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ETIKA undervalued gem stock

With another over 63 million shares sale overhang from director Cheng, this stock may not be able to go anywhere in the near term. Lets see how low it will go. 

 

Director Chin sold another 800,000 shares. Getting worrisome. Why?

 

Drop some more, waiting waiting .....

Syndicate      ( Date: 13-Aug-2014 16:01) Posted: Market inefficiencies i like.

 

Market inefficiencies i like.

 

If anyone bought ard 45 cents, after xd of 30 cents, anything below 15 cents of the xd price will be a loss for the investment.

Those who wants to cut, should do so now because we don' t know how much more the BBs want to profit from the shorting.

Just be careful. 

 

Falling price after XD is always a norm.  I already said the BBs will adjust it downwards that amount equal to the dividends.

This is because when a company pays cash, its NAV and/or its current assets are reduced in equal amount to the cash payouts (dividends).

Thus the fall in price.  However what remains is not the remainder that the company has.  It is also the business that we need to give due consideration, and if it has been profitable, a premium to its future value, and if loss making, a discount of sorts.

Thus do not overdo the adjustment, otherwise it does not justify.  Lol..

 

 

Maybe many like me want to buy but funds waiting to return 26aug hahaha tats a lot of money on 0.30

 

i agree and have bought...... but its selling off..... i guess i should be happy...   can buy more cheaper ! 

Syndicate      ( Date: 12-Aug-2014 16:27) Posted: I see it as simple risk reward Current valuation with cash on hand 0.122 cents after clearing ALL debts What's your downside? This is not including current assets and fixed assets With those it's worth 0.25 With the cash if management can invest wisely the value can I up even more . So limited downside and a lot of potential upside The bosses and owners are all good experts. I believe upside potential is definitely there ..

 

Agree. Everybody has their own risk/rewards metrics. For me, the more kiasu, the better. I have lost lots of money by being not kiasu enough. So consider lessons learnt for myself.

Syndicate      ( Date: 13-Aug-2014 12:16) Posted: Precisely risk reward No risk no reward Of cos with more information risk can be manage and a better decision can be made . We all do our own analysis with information available and do own risk reward analysis

 

Precisely risk reward
No risk no reward
Of cos with more information risk can be manage and a better decision can be made .
We all do our own analysis with information available and do own risk reward analysis

 

And as I postulated earlier, I doubt the management dares to immediately turn around the remaining business divisions and show a big profit. So I expect NAV may drop in the near term.

 

Furthermore, some companies cash level will fall when there is a huge amount of accounts receivables compared to its payable. So one has to analyse its profit and loss statement, plus the balance sheet very carefully, and its debts ageing profile even more carefully.

 

I  invested in  quite a few counters that are trading at less than 50% of NAV, or even NTA. And these are very profitable companies.  It is not unusual to see even good companies  trade below NAV. Buying below NAV does not guarantee you will make money, it depends on its  future profitability. If profits keep going negative, the NAV will drop, unloess they play with the intangible value and try to boost NAV. So sometimes looking at NTA is  even better. 

Syndicate      ( Date: 12-Aug-2014 16:27) Posted: I see it as simple risk reward Current valuation with cash on hand 0.122 cents after clearing ALL debts What's your downside? This is not including current assets and fixed assets With those it's worth 0.25 With the cash if management can invest wisely the value can I up even more . So limited downside and a lot of potential upside The bosses and owners are all good experts. I believe upside potential is definitely there ..

 

I see it as simple risk reward
Current valuation with cash on hand 0.122 cents after clearing ALL debts
What's your downside?
This is not including current assets and fixed assets
With those it's worth 0.25
With the cash if management can invest wisely the value can I up even more . So limited downside and a lot of potential upside
The bosses and owners are all good experts. I believe upside potential is definitely there ..

 

Did ASAHI buy the dairy business MINUS the management team? Most purchasers require the management to stay together for an x number of years to maintain stability and profitability. Now, assuming ASAHI bought the management team, then the management team would not have the time to CONCENTRATE on other loss making divisions right?

 

Quite true. But Sam Goi is in the company leh!!! Sam Goi wants to risk his reputation?

ytoh1688      ( Date: 12-Aug-2014 15:38) Posted: also its often quite easy to sidestep the non-compete clause

 

also its often quite easy to sidestep the non-compete clause

 

Perhaps, they had seen the dairies biz  at its peak like the mountain climber who would return to the ground when he reached the peak.

 

I think there is some non compete clause. No double dipping.

ytoh1688      ( Date: 12-Aug-2014 15:10) Posted: When the offer is good you will let need to let it go They can always start another competitor brand   as they already got the knowledge   and convert their current factories into diary again

 

When the offer is good you will let need to let it go

They can always start another competitor brand   as they already got the knowledge   and convert their current factories into diary again