hehe86



poisoning time...
like I said...
we Malaysians...
our hobby is poisoning each other.....



Fundamentals is USEFUL to the trader.... so says me.

reference posting #1997

Company webpage: http://www.iq-group.com/

It's products rather easy to understand..... no?

Company does not have a good history.

You can see it clearly....



But the latest profits announced end Aug, that appears to be a game changer.

Read the edge article (and also RHB comments): http://www.theedgemalaysia.com/business-ne...-earnings-.html
We check the profit report...

The balance sheet....



NOT difficult to see one....

look for money...

see CASH and BANK BALANCES ... then look for borrowings...

20 million cash, hardly any borrowings.

Strong and healthy balance sheet, no?

Clearly not the strongest balance sheet, cash flow not that impressive, no dividends and of course poor past profit record...
yup.... not the most ideal investment stock.......



BUT... things are looking for the better..... yes?

7 million profit for first quarter = 8.7 sen eps already (ahh... so high eps number, straight away we know number of shares is very small - only 85 million shares.. easy to fry)

This is where I note something weird with that comments from RHB.
Usually RHB's numbers very sky high one...
but this time around...
the forecast numbers were extremely low....
As pointed out in the posting the other day (which no one bother to reply me...    )
The fair value is based  on FY15F.  (this stands for Fiscal Year 2015 estimate)
In the attached report, FY15F is only 13.8 million.....

I was like.... what???
First quarter alone already 7 million mar...
the next 3 quarters of the year...
this company can only make a profit of 6 million plus only meh?

why so..... err ....... conservative?

Look...
if annualised ...
ie assume all the rest of the quarters earn lebih kurang same profit...
we are looking at 7 mil x 4 = 28 million.
or in terms of eps...
we are looking at 8.7 x 4 = 34.8 sen eps wor....
if use the same pe of 12.5
we are looking at 12.5 x 34.8 = 4.35

!!!

Yup... a possible fair value of 4.35.
And the stock price then was about 1.41.....

So how?

If use lower fair value....
say 10x pe...
also we come up with a fair value of maybe 3.48!!!!

so fundamentally...
it appears the stock is much undervalued despite the big gap up!!!!

So from a fundamental point of view...
this stock looks can bet. LOL!

What chart say?
Chart say breakout from a loose stock pattern.
Chase or don't chase?

*whistle*

And this is where we are at right now................



the first decent pullback after the strong run.....

*whistle*

Does fundamental helps the trader?

Can the trader afford to be handicapped not knowing a company's fundamentals?
Yes... when I first started......
one of the early teachings is..........................

it's all in the charts.....
forget the news...
forget the fundamentals.......

*whistle*
I tell you hor...
if you are in the market long enough..........
you will soon realize....
that there's so much more to it than that.

*whistle*

hehehe.... I see 3 downloads....