Monday, January 21, 2013

Do We Have A Case ?

As a share holder I would like to hightlight this : .... Do we have a case ? Let's see how this thing pend out.
The market is jittering. Are you ready for the big action ? I feel not the opposition would win the election. Nor do I fear BN will win. After all either one of them will implement pro business policy in the long run. The question is the uncertainties that will follow should either party wins by a slim majority. Anyway, shall that happen it would be an opportunity. The question is are you ready ?
Happy Trading !!!  

p/S : Instead of  of psoting it at the new post. I will just share it here. I long Hartalega. So you could say that I am promoting it. :)

Tuesday, January 1, 2013

Making A Sell Case For Cypark

One of my favorite Cypark is not as loveable as it seems. Yes the profit is up. The RE ( Renewable Energy ) business looks bright ahead. Yes the analysts are giving the Target Price at RM2.82 ( RM 1.69 at the time of writing ). The receivables  is increasing at an alarming pace. It is OK to have the receivables to increase a a bit in tandem of the growth of the avenues. But to have a revenues ( ending 31 Oct 2012 ) of RM 56,119,914  with the increase of receivables of  (  Ending 31 Oct 2012)   RM327,604,507 -  RM 267,648,368 ( Ending 31 July 2012 ) = RM 59,956,139, that sounds like you are extending the credit to your client. That doesn't make business sense. I sell more but I collect less. Lets compare the whole year

                               Year 2012                  Year 2011                  Increase
Revenue :                195,825,810              161,530,920              34,294,890

Net Profit :              25,506,994                 20,081,120               5,425,874

Receivales :             327,604,507            2 32,372,779               95,231,728

How convincing is this figure ?  Have been watching the figure month after month. The receivable figure is just keep on increasing. It is scary to see that you have a increase reveus of 34 mil but with a increase of receivable of 95 mil. I make my case. Sold Cypark and will not look back unless the figure I concern about have a trend of decreasing. One doesn't need to look into it's debt level for with this kind of increase of receivable, it will just need to borrow more to sustain its operation. Drop Cypark from my watching list. Happy Trading.