Posted by Firebird2 > 2014-04-09 15:52 | Report Abuse

My view is that no many is willing to sell cheap. Most investors think theres value in it by holding longer. Look at the charts and its Rev and earnings before, it does mean something.
As for the down side, I think very limited unless a crash comes, if not the chance of buying at this current price slips day by day.

Posted by Hustle > 2014-04-09 16:35 | Report Abuse

It face strong competitor from Fitter and under perform, can see that lots of IPO holders already start dispose at the market.

Posted by nicole76 > 2014-04-09 20:18 | Report Abuse

Wouldn't u want to dispose some of your profit if you get more than100% return. Lol!

Posted by danchong > 2014-04-10 10:35 | Report Abuse

Hustle, my understanding from the management is that they are very close to full capacity with the present facilities. They were enjoying better & better profit margin so far. Competition is not an issue at the moment. They also anticipate that they might have excess production when the new factory is up and running. We will only know when we cross it.

nicole76, my answer to your question is NO, I will not weed the roses from my flower bed.

Posted by nicole76 > 2014-04-10 11:26 | Report Abuse

Good for you danchong :) Those with holding power reaps the highest profit!!! Good luck. Me waiting for more funds to come in to top up some more.

Posted by danchong > 2014-04-10 12:12 | Report Abuse

Yes, nicole, holding power is important.We have to play the game within our means.

Share financing is availble at 4.6% amd Wellcall is giving a yield of 5.5%. Moderate borrowing is fine.

Posted by danchong > 2014-04-10 12:27 | Report Abuse

FB2, someone just cleared the worry you have at 1.45. uptrend resume?

Posted by Firebird2 > 2014-04-10 13:34 | Report Abuse

DC, yes , as I was monitoring it, every day, someone, some people will q to sell hugh amount at 1.45. Seems this time, exactly someone or some people just bought the whole thing, every singe share queing at 1.45. Lets see if theres any left from this or some people, if there isn't anymore, then I believe, the trend is going to be up, no more roadblock.

Posted by Firebird2 > 2014-04-10 13:40 | Report Abuse

As I got to know I think during a AGM, not the recent one as I didn't attend, the new factory will be allocated some production, and I too got the hint that they will start producing some rubber compounds, some of which will be used for their manufacturing while the balancce will be sold to customers all over the world. I am not sure the management will dilvuge any details like what kind of Rev or profit margin they can get from it. Don't think they will tell, additional Rm100m, Rm300m, a year, or what.

Posted by danchong > 2014-04-10 14:08 | Report Abuse

FB2, Yes. It will be a new ball game when factory 3 is up. We just can't tell for sure it will be better or worse.

However, I have faith in Huang Sa & Alex Chew. They are financially prudent people. They will try their utmost for the company & shareholders. That's good enough for me to ride on with them.

If better things are unfolding itself later or price comes down to a 'bargain' level. I will raise the ante

Posted by Firebird2 > 2014-04-10 14:12 | Report Abuse

DC, I have taken in the maximum, but like you say, I believe in this counter, and am willing to raise this level to a new maximum if the price is cheaper.
Somehow, for long term investor, one just need to buy and collect dividends every year and see its price appreciating due to the growth of its business. If you believe in what the management has been doing (so far so good) then it will continue being value creative. Hope its expansion bears fruit soon.

Posted by danchong > 2014-04-10 15:28 | Report Abuse

The seller(s) at 1.45 still there

Posted by chipster1234 > 2014-04-10 15:37 | Report Abuse

do we know what would be the rough estimate of dividends we would receive per quarter?

Posted by chipster1234 > 2014-04-10 15:37 | Report Abuse

surely it will be less? or maintained?

Posted by danchong > 2014-04-10 15:44 | Report Abuse

I am quite confident that they will be paying 2 sens/Q until factory is up & running.

They might be suffering from a slight contraction in earning due to strong Ringgit.

Posted by danchong > 2014-04-10 15:45 | Report Abuse

factory 3

Posted by Firebird2 > 2014-04-10 15:51 | Report Abuse

As far as I have heard from the AGM, the management has indicated dividends will be maintained, even if its to take on some loans, as they were debt free at that moment. Yes, the seller at 1.45 is still there but with less volume, so hope it clears the same way too, i.e, with one swipe, wipe off all of it. Lets see.

