Posted by human > 2019-11-18 10:34 | Report Abuse

Agree. There are many newcomers now and then to stock market, well informed investor will make the market more mature.

Posted by MingGoon > 2019-11-18 11:58 | Report Abuse

Salute : 4 weeks range : 0.795-0.985
Salute : 1 Year range : 0.278 -0.985
Salute : IPO price : 0.80

Those who buy Salute when there was a huge price correction/drop to 0.30 from its IPO price at 0.8, have a good foresight, and able to buy into a good growth stock.
This is similar like AT now at 0.07 - AT is an automation company, next year, automation will rebound, those who buy into AT now at 0.07, have good foresight too.

Those who buy Salute at 0.90 ++ , believing that Salute will shot beyond 1, clearly has been disappointed. Why ? Why , Salute can't goes up above 1 this Quarter ? very simple, due to a lot of contra players / new investors/ existing investors are all worry that this coming Qtr to be release result on Nov 26 time frame, might NOT be good.

Salute is a good growth company, but this coming Nov 26 result, the financial results might not captured the new orders that has been received from Customer A.

Buy into weakness of Salute, but not buy into a high of Salute...
That's what make a good investors.

Those who have holding power, pls hold Salute
Those wanting to enter Salute, wait for the Nov 26 results, before you decide.
After all our hard earn money, we really need to stay safe.

Stay safe everyone in your journey to financial freedom.

Posted by Nepo > 2019-11-19 12:04 | Report Abuse

Supported very well, waiting for the impact from the space meteorite (QR).
Will it overcome that impact...?

Posted by sc Khaw > 2019-11-20 15:40 | Report Abuse

bye bye salute

Posted by flexibt > 2019-11-22 14:46 | Report Abuse

today QR?

Posted by EatCoconutCanWin > 2019-11-22 17:30 | Report Abuse

why up a lot. result so poor.

Posted by lccl2003 > 2019-11-22 17:42 | Report Abuse

bye bye

Posted by Christiano88 > 2019-11-22 17:47 | Report Abuse

Possible Davis double-killing effect on monday

Posted by PaulNewman > 2019-11-22 17:49 | Report Abuse

gg

Posted by PaulNewman > 2019-11-22 17:50 | Report Abuse

Share price ran ahead of fundamentals due to cold eye effect. Salute will be a good buy once it retraced 40%

Posted by Nepo > 2019-11-22 17:50 | Report Abuse

Hopefully RM 0.80 is a firm supporting price...

Posted by flexibt > 2019-11-22 17:58 | Report Abuse

Total revenue for the first quarter ended 30 September 2019 was RM32.3 million, a drop of
approximately RM24.4 million from RM56.7 million in the preceding year corresponding quarter.
This was primarily attributable to the lower sales volume from the current running products and
the new generation headsets. The forecast volume for the new generation headsets have increased
but order fulfilment is constraint by material lead time. The situation is expected to normalise in
the next quarter.

Posted by flexibt > 2019-11-22 17:59 | Report Abuse

wait for next quarter

Posted by flexibt > 2019-11-22 18:00 | Report Abuse

There were several new project developments in the pipeline that have yet to generate revenue but
have already contributed to the significant costs increased in the current quarter. Amongst others,
were spending on travelling, new production line setup, product development costs, hiring of new
indirect headcounts and increased fixed costs due to upfront capital investments totalling
approximately RM0.7 million.

Posted by cat lim > 2019-11-22 18:09 | Report Abuse

Sure got skl said the result actually not bad lol

Posted by human > 2019-11-22 18:21 | Report Abuse

I repeated many times don't expect drastic improvement in profit.
The qtr report clearly show the company require times for profit recoveries, few months new orders production not sufficient to show immediate profit, this is the reality of the business.
Q2 onward for actual entire 2020 production will be better when the new orders obtain sufficient volume of sales.
This round should flush out short terms traders.

Posted by ming > 2019-11-22 18:44 | Report Abuse

Sama sama dgn elsof..

Posted by Bullbursa > 2019-11-22 18:45 | Report Abuse

Shorterm players panic and sell next week..long term investors see the future..and keep for next few qtr at least..

Posted by vinc3362 > 2019-11-22 19:01 | Report Abuse

Disappointed with the results. Was expecting profit for 1st Qtr. However, the MD told us not to look at ST but look at the medium to long term horizon.
This qtr result does not include the mouse sales for customer A due to delivery lead time but will be captured in next qtr results.
They are bullish on Salute's future and over the last quarter have hired 20 to 30 additional engineers to bring the engineers headcount to around 50 to cater for the incoming and potential future business.

Posted by Lauyw > 2019-11-22 19:22 | Report Abuse

Back To 61 cent before Chinese New Year

Posted by upsidedown119 > 2019-11-22 22:54 | Report Abuse

The revenue of RM32 million is double that of RM16 million of the preceding quarter.

