@HTT

You sound like from the steel ind, right ?

This post has been edited by SKY 1809: Oct 29 2008, 11:45 AM

I from electronics industry, just like many of the forumers. But engineer means to have knowledge a bit here, a bit there... half past 6 type, jack in all trades but master in none, so please don't believe me too much.

You have to consider the depreciation of new plant that drive down the profit. So even the plant doesn't hire personnel to run it and left it abandon, it still drives down the company profit.
Although depreciation doesn't affect the cashflow.

For manufacturing company, as long as it doesn't fully utilise the capacity, it will affect the company profit.

Depreciation affecting cash flow, because it need to deducted out in the cash flow from profit after tax Please correct me if I am wrong.
Sometime it will be wise for company to continue running their plant at cost or small loss due to the capex incurred & depreciation, the plant might designed for a optimal capacity but running below capacity is not a crime sometime. It all down to company policy and strategy...

Depreciation is considered a "SUNK COST" in term of cash flow, already incurred. More so, when there is no borrowing and interest to be paid. Any output could produce positive CASHFLOW is considered good, unless selling below all the variable costs.

Fixed Costs are there, whether you produce or not producing. Steel mills could dump part of the output if Fixed Cost already covered through certain forward contracts

In economic situation like this, cashflow is more important than Profit for survival.

Long term wise, profit is very important., and has great impact on share prices.

Just my 2sen.

This post has been edited by SKY 1809: Oct 29 2008, 12:24 PM

Sky sounds like an accountant

I am just a half past six financial planner ( CFP ) , seemed to know a bit here and there only.

We might need all the half past six guys (and gals) to get the complete picture.

But I will more emphasis on cash flow than earning, just like you. Because company can survive with no profit (or even loss), but not no cash flow.
For the Hua An case, they have to keep the plant running, even at lower selling price, to get the cash and keep the company afloat. Until 3Q, it seems like still doing all right, but we will have to look into their incoming financial statement to get a clearer picture, hope we don't have to wait too long (if result is good, like PBB, they only take 14 days to publish their 3Q result; if company going to take 2 months for that, better beware ). From the trend of Hua An, seems they start accumulating cash for FY'08 and the speed is tremendous (maybe they want to prepare for the slow down, who knows), hopefully they can keep it up and shareholder should be able to expect for dividend return of more than 10%. God bless all of us

Dividend more than 10%?? last time was 4.55% of 40cents?.
unless u get them at 0.18 and below...

This post has been edited by eltaria: Oct 29 2008, 12:34 PM

They have dividend policy of 10 sen per 50sen share ( or 20% a year) , not liking to fulfill at this moment.

4.55% was for one Q only ( x 4 ).

This post has been edited by SKY 1809: Oct 29 2008, 12:42 PM

Ok, thanks sky.

Will await their 3rd and 4th quarter then.
Any bad news will be amplified 10x in the general bearish sentiment that we're in now, expecting plenty of eager sellers once their report is out.

Possibly re-entering at 13-15 cents.

10sen would be safer bet, at least you have less nightmares along the way.

Yeah, nightmares....
See how it goes ler. If enter also with small amounts only.

Anyone still holding huaan back from their 0.6x or higher days? Or cut loss dee?

SINO HUA-AN got paid dividend every quarter?
since beginning 2007 how many times got give dividend?
how come arr i never received before?
Only these Final Dividend 4.55% Tax Exempt, meaning they will never give again in future?

But I read their dividend policy is >20% payout rate, YTD EPS is 6.5 cents (6.5*20% = 1.3 cents). If 2H08 profit halved, then final dividend should be 2 cents at least, then those masuk at 20 cents are expect to get 10% dividend return (one-tier).

They only gave once, that's the final dividend you got last time. This year no interim dividend, yet.

This post has been edited by htt: Oct 29 2008, 01:20 PM

Yup, short term wise especially in current financial turmoil, sustainable cashflow is the most important criteria for company to 'sail' through the difficult period.
Not only short term, but long term as well, cashflow is one of the most important factor for company operation which only with positive cashflow from profit which enable to give dividend to the shareholders.

But long term wise, profit is the most important for stock market. As why we want to invest in stock market? because we can share a piece of profit that company made. Without making profit, it doesn't make sense to invest in stock to become a shareholder which earn nothing, as it is much better keep those money in the FD which earn you surely interest while with lesser risk.

Even though this stock just appreciates merely 4sen, very small amount ( from our last bet of 19.5sen ).

But in term of percentage , it is 20% gain, vice versa.

But from the point of low leverage and risk , it could be an advantage.

This post has been edited by SKY 1809: Oct 31 2008, 12:31 PM

but similarly as anyone who followed huaan, this share also very volatile. Come the bear time, easily can give it all back in a day's time.

Mr Market, where will he swing next.....

at 28sen, up 40% from 19.5sen , still far from target of 100%.

Just put a note here.

This post has been edited by SKY 1809: Nov 4 2008, 12:59 PM

You waiting for 100% to let go ar?

This post has been edited by eltaria: Nov 4 2008, 02:13 PM