Case study?


many read...
see the word OFFER ....

how many really see that Mayban is only saying HOLD the stock at 21 sen... cos if privatised it could be worth 22 sen????

all they see OFFER.... they see the S11 sign in their eyes...
MONEY MONEY MONEY....

I am NOT a divy player.
I believe in profits first, divvy second.

And I think very lowly of REITS.
Now is definitely not the time to buy REITS.
Got extra money, put it in the bank and earn the LOW interest.

My big big boss told me...

"Pinky! How old are u now?"

"30"  

"Let's say u buy a stock with 5% yield and hold til u 50 yrs old, your cash divvies represent 100% of your cost. Paper losses are irrelevant, anything left of the stock price is a 'bonus' for u in addition to your divvies"

I live by that investing rationale

all must kena brain washed jor.

Wow... hard selling.   

Anyway, Malaysian O&G counters always fly on big contract announcement, but when it comes to real profits, sometimes can be quite disappointing.

Bagged a new contract ma, sure lo

Better not, or prepare your August 15 and wait for Boon3

I also queued for it 2 days ago at 2.82. But didn't get. Then kena whacked. So I decided not to re-queue. 

What to do? Let chicken run lo. There are plenty more out there 

Waaa.... I like your spirit. 

But you sure you got go study one or not?

Ok..... study this.

http://www.theedgemalaysia.com/business-ne...tracts-win.html
Share me what you think.

* This is study not ask you to pok your life *

 

Exercise is to improve your thinking. 

You hear a company winning a big contract on the news.
Stock rises.
Money question is you want to ask yourself (and  not depend on others) if there's still chance for you.....

** the splits issue has passed. Splits is just a split, shares are divided into more shares. You, theoretically cannot gain from a split (there is no value being created from a split) unless the stock rises (or goreng-ed) after the split. What you need to know is the CURRENT number of shares **

Question(s):

1. Has the news been priced in the contract?
2. The impact of the contract(s)? What's your assumption it will do to the company's profit line?
3. Friday stock went up. Is there room for more upsides based on the profit assumption?

cksoon
First thing you need to do is understand the contract.

i) For the supply of 4 million new raw MyKad with 100% polycarbonate material and new security features to the National Registration Department (“NRD”) (hereinafter referred to as (“Contract 1”) for a period of six (6) months commencing from 1 January 2014 to 30 June 2014 for a contract sum of RM72,000,000.00; and

ii) For the supply of additional 10 million new raw MyKad with 100% polycarbonate material and new security features together with 10 million consumables to the NRD (hereinafter referred to as (“Contract 2”) for a period of two (2) years commencing from 1 July 2014 to 30 June 2016 for a contract sum of RM220,200,000.00

First part, 72 million to be delivered by June 2014. (I know it's strange. Contract given only on Friday but that contract says delivery from 1 Jan to June 2014. Kind of rush job for the next 2 months)

Second part is to a 2 year contract of 220.2 million.
One year 4 quarters.
So 220 divided by 8 = 27.5 million per quarter.
Assumption is Datasonic supply the cards on an average basis.
No fancy work done here.
Just basic understanding of what's reported by Datasonic and simple counting.
So far so good?

Note: That's just for mykad.

Datasonic also has its hands in the passport printing business.....