My 2cents to ponder, I'm not sure if someone investigate onto it gross/profit margin fundamental. Quite risky for a company like this to hold long term. Even it has no borrowing, but for the last 3 Qtrs consecutive this ECS get ~3% gross margin from it revenue. it required every Qtr ~RM360M revenue, gross profit RM13M only. That way too low for a company to sustain. If there is a correction or business revenue not sustainable, the profit will direct impact, highly stock will go down the drain.
Posted by kelvin_ik4u > Apr 17, 2014 10:30 AM | Report Abuse
My 2cents to ponder, I'm not sure if someone investigate onto it gross/profit margin fundamental. Quite risky for a company like this to hold long term. Even it has no borrowing, but for the last 3 Qtrs consecutive this ECS get ~3% gross margin from it revenue. it required every Qtr ~RM360M revenue, gross profit RM13M only. That way too low for a company to sustain. If there is a correction or business revenue not sustainable, the profit will direct impact, highly stock will go down the drain.
Good comments. But there are two ways of doing business; a business with high margin but low turnover, and one with high turnover but low margin.
Pintaras Jaya is the former model and ECT is the later. Wallmart, the biggest retailer in the world also follow the later model. Both can do very well.
but if ur profit is more than the div why wanna wait until june le? coz we wouldnt know what were to happen in future, so we js trade accordingly ... correct?
me sudah tp at 1.36 tengok dia pecah 1.37... and toda was panic selling but anyhow also doesnt look too good breaking 1.35 and is staying at its lowest, supported at 1.30
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....
Eelyn Soon
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Posted by Eelyn Soon > 2014-04-16 21:24 | Report Abuse
fly me to the moon.....