Posted by danchong > 2014-04-10 16:40 | Report Abuse

FB2, yes wiped off as you predicted

Posted by Firebird2 > 2014-04-10 16:45 | Report Abuse

Yes DC, again a strong buyer wipe off everything available at 1.45 a second time. Lets see, if theres any more.

Posted by Firebird2 > 2014-04-10 16:46 | Report Abuse

DC, Superlon venturing into India, big market.

Posted by superman11 > 2014-04-11 10:53 | Report Abuse

1.45 now... is the dividend yield 12%???
when is the good time to enter?

Posted by Firebird2 > 2014-04-11 10:59 | Report Abuse

I added more around this price some time ago. And now queuing for extra at 1.44. Dividend yield around 4-5%.

Posted by superman11 > 2014-04-11 11:08 | Report Abuse

@Firebird2: do u keep for long term or short?
4-5% not much oh.. or u target with a high price?

Posted by Firebird2 > 2014-04-11 11:26 | Report Abuse

superman11, I have invested in Wellcal for a long time.
I cant remember exactly when but around 5 years ago, it was around 1.20
Say you buy 10,000 shares at 1.20, cost is Rm12,500.
after the split you will have 25,000 shares, at price now, 1.45, so total now is Rm36,250.
This is without including the dividends, last year was 16cents.
So if you are a long term investor, and at a cost of 1.20, getting 16cents is a lot. More than 10%

Now, I think if you go in now, at this price, and keep, and if you know how the company is building its future (please read through this thread to understand more) you will be confident to keep adding. That's all one has to do. No such thing as having to do work every day. At the end of a 3 or 5 year period , you see the multiplier effect and how wealth is created by choosing the right company and doing little.

Posted by Shark > 2014-04-11 11:32 | Report Abuse

will the company pay same after their share split...?

Posted by superman11 > 2014-04-11 11:35 | Report Abuse

Say you buy 10,000 shares at 1.20, cost is Rm12,500.
after the split you will have 25,000 shares, at price now, 1.45, so total now is Rm36,250.

--> may i know when was the price 1.2 u bought? total grant is great..

Posted by Firebird2 > 2014-04-11 11:42 | Report Abuse

I don't have the records, but to know how much and when the price was, you can refer to a 5 year chart. That will give you an idea, how the trend was the past 5 years. Am not sure if you can get a chart longer than that. Check the charts.

The company says it intend to pay the same amount of profits as dividends but now , you know the shares are more after the split, so per share is less, but since the split you should be having more shares and thus the dividends come to the same as before the split

Posted by Shark > 2014-04-11 11:45 | Report Abuse

end up 16sen/2.5 to 0.06...... for those existing share holder still the same but not for new...

Posted by Firebird2 > 2014-04-11 11:46 | Report Abuse

The 5 year chart that is also adjusted for the split shows the adjusted price.
The adjusted price is
5 years ago - 0.37
now - 1.45

So if you put 37k in, now is 145k

Posted by Firebird2 > 2014-04-11 11:50 | Report Abuse

shark, yes, that was how I started investing in and how I was paid.
As the company grew, we grew along with it.
So there is always a starting point.
If we don't do it now at a dividend of 4-5%, those who buy now and later reap more like me, then for those who didn't buy now, and buy later at a higher price will still face the same 4-5%

Posted by Firebird2 > 2014-04-11 11:52 | Report Abuse

Or if one likes to see a million figure LOL
put in 370k, becomes 1.45million, just 5 years, not 20 years

Posted by superman11 > 2014-04-11 11:58 | Report Abuse

do u recommend this counter?

Posted by Firebird2 > 2014-04-11 12:06 | Report Abuse

I already have big positions in this for long term. And now adding bit by bit. That's how I see it now and for the future.
There are many types of investing profiles.
If you are trading, its not suitable.
For long term yes, I do recommend.
Hope you understand without too much explanation

Posted by superman11 > 2014-04-11 12:07 | Report Abuse

i buy for long term...

Posted by Firebird2 > 2014-04-11 12:12 | Report Abuse

Yes its good. In order to understand more about this counter, its past, present and future, please do read up on it, it will give you the confidence that eventually it will work for you and you be a successful investor.

Posted by superman11 > 2014-04-11 12:14 | Report Abuse

thanks bro... (Y)

Posted by Firebird2 > 2014-04-11 12:20 | Report Abuse

Buy or Sell, your decision.
Hope you reap your rewards in the future.
thx

Posted by superman11 > 2014-04-11 14:21 | Report Abuse

Sure... Noted...

