Midas 　有　性　格！

richtan      ( Date: 07-Oct-2009 11:30) Posted: Hi Benny, I read this posting in CNA forum, copy n paste here just for sharing: sessam Joined: 31 Aug 2006 Posts: 3042 Posted: Tue Oct 06, 2009 5:34 pm    Post subject: Midas do not respond to good or bad news like others. It is a long term big fund stock not for short term trading. Go to her past movements she may go down after anouncements of contracts, but also note Midas has a characteristic of being depressed under accumulations and suddenly running up 5% to10% unexpectedly. This is a growth counter not for the gambling, see it as serious investment. If you had dared to buy Midas in Mar 09 you would have more than doubled even at the depressed price now. If Midas is now $2 with a bigger float she will attract the like of Warren Buffett. bennykusman      ( Date: 07-Oct-2009 11:25) Posted: im just wondering why midas slowly go up, not like ausgroup...

Hi Benny,

I read this posting in CNA forum, copy n paste here just for sharing:

sessam Joined: 31 Aug 2006 Posts: 3042

Posted: Tue Oct 06, 2009 5:34 pm    Post subject: Midas do not respond to good or bad news like others. It is a long term big fund stock not for short term trading. Go to her past movements she may go down after anouncements of contracts, but also note Midas has a characteristic of being depressed under accumulations and suddenly running up 5% to10% unexpectedly. This is a growth counter not for the gambling, see it as serious investment. If you had dared to buy Midas in Mar 09 you would have more than doubled even at the depressed price now. If Midas is now $2 with a bigger float she will attract the like of Warren Buffett.

"Trade Summary" at this point in time shows more buying-up, but of course, nothing is guaranteed, may change, so dyodd n BOSAYOR:

Midas does not just depend on trains, read extract from below:

Life after trains:

Over the longer term, management will look into other feasible, promising industries such as aviation to continue its growth.

I had been posting almost everyday the below writeup from Kim Eng:

Midas – Company update (James KOH 64321431)

Previous day closing price: $0.865


Recommendation: Buy (maintained)


Target price: $1.15 (Previously $0.985)

Still packing the theatre

We recently hosted a roadshow for Midas in the US, which was very well-received by funds.

The exciting growth prospects within the China rail infrastructure space continue to capture the
imagination, with the main discussion points being the competition within this space, the sustainability of growth for Midas and the progression on expansion.

A smaller share of the bigger pie

While Midas still holds a clear lead in terms of certification and track record,
management expects competition to intensify, with listed peers such as Shandong Nanshan (Shanghai) and Zhongwang (HK) stating their intentions to break into this market.

Going forward, they believe achieving a lower 50-60% market share of this growing pie would be a more reasonable target, which will still ensure strong growth.

Life after trains

Improving the rail infrastructure network is an important government initiative, with current directives providing clear visibility over the next 2-3 years. Even subsequent to the stimulus package, we expect this program to continue.

Over the longer term, management will look into other feasible, promising industries such as aviation to continue its growth.

Progress on the installation of 4th and 5th extrusion lines

We now expect the 4th and 5th extrusion lines to come on stream by 2Q09 and 4Q09, earlier than our earlier estimates.

Our model factors in Midas winning a 50%-60% market share of the upcoming round of orders, which is twice the size of the first round. This will already keep all its five extrusion lines busy at about 75% utilisation.

Much more tracks to run

We adjust our earnings to take into account higher effective capacity in FY10 and higher tax rates in FY11.

We now peg our target price to 20X FY10E.

We believe the Chinese rail industry is still at its early-mid cycle.

With the Ministry of Railway due to announce the 2nd round of high-speed train orders, we expect orders to flow down to Midas within 3-4 months

I too fully agree with u.

I have this "2 days" rule based on closing price, not intraday high nor low to avoid fakes.

Whats next after stimulus ? Will be the question people asking. With the increased capacity can Midas keep it up its utilization of its available resources ?

Investors buy for potential huge growth in 5-10 years. Can we see Midas achieving it after China stimulus ? People have doubts. Within 2 -3 years I will expect Midas earning reached its peak and its trading share price will be around SGD $2-3 based on its Earnings X.

Warren buffet wont enter Midas on few reasons which i will not reveal. But if your smart you can make a guess :)