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One thing about this kind of punt is that you have to catch the bottom. If you buy in now and if its going to drop another 10 cents and the story is true, the stock may still rebound due to oversold conditions but would not reach the current price. Another thing preferrably is that you are wiling to hold this company for the long long term if anything goes wrong or you are able to cut loss early.
Do note of the receivables turnover degradation too.
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Honestly Mr Engineer, I just want to see how accurate DBSV is hehe !
If the earnings is terrible, I think the DBSV analyst should be praised for alerting the market early.
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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My concern is on their increasing receivables and reduction in cash. If this is to continue, they may face cash flow problem.
Not vested.
The toughest thing to do is have to wait for the opportunity patiently.
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DBSV turned out to be correct. The analyst should be praised for his foresight.
Long Cheer Q2 results were poor and only a one-off fair value gain from its stake in Memtech kept it in the black.
http://info.sgx.com/webcoranncatth.nsf/V...5003BC70E/$file/Announcement_Q2FY11_-_Final_-_V2.pdf?openelement [SGX Announcement]
http://info.sgx.com/webcoranncatth.nsf/V...5003BC70E/$file/Press_Release_-_Final.pdf?openelement [Press Release]
Given the uncertain market environment, the Group does not expect to be profitable in the next quarter. At this juncture, we are unable to ascertain if the Group will remain profitable for FY11.
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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inside information leaked or what?
anyway, this stock is dead.
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27-01-2011, 09:12 PM
(This post was last modified: 27-01-2011, 09:14 PM by mrEngineer.)
I don't understand their statement on price competition of chipmakers that will decline the end product (feature phones) margin or ASP (average selling price). I have not studied how the company manufacturing line works but I assume they should buy chips from chipsmaker and any price competition of the components should lead lower inventory cost and cogs which is margin enhancing.
Unless they have business in chipmaking as well.. Or they mean that the industry passed on the cost savings to the end users at the same time and ultimately suffer margin erosion? Strange as well. If this is so, we should see a greater decline in revenue instead.
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28-01-2011, 12:16 AM
(This post was last modified: 28-01-2011, 12:23 AM by mrEngineer.)
Erm I don't understand ur statement clearly. I think inventories are not priced higher as they mentioned that there was a price competition upstream. Simply said, they are buying cheaper inventories but claim that the event has caused their gross margin to decline.. How can lower inventory costs increases COGS?
Am I missing out something or they are talking crap?
Perhaps they took an impairment loss on their inventories in bs and charged it to COGS. In that case, it is possible to cause overall COGS to increase when price of their supplies falls
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