Currently, the mainly business of pantech comes from domestic. Do not expect too much it would get beneficial from weaker currency. Just let's pray they can get RAPID project asap. Good side of pantech is that they still can sustain and even done better than last quarter in the bad situation currently.
I am quite sure pantech will benefit from rapid project. Thanks to the strong USD, it is good for pantech because they have do domestic and comestic business all the time. Export will gain from strong USD, and local market will try to buy more from local supplier if they need the product from Pantech due to weak ringgit.
Bro, you can read the rational advantages and disadvantages in the proposal of renewal and share buy back. Pantech will buy back it own shares and it help to stabilize the share price, and due to the qty of share is the market is lesser then EPS will be increase which mean better value for the shareholder.
Potential disadvantages are company cash reserve will be lower in amount due company need to buy back its own shares. And it may cause to loss up other better investment for the cash that use to buy back the share.
In my opinion, share buy back is good at this moment due overall oil and gas business environment is pessimistic. Rather than invest in uncertainty, invest in own undervalue counter is good for every shareholder for this counter. Would be the best if existing management buy the share in the open market themselves then it will help people like me to be more confident in the company fair value and standstill with the company during this weak time.
@tenys1227 Nothing much happened. All proposal were approved and the AGM ended within 30 mins. There was only a guy asking: Any estimated earning of the company for the coming quarter? Ans: Company doesn't give forecast to prevent insider's trading. Market is not good, however company is still earning money.
My vendor told me that its PG plant production had reduced from 2 working shift to 1 working shift only since July/Aug. *It can run on 3 shift on full demand.
The weak RM is advantage to Pantech bcos : i) It's export market contributes to ~48% of revenue ii) Local customer will tend to source locally as the import would become more expensive
Another potential catalyst is bonus issue. In FY15 annual report, management mentioned plan to distribute 1 treasury share for every 100 existing ordinary shares.
The average purchase price of treasury share is 0.66 sen (disclosed in FY15 annual report). At the current share price of 0.515 sen, Pantech is "value for money".
We may not see profit improvement in next 1 or 2 quarters, but should be in year 2016. By that time, the share price won't be at such a bargain.
The above haven't taken into account it's high NTA and dividend yield.
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....
Josh Ong
449 posts
Posted by Josh Ong > 2015-07-22 01:02 | Report Abuse
Yes. Good share worth to accumulate. No worry on the management team.