ORION (0079) could be the next SUPERBULL IT STOCK. It's covered by the CIMB research guy Name NIGEL FOO. Normally stock he covered mean potential something is brewing. We can see it from previous call on IFCAMSC and MYEG which fly up super huge. Especially IT company.
Myeg is one of the stock make him famous. And next is IFCAMSC.
Of course now both not doing well, but the front part is amazing, we just need to ride the front part.
This quarter the company has made a loss of more than RM 5 million.
The latest quarterly report shows an inventory of RM75,626,000, made up to 86.13% of the total yearly revenue. This shows that the goods are slow/not moving.
Receivables are RM48,695,000 VS payables of RM 17,324,000. The receivables is 3 times the payables. This company is definitely in A SERIOUS CASH FLOW PROBLEM.
Not to mentioned there is a bank loan of 13million.
I'm curious whether the the inventory RM 75,626,000 is saleable or not. If it is outdated reference books, then it needs to written off. That is my worry about this stock
Powerinvestor u kena sacked by sasbadi before ke? Why spend so much time commenting on this stock when you think it is rubbish.... I already top 30 shareholder also dun spend so much time here lol
Commented this stock when it was 80 after bonus issues. Basically is sun set industry unless expansion into new potential growth business where the management is paid to chart future direction. Disappointedly things mostly remain.
At current exit price, few penny stocks may provide at least similar trading opportunities.
Based on fundamentals and if nothing is changed, it is quite unlikely it could recover back to 80 unless speculative play. Bear in mind some one commented its high inventory level. May also want to check its receivables too (London biscuits recently written off more than 300 m if not mistaken, NTA from positive dropped substantially to negative. Luckily 6.6 m cash may still able to survive for a while unless continuous losses.
Anyway, wish all good luck in this big casino market with poor regulatory regime, poor disclosure requirements, frequent one off substantial impairment, etc. Even like Hengyuan can goreng to 20 but now is closed to 4.
The book vouchers are back,,,recently education ministry gave a few thousand book vouchers...expect sasbadi revenue to go up has quarter...and also schools opening so people using book vouchers....they have no choice to buy books and stationary....good for sasbadi
Yea this company got hope...worst time is over...it suffered badly after the change in government as it was adjusting to the new policies....now its stable again
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....
powerinvestor
602 posts
Posted by powerinvestor > 2019-09-25 19:23 | Report Abuse
because no contract loh