QUOTE(lambethwalk @ Feb 19 2014, 09:46 AM)
Boon3 let's take GUH ... co has been purchasing shares back into treasury. at a nice minimum price bringing stock price higher.
what could this mean? stock will trend even higher?
vs HOMERIZ directors were selling... to perhaps inject liquidity into the stock (good thing)
Very good points.
Purchasing stocks into history always helps boost a stock.
Most of the time.
Though, I have seen before, when during bearish times, stock buybacks did nothing to help boost the stock price before.
Can't think of an example now......
So for GUH, that's one positive.
But I think you should know me a little bit.
I always believe in some fundamentals.
Not a value player, but I believe very much that earnings is an important fact.
Seriously, why does anyone invest in a company?
Simple answer is the company is making big money and is going to make more big money in the future.
And for this I EASILY see in Homer but not in GUH.
GUH earnings YTD dropped like hell.
Whereas Homer improved a lot.
And since Homer sales are mostly based in USD, it's rather easy to safely guess the impact.
The USD is still around 330 to the ringgit.
And this is where we easily guesstimate safely...
The next quarter earnings for Homer should be made in April and it would be for the financial period ending end Feb 2014.
With USD still at 330... we can safely assume the impact will be positive AGAIN for Homer as per last 2 quarters.
Use this chart from yahoo
USD to MYR chart.
Compare the period from Dec 2013 to Feb 2014 and compare it Dec 2012 to Feb 2013.
You can see the USD is roughly about 10% higher.
So whatever Homer is going to earn in USD, once it's converted to MYR, the money should be 10% higher...
That's a guesstimate.
Last year in 2013, Homer made 2.2 million.
Again, assuming that Homer earnings doubles up like we saw in Jan earnings report, then we can assume again that Homer profits will again double to around 4 million plus...
And once the earnings growth is so exponential...
trust me .... the market normally will react positively to the stock.
However, SADLY .... the stock is underrated...
unloved ...
and uncovered....
Example?
Last month's good earnings, where Homer's earnings doubled, there was NO coverage in the news (not that I am aware of)...
And certainly no research reports too...
And if you search back, the top 30 shareholder list...
there's hardly any funds invested in the stock...
UNLOVED ..... lol
Now comes the share disposal by the boss and his wife.
It's an off market deal...
Which means the deal is a handshake deal between the boss and the buyer...
Priced at 68 sen.
Buyer bought 2 million shares...
And I will gladly assume that the buyer sees the value in the company.
( Do check out the cash flow... it's unreal.... the company cash grew more than its profits !!!
where to find such companies?
Why is happening?
Depreciation..... accounting .....
)
If there is no value, I don't see why that buyer bought.
Which is good for the stock and everyone.
So the boss sold... but if he did not sell... he and his wife is holding too many shares.
This is not how a stock should be listed....
With them selling, hopefully... the stock gets more exposure.
And seriously... I do not mind if they sold another 5 million shares or even more....
Yes, off market transactions (or direct deals) ...
it's usually positive...
My long 3 sen....
Feb 19 2014, 08:18 AM
Quote
0.0181sec
0.42
6 queries
GZIP Disabled