Con job again by CIMB's dealers. Fake 2013 Private Placement of 20m shares at $1.00 when market price only 0.65. Money moved from left pocket to right pocket
Lonbisc is moving now, high time to catch up with its peers with low per of 9.3 and Nta of $2.16. Can anyone throw some light why nobody goreng this counter?
i think can buy this counter, esos rm 1.00,,now 0.88 cent some thing wrong some where. common sense will tell you to buy (NTA RM 2.17) wonder why the director exercise to buy esos at rm 1.00
Uob Kay Hian - one of their stock pick is Lonbisc. Target RM1.15 Pegged at 8x 2014F PE, conservative as compared to small cap. Peers’ valuation of 9-10x
- Healthy topline 4-year CAGR of 11% - 1HFY14 earnings improved 45% yoy - Trading at a 61.3% discount to NTA of RM2.17/share - Valuations are attractive at 5.7x FY14 PE
"Growth" is an overrated term in company business and investment. Growth results in higher sales, more profit. It is understandable that most managers love it. Every investor loves it. I too love it but with some caveats.
However few realize that for many companies in Bursa, growth often result in shareholder value destroyer. Many of them have their return of invested capital way below the costs of capital. For example borrow huge amount of money say at 5% interest and earn a marginal return of 2% from it. Investors place their money at high risk but only return 3%.
Is that kind of growth appealing? Go check many of those "growth" companies, KNM. GCB, London Biscuits included, in the past and see how they ended now?
@kcchongnz. For profit maximisation, companies will borrow until Marginal ROI = Marginal Weighted Average cost of borrowings. In your example above, the borrowing company will make a loss of -3% on their borrowing. But London Biscuits has been increasing profit quarter on quarter in the first 2 quarters. So your scenario do not apply to London Biscuit, otherwise its profit will decrease. In fact its profit jumped 82% in the last quarter as compared with the corresponding quarter the previous year. Please correct me if I am wrong.
Posted by upsidedown119 > Apr 24, 2014 10:50 AM | Report Abuse @kcchongnz. For profit maximisation, companies will borrow until Marginal ROI = Marginal Weighted Average cost of borrowings. In your example above, the borrowing company will make a loss of -3% on their borrowing. But London Biscuits has been increasing profit quarter on quarter in the first 2 quarters. So your scenario do not apply to London Biscuit, otherwise its profit will decrease. In fact its profit jumped 82% in the last quarter as compared with the corresponding quarter the previous year. Please correct me if I am wrong.
What is its marginal return for the cost of borrowings? What is its ROE and ROIC for all these years?
The same question here. If you borrow 1m, but it only make 20,000, or 2%, is it a good deal?
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
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....
tjhldg
27,218 posts
Posted by tjhldg > 2014-03-25 02:01 | Report Abuse
yes ...kikikiii ... tomorrow bbq yg balance