Posted by Firebird2 > 2014-01-22 12:31 | Report Abuse

Yes, buying counters like this, you grow together with it, and you can spent your time earning more doing other work. My focus is a heavy concentration on potential multibaggers, and be done with it. My time is just as valuable as its limited

Posted by danchong > 2014-01-28 08:07 | Report Abuse

Good article by Tan KW, Firebird2. The share price has dropped quite a bit from RM4. 67 sens and > 15%. The question is "Is it time to pick up the falling knife?".

Maybe it is not quite laying on the floor, I see this as a golden opportunity to buy as it is not a case of deteriorating in fundamental value. In fact, the weakening Ringgit & rubber prices still pose as a very strong tail wind to boost its earning.

I am accumulating more at current level, Ipoh boys have BIG heart and appetite. Lol

honeydream, hang on there. Don't worry, it will soon get back to the level where it belongs. Next months? AGM, EGM and next Q results & dividend?

Posted by Firebird2 > 2014-01-28 10:35 | Report Abuse

Gmorn Dan, I am still having Wellcal in my list, as I think it will get better in time to come. Thx

Posted by danchong > 2014-01-28 11:44 | Report Abuse

Read Tan KW article and I agree that the PE is high.

Improving the profit margin alone is not enough. They have to raise the earning by increasing turnover. This is exactly what they planned to do by having the 3rd factory.

They paid out all the earning in dividend because there were no better use of the money in hand. This resulted in high ROE and dividend yield. The shareholders like it and willing to pay a premium for the share resulting in high PE.

They plan to borrow prudently and confident that future incomes will be higher than the on going low interest rate. Nothing wrong with it!

If they decided to have a lower dividen pay-out rate, so be it! The short term pain will only argue well for the long term.

What else can we ask for from the management? I am going to take a joylly ride on this air-cont coach well into the future. Ha ha ha Zzzzzzzzz.....

This is very similar to Superlon but a much more proven Horse

Posted by Firebird2 > 2014-01-28 12:01 | Report Abuse

There may be ups and downs in the revenue due to problems in different parts of the world, but Wellcal still delivers decent result, this shows the business is resilent.
With the expanded capacity, revenue will increase.

Posted by danchong > 2014-01-28 14:23 | Report Abuse

With the expanded capacity, it will enter into a new era, a new ball game. They might have to do something differently in term of marketing and production.

They already have amber time to think about that in the coming 15 months

Posted by speakup > 2014-01-28 15:11 | Report Abuse

becareful Wellcall. might do like Zhulian.....

Posted by speakup > 2014-01-28 15:12 | Report Abuse

when everybody falls in love with a stock (eg Zhulian), its time to sell.

Posted by danchong > 2014-01-28 15:16 | Report Abuse

speakup, the only similarity between wellcall & Zhulian is high Quarterly dividend pay-out. They are very different in marketing, product line, location of factory stc.stc....

Anything I should know?

Posted by speakup > 2014-01-28 15:22 | Report Abuse

Wellcall NTA only 63sen! Price rm3.32. Price 5X NTA!
Another Zhulian in the making.

Posted by arv18 > 2014-01-28 15:24 | Report Abuse

chillout. nta isn't everything

Posted by speakup > 2014-01-28 15:35 | Report Abuse

of course NTA isn't everything. But is something. Benjamin Graham will never buy Wellcall at this levels. No margin of safety.

Posted by arv18 > 2014-01-28 15:38 | Report Abuse

you are comparing apples and oranges. wellcall is not even in the same industry/peer group as zhulian. they both have low/no debt, true but what does a MLM company and rubber hose manufacturer have in common???

Posted by arv18 > 2014-01-28 15:40 | Report Abuse

are they selling rubber hose via MLM is it. is that why they're receivables is so low. C.O.D rubber hose.

Posted by danchong > 2014-01-28 15:41 | Report Abuse

speakup & arv18, thanks.

low NTA doesn't worry me too much. Calsberg only have a NTA of 80 sens. We are more concern with its earning power.

Wellcall has taken full depreciation of its two old factory. They have zero value in the book. If wellcall is not going under, the assets will not be distributed to its shareholders as the only thing leftover.

