BBR    Last:0.193    -0.003

Profit for BBR set to grow?

look like the game for this counter is pretty much over.

penny stock seems sparodic this few days + no news this 2 days. the market seems to be in lethargy

 

Hi Irene and Bigman,

It depends on a variety of factors including market sentiments, rotational interests, and charts. The general sensing i get is that construction stocks have run up too high and too soon. As a result interests have shifted to other sectors e.g. tech (risen too) and offshore (more or less consolidating). If based on candle analysis (looking at 08Jan07), as long the low doesn't not breach 13.5cents, i would consider re-entry between 13.5 to 14 cents. However, if breached (even if temporarily), i might stay out unless supported by other indicators like volume, RSI, and comparison with sector peers.



Monday could be an interesting day due to the continued weakness in the Dow, especially for those who bought up from the intra-day low of 14 cents. It'd be a major dilemma as LNY is fast approaching. Trade carefully!

 

Hi Synapse and Bigman

At what price would you both consider a re-entry?  I am curious to know, having bought in again the second time, 2 weeks ago, at 0.165.

 

Thumb up! Play safe than to be sorry. Wait for a better opportunity and make a comeback later.

 

totally agree with Synapse. I had sold mine too.

One great investor has said, if you are not sure, sell it and wait for new oppotunity.

 

Irene,

I still think construction stocks are worth holding on to for a simple reason. There's so much construction work that's gonna take place over the next few years. BBR/Yongnam being smaller firms may not be capable of contesting for the most lucrative projects, but they will enjoy trickle down effects. At P/E ratios of over 100 though it doesn't take much to trigger a bout of selling. The sand issue is double whammy. BBR raised my eyebrows more than Yongnam because it has sought new areas to grow into (anyone familiar with the blue ocean strategy?).

As to whether to hold on or not, it really all boils down to one's own investment/trading philosophy and appetite for risk. I chose to let go in order to protect my profit profit. Live to fight another day. No point wasting precious ammo. One thing's certain though, i'm looking for the right moment to seek re-entry.



Great to see so many intersting views from so many forumers. :)

 

at the price of 16 cents per share, the Market Cap of BBR is S$210,963,060, that is 210 millions, do you think BBr is worht so much ?

 

I agree with lewsh88's view.  Big contractors would have factored in price increases in any form.  And BBR, having regional presence ought to have insights long before the fire works begin.

But like dfusion, I have been kind of wary too these past few days and was quite tempted to throw in the towel.

Not all penny stocks are lousy.  I have bought into counters like Ezra, SembMarine, OCBC but have never made money because I gave up too fast.  I have also lost monies on penny stocks because I bought into the wrong counters.

I believe Shplayer is good at analysing the fundamentals and if he/she can do the FA for BBR, it would be very appreciated.

 

A contractor bids for a job on lump sum, i.e. labour + material. If the main material price increases, say sand in this case, the contractor's cost increases. Unless the developer is willing to vary the final contract price, the contractor's profit margin is going to be hit.

However, big contractors with good financial controllers would have already hedged their costing to insure against drastic increases in main component pricing.

 

hmm... looks like quite a number of people are contributing to the thread. am myself vested and waiting for the turn around as i do foresee a better prospect. but the last 2 days has really been heart stopping for a new penny stock investor like me.

but i would like to ask about the sand thing. what is it got to do with BBR? are we looking at cost increase for property companies which will affect sales and thus the stock?

appreciate enlightenment for a sotong like me.

 

Sand supply near & around us, Malaysia/Indonesia has been cut off.  Next nearest sand supply country would be Vietnam/Cambodia. It is a matter of pricing, that is, cost of sand + transportation.

I've seen a company in Malaysia fabricating walls for low rise buildings using oil palm fruit fibre mixed with cement. They're quite good.

(Of course if these are successful, Malaysia/Indonesia will ban export of palm fruit fibre so that Singapore shall not progress!!!)



Come what may, construction would go on, whether it is sand, steel or other alternative building material.



Never say "die" Singapore!!!!

 

Hi Synapse

I am vested too for the second time.  And like you said, unless one is in for the punt, BBR to me, is more stable than YoungNam.

And I am holding on for a rebound.

 

Good time to buy more on this news.  The contruction industry has just starting to boom. Cheers.

 

run for your life  first, the answer will be out in few days times.

 

no matter what, this sand issue will no doubt create problems for the construction industry. BCA has already mentioned that they will change their alternative building methods to using steel which is fast and more stable and can get from anywhere in the world unlike sand which we are so dependent on msia and indo. yongnam is pure play on steel.

as for bbr's nassim hill, it is only 1 project.

that's all. if you want to play property, go for those like hiap hoe (with their cuscaden royale condo), ho bee and of course the other big boys. today is a good time to pick. property counters will not be affected by the sand issue as much as construction counters as the latter are the ones trying to suck up to the developers to give them the job.

 

thanks smartrader and cr_kai for both your advice.

i have a feeling that market is going for a correction this time and coupled with the fact the electronics output is not as high as nov, thus the downturn. As such, i'm thinking that letting go at this current price will not be advisable.

Also, i'm pending of their nassim hill sale which could have a huge bearing of my perception of the stock. On the other hand, i also feel that construction has gone up a tad too much like what cr_kai  said.

i've bought yongnam and let go within a week, earning a small profit. i guess i'll see how things go...

 

Hold on to it if you have already bought the shares. It has potential to rebound..

 

my advice is switch to yongnam from bbr....sold off at 17.5 cents. bbr is too unstable already. overvalued considering their potential.

just my 2 cents.

 

vested in this... heart is running fast man....

any TA/FA experts to comment on this stock?

 

i am not worried about the share price, only worried if they have the resources to bid for contracts since construction growth is red hot at 40% in 2006.