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NOW SCABLE CURRENT SHARE PRICE IS RM 0.20, WHERE WILL BE THE UPSIDE POTENTIAL ? RM 1.00 ?
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The principal activity of BTM is that of investment holding and provision of management services while its subsidiary companies are involved in logging, sawmilling, trading of sawn timber, logs and plywood, kiln-drying operations, timber moulding, manufacturing of finger jointed timber and lamination boards, and letting of plant and machineries.
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Lumber price continue to sky rocket without stopping. These event will be turning into a golden opportunity to a lot of timber/lumber company that had been sleeping for so many years. The current spot rate had gone as high as USD 857 per 1000 bd ft. This is the highest in history on lumber prices had gone up.
A lot of timber company are worth looking at with the surging price of lumber not looking to back off until at least reaching USD 1000
My attention is towards a undervalued company - Eksons Corporation Bhd 9016, a plywood mill at Sabah which export to international market, especially Japan, Europe and US.
This company recently reported a huge losses on FYE 2020 for March 2020. One of the biggest reason is the inventory valuation at the current market price during March 2020, which is at the worst of pricing. The inventory write down RM 11.7 million due to spot price plunged below USD 300 per 1000 bd ft. This resulted in company announcing a loss of 25.6 cent per share despite higher sales revenue from timber division.
The explanation note stated on 2.5 million from property impairment and RM 11.7 million from inventory value write down.
Here is the ending spot rate for March 2020 of lumber futures. According to the delivery spot rate for LUMBER FUTURE AT MARCH 2020 is USD 276 only!!!! That is the reason for RM 11.7 million write down on inventory value.
However, the current spot price for the LUMBER FUTURE is USD 857. That is an increase of USD 581, or increase of 310% from the MARCH 2020 low point
Based on the current impairment done on EKSONS inventory, now all the TIMBER INVENTORY at EKSONS will be carrying value at 276, but current spot price of more than 800 will be giving EKSONS a very good profitable margin in the coming QR for November.
EKSONS NTA is RM 2.40, current share price RM 0.645.
NET CASH position RM 175.963 million
NET CASH PER SHARE = RM 1.07 net cash per share
How much can EKSONS share price move in the coming future?
Short term looking at RM 0.80
Mid/Long term looking RM 1.20
Above information are just for your reading resource and not a guideline to buy sell or trade.
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As I had been invested in Pharmaniaga, the result that is release on Wednesday evening could had gotten some mixed feeling over revenue and profits.
While there are some investor which are expecting a very good revenue and profit, however, it turn out that the profit is still going good, but not explosively tremendous until it will see the stock limit up. According to analyst, the result is within expectation.
Pharma revenue did improve by 44 million, and earning increase. There is some slight drag down on Indonesia operation due to payment from Indonesia government could be slightly hard during this trying time. Other than that, it is good.
The result could be factored into the price from a peak of RM 5
As you can see, the current price of RM 4.40 is more than 10% adjusted from the peak of RM 5.00, which is reflective of the current quarter result, but anticipating on the future revenue from the vaccine bottling and distribution effect.
If we are to compare on the virus outbreak and movement of share price, the Coronavirus got detect in the middle of December 2019 in WUHAN, CHINA. It got into momentum earlier this year, and global lock down on March 2020. However, most of the gloves share price are still not moving drastically upwards. It took almost 4 months for gloves company to consolidate, and journey to >1000% capital appreciation.
Hence, this will be the same for Pharma. The revenue and profit is there, but there will be waiting, but any good news on Vaccine development will spike the interest of investor in Pharma.
Currently, there are 2 vaccines under approved for limited use. One is from RUSSIA, and another from CHINA by Cansino Biologics.
It is prime time now for Malaysian counterparts to get ready for Vaccine sourcing in order not to get stuck in the bottleneck of orders.
Further news from Minister of Science Technology and Innovation, Khairy Jamaluddin is recommending that the vaccine to be provided free to ALL MALAYSIAN. If this will come through, Pharma / Dpharma could be almost certain in getting a confirmed sales of approx 80 million doses (if 2 doses required per person)
Any drop in Pharma share price will be a good opportunity to scoop in due to the confirmed revenue and sales from the government.
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