Benjamin might not like it but I am sure Warren love this stock.Lol

Posted by arv18 > 2014-01-28 15:44 | Report Abuse

cheers. just my 2 cents. anyway you know how it is with stocks. up one day, down another. thats why we're all here.

Posted by danchong > 2014-01-28 15:51 | Report Abuse

arv18, good question. I remember during my last factory visit, the mangement review to me that they demand 50% cash up front from the oversea buyer during order. Cannot remeber whether it is COD.

BTW, one of its strength is low inventory as well. They don't need a warehouse for the finished good. They manange to ship out promptly.

They are sitting on RM46mil cash. Most of the 63 sens NTA is cash.

Posted by danchong > 2014-01-28 15:53 | Report Abuse

arv18, I'm Loving it. The sellers putting money in my pocket. Lol

Posted by arv18 > 2014-01-28 15:56 | Report Abuse

dan. I find that one of the most impressive features of wellcall. great receivables management. I used to work at one time for a international conference company and we would only provide services with payment upfront. its amazing how much of a difference it makes with regards to cashflow etc. it seems malaysian companies could take a page out of wellcall's book in this regard. understandably not everyone has such luxury (companies providing very expensive capital goods etc).

Posted by danchong > 2014-01-28 16:01 | Report Abuse

Although I said jokingly that Warren love this counter, the fact is I do think he will because Wellcall has a FRANCHISE. Only company with FANCHISE can demand good payment.

CHEERS

Posted by Firebird2 > 2014-01-28 16:18 | Report Abuse

speakup, presbhd nta is only Rm0.36. Not good enough again?

Posted by Vincent Ng > 2014-01-28 23:00 | Report Abuse

drop faster than i expected

Posted by L. C. Chong > 2014-02-04 00:04 | Report Abuse

WELLCAL analysis - http://lcchong.wordpress.com/2014/02/03/wellcalfundamental-analysis-3-feb-2014/

Posted by ksng0307 > 2014-02-13 16:57 | Report Abuse

why suddenly go up? Anyway, nice one....

Posted by meena > 2014-02-27 00:15 | Report Abuse

5 sen div.... plus share split good news....

Posted by danchong > 2014-02-27 03:01 | Report Abuse

Very handsome dividend at 13.5 sens. 17.5 sens for the year. at 2.60, 6.7% yield. What else you want to ask for?

Posted by danchong > 2014-02-27 03:04 | Report Abuse

Sorry Guys, The above is referring to CCMDBIO

Posted by Firebird2 > 2014-02-27 08:59 | Report Abuse

Share split ex date is confirmed onn 21/3/14.
First interim dividend is 5c.
If they pay 20c a year instead of 16c dividend
then at current price 3.82, it will be 5.2%

Posted by danchong > 2014-02-27 10:18 | Report Abuse

Hi Firebird, results & dividend are in line with expectation. No surprises which is good. I am confident that 5 sens/Q or 2 sens/Q (after Ex Split) is sustainable until factory 3 is ready. The real growth will come after the expansion.

According to my source, The AGM was crowded this year. More investors are looking at this company now and the management is watching this forum also. Ha ha

Bring the AGM to Ipoh! We have a lot of space here!

Posted by Firebird2 > 2014-02-27 10:32 | Report Abuse

Gmorn Dan, I believe 5c/Q and 2c/Q after split can be expected. Wellcal has been generous on dividends. I didn't attend the AGM due to some urgent matters. Its good that you and I will always look at investing in companies that are actively seeking growth.
When the factory is ready, we will benefit more

Posted by danchong > 2014-02-27 11:14 | Report Abuse

I agree with the management that share buy back is a waste of time. They are debt free and holding sufficient cash as working capital and for capex. Manageable borrowing will push up the ROE also especially when cost of fund is still low. Returning the earning to shareholders in the form of dividend is great. Let the shareholders have their say on how to use it. Use it to buy more shares in the company if you like it. Low amount of idling cash in the company also boost up the ROE. The latest annoual report also shows a steady growth in ROE in the mid 20+ average.

