This stock really still got hope??? I noticed it since rm1.75, ppl bought it 100lot at that price. Keeping down...i bought it 70cent and seem it very low...but now 50cent. Omg...really hope it come up soon!!!
lossing money because of USD & RM exchange rate. our currency boom up since 2009, and evergreen start less profit since that time. now currency drop, i think should have more profit. imagine
let say last time, RM 1 = USD 0.35 last time product selling price on USD 10, convert back to RM 28.57
let say now, RM 1 = USD 0.32 product still selling on USD 10, convert back to RM 31.25
our currency wont so fast stop dropping because our government need to buy back the mature bond from outsider like US and china with amount RM 9.4 million. when this RM 9.4 million issue out, our money circulation in market will become greater, we look back on supply and demand theory, when a quantity of stock or items in market (supply) increase till more than demand from market, price will automatic adjust to a comfortable level, it take time and depend on bank negara policy
Glue is about 30% of MDF board production cost. Major cost to manufacture glue is from Urea. The price of Urea has dropped from USD 400 in Feb,2013 to present of USD 300.00. Second quarter result shown that all lost was from Thailand and I don't know the reasons. Malaysia production was in minor profit. With the Ringgit depreciated for the third quarter,lower glue price and hope Thailand is not more in red(write off in second quarter), next quarter shall have positive result. Evergreen price is at Rm 0.49, not far away from lowest price 2009 when the company was in most difficult time. ( just bought over Hume MDF). I think Present price is very near to bottom and start to turn up soon.
Gross margins improved Q-on-Q for 2013, last Q gross margin was 14%, if they can improve their operating margins and cost of materials, a turn around should be coming soon... Looking at Q3-2012, they were still making profit with 18% gross margins.,, think they were hit bad by the raw material costs last few q
I love the management .........they had proven of their capabilities to build Evergreen as one of the biggest company in the industry......
but i hate the industry......there is excessive capacities right now and lacking the visibility of demand to close that gap !!!
when the capable management surmounting with operating loss and meet with poor industry outlook.....never expect immediate recovery!! Otherwise, you may join the Giraffe kingdom..hehhe
1. Last Q losses before interest and tax already narrowed to -1M. Excluding forex losses, they would have posted a small positive EBIT. EBITDA has slowly recovered and doubled between Q3 2013 and Q3 2012.
2. Bulk of receivables are denominated in USD. Should bode well in current low RM vs USD environment
2. Cash flow from operations was positive for 9 months in 2013 compared to negative cashflow in 2012.
With the upturn in the furniture business the fibreboard demand should increase n this bode well for Evergreen Fibreboard. The share price at RM0.50 is cheap if compared with the valuation of RM 1.57 for NA
The stock has retraced from RM0.58 high towards the SMAs. Prices have moved higher after building a base at RM0.485. As long as the base holds, prices could climb higher from here.
MACD is about to confirm its golden crossover while RSI has hooked upwards again.
Aggressive traders may go long here with a stop placed below RM0.485. Look for a push beyond RM0.58 as it would mean that prices are headed to RM0.615 and RM0.65 next
The up trend is about 6 cents per month for the past two months. It is very weak trend and hope the coming quarterly report will have good result and will immediately accelerate the trend. Hope for the best to come.
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....
Corn Guy
29 posts
Posted by Corn Guy > 2013-07-02 19:46 | Report Abuse
cAN BUY THE SHARES NOW? VERY CHEAPER STOCK??? DOWN 2 MUCH????