tag:blogger.com,1999:blog-29462482.post8198534177208711064..comments2023-10-17T15:46:53.662+08:00Comments on nexttrade: Superln: Earning Failed to Back Up Recent Price RallyAlex Luhttp://www.blogger.com/profile/08920196030603399063noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-29462482.post-53474273469346004502018-07-09T17:09:14.327+08:002018-07-09T17:09:14.327+08:00Hi Tay Sz,
Superln's profit has dropped sharp...Hi Tay Sz,<br /><br />Superln's profit has dropped sharply mainly due to <br />1) decrease in total gross profit contributed as a result of competitive pricing environment, lower sales volume, higher cost of materials coupled with unfavorable exchange rate movement; and<br />2) higher cost in production resulting from installation and commissioning of machinery in the production process.<br /><br />The latter is worth noting; the company's PPE rose from RM56 mil in Apr 2016 to RM72 mil in Apr 2017 and to RM78.5 million in Apr 2018. Such a steady expansion program will support a strong growth in sales. However Superln's sales did not expand as fast as anticipated- leading to under-absorption of production overhead. This will lead to smaller profit. <br /><br />This is not a bad thing. In fact it is a very natural development for any company undertaking an expansion program to experience a few quarters of under-absorption (or under-recovery) of production overhead. The thing to look out for next is this; once sales cross a critical threshold, the under-absorption will no longer be an issue and profit will rise rapidly. That will soon drive share price up sharply. <br /><br />If you like this company (like me), then you wait for that to happen.<br /><br />Good luck!<br />Alex Luhttps://www.blogger.com/profile/08920196030603399063noreply@blogger.comtag:blogger.com,1999:blog-29462482.post-83082937769514424022018-07-09T16:48:34.276+08:002018-07-09T16:48:34.276+08:00Hi Jim,
There are many reports out there on TM. P...Hi Jim,<br /><br />There are many reports out there on TM. Please refer to them as those dedicated analysts will probably have a deeper insight to this stock than I would. I can only give you the technical outlook. I think the stock is likely to stay above RM3.00 which is the long-term uptrend line, which stretches back to 1998. <br /><br />In the medium-term, I think the share price will not go up much due to uncertainty about the pricing of its products and its earnings outlook. You can take your time to buy this stock on weakness.Alex Luhttps://www.blogger.com/profile/08920196030603399063noreply@blogger.comtag:blogger.com,1999:blog-29462482.post-38616744677829850582018-06-25T13:34:45.408+08:002018-06-25T13:34:45.408+08:00Dear Alex,
Notice the revenue is raising. Howeve...Dear Alex, <br /><br />Notice the revenue is raising. However, that did not translate into real profits, could you help us to reason why it is manipulating by management relevant to recent slump of Malaysian Ringgit or due to other.<br /><br />Please help to reasons. <br /><br />Thank you<br /><br />Best Regards<br />Tay SZAnonymoushttps://www.blogger.com/profile/10078913647792715553noreply@blogger.comtag:blogger.com,1999:blog-29462482.post-40164687158613103082018-06-22T15:49:58.559+08:002018-06-22T15:49:58.559+08:00Hi Alex,
Can you kindly comment on TM?
Thanks.Hi Alex,<br /><br />Can you kindly comment on TM?<br /><br />Thanks.Jimhttps://www.blogger.com/profile/00580892264058644953noreply@blogger.com