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Hi, Hulumas.
I guess most people here are all waiting for the race,
of the tortise and the hare.
Well, here is to the week to come.
Then is KXD a good entry point now?
I would suggest you to save more, and read more next time before you buy.
I left with $3k spare cash only.... money average???
Which counter?
Dear Ultrameg,
If I were you, it will do no harm to do "Money cost averaging" to all your mentioned counters about now. (Caveat Emptor)
Sad to speak, Yes.....
Zhong Guo Ji Long - 100 lots, 9 cents (Value now = $0)
Summon - 500 lots, 2 cents (Value now= $2.5k)
Jishan - 200 lots, 9 cents (Value now=$14k)
KXD - 100 lots, 10 cents (Value now=$2.5k)
........... Don't Know What To Say
Dear Ultrameg,
Do you still hold all your mentioned shares?
You will be a gigantic winner in the long run!!!
As a genuine investor we must act as the big fund contributor in the first place (that is called investment) by the time goes by and turning into much much bigger fund collector in the later stage (that is called return in investment) as simple as that.
Hulumas into action again,
Previously, Zhong Guo Ji Long .... dead
Sunmoon.... nearly into graveyard....
Jishan .... 25% death
KXD.... nearly dead.... sure can revive meh?
NAV RMB 0.63 = 0.10 cents meh? Five-fold jump???
be it strong yuan, if the product itself is attractive and sellable, the bottomline wil be healthy, dont worry, it will ciong and penny stock will take turn to ciong
Dear StarLine,
Remember... slow but sure that the oldman does. By next week most probably.
Hi, Hulumas.
Today's volume at lunchtime is about 10,600 lots to clear for KXD at $0.03.
Hulumas ( Date: 18-May-2008 18:12) Posted:
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Dear Zhuge_Liang,
Earlier cut in revenue, changing its market product towards high added value and more profit margin items is meant for anticipating progressive appreciation of Yuan against Usd. Hence, a strong Yuan will have minor effect. (could be positive effect commencing now perhaps)
The Chinese yuan hit a post-revaluation high at 6.9588 per dollar after the central bank set a strong mid-point rate, underscoring market perceptions that Chinese policy makers favour a stronger currency to battle inflation. A strong yuan is negative for KXD.
Cheap and good penny stock. Got loose $ buy few as pest loh.
This thread hardly moves. You may wish to contribute your pro-KXD views at CNA's thread below
http://forum.channelnewsasia.com/viewtopic.php?t=149543&highlight=kxd
Hulumas ( Date: 20-May-2008 11:28) Posted:
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Today, both Volume and Price is up, by lunchtime.
Dear HOLLAHC,
Good comment, I am exactly on the same line with you. It is considered the most potential asset play counter that I have ever encountered in the equity investment!
I think the profit warning was a sort of false alarm, there is no big loss at all!. Has the market missed out on what seems a good opportunity, or have I made a mistake? Can some experts please advise? KXD issued its 1Q2008 financial statement after close of trading last Thursday and it shows that although profit has fallen, the company has:
1) Total Net Assets (TNA) of RMB256.56 million and the group's TNA is RMB438.62 million;
2) no secured or long term debt and its unsecured debt is only RMB10.52 million;
3) a cash balance of RMB41.17 million;
4) trade receivables of RMB210 million;
5) plant and equipment of RMB21 million;
6) incurred a forex loss (due to RMB's appreciation against USD) of only RMB8.5 million;
7) a NAV of 37RMB cents (7.25 Singapore cents) while the group's NAV is 63RMB cents (12.75 Singapore cents);
8) and is on the lookout to diversify revenue stream and business, including strategic acquisitions.
It is also noted from other sources that its 2003 IPO details were as follows:
i) total shares offered: 160 million;
ii) offer price: 23 Singapore cents
iii) historical high since October 2003: 42 Singapore cents;
iv) historical low: 2 Singapore cents;
i) total shares offered: 160 million;
ii) offer price: 23 Singapore cents
iii) historical high since October 2003: 42 Singapore cents;
iv) historical low: 2 Singapore cents;
v) PE ratio: about 134;
At the current price of about 2.5 Singapore cents per share, it is therefore going at a discount of about 80% to NAV! This, plus the fact that its CEO/MD Mr Liu Fusheng was said to have tried in the last year or two to buy out other shareholders, while a Hong Kong company was said to have tried to take over KXD at about 22 Singapore cents per share would suggest it is a matter of time (perhaps sooner rather than later) that the current bottom price could trigger off fresh bids by interested parties. However, irrespective of whether the foregoing is correct, can some expert please advise whether KXD is a good bet/buy at 2.5 Singapore cents for the following reasons:
a) it is not a hollow company and has been operating a good and successful electrical/electroni
b) its business is still ongoing;
c) it is a Singapore registered and listed company and is subject to Singapore law and accounting rules (auditors are Deloitte Touche);
d) it still has net assets in terms of cash, business receivables, plant and equipment totalling over RMB438 million (about S$86 million);
e) its executives own shares in the company and are unlikely to let the company go bust or even let it be taken over for a song - on the other hand, with KXD's present status as an ongoing concern and with the current high prices of commodities like coal, gold, oil, palm oil, etc., all it takes is for KXD to acquire a project or enter into some joint venture relating to such or other commodities for its share price to go up (see point 8 above regarding the KXD's declared intention) - with outsourcing nowadays, that KXD has no experience in commodities or their extraction/dealings should not pose a problem to it diversification, see for example how engineering Jade has outsourced its Indonesian coal mining project to a company with such expertise;
f) at 2.5 cents per share, the downside is relatively low but should it go back to 42 Singapore cents one day, that would mean a 1,680% capital appreciation!
g) at the steep discount of about 80% to NAV, it is a good target for take over or reverse takeover, or even for existing bigger shareholders to try again to buy up the rest of the shares whether to take KXD private or otherwise;
h) at such a low price, it is relatively easier to make 100% or more in capital gain if the counter just rises a few cents.
Since the PE ratio of about 134 is high, this counter does not appear to be a good one for income/return, but can some expert please advise whether it is a good stock for "suicide-investors" meaning, those not looking for returns but who are going for capital gain and who are prepared to use a relative small investment or capital sum to "die" with KXD executives holding KXD shares i.e. to swim or sink with them by sticking it out to the end with their respective shareholdings?
This is a request for expert advice from seasoned punters or those who may know something about KXD which others do not, and is not an offer, request or inducement to anyone to invest in or not invest in KXD shares. Please therefore do not believe in or rely on what is said above and conduct your own checks, investigations and due diligence and make your own decision at your own risk no matter what you intend to do i.e. caveat emptor!
This takeover is just speculation. Reported a big loss in 1Q08 due to the strong RMB and intense competition in China. The RMB and competition are going to get stronger. I cannot see signs of bottoming in the stock yet.
One question! Is Koh Boon Hwee still a director there? If not, better avoid...just my six senses.