As at 31 Mar 2021, KPower cash and bank balances stood at RM107mil and borrowings at RM44mil, net cash RM63mil. Compare to SerbaDk huge debt, KPower much better
@telurgoreng, kpower is not dividend stock like tenaga and Bat where company is at mature and low growth so it's cash cow position can provide lots of dividend. Growth stocks like kpower provide capital appreciation as the sales and profit growth will increase share price through reducing PE. Rarely pay dividend as money will be reinvested back to business. It's common not to pay dividend for even large companies like Amazon.
If check latest financials, Serba gearing is 1.2 d/e. Kpower is only 0.2 d/e region. Hence it's different risk profile. However they do share common major shareholder. From that affiliation, some investors will be spooked and sell regardless of company performance or balance based on the investor perception on the linkage.
Despite affected by SD on the ground that that share common major shareholder, but, kpower fundamentally is good in view of bright business in solar power.
can the qr be trusted after what happen to SD? past few years continuous losses during favourable economic climate but making good profits during pandemic year? Just wondering.... but in bolehland everything is bolehlah...
No point to argue here. Those trusted on KPower can stay with or buy in, those worried on KPower should stay away or sell. After a few months or years later, check who win who lost
Director selling Kpower FREE wrrant to monetize and profiting these out of money free warran, but keep hold on underlying kpower share and all its retain stake holding.
Something fishy going on if a company make huge profit for years and yet keep issuing PP and bonds. Imagine you have a business making 1 mil every year for the past 3 years, will you go and get loans of 7 mil and invest all 10 mil at once in different businesses, some are even new businesses which profitability is unknown? Only 2 kind of people would do that: a fool or a scammer.
Funny that some people here only report about Director selling warrants. How about the MD buying 2.1m mother shares on 4 June 2021 ? Selective reporting or pretend cannot see?
Those who complain about PP, didn't see you complain when the price was flying before Serba's scandal?
Whats wrong with doing 3x PP if the funding can expand the business by multiple folds ? I don't see anything wrong if Kpower is able to general RM2 return for every RM1 of funding.
Funding is required because they have sizable orderbook. Needs working capital to carry through the jobs.
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....
NatsukoMishima
7,472 posts
Posted by NatsukoMishima > 2021-06-28 09:32 | Report Abuse
11 sens serba !