As from the Annual report of 31-12-2021, I noted some encouraging good news. The company expected that as a result of the US China trade war, there will be outsourcing opportunities for the Malaysian companies. The newly built 25,000 square feet factory is to cater for one of these purposes. The new factory is scheduled to be completed in the first quarter of 2022. Another words, there will be more revenue and better profit for GTRONIC barring any unforeseen circumstances.
Its CEO gave press briefing and highlighted that the company is focusing on commercializing its advanced sensors for various sectors. This is a positive development as automation will be intergrated into many sectors in years to come and thus sensors will play a crucial part. Positive for Gtronic.
How did you decide that it is positive development? What is their track record in this sensor for automation business? You mean to say no competitors? What is the success rate and demand for their product or is this just syiok sendiri announcement?
DickyMe, Your questions are thought-provoking and interesting if we were in the same kind of business ourselves. But it is unfair for us as a layman to answer your questions such as those you have pointed out as we are not in the position to do so.especially we don't know the internal functions of the business unless we were the auditors. Since the company's Chief Executive is so confident, he should naturally have the reasons behind to support his statements as he has many years of experience. Furthermore, Gtronic has been making profits continuously almost every year. In any kind of business, there are bound to be competitors. either more or less. I don't think the Chief Executive's comments are only for his self gratifications, as he is responsible to the Board of directors, the shareholders, the investors and even the staff.
Chon88: Good points. DickyMe: Also good questions raised. Unless we are big time investors like those retirement fund manager or private equity firms, we could ask for a non disclosure meeting with the Company for a briefing to get a much detail company's development before committing any investment. But as a retail investor, there is/are so much information we could gather to at least reach our own view on the company. Right? Good or bad is up to one to decide.
Unabsorbed capital allowances incurred during the pioneer period can be carried forward and deducted from the post pioneer income of the company. Accumulated losses incurred during the pioneer period can be carried forward and deducted from the post pioneer income of the company for a period of seven consecutive years.
All's not doom and gloom for Globetronics post pioneer status.
I notice from the annual report that the CEO is retiring and, unless I have got it wrong, will be replaced by his 38-year-old daughter. Now there are certainly cases where daughters have taken businesses to new heights (see Harvey Norman), but it does smell somewhat of nepotism. I think this lady needs to show us that she can introduce new and competitive products before we assume that the company's past achievements are any indication of its likely future performance.
A smart investor will always read the financial statement / minutes of the last AGM to understand the direction of a company. Not random users who loves to fud and create chaos, especially when there's no substance in their comments.
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....