If a chairman feel the price is undervalue, he/she should buy more than 100k units.There are no new catalyst to push the price go up in short term. They have to perform on revenue and margin to convince. Export stock is not the theme play now.
based on last few days volume and txn style, i can conclude that some big leg is slowing disposing the share..they push high at morning to create fake rebound style to lure retailer in, then slowly exit after lunch..
this arshad who bought 100k is not those mgmt who managed the company la...their boss is chinese..this should be some sleeping member who get the director post due to malaysia stupid govn law.
their boss is GOH Family who stay in pontian...the big boss wife is my mom's friend..the big boss already passed the biz to their children to manage...
Karex is a growth stock, therefore they're not known to have any dividend policy, only by company's discretion they distribute dividend. If you're eyeing for dividend in this counter, you know you're in the wrong place...
Rubber price keeps climbing non-stop. The basic raw materials to make a condom goes up so much, how do u think its profit margins can sustain?
This FY17 still have 2 more quarters before conclude. After first 2 quarters, profits just RM 18m. Seems like profit will be a lot less y-o-y or even less than FY15.
Now PE is 51.7 so expensive. Why people so stubborn still buy this stock?
Different people different view. 1) people buy on Karex biz setup and brand - still i think is overprice 2) people buy because they don't know what they are buying -friend say good then buy loh 3) people buy because they say USD is good for KArex to export Condom to Ang Moh to use - people say MYR is toilet paper mah
But as USD to MYR stood about 4.3 - 4.5 range since last year, no clear indication for this to boost Margin
Commodities (Rubber) in the market is on the bull trend.
alot of funds are removing this fund from their portfolio causing the downtrend.. everyone lost hope on it...just wait until PE 20-30 only collect back if you are confident on their mgmt and future growth..i would advise 1.0-1.3 only safe
Karex management must be alert and control their cost operation and strategies. They should disclose the information about their sales and what is the challenge they are facing. The BOD must be sincere to their investors. High PE must be come out with solution.
I think Karex management should open contingency meeting. The best solution is buy back their shares and work harder to increase its sales. This is the best commitment to the investors and the company.
karex mgmt also no confident on the sales and growth la..if they are confident, surely they will buy and support the share..no body can know actually what gonna to be happen in this business..they can only try the best to grow the company, but there are alot of factor involved..not you want improve then can improve..everybody also want to be successful and sometimes even after you tried, you will still failed!!
no body will simply buy back PE 50 stock...why mgmt have to waste company cash to buy back the share? share is just indicator only..their main work is to improve the business not manipulate any share price...if company perform good result, eventually share price will follow...if company perform bad and below analyst expectation, then share price will drop nonstop..this is what happen now..
if i am mgmt, i will use the cash to grow the company, not waste the cash to buy back share....mgmt/boss only need to make sure they still run the company, they hold enough of share to control the company and cash pool of the company...they still get their high salary...they are not depends on the share profit to have a better living..they can live luxury life by taking high salary from the mgmt of the company.
Just run while you can. All these small rebound is just to trap new investors. Profit not up to standard for four quarters already, if the company is competent that won't happen for one year straight.
yeah, besides fund selling, some fund also just shorted this share to earn more profit...as they analyst, this share is too overvalued based on the result, so everyone expect that it will drop until quite low point which is rm1 around..
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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....
Beerbeer88
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Posted by Beerbeer88 > 2017-03-08 16:21 | Report Abuse
If a chairman feel the price is undervalue, he/she should buy more than 100k units.There are no new catalyst to push the price go up in short term. They have to perform on revenue and margin to convince. Export stock is not the theme play now.