01-06-2015, 05:59 PM
I realised in recent months much attention have been placed on plastics molding and engineering companies,and we have seen companies like memtech,fu yu,and also Fischer tech(at a brisk pace) enjoying a rally.
Thanks to the low resin prices(derived from crude prices) driving up the volume of plastics parts orders recently,and also due to the healthy level of dividend declared after the quarter results,pushing the investors confidence slightly.
Indeed,in a competitive industry with supposedly little or no moat, these undervalued 'dogs' do their days also.But I think we also have to dig deeper into the segments of their revenue to ascertain the trend and rate of earnings growth IMO.
Thanks to the low resin prices(derived from crude prices) driving up the volume of plastics parts orders recently,and also due to the healthy level of dividend declared after the quarter results,pushing the investors confidence slightly.
Indeed,in a competitive industry with supposedly little or no moat, these undervalued 'dogs' do their days also.But I think we also have to dig deeper into the segments of their revenue to ascertain the trend and rate of earnings growth IMO.