JCY reported a very disappointing 4Q2012 result where its net profit dropped 90% q-o-q or 59% y-o-y to RM10.5 million while its revenue was mixed; rose 22% y-o-y but dropped 6% q-o-q to RM536 million. Its pre-tax profit margin dropped further from 18% in 3Q2012 to only 2% in 4Q2012.
Based on this, JCY is a SELL, after its recent rebound.
Table: JCY's last 8 quarterly results
Chart: JCY's last 27 quarterly results
Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, JCY.
Your post yesterday was an excellent prelude to what has transpired today. It had gone up over the past couple of weeks and suddenly the sharp fall today.
ReplyDeleteI had thought about buying its -CF warrants at 0.015 last week - something I had made profits with a few times - but didn't. The main reason is that I don't think it can reach the ex price of 1.22 (Feb 2013). It did go up to 0.025/03 yesterday and those who had bought earlier would have made significant profits percentage-wise. But not those who came in later.
Over the year, JCY has become one of the favourite counters for speculators. This time I think its days in this category could be numbered. When people get burnt by the same thing twice, it's unlikely they'll make it thrice by buying it again.
Alex, you see the peril of relying on chart. Just yesterday you deduced from the chart that JCY is poised to go up to 1.00, the next "resistant level". Look what happen when the result was announced? Insiders have been "painting the tape" for the last three weeks and poor small time traders, those relying on the chart and got cheated, got burned again. How can a small time trader beat the insiders in this game with this chart?
ReplyDeleteHi KC,
ReplyDeleteYou are absolutely right. Unbelievable as it may seem, they were pushing to distribute. Sometime, if we don't pause, we would fall into the trap.