to me it is worth only below 0.36 cts since its earnings is still weak and its NTA is just at 0.52 with no dividend declared...those who bought at 0.50 today could be the last buyer or well defined as "greater fool"
Why sud i pay 0.50 for a share tat pay no dividend with its stock trading at book value of 0.52...EPS only at 3 cts and PE at 15 cts...it means it is very overvalued and brings no value to those who chase now...speculator or gamblers like to chase to at tis level to earn fast money but the RISK is REAL...Watch out!
It is still way cheaper when compare to Geshen which is exactly same sector. It is overvalued base on latest earning but with bright future due to strong USD (mainly export), new factory to commence operation this year, strong Semi Con which means more plastic component needed (LCTH client like HP, IBM, Bose, Dyson etc), Lower latexx means lower material cost. Lets c if coming quarter result shows even further improvement.
For a growing company, cash should be used for factory expansion instead of distribute to the shareholder. 2014 earning report shows that company spent 24mil in plant, equipment and 2015 should start seeing the ROI
I tot LCTH worth RM0.36 only ? why is it trading at RM0.5x level now ? Why so many ppl stupid go buy beyond RM0.36 ? No dividend despite of strong cash level ... why ?
latest PE 1.65c, such earning should be sustainable in 2015 due to strong USD , cheap rubber price and semi conducto still doing well. This should bode well for LCTH. Using 1.65c per Q, FY15 EPS could be 6.6c, PE will drop below 10 base on current price.
The Q2 results will be out in late May. I think the current uptrend reflects of what will happen then. Usually after the results are out, the prices will go down.
Daily Trading Idea - LCTH – MYR0.52 SHORT-TERM BUY (TECHNICAL)
LCTHmade a majordaily Wave 2 low of MYR0.24(9Jan2015) with grossly oversold and bullish signals. Allof its positive signals above suggest a very strong daily uptrend. It is likely to break into higher territory, as it breached its key resistance areas in a very clear Wave 3 and Wave5 surge.
SHORT-TERM BUY (TECHNICAL)on dips for LCTHwith very firm supports of MYR0.44and MYR0.52as well as clear upward target areas of MYR0.545, MYR0.65and MYR0.76. Stop-loss is at MYR0.42.
The Board of Directors of LCTH Corporation Berhad wishes to announce that at the Eleventh Annual General Meeting held today, all the resolutions tabled were passed by the shareholders present.
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....
tradeview
608 posts
Posted by tradeview > 2015-04-20 12:04 | Report Abuse
Once again a good call by ErKongSeng! Well done in your stock picks. Very impressive.