December 02 - At the time of writing, stocks classified under the technology and EMS sector saw a sharp sell off.
VSI is down 10%, Inari is down 6%, Globetronics is down 4%, JCY is down 1.6%
This is after Andy Hall, the human rights activists and anti modern slavery advocate (who was the reason behind ATA's demise) had a talk organised by Credit Suisse with institutional investors at 11am earlier today
According to participants in the call, Andy Hall highlighted that VSI and JCY are next on the list. Tech in general for ICT those that does jobs for the likes of Apple is still ok, but automotive and medical device players standards are below par and he has set his sights on those sectors.
Risk off will be centered on companies focused on dependent on MNC orders and after experiencing ATA most investors will rather sell first and ask questions later and then get some sort of clarification later.
Then again ATA's severe price drop is down to its concentration risk where its dependent on one large customer, therefore its unlikely that any of the companies mention highlighted by him will drop of the same magnitude like ATA
With the production activity running at peak in fpi to catch up with order book, fpi is estimate to have a eps of at least 10 cent in the 4th quarter. Also the price is affected with overall market bearish and concern of force labour, fpi is at the low tier risk as they take care of employee and their client portfolio is quite diverse with mostly Japanese and Taiwanese customer where force labour driver is limited as company to US and Europe. If the eps estimation turn out at 10 cent we are expecting dividend to improve to at least near 20 cent. Accumulate with risk as opportunity during the market bearish cycle is recommended.
With the current TTM earnings, and a PER of 10.7, the stock appears to be fairly priced. If the next Q earnings were to reach RM0.10, as suggested by @JKing, the TP at the same PER would be RM4.03.
@Thirai, if the earnings stand steadily at 10 sen per share till next quarter the PE would be higher because many people will start to believe the plan that Sonos is moving out all the operations in China to Malaysia for products to be exported to the US and this is going to complete in 2022. I read this news some time ago and if this is going to be materialised we can expect a fabulous top and bottom line boost next year.
@JKing. I'm trying to do deeper research and I'm not sure if you could help me on this. Does FPI export Sonos finished product directly to US or is it sent to other factory/company for final assembly? Which company will export the final product to US?
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Aero1
1,469 posts
Posted by Aero1 > 2021-11-19 19:19 | Report Abuse
Those still think other company wth smal proft or lost the price can rocket