On (1) the change / cause started with SR.. will increase margin and will eventually affect COGS On (2) the change / cause started with COGS..will deplete margin and will eventually affect SR to go higher..
So, isnt the increasing price of Lumber will be detrimental to FLBhd? As the company need to buy cheaper lumber to make plywoods in order to maximize profits..
But, like what I had mentioned earlier...the reason the price is going up is because the consumer like FLB's demand is going up...which is driven by the customers of FLB earlier.
The price of Lumber cannot simply go up...my suspicion is because of no (1) event.
very solid company with good fundamental. high roic, excellent fcf, healthy balance sheet....too attractive...IV is RM3 based on 3% growth & 9% discount rate....still very attractive at this price with 30% margin....just wonder why directors keep selling? the more they sell, the higher then price goes? HAHA
until nw only Lin Hao Yu is disposing, while he is brother of one the director, but not in the director board. Mayb the young people need money. i feel as long as BOD did not dispose, this stock shoudnt hv much prob.
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....
Probability
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Posted by Probability > 2015-10-15 23:36 | Report Abuse
On (1) the change / cause started with SR.. will increase margin and will eventually affect COGS
On (2) the change / cause started with COGS..will deplete margin and will eventually affect SR to go higher..
I could be wrong though!