When profit is not substantiated by positive cash flow, the profit is as good as paper profit and can't even afford to pay dividend.
After the right issues, bonus issues and private placement, it will soon become penny stock. Bear in mind private placement which normally is 10% below market price. If the NTA is the true value, believe someone has already more then willing to privatise it.
I agreed with u masterus..we are not looking for dividend..if u r looking for the dividend, u better invest or place ur money with ASB..price up we sell..
For share price to move north into $$ territory, the co has to be making profit and making MORE profit in future years.
If make profit every year and does not distribute as dividend, then such accumulated profits should be sufficient to expand or replenish depreciated machineries. Lonbisc makes profit, does not pay div, yet no money for working cap and cannot afford to pay off loans that were used to buy those machineries. What Jeffreyteck says is true.
Lonbisc reminds me of those Chinaco listed in Bursa. They also every year make millions (some billions) of profits, no dividend....their share price now is 1 to 5 sen
@JamesPond... we should play our investors role to continue to raise our concerns on companies and management who only keep on asking $ instead of distributing profit back to SH. My very worst investment experience was Malaysia AE, became insolvent immediately few months after dividend paid, and management was fined very little and stock was zero value. Good management, regulators, auditor and bankers. Good luck.
@LuckyG... 1.50, is impossible mission as institutional players are smart and not willing to pay high for private placement. If can push to 1 is already very lucky for the management.
I would suggest the name change to Holland Biscuits even though I am still holding some. Anyway, good luck for you.
The Contraian say is correctloh.....!! Raider is shocked and surprised of the good track record of Londonbis loh......!! I think can slowly buy some for goreng play loh....if no goreng the current price ok for investment loh....don forget 15 yrs no one qtrly loss performance....every quarter profit woh...!! Surely good company mah...!!
If you go to any supermarket, you will see London chocol rolls lying beside apollo cakes. Apollo 1 box rm5.80 , London choco rolls rm5.50. Similarly longish potato chips r also the cheapest. Try some, they taste almost the same as pringles but selling at half the price. I think lonbisc is beginning on a new chapter in marketing, aggressive pricing. I foresee its profit she increase along with its revenue. It's potato chip line should contribute significant increase in profit considering the wide price gap between lonbisc brand n pringles.
i see good review of london biscuit on fb page. But ah, when i see financials, aiyoyo....roe less than 10%. If i buy, buffet will scold me. Lynch will scold me also.
Good track records on books but not stock price in the past. Good for speculation now pending private placement announcement, right cum bonus. Including this round, already asked more $$$ a few times from private placement within few years. Last holders bought at peak, please get ready extra $ for the right, you are entitled for bonus only after you subscribed for the rights.
yeah. if is not because of a bunch of crook management, this could be another apollo. too bad hanky-panky with company's assets for own interest till debt is high and yet still want to squeeze shareholders with right issue....
Haha, they have brain too, otherwise no taker for the right and private placement. Speculative play only at this time. Est results: should be maintained if not increase but Apollo made less profit, risk of lesser profit remains. Good luck to you, only management and related parties have first hand info and decision to be made. We only read old news papers and smart analysts reports. Poor disclosure regime.
Generally every Q has been quite consistently giving eps of 2+ sen. Last Q was dissppointing at below 1 sen. Most like accouting treatment due to the divorce of kheesan resulting in lower revenue but high operating cost as i believe substantial Management operations were done at lonbisc level. If the accounting were able to bill some of these costs back to kheesan , we shd b able to see a higher eps this Q or uf not nx Q. Kheesan shd see a drop in eps while lonbisc a corresponding increase in eps. Probably such a scenario is already evident from the recent movement if kheesann lonbisc share price.
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Posted by Jeffreyteck > 2017-08-08 22:40 | Report Abuse
When profit is not substantiated by positive cash flow, the profit is as good as paper profit and can't even afford to pay dividend.
After the right issues, bonus issues and private placement, it will soon become penny stock. Bear in mind private placement which normally is 10% below market price. If the NTA is the true value, believe someone has already more then willing to privatise it.