CCK was RM0.70 in Nov 2018. It dropped to current price level due to the bad quarterly report - 30 Sept 2018 (Profit dropped ~46%). Now, the profit is recovering for the past two quarters. What's next?
Unsure why is the market punishing CCK. With the African swine flu not finding reprieve, demand for soybean will decline and lead to better margins for poultry companies in the medium term. Traders here ought to know soybean makes up 25% of the feed costs and feed costs IS the SECOND largest variable cost. With poultry meat stabilizing and CCK having control over selling price through their retail outlets, it's integrated business model ought to translate to better valuation.
Do not forget it was only pushed so low because of 2 quarters of poor result. The recent financials should have done enough justice to show EPS moving forward should be higher
At the current price, market is valuing CCK comparable to Layhong's valuation... This must be a joke. One debt is debt laden and has to spend most of it's fund on repayment of debt. The other is just a cash generating machine.
Let's hope when the sausage business in Indonesia (10x the size of Malaysia market) gain traction.. then the detractors of the stock will cry.
recently boss insider is buying and u can see the trend is end and early of year up. Recently huge volume come in 0.535-0.54 definitely can go up to 0.56 then 0.59 then rocket to 0.66 or above. Good fundamental stock and growth can invest. dont worry jst invest. next year dividen sure increase to around 0.015-0.02 ~ must patient . golden egg
Nowadays, investor dont like good fundamental and growth stock. They pefer goreng stock only. This is the reason why CCK could not move at all. Last but not least, i believe the management can bring the share holder fly together. The price seem depart soon. Be ready
Well no doubt Malaysian only wanna goreng very quickly... They dont like boring but safe. That's why you see people jumping into seacera, prestariang and the likes... And you wonder why can people be so irrational...
Very true. Hope bursa can impose higher brokerage fees for short traders so that the pain can be felt instead of gambling in KLSE but rather be value investor.
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Posted by WhiteTrader > 2019-11-19 21:58 | Report Abuse
The coming quarterly report should be a good catalyst for the price to continue move up.