Seems like Goh Siang selling earlier and use the proceeds to let MK Goh buy at cheaper price. This is a family tact team to whack minority shareholders.
i believe that this is a company with good fundamentals. Their revenue is increasing year on year however the earnings are being squeezed due to promotion of their own brand. I believe that their earnings will continue to be squeezed until sales of their own brand starts increasing and promotion expenses stabilises. I don't foresee that happening in the next 1 year. Until then i see no reason for this increase in price. Having said that, there is very high volume ~ 8 million shares traded over the past 3 sessions. This indicates that funds or whales are buying in. If you are prepared to hold long term, this may be a good price to get in. if you plan to hold short term, i think the price is too expensive now. A pullback should happen within the next few days.
This counter has good fundamentals. If OBM fails, just return to manufacturing durex and tender. I think the worth still exceed RM1.50. If someone willing to sell, sure ppl willing to buy and hold.
Karex is under correction stats which has been undervalued. The company spending on OBM is affecting much on the earnings so the PE ratio shouldnt be take into consideration on a bigger picture. On the bright side, the earnings in the coming years will be much more higher than other ordinary condom maker. IMO Karex's move to go into OBM is a must sooner or later as there are other competitor and upcoming TopGlove's new condom segment will effect the OEM and tender earnings.
Goh siang already retired since end 2017. GS has been disposing since early this year so i dont think its pump and dump just that maybe he wanted to go back kampung tanam jagung? LOL
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shpg22
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Posted by shpg22 > 2018-06-16 10:48 | Report Abuse
Seems like Goh Siang selling earlier and use the proceeds to let MK Goh buy at cheaper price. This is a family tact team to whack minority shareholders.