Hi guys,
The more I look at it the more Urgent I think all who holds LionInd should sell and get out quick
Here are my Top 3 Reasons for Selling
1) PH GOVT CHANGE OF EXPANSIONARY TO AUSTERITY DUE TO RM1 TRILLIONS DEBT BOMB
Any Change of Govt Directives Will Change The Economic Landscape soon
Since GOVT RELATED PROJECTS ARE INTO HEAVY DUTY HIGHWAY INFRAR Any Cut in Job Awards Will Lead to Dwindling Demand for Long Steel.
This was what happened to Iskandar Property Stocks when Malaysia Govt put housing restrictions for Foreign Purchase of Houses in Johore. starting from year 2014
See
KSL HOLDINGS BERHAD [S] (5038)
Chart Period:
UEM SUNRISE BERHAD [S] (5148)
Chart Period:
CRESCENDO CORPORATION BERHAD [S] (6718)
Chart Period:
COUNTRY VIEW BERHAD [S] (5049)
Chart Period:
PLENITUDE BERHAD (5075)
Chart Period:
AS YOU CAN CLEARLY SEE FROM ALL THE ABOVE EXAMPLES WITHOUT FAIL ALL WENT UP IN TANTEM AND AFTER YEAR 2014 ALL ALSO GONE DOWN TOGETHER AS A GROUP. NONE CAN ESCAPE.
ALL BECAUSE BN GOVT CHANGED THE POLICY OF SINGAPOREANS/FOREIGNERS CAN ONLY BUY HOUSES OVER RM1 MILLIONS THRESHOLD.
AND NOW THIS PH GOVT HAS CANCELLED HIGH INFRAR PROJECTS IN AUSTERITY DRIVE WILL SURELY IMPACT ALL LONG STEEL STOCKS.
AS ECER WAS CANCELLED GAMUDA & A FEW OTHER CONTRACTORS STOPPED ORDERING LONG STEEL ON ITS TRACKS
EXPECT ANNJOO, SSTEEL, MASTEEL, LIONIND & PRESTAR TO FALL IN ORDERS FOR NEXT FEW QUARTERS & DRAGGING INTO MAYBE NEXT 10 YEARS. REAL ESTATE & LONG STEEL STOCKS ARE BOTH CYCLICALS
2) MANY LONG STEEL STOCKISTS STILL HAVEN'T BEEN PAID THE REFUNDS OF GST. SOME IN LIMBO AND MIGHT EVEN GO OUT OF BUSINESS. AND DEBTS ARE PILING UP IN DEFAULTS
Misif: Delays in GST refunds hurting steel industry
Posted on 23 August 2018 - 09:07pm
PETALING JAYA: The
Malaysian Iron and Steel Industry Federation (Misif), which has some
RM85 million worth of delayed goods and services tax (GST) refunds,
views the delays in the repayment as a bane as it could impact
jeopardise business operations and disrupt cash flows.
A total of 32 steel firms were affected by the delays and the
aforesaid amount, and has been backlogged by several months, according
to a Misif survey.
Despite “emphatising” with the government’s ordeal over the missing
billions meant for GST refunds, it urged the government to reconsider
and channel back the GST refunds to members as soon as possible without
delay after the government announced that the input tax credit will be
returned beginning next year.
Misif said the delay will
cause tremendous hardship and uncertainties to businesses especially
with the steel industry already being overwhelmed with a barrage of cost
increases this year on account of the double whammy hike in energy
tariffs (natural gas and electricity) which took effect on July 1, the
implementation of the Employment Insurance Scheme (Jan 1) and numerous
pending uncertainties relating to minimum wage and rehiring of foreign
workers, as well as prevailing stringent credit access by financial
institutions on the steel industry.
THE ENTIRE SUPPLY CHAIN HAS GONE INTO A LOG JAM AND SOME CONTRACTORS EVEN GOT THEIR CONSTRUCTION EQUIPMENT LIKE JCB REPOSSESSED BY BANKS FOR NOT PAYING LOANS ON TIME.
3) AS LIONIND IS GOING TO BUY MEGASTEEL IN THIS MOST UNSETTLING TIME THERE MIGHT BE A CASH CALL LIKE SAPNRG.
WHY?
ANSWER:
LIONIND GOT RM200 MILLIONS IN DEFICIT AND ANOTHER RM650 MILLIONS NEEDED TO ACQUIRE MEGASTEEL. SO THE SHORTFALL IS RM850 MILLIONS!!!
THIS MIGHT REQUIRE LIONIND TO ISSUE RIGHTS AT 50 SEN TO 70 SEN JUST LIKE SAPNRG GIVING OUT RI AT 30 SEN TO RAISE CAPITAL. SAPNRG SHARE PRICE WENT LIMIT DOWN. WILL LIONIND FOLLOW AS WELL?
SO THE VERDICT IS:
BETTER SELL OFF LIONIND WHILE THE SELLING STILL GOOD ABOVE RM1.00
BEST REGARDS,
Calvin Tan Research
Singapore
STOP PRESS!! I almost forgot Keck Seng who still got some lands in Tmn Daya
KECK SENG (MALAYSIA) BERHAD (3476)
Chart Perio
So there is really no escape!
All collapse like Tent Pins!!!
https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/171202.jsp
