This week activities:
Added IQgroup stock at RM2.1x. I think people panic after knowing I bought and immediately the same day IQgroup dropped to RM2.11. If I have stomach ache I may bought few cents cheaper. Now up 7.1% to RM2.26. Please refer to my previous post for the reasons why I bought.
Bought Unimech at RM1.1x and sold at RM1.20 for some contra gain because saw many people said they are buying for Indonesia business recovery. If I have stomach ache, I would have miss this. So don't blame stomach ache, you may buy cheaper or more expensive, no one know.
Didn't manage to get L&G, because my que was not done at RM0.4x. Didn't manage to change one bid higher. If not, would have contra for close to 10% gain. I seldom que and not getting, don't know why this round went to que.
At last, sold my KBES at RM0.28x and RM0.26x. Loss here. It was meant to be short term. It did went up more than RM0.30 for me to sell at 10% gain within the same day I bought, but my timing decision was wrong.
Did not manage to buy Fibon shares as planned because was buying IQ Group stock. Read from forum, will Zika have negative impact on their Singapore projects?
Prlexus stock research analysis.
Three segments: garments, which include the manufacturing and sale of garments; advertising, which include the provision of advertising services on multimedia boards, and investment holding. Also manufacture for NIKE.
Based on the past few years results, Prolexus' profits have up a lot. Are we too late now? Yes, but we may be too early also.
Too late because we missed the uptrend in profit. Too early because they have some projects to be completed in 2017 onwards.
I have no info on the growth from existing business, but what we have is the news, which I hope can be turned into mini catalysts.
Simple Analysis:
Prlexus share price: RM1.41
Past four quarters profits: RM25.38mil
Number of shares: 176.8mil
Warrants: 56.8mil
EPS before full warrants dilution: RM0.143, PE ratio 9.9 times
EPS after full warrants dilution: RM0.109, PE ratio 12.9 times
Warrants expiry is after 4.5 years, we can ignore but to be prudent we can simply adjust PE ratio to 11 times.
Catalysts:
Prolexus to set up two joint-venture plants with Taiwanese firm, The Star Feb 2016.
Prolexus to set up Vietnam ops to gain from TPPA (plant in Vietnam and Fabri Mill in Johor). The Star.
RM22mil is allocated for the Vietnam factory (land acquisition cost, however, will be paid with internal funds). The management anticipates the construction of the new factory to commence in 2016 and is projected to be completed and fully commissioned by 2017, with an initial production capacity of about 4.5 million pieces annually.
The Star Dec 2015.
New fabric mill in Kluang, Johor. On the RM55mil fabric mill to diversify into upstream garment production, Prolexus said this would allow internal procurement of knitted fabrics produced in-house instead of purchasing from external suppliers.
For those who are interested in the price, Prolexus share price up from RM1.19 in the beginning of 2015.
Up 131% to RM2.75 as at Nov 2015.
Down 26% to RM2.04 on the day before it ex for Rights issue in May 2016.
Those who gone through the Rights issue......
1 rights with warrants for every 2
RM2.04 X 2 = 4.08
Add Rights issue price RM1.00 = RM5.08 total cost.
What they have now.
RM1.41 X 3 = RM4.23
Add 1 warrant RM0.47
RM4.70
Selling persisted even after the ex date.
Now the price hovering around this level.
Don't know whether this will be a good buy in 2017, because many information is missing. The factory in Vietnam is it the same with MC joint-venture? When will the mill in Kluang be completed? Supposed to sign Joint-venture with MC within 6 months from February 2016, what happen now?
Not sure th Euro 2016 did any boom to Prolexus or not.
Steel.
Past few weeks the steel stocks are attracting buying interest. Many people came to my blog to check the list of steel stocks published few years ago.
Next week activities? Don't know yet, maybe adding Fibon stock.
LBS suspended for 3 days. Hope good news for Newbie.
His Berjaya Auto announced result below expectation. I don't think he follow the developments of his stocks.
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http://politemarket.blogspot.my/2016/09/prolexus-iqgroup-unimech-nike-steel.html
