It appears that there is a change of fortune in GPharos. Its cash position as at 31.3.14 has improved to 29m, and its current ratio is 1.539 which is okay. It has little borrowings. It has 128,720 ha of forest timber concession to extract for logs. What is of concern is whether its earnings can be sustained. Insiders may have some idea about this. So it's best to follow its chart and go after strength. The company has not been doing well for many years. I wonder if there is a change of management. Please share if you know.
Not limit up after so many aldy join. Byk kaki contra sudah join. but long term no problem. tomorrow maybe max 0.80 then start drop kaki intraday and contra kacau!
Posted by Hot.T > Jun 8, 2014 09:47 AM | Report Abuse
Guys..i suggest u go thru and do a comparison on 2013Q4 and 2014Q1. Are the numbers suspicious? NO....its all in the 2 reports if you've read it thoroughly. Would the earnings be sustainable? NOT in 2014Q2 bcoz new venture need time, money, mobilization, closure before you can realized your income. Earnings may dip (lower than 2014Q1 but higher than 2013Q4) in Q2 (and perhaps Q3) unless they have an agreement for the supply of the extracted logs at lower cost to the sawmill. Eventually earnings would pick up once contribution from new biz is captured. The spike in earnings n profit for 2014Q1 was due to the 1-off extraction fee of +27 mil GP received to extract balak from 2k out of 2.5k hecters of concession area granted to them for the new biz. FYI..the Q1 results got nothing to do with financial ratios or efficiency ratios in comparison to other timber cos.
Refer to Note 19 Events After The Reporting Period in their Q4 2013 result. The excellent Q1 2014 result is an one case and shall not repeat in coming quarters.
Refer to note 19 in page 78 of AR 2013. The Group has unutilized tax losses of RM RM 177 million available to offset against future taxable profits and this is positive for future cashflow
It is only lunchtime and the stock's volume is already more than Friday, and more than Thursday, which were very high on Gpharos standard. I wonder who is taking the shares in bulk??? and what for? Cant be just speculators...
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....
Ben Gan
107 posts
Posted by Ben Gan > 2014-05-28 16:40 | Report Abuse
It appears that there is a change of fortune in GPharos. Its cash position as at 31.3.14 has improved to 29m, and its current ratio is 1.539 which is okay. It has little borrowings. It has 128,720 ha of forest timber concession to extract for logs. What is of concern is whether its earnings can be sustained. Insiders may have some idea about this. So it's best to follow its chart and go after strength. The company has not been doing well for many years. I wonder if there is a change of management. Please share if you know.