One of the few steel companies that has its main operation outside of Selangor. With this in mind i think they would not be too much affected by the 3.0 MCO. Management did mentioned that their main operation in Perak had resume operation in the 1st week of July so 3Q21 result should still show good growth vs other steel companies that are heavily centered in Selangor.
Expecting the 3Q21 result to be a catalyst for the share price to retest the RM2.20 level.
Choobee earning is really very good but very stingy in paying dividend. Latest 3 quarters financial result the total earning is 61cent but only pays 3 cent. Keeping a lot cash on hand.
In the old days, share price will most likely shoot up when company reported a very good earning. However, after the glove counter fiasco where many are trapped, the sentiment towards cyclical stocks is weakening.
So is Choo Bee catagorised as cyclical stocks, is their products earning is capable to sustain the high margin in the next few quarters is what investor need to know.
One thing observe in the steel company latest QR is that most of them has the concern of demand softening in Q4. Besides mostly reported negative free cash flow and cash level dwindling which should be due to high inventory. So may be this is the reason price is not moving at all despite good earning
One thing observe in the steel company latest QR is that most of them has the concern of demand softening in Q4. Besides mostly reported negative free cash flow and cash level dwindling which should be due to high inventory. So may be this is the reason price is not moving at all despite good earning.
Exactly, higher inventory is not good for the steel companies esp the steel price is lower now.
Anyway, as long as the steel price is above 4000 CNY/T and can keep the receivables at healthy level, steel stocks earning is ok.
Choo Bee QR is so good yet the market price is not response positively. The main reason could be due to tightfisted Board of directors. They did not even want to declare dividend for minority shareholders. Just image, a ripen tree full of fruits, the owner does not want to share to onlookers or shareholders, what can you do? You cannot do anything, except perhaps avoid buying into this "good" yet stinky counter.
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....
ayoke
45 posts
Posted by ayoke > 2021-10-27 23:26 |
Post removed.Why?