Homepage
PR Newswire
Hi weijian,
Again, I beg to differ with your views here.
When a company share price had fallen to a very depressed level I would personally be very interested as it does not take much to lift it back up. It doesn't have to be any corporate actions or business restructuring, privatization (or speculation of doing so), buy/sell of existing assets etc as you have mentioned above. Just a nice profit increase from last year will do, as F&N had shown with their latest interim result announcement.
I guess for F&N, patience is required to see them delivering from their projects/investments. They have increased their gearing for the past few years, without a corresponding increase in profits. I guess investors are disappointed with their slow progress in those projects, as their efforts had not shown up in their bottom line for the past years. Hopefully, those investments will bear fruits going forward, but the headwinds are still strong in terms of higher costs, volatile commodity prices and of course regional currencies weakness against their reporting currency, Sing$.
However, just by driving cost reduction measures and focus on sales mix and revenue generation, and efforts to drive efficiency in the company as a whole, I think it might be enough for the share price to perform. It might not reach the heights of yesterdays, but certainly there is good potential upside from current levels, plus the consistent dividend payouts that they have delivered to shareholders year after year. That to me is more than enough.
Again, I beg to differ with your views here.
When a company share price had fallen to a very depressed level I would personally be very interested as it does not take much to lift it back up. It doesn't have to be any corporate actions or business restructuring, privatization (or speculation of doing so), buy/sell of existing assets etc as you have mentioned above. Just a nice profit increase from last year will do, as F&N had shown with their latest interim result announcement.
I guess for F&N, patience is required to see them delivering from their projects/investments. They have increased their gearing for the past few years, without a corresponding increase in profits. I guess investors are disappointed with their slow progress in those projects, as their efforts had not shown up in their bottom line for the past years. Hopefully, those investments will bear fruits going forward, but the headwinds are still strong in terms of higher costs, volatile commodity prices and of course regional currencies weakness against their reporting currency, Sing$.
However, just by driving cost reduction measures and focus on sales mix and revenue generation, and efforts to drive efficiency in the company as a whole, I think it might be enough for the share price to perform. It might not reach the heights of yesterdays, but certainly there is good potential upside from current levels, plus the consistent dividend payouts that they have delivered to shareholders year after year. That to me is more than enough.