New year come... Dun simply say u got nothing

Mana rotan? 
If you are really interested, best is to wait for the 'unwanted dead fish' strategy.... which requires time and lotsa patience....

Well... this is what it is....unless of course, you like to hantam buta buta based on momentum this morning...
QL?  This one is a no-no for me. See also I tak mau. If look at historical events, you can understand how it grew... 'Purchase' engineering .... such business I tak minat.

In the Stock forums, it's Billy's fault.
In Kopitiam, that changes.
The S&P shed almost 5% in a single day.
Some green support doesn't mean a turnaround though.

In other news, SG tightens SGD policy.

Good times to watch the markets diligently.

I really just bought an appliance from Senheng.
What was the IPO price for this again?

Profits boomed.... Receivables lagi boom boom... Borrowings boom boom... Cash shrunk!!!
* receivables at 146 million.

Lol.. do business no need collect money one ah?

And this is where it doesn't make sense...

if it's supplied for the EV market... surely we are talking about the goods being exported.

and if that's the case.... how and why could the receivables be increasing      booming like that?

Giving leeway? If your brother ever run your family business like this, what would you do? Rotan?

Anyway... all this... is important...

If one wants to be in control of the risk in our trade, one needs to understand what exactly one is trading and one certainly does not ever want to be in a position in a trade when the floor suddenly caves in and one loses total control of the trade, leaving the fate of the trade to the Hantu of the stock market. That's a no no for me.

That's why stuff like this is important... cos ... the main selling point for Genetec is that the company has struck gold in the EV market...

And here's yet another comparison...

the BEFORE and AFTER....



From the above we can 'see' that it struck gold since fy 2022 Q1

so compare the Q before it struck gold and compare to the latest... so the before is as follows



One can see.. receivables is at 19.2 million and G has cash balance of 31.8 million.

and the borrowings is as follows...



Not bad what.... despite losing money (G lost 4.2 million for the fiscal year) , the company is in a net cash position...

Now look at the AFTER... ie the impact of the EV Boom... in which the company has reported a current ytd profits of 42.7 million...



Receivables is now at 146 million!!!  ( ya... if receivables remain high too long...it runs the risk of being classified as bad debts!!!)
And cash balances is now 10.6 million only. (remember previously cash balances was 31.8 million!!!)

and the borrowings is as follows....



borrowings has exploded!!
Well... here's the stupid question....

was the company in a better shape when it was losing money or is the company in a better shape now when it is said to be making millions and millions??

Hot money is likely to chase after commodity, commodity price likely to rise higher. Also mean inflation rate could rise faster and higher than most expected.

Grab share price crash was caused by pre ipo investors unloading. it seems, spac don't have tie time down period.

JP Morgan call buy on plantation stock

Ng upgraded to “overweight” calls for Sime Darby Plantation Bhd (target price: RM6.80), Kuala Lumpur Kepong Bhd (TP: RM30), and Genting Plantations Bhd (TP: RM12).

Woah, suddenly ESG issue all gone

JP Morgan buy call on plantations...

Suddenly no one is complaining?

JP Morgan wo... the one that spit on TG.

Finally, you got your ass back to work.

Got many others laaa..... told you to get your ass to work but... you want to eat and eat and eat your oranges.... 

Alright. Thank you for the input. Looks like the strong balance sheet of a company is not so important to look. It's the forward PE that counts

Strong balance sheet or being cash rich is important but the danger of such company is one gets a company which is just contended.
Some would call it company without any motivation to strive/improve.
There are many such companies around.
Where the boss/owners just collect their annuals and they are satisfied.
Eat pau sell pau.
Lack of ambition.

Many such companies around.... I am sure you have encountered some yourself.

Ask yourself ... if you are face with a real life opportunity to buy a business... which would you choose? A company that is just cash rich or a company which is making more and more money each year?

Any examples ? 

Tipsy where?

There are many schools of thought, whether strong balance sheet is favourable or not depends on industry and market sentiment. sometime, light balance sheet is preferred e.g return on shareholders equity and some abused this preference by over gearing.