Management also indicated that piling will start in May or June. Credit to the management for spending more time in the planning rather than to rush into it. They are fully aware of the important of this phase of expansion to take the company to a new level.

http://klse.i3investor.com/blogs/kianweiaritcles/47219.jsp

The article above also shows that they are mindful of the challenges ahead

Posted by Firebird2 > 2014-02-27 11:52 | Report Abuse

Next year we shall see more Rev coming in due to their expanded production. Hopefully raw materials and forex rates are just as favourable. And from 1.50 roughly then, it should move higher.

Posted by danchong > 2014-02-27 12:26 | Report Abuse

Realistically the contribution from the expansion will not roll in until the last Q of 2015. Investing is just like any other business proposition. It need time to mature and patience is the essence.

My thinking is I will keep collecting 2c/Q for 6-8 Q in the meantime. That is not a bad deal because at 3.80 or (1.52 after split) the yield is still 5.26%.

After that we are looking at 60%-70% growth.

Posted by Firebird2 > 2014-02-27 12:45 | Report Abuse

Same thought here. Am lining up funds and keeping reserves. Patience is the key here. Just wait for a pullback. Next year, its production capacity would increase by 50%. Nowadays its hard to find such companies. Its earnings are quite stable, and the price doesn't fluctuation that much. But be wary too if its price goes too high

Posted by danchong > 2014-02-27 13:52 | Report Abuse

I expect the price to trend sideway. It is right to collect on dips. I think 3.75 or 1.50 after split is a fair price

Posted by L. C. Chong > 2014-03-01 21:45 | Report Abuse

WELLCAL analysis - http://lcchong.wordpress.com/2014/03/01/wellcalfundamental-analysis-1-mar-2014/

Posted by Firebird2 > 2014-03-05 11:08 | Report Abuse

Promotions : Buy 2 get 5

Posted by Ntpboon > 2014-03-05 12:13 | Report Abuse

Sellers are rare. Price will move up from here before it split. Buy now !

Posted by Firebird2 > 2014-03-05 14:28 | Report Abuse

Maybe cross its year high, 4.00 before split?

Posted by danchong > 2014-03-07 05:45 | Report Abuse

Fb2, I prefer the price to stay low. I have no intention to sell and still looking at opportunity to accumulate more.

Posted by Firebird2 > 2014-03-07 08:47 | Report Abuse

Yes Dan, I too want more of it. And looking forward to having the opportunity. Let it come.

Posted by trinitynoob > 2014-03-20 13:36 | Report Abuse

Wellcall is my favourite share =) I smile everytime I think of it, with a strong franchising power, selling rubber hose to factories all over the world, wonderful dividend payout, prudent management. I like it when the MD doesn't speak during AGMs and allow results to show for themselves. 3rd factory on the way while dividend continues to row in every 3 months.

GLAD to be part of this company & will hope for many more years of good profit/dividend.

Thank you management of WELLCALL =)

Will the share price be suppressed due to the split? Rm1.40-1.50??

Thank you =)

Noob

Posted by Abudance > 2014-03-20 23:12 | Report Abuse

When will the date of split takes place?

Posted by Firebird2 > 2014-03-21 07:25 | Report Abuse

Abundance, you need to read further up on this thread, frens and bros here have join in and provided the dates and happenings of Wellcal in more details. Hope you will join us. Thx

Posted by Marvyn Choong > 2014-03-21 09:32 | Report Abuse

Split is effective today.. Noob, I love Wellcall for the same reason..
Wellcall is split at RM3.70 range, and should be around RM1.50... But it is climbing higher now..

Posted by ksng0307 > 2014-03-21 10:00 | Report Abuse

Why is it the quantity on hand still not increase after the split? Is it it might take few days to be effective, anybody can answer this please

Posted by Marvyn Choong > 2014-03-21 10:04 | Report Abuse

It will only update after 25th March, as that's the entitlement date.

Posted by ksng0307 > 2014-03-21 13:11 | Report Abuse

thanks, marvyn

Posted by leisurekingg > 2014-03-23 21:03 | Report Abuse

Noob, im newbie, how the calculation? can u explain ?

Posted by trinitynoob > 2014-03-24 10:36 | Report Abuse

Rm 3.75 divide by 2.5 = RM1.5

From 1 share split to 2.5 shares