Present sell down may provide an opportunity to accumulate as RM is expected still above RM4 per 1 USD. Accumulated few lots each at RM0.935, 0.93 so far. I missed the previous sell down.
From the reserve reported on Feb, just improved RM 0.2billion. This indicated either foreign fund still flow out or value cap fund (assumed 50% of the fund; RM100b) still not really flow back.
I couldn't say how much I love those herding retailer. They are willing to sell to you without really take a closer look on the fundamental. Please sell down to 80sen and I will buy more.
Homeritz is one of those good export oriented Malaysian company, great profit margin (highest among furniture manufactuere, good ROE, very low debt to equity ratio, great inventory n receivables turnover.. Family run business, founder husband n wife still very much active in the management.. most of the raw material is leather n fabric (not so much affected by commodity price like timber) sourced from low cost country, India n ASEAN, selling to high income countries including ANZ, Europe, n US.
Recent sell down is due to normal market noise, worries on expected foreign labor cost increase, strengthening of MYR, n economic slowdown in US, Europe, n ANZ. But these countries are not in recession, ANZ which is Homeritz major market (>30%), is doing well (not great due to mining slowdown) but still good! Now is the time to buy more! I am buying aggressively anything below MYR 0.93 ! it's relatively cheap considering the strong fundamental!
I find the market is weird sometimes, ya high oil price will lead to higher shipping, transport, & production cost, but considering export company which is huge enough (on average Homeritz is shipping more than 150 containers per month), the oil price effect on their overhead is pretty small.
If you wan to earn through trading, instead of query other profit, you should have notice opportunity buy in since yerterday and today roller coaster up, down, up again, you will able enjoy own profit more happily.
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....
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7 posts
Posted by investorr > 2016-02-19 16:42 | Report Abuse
1.07 finishing? come on!!!