pls do not mislead ppl...
and i do not see a chance for improvement/growth for core business (resin - too competitive, many MDF/particleboard/plywood manufacturers are making their own resin/glue now, no need buy from player like Hexza.. that is why they recently closed down on main subsidiary) (ethanol - maybe slightly better than resin business but i do not see any management plan to expand on this.. ASP is dropping too)...
sorry but no offense.. this is what i think... i may be wrong.. just that I have to disagree with what you said...
the recent share price hike may be due to some investors who blindly look at EPS (without understanding what this EPS has gone up - due to asset disposal mainly and some profit gain)...
but bear in mind.. in 2017, MYR weakens so much that will be bad for Hexza... why? Hexza imported its raw materials that is mainly denominated in USD... while its sales/revenues are all from Malaysia which is denominated in MYR...
Hexza is not only doing ethanol business but investment holding as well,while weaken Ringgit go against their core business, strong USD does help their investment segment,it could be verified from the latest figures, MYS been weaken for a long time yet they have amazing forex gain which is not being derived from core business.They have explained the drop in ethanol revenue which caused by a temporary issue.
It is nothing wrong for a company trying to diversify their business instead of relying too much on a single segment which have less potential growth,just like Magni which didnt do too well while they were mainly focus on packing business,so they decide to focus on garment business instead and see how well they performing now, change of business mind is certainly a risk but not essentially a bad thing,we just have to see how the management team perform,new guy may be lack of experience but doesnt mean he is weak, every company eventually need new blood and replace the old gang,isnt it?
I dont think the recent share price up caused by people blindly follow EPS, the result been out for a while,people do awared of some of the one off gain items thus Hexza didnt sky rocketed on the very next few days after the result out but only up slowly and steady.
The world most expansive stock Berkshire Hathaway is a textile company but income made from investment are crucial .....hence, income make from investment for hexza is still solid money that will beneficial the shareholder.
Any notion of income from other investment is not important is tantamount to so chai ! LOL
Let's not a sochai by erase the question of income derived from investment is not important!
Let's focus deal with more pertinent question is the income derived from non core investment income recurring consistency ?
I am sharing with the insider information with you.....the return on capital invested in non core business in Hexza is entering in early bull cycle in tandem with the overall market sentiment (bursa is expected to string rebounce after 3 years bear cycle).
TP RM 1.65 has becoming pragmatic. I am not so chai ! LOL
There is still 40% capital to be gained ...from the current price ranges to TP rm1.65 before multiple bonus proposal being announced in this financial year.
1) Risk in investment is always an important element to be considered by investor!
2) Buying to average up is a trade off game of increasing further gain at the expanse of reducing existing gain subject to the direction of price movement.
hooray, Hexza announced making another RM4 millions profit from it's investment in quoted securities. Expect another set of impressive financial result in May. Good luck to all Hexza's shareholders and hold your shares tight.
Aiya, fundamentally strong stock, with really good prospect also don't want to pick up, go play contra, and now t+4 cut head already. Whose fault? Someone played contra, forced sell, then I go in lah. What to do? I Just buy lah.
Year Low / Year High / Now CCM: 0.82 / 1.48 / 1.46, gone up 78% Hexza: 0.83 / 1.16 / 1.12, gone up 35% Nylex: 0.51 / 0.82 / 0.82, gone up 60% Samchem: 0.65 / 2.12 / 2.09, gone up 222%!
Questions: 1. Why all these counters' share prices gone up? 2. How high can it goes? 3. How many of you got the the shares when the prices were at the bottom? 4. Why Samchem's price gone up so much, while Hexza's price gone up relatively so little? 5. Which one is the best? The one that gone up so much or the one that gone up so little? 6. Which one at what price at what time?
Your answer, your choice. My answer? Very obvious lah! Wish all good luck!
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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....
funitec
639 posts
Posted by funitec > 2017-02-20 15:41 | Report Abuse
Technically looks OK to me.