Better dont distribute and reserve for future expanding as they are in the development stage..rather than distribute now and then right issue again..set dividend policy after they growth..looking forward to see its growth.. But i notice that they have huge trade receivable that are past due..would there be any risk of default ? What do you think ?
Huge trade receivable? Need to compare with peers that also produce drugs, herbs & health supplements product. Probably due to nature of business, need to allow suppliers have 30/60/90 terms as incentive to promote new products as Bioalpha is relatively new player in the market, their priority is to penetrate new markets.....also they are expanding Pharmacies outlets which need to stock up.....
Of course when they have expanded and become mature, management need to control the impairment loss of receivable, because in Accounting, it treat as Cost of Sales which will directly impact net profit. Hope Mr. William can take note!! :p
Exactly! Understood they are newbie in the industry and unavoidable to give extremely long credit term as 180days to boost sales..also their trade receivables are too concentrade where 11 customers contribute more than 70% of their sales. Can see the management effort in collecting those debts by reduce the trade receivables turn over period, although is not significant :P.. Hope Mr William is able to make use of Alibaba to diversified its customer to reduce the risk.. If not mistaken in Accounting the impairment loss wont be treated in Cost of sales, should be other expenses. I believe this is a good company and worth to hold long term..just need time to prove..Hope it wont be second Hovid..
he is some 1 looking good in this company , but sour grape there because he cant get cheaper price like us so he speculate and make false assumption to create panic sell
wahaha..the price now i think is lower than lot ppl buy few mths back if got ppl want to buy.....wat ever later i will see how low can it go to be grab....the normal will become abnormal...
xiaoxiaomi--Possible. But still looking forward to hear from him.Maybe he has any insider info which i dont aware..afraid later they have another ESOS..:(
I was really bothered by this "huge trade receivable". Thanks Jack for highlighting it.
I'm ok if it is just a collection issue, and that payments from customers simply being delayed. My biggest fear is that the actual sales figures had been inflated. I hope that my fear is unwarranted.
With that, i am all out of this stock completely today.
no worries...i will come back if the earnings start coming in sooooooon. This stock is really teasing the investors' patience kakakkaka... like Richard said - opportunity cost especially in this bull market
Relax lah Nick.. I am just share my view but not to create panic sales..Myself also continuing accumulate this counter..looking forward his growth and this quarter announcement..hope it wont be disappointed..not sure whether their cashflow can be catch up or not..
ummm i guess so too... the expenses for ESOS last qtr was a big surprise, and now huge trade receivables, and the on going expansion plan.... that is why i am not comfortable ... poor earnings guidance from management...anyway i am out dy. My opinion doesn't count hehehehe
Pnb and william collect alot previously at 25-26 cents. I wonder why they collect at the price if the result is bad? Im sure they know the condition of the company better than us. Wait and see
i remembered last time someone explained it's normal in this industry. But still i don't really feel good. as though the company need to sponsor others to do business.
Sayyid Goh..Got point!!William thru open market acquired shares..enhance confident..hahaha..All in!He personally holding apprx. 16% of shares..He wont make funny joke..Second Tony is coming...
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Posted by richardlee > 2017-11-07 08:25 | Report Abuse
Good long term stock but short term got ding dong risk.