Flintstones, you don't understand why companies exist. A company's net profit margin must be greater than a bank deposit interest rate because business involves risk unlike a bank deposit.
u guys know KESM in what business ka? U you the services he is doing for is from whom? One annoying neighbor customer which have two annoying facilities fella.
giant can fall also. eg.hengyuan, I follow LGE said, everyone must sacrifice. just those rich can play this stock. see how the price push to max on Monday and see who the last managed to run.
dividend is a shit if capital loss too huge. from today onwards, kesm is like hengyuan, just can goreng, buy low to average down and run. long term investment talk is a joke.
You should realize how stupid analysts are. Even in FY2010, Kesm's net profit was larger than 2,641K. A net profit margin of 3.24% will be very unrealistic.
I have seen some net profit jumps in Kesm. FY2009: 448K-> 5,756K FY2013: 47K-> 4,128K FY2014: 1,360K->6.679K FY2015: 1,732K->10,451K
Usually a very low net profit margin was followed by a very high profit margin. You should expect a much higher net profit margin and net profit after a very low net profit margin was observed.
The thing is Kesm's revenue has been relatively stable, while Kesm's net profit has been relatively unstable.That's why Kesm's net profit could jump once in a while.
Ask yourself la.... What kind of analyst is this... Overnight qr then fundamental revised from rm18 to rm10? Like that I also know how to be analyst... All horse cannon
As for Kesm, if its revenue does not plunge, you can expect a hike in its net profit. Analysts TPs are fundamentally wrong because they calculated Kesm's TPs based on a net profit margin lower than a fixed deposit interest rate in a Malaysian bank.
Kesm's net profit was larger in FY2010. But a demand for vehicle electrification has surged since then. Its revenue has surged since then as well, so you should not expect a net profit as low as 2,641K will continue.
Analyst target price is always 12 months forward extrapolating recent earnings into the future.
On other hand, the company's intrinsic value rarely change much due to one or two quarters of earnings. Having said that, taking into current market cycle or risk/volatility, you should demand a higher market risk premium in your assumptions to derive the IV.
Alex™ Ask yourself la.... What kind of analyst is this... Overnight qr then fundamental revised from rm18 to rm10? Like that I also know how to be analyst... All horse cannon 24/11/2018 09:14
Btw before we got banned, i3 admin say must only post relevant post on market only. Other family stuff like sending children for education cannot be on i3.
Analysts may say something positive about a stock when the stock price is near a top and something negative about a stock when the stock price is near a bottom.
Analysts were positive about Kesm in the beginning of 2018.
I still own shares in KESM's parent Sunright which I bought (& told everyone here to buy) @ below 25c in July 2016( everyone can check ) but only 2,200 shares left after selling all the way up to $1.00 & then 81c then all the way down to 48.5c (most recent sale)
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....
tecpower
3,536 posts
Posted by tecpower > 2018-11-23 22:10 | Report Abuse
Flintstones, you don't understand why companies exist. A company's net profit margin must be greater than a bank deposit interest rate because business involves risk unlike a bank deposit.