MD Tan says no wise man will ask him to sell at a loss @55 sen now when he did not even take profit @ 75 sen earlier this year. JCY was on the road to profitability late 2013 and even more so now. He says do not be confused, the HDD industry underwent consolidation more than a year ago, not just recently. ED Wong had on 22 Aug 2014 at the 3Q2014 press briefing revealed as much. The quarterly profit gyrations of the past likely stays in the past. This Q begins a new dawn. As for him buying @ average 64.5 sen, it does'nt faze a long term shareholder like him; you can't always time your purchases perfectly. The market is king even when it's mispriced, you follow or you do not. No sense losing sleep over it. That's why he's MD and not Joe Blog.
@sage... what you say about the profit of both companies is accurate and i agree with your conclusions about JCY eventual share price recovery ... but your comparison in share prices is like comparing apples and oranges... you should realize that although JCY make 10X more profit there are also 10X more shares of JCY floating around
Yes I realize that. The comparison was simply to illustrate a point that jcy is undervalued now. Iam not suggesting that jcy share price should be 10x notion current share price.
better accumulating now as earnings is expected to be improved than the corresponding period. definitely a good buy with a low PE ratio and undervalued in term of NAV. The company has a good prospect bear in mind the capital commitment of the company which stand at RM17 million 30 June 2014. The company also making sales to foreign company where the stregtening of USD against RM will also be contributed to the earning results.
The company will also be making a dividend announcement this week together with it 3rd quarter financial result this week.
Price will not move much until after result announce. Shark have put a block on price waiting for result and dividend outcome. Before then each time price try to move up , it will be knock down, often near close each day. Volumes / price should surge after on/after Friday after q earning is proven.
i thought today hard to get @ 0.56 so queed 500 lots, all matched just now sudden sell down. Think what u said might be true. Anyway, I am holding with confidence.
4th QUARTER RESULT Revenue: $462.8m Profit: $26.7 million Dividend: 1 sen ------------------- FULL YEAR RESULT Revenue: 1.86 Billion Profit: 123.4 million
Market sentiment is not good. JCY posted a normal result backed by strong cash flow... Another half year waiting would be needed before the spring could come...
What disappointing price action after decent 4Q results were announced. Must be the stale bulls overhang plus lingering investor distrust weighing down the stock. Just look at the ratios based on FY 2014 numbers - Price 57 cents ; P/E 9.6x ; Div yield 7.5% ; P/B 1.04x . Volume traded only 2.5 mil shares for morning session.
Prolong weakness and further deterioration of crude oil prices will induce more capital outflows thus weakening the ringgit. A strong US dollar will bode well for this company.
Why anyone would sell down this counter in this crisis really baffle me, but anyway keep selling so I can accumulate. This is one of a few counters that will actually benefit from the current oil crisis. Aluminum prices falling (the main material used by JCY), ringgit down due to oil, and US dollar up (favorable Forex). Now management just need to lock in/hoard the low aluminum prices in for the next 12 months before oil rises again. Another flood in the making.
That's why it's called a crisis (albeit a mini one). Short term investors panic, fear more downside, irrationality rules and they dump their shares. Many are retail punters who do not do their homework but get carried along with the market panic. A high beta liquid stock like JCY will have many small punters. This is accumulation time for more serious investors.
Wed, Dec 17, 2014, 6:44pm EST - US Markets are closed
Citi Raises Western Digital Price Target
Citi raised its price target on Western Digital Corp (NASDAQ: WDC) Wednesday from $110 to $125.
Analyst Joe Yoo believed “WDC will be a key beneficiary [of PC growth] given that PCs still account for over 60 percent of total HDD units. Moreover, following the recent resolution with the Chinese regulator on two minor infractions, the probability of a MOFCOM approval has significantly increased.”
Yoo noted that his “non-consensus call that the PC market will return to positive growth [in 2016-17] is based on the following: 1) emerging markets (EM), particular for commercials PCs, are still an area of sustainable growth, 2) tablet growth is slowing dramatically, posing less risk to PC sales, and 3) the headwind to CY15 growth, following a temporary demand boost from Win XP expiration, is more modest than investors believe.”
Morgan Stanley Sees Major Server Cycle in 2015, Upgrades IT Hardware Sector (HPQ) (STX) (WDC) (QLGC)
Morgan Stanley upgraded the IT Hardware sector Wednesday to In-Line from Cautious, citing server cycle-driven EPS acceleration. Analysts led by Katy Huberty expect server growth of 10% in 2015 due to strong cloud demand, Windows Server 2003 support expiration, and Intel Grantley refresh.
The analyst said beneficiaries include of the cycle are HP (NYSE: HPQ), Seagate Technology (NASDAQ: STX), Western Digital (NASDAQ: WDC) and Qlogic Corp (NASDAQ: QLGC) (which was upgraded to OW today).
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....
faye62118
55 posts
Posted by faye62118 > 2014-11-17 21:20 | Report Abuse
Results should be out this Friday or early next week. sage, good analysis.