Posted by Firebird2 > 2014-04-11 14:28 | Report Abuse

Thx bro

Posted by Taugeh > 2014-04-11 21:25 | Report Abuse

rock solid counter, buy to keep for retirement and dividend..good choice

Posted by Marvyn Choong > 2014-04-11 22:36 | Report Abuse

Tq Firebird2 for sharing..

Posted by Firebird2 > 2014-04-11 23:49 | Report Abuse

Welcome Marvyn, I learn too when other share, so if I can share with others too, I will. Are you in Wellcal for a long time too?

Posted by Marvyn Choong > 2014-04-12 00:12 | Report Abuse

Firebird2, I'm looking for opportunity to add. Waiting for mega sales, so to speak..

Posted by Firebird2 > 2014-04-12 00:17 | Report Abuse

Marvyn, ok, noted, we are on the same path. The opportunities may come any time. We have ourselves to blame if we are not ready for it.

Posted by Marvyn Choong > 2014-04-12 00:51 | Report Abuse

Agree with u, Firebird2.
Are u holding other companies at the moment?
How u allocate your capital?

Posted by Firebird2 > 2014-04-12 09:26 | Report Abuse

Good morning Marvyn, I fell asleep yesterday after a heavy supper, sorry.
Yes I am holding other companies as my core investments.
Currently, I have abt 22% reserve in cash. 2% in short term trades, which I am lousy at. So balance about 76% is in the core investments.

Posted by danchong > 2014-04-12 10:31 | Report Abuse

Sorry folks, I was out of this thread for a couple of days.

This counter remains the largest holdings (>25%)in my portfolio for several years. I believe in leverage,I have share financing. I don't believe in CASH. I call it a deprecating asset. I have -ve cash reserve. 35% of my holdings is funded by borrowed money. I believe in cash flow management, Dividend is important to me, I believe dividend I received must > twice the amount of interest I have to service, currently 3 time. Recently, I feel a bit bearish. I do believe markets crush and companies can turn bad BUT I refuse to be a failure.

In a nutshell, I try to say that I have a lot of confident in the company.

Let me put my 2 sens worth about the company dividend here.

Before split, The company paid 18 sens dividend last FY. The last 3 Qs dividend was 5 sens. This means a rolling 4Q of 19 sens.

The company is very consistent in paying out increasing dividends over the years except May 2011 whereby dividend dropped from 3 sens to 2.5 sens. The EPS dropped from 2.30 to 2.19 before they decided to reduce the dividend. The dividend went back to 3 sens when the EPS went back up to 3.68 sens the next Q. What happenned in the following Q (NOV2011)? They paid 3.5 sens when EPS was only 3.48. Are they overdoing it by paying more than they earned? NO, they already knew they will earned more the subsequent Q. Indeed, it was EPS 4.32 & Div 4.00 in Feb 2012. Never look back since then.

I agree with FB2 that "The company says it intend to pay the same amount of profits as dividends ". Assuming the company is earning the same in coming months. The dividend SHOULD be 5/2.5 = 2 sens per Q = 8 sens p.a.

At 1.45, this is 5.517%. I thimk FB2 is very conservative to put it as 4-5%

I would like to say put your money on the winner, proven WINNER!

Posted by danchong > 2014-04-12 10:44 | Report Abuse

"Now, I think if you go in now, at this price, and keep, and if you know how the company is building its future (please read through this thread to understand more) you will be confident to keep adding. That's all one has to do. No such thing as having to do work every day. At the end of a 3 or 5 year period , you see the multiplier effect and how wealth is created by choosing the right company and doing little.

11/04/2014 11:26"

FB2, I like, I like...........

Posted by Firebird2 > 2014-04-12 13:15 | Report Abuse

DC sifu, Thanks for the like LOL.

Posted by Firebird2 > 2014-04-12 13:23 | Report Abuse

DC, you do have a big allocation for the counter, that is really very very confident.

About the dividend, I believe its enough for me to cover my share financing interest as well. The reason I put it as 4-5% is because of the spending on PPE that is to come. How the management handle it I wont know so lets put it as needed. I am afraid others will run after me with their payung if its not less than 5%.

Thanks for the insight on how to maximize the use of our finances. Appreciated.