The unexpected loss for the first quarter is due to increase in development costs which is written off as an expense instead of being capitalised and then amortised against the sales of the developed product.

This means that cost is charged in the current quarter and not pro rata against sales of the product in the next quarter.

This really means that cost is overstated for the current quarter and will be understated in the next quarter when revenue is generated from the sales of the product.

Despite the 'loss', the company is still in a position to declare dividends of 0.6 sens per share.

The play on Salute is therefore a play on next quarter performance.

We shall see how the market react on Monday.

Posted by Nepo > 2019-11-23 06:34 | Report Abuse

Based on the recent marginal loss QR result, if sb is selling, he will loss the opportunity to tackle the probable profit in the next few QR. Even if he sells, potential buyers already standby to buy in as the potential is good.

In stock market those who have the precise insider information will take the advantages. Like in Salute, sb had the precise insider information so they could buy at the cheaper price in advance. Public in large will only can buy at 'median price', that is the reality...

I do agree @upsidedown that the cost for the future revenue need to be capitalized instead of w/o to Profit and Loss account, probably the management would like to show Sui Sui financial report in the next QE

Posted by human > 2019-11-23 07:11 | Report Abuse

There are no such practises for pro rata of staff salary and sales from production. Reading qtr reports has to be realistic, new orders will always has new production lines cost, materials cost to be recognised then follow by production and logistics cost before sales recognized that can be declared as receivables. False timing expectation distort logical assessment.

Posted by hoongkk > 2019-11-23 07:31 | Report Abuse

Still have dividends

Posted by Nepo > 2019-11-23 08:31 | Report Abuse

'Prospects
The Group together with its European design partner have set a clear technology roadmap to
embark on hearable devices with focus on micro-electronics encapsulation and miniaturisation. It
is important that the Group have set this strategic roadmap to ensure continuity in terms of
innovative product offerings to the market, highly capable resources and high end processes to
successfully adapt to the challenging development of miniaturised products that can incorporate
additional components for wider applications. In this regard, the Group have scouted critical
talents to help bring the products from development stage to mass production stage within the
shortest time possible.
In the meantime, the Group is diversifying into non-headsets products and broadening its customer
base.
The Group will continue to be mindful of its costs management and be prudent in its spending and
expansion plan.
Premised on the above, the Board is of the view that the Group’s prospect is favourable. '
===============================
The above prospects may support the share price to a certain extend.

Posted by Nepo > 2019-11-23 08:40 | Report Abuse

'(Loss) / Profit Before Taxation (“(LBT)” / “PBT”)

The Group’s LBT for the first quarter ended 30 September 2019 was RM3.2 million, a decline of
RM6.2 million from PBT of RM3.0 million in the preceding year corresponding quarter.

There were several new project developments in the pipeline that have yet to generate revenue but
have already contributed to the significant costs increased in the current quarter.

Amongst others,
were spending on travelling, new production line setup, product development costs, hiring of new
indirect headcounts and increased fixed costs due to upfront capital investments totalling
approximately RM0.7 million. '
====================

1). New Production line setup
2). Product development costs
3). Increased fixed costs due to upfront capital investments

Based on the wording, without further detail, I would classify these 3 types of costs belongs to the new product(s) and should be capitalized if there is no sales on the NEW product(s) unless the NEW product(s) is NOT successful.

Posted by human > 2019-11-23 09:43 | Report Abuse

Salutica main sales were from sony and jaybird from 2016 and 2017 when the profit peak then profit drop till lost thus the share price respond accordingly.
The new headsets success and mouse are catalyst for profit recoveries, a reasonable expectation from new orders start setup then productions till delivered to client follow by sales recognized is 6 to 9 months thus any meaningful profit should between 6 to 9 months from July 2019 when the headsets and mouse first order.
The 2018 q4 and 2019 q1 report seem to indicate there are more new orders for new product ongoing development these whether are profit growth will be something to be monitor.

Posted by upsidedown119 > 2019-11-23 16:53 | Report Abuse

@human. It is cost accounting practice to account production cost to the cost of the product and and not period costs like Admin overheads.

Production cost goes into work in progress as should development cost.

The cost in work-in-progress is charged off as unit cost of producing that product and ends up in the cost of finished goods inventory.

Unit cost of the product is arrived at by dividing cost of the finished goods inventory by the total number of the units produced.

The unit cost is then charged off to sales based on the formula: Cost of good sold = unit cost X number of units sold.

Therefore if Salute charge off product development cost during the period of the development of the product, it would be wrong.

Unless the product is not successful and development of the product was aborted. In which case there should be a note to the account.

But there is no indication that the product was not successful. In fact the indication was that the product was ongoing, has not yet generate revenue but already "contributed to significant costs in the current quarter".

One of the significant costs already contributed was "development cost".

This should not have been charged to current period i.e. current quarter cost but capitalised as Product Development and amotised to Finished Goods Inventory cost as the product so developed is produced.

