Today profit taking well absorbed for those who bought at low monday. Queue at 96.5 sen and 97 sen to buy more shares also cannot get. O&G stocks are under rotational play. Today Carimin shoot up. UZMA will also shoot up soon, i believe
The market seems still wary. Probably because there is still a sticking point: It was overpayment in 2017 when project completed but management indicated that it was a cost-overrun.
There is a big difference between "cost overrun" and overpayment. Overpayment have huge negative implications besides just substandard management.
The overpayment was RM63.14 million - huge compared to the size of the company. The management either knew about it in 2017 (i.e. that it was an overpayment) or only discovered that it was an overpayment two years later in 2019.
Both scenarios have very negative implications. Likely that's why the market appears still wary of UZMA.
And it will take a long time to win or lose the case.
The project was completed in July 2017. Over payment was already accounted for 2017/2018 financial results. There will not be any loss in future quarter result. Hence this over payment is already discounted. If the court case is positive, any claim back is an extraordinary gain. I do not see any loss will appear in future earning, I can only see the gain if the over payment can claim back.
It's the management stupid. An overpayment was shown as cost-overrun. It's overpayment, but the overpayment was carried in the books as cost overrun resulting in hiding the overpayment for 2 years. What else are being hidden? And who 'benefited' from the overpayment besides Khan and Kong?
Besides, there would be an adjustment in the books to reclassify the "cost overrun" as erroneous overpayment - which of course is not tax deductable.
Dear Pawc, Golden Cross Buy signal on 6/9/2019 is 0.68. I bought it at 0.70. No Golden Cross Sell signal yet, very far away. Present price is 0.975, my ROI is 39% now.
I am not worry, I am already in the money. Thank you.
It was not a coincidence that the 'overpayment' happened in 2017, just before the election. And who was the chairman at the time? I am not surprised if MACC is looking into the matter anytime soon. It is not just me who has this hunch but other ppl in the industry.
It is great to see this forum has productive sharings and we see less scolding and cursing. I bought Dayang and PetraEnergy earlier then to UZMA lately after the two stocks shoot up a lot. I think very likely will be rotational play and UZMA will play catch up. Special thanks to uncle KYY, Mr OTB and Cool Eye (thru his articles in Nanyang, who recommended Armada) for discovering O&G sectors as earnings recovery sector end of last year. I still hold big amount of shares in Armada and buy aggressively lately UZMA. Blue chips stocks will be CIMB, Genting, Genting Malaysia which are poised to recover...
I hope UZMA and Armada quarterly results will not disappoint me.
Uzma is unlikely to bag any contract as long as the legal sue is on going. Hence, we can see why till now there is no contract being awarded to uzma. There are too many uncertainties arise as the result of the overpayment issue. Very high risk.
I have my own methods of analysing reversals which is faster than just using moving averages. Today it's reached neutral from positive with a downside. Tomorrow will likely confirm reversal one way or the other.
Posted by OTB > Nov 6, 2019 9:52 PM | Report Abuse Dear Pawc, Golden Cross Buy signal on 6/9/2019 is 0.68. I bought it at 0.70. No Golden Cross Sell signal yet, very far away. Present price is 0.975, my ROI is 39% now.
I am not worry, I am already in the money. Thank you.
Please read the technical chart of Uzma. The proof is there. Please read my 2019 portfolio which I sent to all my subscribers. The proof is there. Please read my recommendation report on Uzma which I sent to all my subscribers. The proof is there too. Thank you.
For long term investors, non should be perturbed by the rumblings in between... That's just how the market rolls. TA & FA aside, there's a psychological play at work. The market is governed by sentiment and reaction towards adverse news. Sadly, investors are at the mercy of news, fear mongering and what not. Choice is yours to make. Whether to act or react. More often than not reacting always leads to loss.
Q4 2019 result, PBT is 20,827, PAT is 11,804. Difference is 9,023. In all quarter results, the difference is always very small. I had checked, the tax is very high in this quarter.
@upsidedown119... UZMA only needs to revise the tax and pay additional tax once they win the case of RM 63million. It is up to the court to decide whether it is overpayment of not as the other parties will say no overpayment. LHDN can accept this rationale. As far as UZMA is concerned, they should have invoices concerned and paid accordingly(docs required to support their claim as expenses) and had paid to parties concerned
This stock will be back to normal after the stock price crossed 1.02 convincingly. All fire sales will be over. Expect new uptrend to start after 1.02 is crossed convincingly. Thank you.
Please give some respect to upsidedown119, it is ok for him to express his free opinion. I appreciate his feedback at least I know what is the risk that I am invest in. Strictly my 2 cents opinion only. Thank you.
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Posted by Pawc > 2019-11-06 16:48 | Report Abuse
Steady