The stock price has been hit by triple(3) whammy: 1. IPO issuance price RM8.0 adjusted way down to RM 6.00.That also in the negative; 2.Hit by external event-water shortage which any conglomerate needs to prepare.A well-laid contingency plan will help to mitigate such expected event.I did not call it an UN-expected event because it had happened in the past.The company wouldl have learnt well from the past shortcomings and had instead invested to beef up the spare water storage capacity in the event of a re-currence.But bad planning caused the production to be shut down in stages for more than 11 days arising from the water shortage as reported.Consequently caused a major outages to the production.So inexcusable! 3. Market place has been waiting in great anticipation of the second QR which was belatedly announced.When announced and the profit y-o-y fell bt almost 61%,the market force retaliate negatively and very strongly.
Remember market-place is very adverse on any negativity coming out from the company.
Outcome: The stock price is trying to find its bottom.Yet to be discerned.Possibly,waits for another 1-3 days for the adverse news to settle down.
agreed, the only way to get cheap is always when everybody want to sell. the co is dealing with commodities, main job is cost control, the Korean is good at that.. situation will normalised later on, IMO
it is a sacrosanct and important duties,and responsibilities on the part of the regulating authorities like Securities Exchange Commission(SEC) and Bursa Saham KL(BSKL) together with the issuing company for the public IPOs,and its Investment Banks to safeguard the shareholders' interest.
2.If they failed in such duties and obligations they need to be heavily censured.
3.Market's integrity,confidence and IPO's proper governance cannot be compromised.The cost to all the stakeholders is dire if the IPOs is not properly managed.Hope the embattled parties learnt from the uneventful and painful failure of this recent IPO.
Earning underwriting fees come with entrusted obligations to every one.Big,small,retail or institutional shareholders who are the subscribers.
Chemical Titan Holding Berhad (LCT) announced that last week, the company has successfully completed a mass production trial of Metallocene linear low-density polyethylene (mLLDPE), an important component in the production of plastic items such as industrial film, food packaging, and stretch and shrink film.
mLLDPE is a thermoplastic and a form of linear low-density polyethylene (LLDPE) using metallocene catalyst. The usage of mLLDPE will allow producers to achieve their output margins with a comparatively lower polymer input, leading to cost savings. mLLDPE has superior transparency and impact strength compared to conventional LLPDE resulting in better efficiency and competitiveness to customers.
“Our breakthrough with mLLDPE comes after several trial productions since 2012. As a company dedicated to continuous innovation, LCT can now introduce to our customers, mLLDPE which is a cleaner and lighter alternative to conventional LLDPE. Commercial production of mLLDPE will effectively widen our product portfolio and we are confident that this product can meet the needs of our local and regional customers given its excellent qualities,” said Dr. Lee Dong Woo, President and CEO of Lotte Chemical Titan Holding Bhd. “ Produced in collaboration with South Korea’s Lotte Chemical Corporation, using the company’s own catalyst technology, mLLDPE will further strengthen Lotte Chemical Titan’s position as the leading polyethylene producer in the region.
With this new development, LCT will be the first producer of mLLDPE in Malaysia and Indonesia, supplying to the domestic market demand of approximately 150 kilotonnes per annum.
Whether the drop in profit is already known by parties involved during the IPO stage and whether it has been factored in? It is just simply too short a duration between IPO and the announcement of the latest financial results. What would our minority watchdog say? Market risk... willing buyers n willing sellers.
Those who have bought at RM6.50 or from IPO, don't worry. Just hold the stock and got extra money, just average out. If you fall into market's emo, you will loose your money vs paper loss. My take in this is wait for news to subside, opportunist will pile up because they already studied and knows of the demand position of the company.
@Jeffreyteck the water shortage issue happened in April 2017.Caused massive disruption to the normal production which have a direct bearing on the profits earned for that quarter.Such information and event are material facts.The adverse implications arising from such event should have been properly disclosed to all the public subscribers- institutional and retail investors.Think they should have done better but failed to do so.Simply complacent and dereliction of IPOs proper governance.
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
MQ Trader 747 views | 3 d ago
0:17
New IPO: An enterprise IT solutions provider that provides implementation services, maintenance, support and professional services, Vetece Holdings Bhd aims to list on the Ace Market!
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New IPO: A manufacturing and trading of biomass fuel products, particularly PKS and wood pellets company, Elridge Energy Holdings Bhd aims to list on the Ace Market!
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....
twim
302 posts
Posted by twim > 2017-08-01 16:55 | Report Abuse
when will fund managers n institutional funds come in ah ?...cheap ma..high div yield and low p/e.