Posted by upsidedown119 > 2019-11-23 17:09 | Report Abuse

In fact "indirect labour" due to increase in head count for the development of the product should not have been charged to period i.e. is current quarter costs but charged to product development costs and capitalised.

Salute management should be questioned as to its accounting policies on this.

Posted by upsidedown119 > 2019-11-23 17:15 | Report Abuse

The fact that the company is able to pay dividends and the large size of its cash and cash equilvalents indicated that the company's cash-flow is under no stress.

Posted by Lauyw > 2019-11-23 20:54 | Report Abuse

Better buy sedania at esport giant at future, now increase the profit, price cheap
,there is other net cash company.

Posted by Lauyw > 2019-11-23 20:56 | Report Abuse

Strong growth at future of FY20.

Posted by ionlywanttoearn > 2019-11-23 22:20 | Report Abuse

Sell lo. Lock profit first.. haha

Posted by Kei2 > 2019-11-23 22:32 | Report Abuse

Sell 1st invest later at cheaper price with more units.
If Super confident, hold

Posted by human > 2019-11-24 00:08 | Report Abuse

@119, salutica do not had such practise in past qtrs, cost deployed and sales recognized are records at time of such happen, thus their qtr reports expectation are to aligned to such practises.

Posted by human > 2019-11-24 00:10 | Report Abuse

Simple account practises is what the management enforced which is easy to read.

Posted by human > 2019-11-24 00:12 | Report Abuse

Most listed company has their practise , thus understanding company practises would help aligned expectation.

Posted by human > 2019-11-24 00:19 | Report Abuse

Pro rata basis has lots of retrotracking. When future sales do not match actual production and delivered number, then management has lots of explaining which is not good for reputation.

Posted by Invest_168 > 2019-11-24 00:23 | Report Abuse

Profit not yet realise then share price already goreng up to roof top...the market seem too efficien and now it will make the correction.

Posted by upsidedown119 > 2019-11-24 16:38 | Report Abuse

@human. You don't seem to understand cost accounting. So its no point discussing this issue with you further. E.g. if Salutica did not has such practice in the past, then it would help explain the fluctuation in profit.

Posted by upsidedown119 > 2019-11-24 16:52 | Report Abuse

@Invest_168. In the end, the market will decide. All we can do is inform the market.

BTW, I am not heavily invested in Salute, having sold the bulk sometime ago at a profit. I am now holding just a token amount.

Posted by human > 2019-11-25 09:42 | Report Abuse

@119 you seem too eager to justify your missed expectation of salutica. I understand how many things work.
I point out how salutica reporting works based on how their business works and their past reporting practises, yet you insists a company business and reporting are done based on your own interpretation not how the owner operate and manage the company all along.
False expectation lead to distort assessment.
Understanding listed company reporting practises and owner business management habit are practical and realistic method to conclude proper expectation.

Posted by Investeye > 2019-11-25 09:48 | Report Abuse

Wow! A lot of people tried to justify the loss but never think about the mouses manufacturing business is super competitive and why no factory produce in Malaysia.

Posted by john doe > 2019-11-25 09:59 | Report Abuse

0.006 dividend. lol... Only time will tell. But different thing can be right or wrong at different time. Suit your own holding power and, most importantly, development of macroeconomy... Don't focus too micro to lose the big picture...

Posted by upsidedown119 > 2019-11-25 10:30 | Report Abuse

@Investeye. Salutica is manufacturing for a customer who buys wholesale. Salutica is not marketing its own products to retail customers.

This means that Salutica is producing for a customer order - Customer A. The production is already sold.

Posted by human > 2019-11-25 10:47 | Report Abuse

@119
We are discussing a topic of salutica business performance and practise of qtr reports.
The focus is topic not person.
When did I talk about who made or lost monies in salutica?
This uncalled personnel attack is unacceptable and will be reported.

Posted by flexibt > 2019-11-25 10:54 | Report Abuse

US Market will decides

https://www.fool.com/investing/2018/06/25/logitech-stock-is-up-500-over-the-past-5-years-is.aspx

Posted by upsidedown119 > 2019-11-25 11:04 | Report Abuse

@human. I quote you: "@119 you seem too eager to justify your missed expectation of salutica". You made innuendos about why I posted and then a further very unhelpful innuendo about "false expectations".

In short, you disguise your personal attacks with innuendos that are not only misleading but bordering on being insulting.

But let's stop and concentrate on the market.

Posted by cat lim > 2019-11-25 11:09 | Report Abuse

now we know why it cant break 1 and kaboom from 0.985 ... insiders all running after know the result first .. lol

retailer last to know and goreng hangus

this is stock market ...

Posted by upsidedown119 > 2019-11-25 11:13 | Report Abuse

Thanks flexibt for the heads up even though the report was dated June 2018. Appreciate f you can give an updated report.