The results look ok. Cash increase. Trade receivables, payables, and inventories remain about the same. The problem is the company is hoarding so much cash. The cash raised during listing to build a new plant till now hasn't materialized. Some analyst commented that this is the best time to purchase land and build a factory as you can bargain the most in such a bad time. One really wonders what is the future plans.
they are actually in the midst of purchasing a land then find out that the land is not suitable and they want to get back all the deposit.... thats why there is a courtcase regarding this
You can't find long term appreciation in malaysia stock market (except few tech stocks which happened in the past few years). For most of the stocks, you're considered lucky if the stock maintains its value for few years. Look at KLCI index then you'll know. No long term appreciation. Bursa malaysia is for short term gambling, this is the harsh truth.
If anyone has a chance to meet the management, please ask them what's their expansion plan because they are hoarding too much cash. They aren't catching opportunities. It is a fundamental stock, but growth isn't as much as before.
Heading south again. The plant expansion delay doesn't build confidence. No point keeping the money in fd too... Low yield. They shld double the customer base too... Very slow
Personally speaking, MTAG business is too much dependent on ATAIMS. Seems like MTAG has no bargaining power at all in passing the rising material cost back to its customers. And, if you look at ATAIMS balance sheet, it has not settled the payment of many of its suppliers (ballooning trade payable). And in fact, the cash flow of ATAIMS is bit problematic.. My personally feeling....
MTAG has zero debt since 5 years ago i.e. before its Bursa listing. It has plenty of net cash. 1. Cash and short term investments 130.8m
Payables and receivables are 2.Receivables 47m 3. Payables and other liabilities - 25 m
Adding up 1, 2 and 3 above , Company is in a net cash position of about RM153m. Divide by 681.6m issued shares, it has net cash per share of RM0.225. Even allowing for planned factory expansion plan as stated in its listing plan, the Company is probably still keeping too much cash.
I think that is why the Company can afford to give out generous dividends.
I don't think there's anything wrong with the management driving Lamborghinis as long as they are producing results. Management should really expand operations or the cash they are sitting on makes no sense.
MTAG will try to break another resistance 0.675. Once broke. Rising star will be on the way and will try to touch 0.73cents (200 moving average line). If this 200days line break again. We should expecting MTAG share moving above this line for heading back 0.80++
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....
Titan
4,180 posts
Posted by Titan > 2021-05-29 14:01 | Report Abuse
The results look ok. Cash increase. Trade receivables, payables, and inventories remain about the same. The problem is the company is hoarding so much cash. The cash raised during listing to build a new plant till now hasn't materialized. Some analyst commented that this is the best time to purchase land and build a factory as you can bargain the most in such a bad time. One really wonders what is the future plans.