hehehe glad that so many ppl still in love with this stock .... i am already out & so is Hyuna ... final 5 batches out on wed at 0.50 (4 batches) & 0.505 (1 batch) .....
bot back 1 batch just now at 0.48 ... hehehe lol hope to sell out by today for contra gain .. hehehe .... not greedy just enough for today's makan expenses .... hehehe
KNM Group; Hold; RM0.49 Price target: RM0.55; KNMG MK 3Q12 analyst briefing highlights The management expects FY12 to be a turnaround year and growth is likely to continue going forward in view of its cost optimisation and selective order intakes to improve on its profit margins. KNM is also rationalising its operations in Americas which has dragged the group’s financial performance in 9M12.
Its order book stands at RM1.9bn (as of Oct12), of which close to 70% of the orders are contributed by its European subsidiaries. Meanwhile, tender book remains healthy at RM19bn. The management will continue to pursue projects with better profitability to grow its bottom line. For its Peterborough waste-to-energy project in the UK, it is likely to commence Phase 1 in FY13 which entails GBP233m investment for 35MW facilities. KNM is looking to conclude its financial arrangement with the banking institutions by year-end. We understand that the project will take up to 4 years to complete before contributing with a potential recurring revenue of c.RM200m annually.
Meanwhile, management is sanguine on its prospects in Petronas’ Refinery & Petrochemical Integrated Development as there will be huge addressable market of process equipments for KNM to tap.
Nevertheless, we believe that contract awards are likely come by FY14, at the earliest.
We maintain our HOLD rating with RM0.55 TP. We believe there is no near-term re-rating catalyst for the counter given the weak external outlook. However, the (proposed) listing of its wholly-owned subsidiary Borsig, in Singapore by 2H13 could rerate the counter.
i still waiting 0.40 my be on monday where they will be lots of force selling ..p\s this is good cntr but timming is impotance,actualy i ready to jump in..anytime
KNM management gives analysts briefing every year and every year they tell them they are going to have billions of contract coming and earn hundreds of million of profit, without fail. You know what, every year operating number disappoint without fail! You know what, the share price has dropped from 6,00+ to 2.00+ during the sublime crisis, then continue to drop to today's 40sen! Why? Debts increasing, keep on losing money, big contracts but losing big money....It is a big hole there! The investment banks and analysts keep on acting as lala troop. Hoping KNM going back to 1.20? I don't know what to say. (sigh)
If I may recall when the share price was > RM12 many years back (I made money tho at that time despite the high price)...then mgt was aggressive on an expansion trail. Acquired assets all over the world...to show they are dynamic and aggressive. But all this is with cost. Cash calls too often to meet expansion plans...debt issuance, new share issue, rights...all sorts...in the end....share price underperformed. Minorties suffer. Mgt was proud of being the no 1 llargest in X and no 2 largest in Y and so forth...share price of coz skyrocketed after reaching it peak in 2008,but never recovered until today. Had u bought at that time and keep until now, u are a lot many times poorer than before...good medicine is always bitter but don't take the wrong medicine...some medicines are still sweet and tasty...
Recall what I said KNM the next Enron? that was what Enron did. Acquiring power plants in India, South America. Water assets in England, South America etc. Borrow huge amount of money to do those stuff. All losing money like cock. Every quarter gave analysts briefing saying there are expanding here and there, profits coming big bla bla bla. At the end, resort to cooking of books. I may not be wrong by saying KNM the next Enron.
company buy back shares shows a positive signal that the management who has a better idea of the company operation is having the opinion that the shares are undervalued, or are they? To me the mentality of the KNM management is focusing too much on the share price performance, rather than the business of the company. In other words, "frying" shares. For heaven sake, concentrate on improving the operational performance of the company. Once operations improve, share price will follow suit. Already owe huge amount of debt, buying back shares? OMG! This is exactly the mentality of the Enron management, frying up share price because the managers, directors have huge amount of shares of the company.
Calling to all big or small holders, when we buy this share, we are part of the company. We must be united to protect "our" company. Don follow the crowd to throw the share, be patience, the end of the darkness will be the light.
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....
Erica
405 posts
Posted by Erica > 2012-11-22 22:31 | Report Abuse
just bought at RM 0.115, sell when hit RM 0.13 hopefully....