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hi eng hock, it depends on your investment objectives. I can share my opinions but please exercise your own due diligence as my opinions could be wrong and different investment objectives.
imo - it's a good QR as the company recorded 18.65% net profit margin, highest for the last two years at the back of myr weakening and low mat cost. the company has been investing on equipment to reduce dependency on foreign workers. there is also foreign worker levy reduction announced for this year by the government which will help it's bottom line
the company announced first interim dividend of $0.02 cents. do take note that total dividend payout for 2018 is $0.025 cents with $0.01 cents first interim dividend. it is possible that total dividend payout for 2019 may exceed $0.025 cents. imo - the per share value for Homeriz is worth $0.83 cents with present assumptions and with 15% rate of returns and $0.025 cents total dividend payout for 2019, the intrinsic value is $0.67 cents.
personally for me, it is a good buy for a dividend stocks when it is selling below it's intrinsic value. technically, the price actions showing double bottom at $0.58 cents and price has rebounded since then. a 30% margin of safety from it's per share value is also at $0.58 cents :) these are just my opinions and could be wrong. hope it helps with your research.
free market. first day listing. in the money and 3 years to go. there will be some who will sell their free warrants and some will hold it. many more pro traders without the free warrants will be trading the warrants itself without converting to mother share.
Hello Goh, nice meeting you here. I'm very impressed with your detailed analysis and explanation as always. This company has a very healthy balance sheet, net cash company so i think it's a good stock for long term investment as well.
hi Impeccable, nice meeting you. thanks and always good to have everyone sharing their opinions. agreed with your comments on it's balance sheet. going at this rate, there is a possibility that it's fcf will match the level of $22M seen back in 2017, dipped to $14M in 2018 and currently trending healthily at approx $15M fcf based on it's latest quarter report.
lots of money there for the pros. the former (wa) is out of the money and the latter (wb) is in the money. they make money on both. the knowledge and experience they have is amazing. small fish like us won't stand a chance there.
nice, David. Minus out the cash flow generated from the total shares value you are holding, your avg price for Homeriz will be really low. you are in for a good run. congrats!
Same to u... I top up at 62 in order to get free warrent. Wrong infor given by remiser as told mother share will revise down which I doubt. But I choose to believe. If not I win really big
I will hold the warrant B for now as it's just the first day. what is important is that the company continues to keep it's balance sheet clean and healthy, drive efficiencies to further improve it's margin, which will lead to higher profitability and dividend for it's shareholders.
Ooh, that's nice. investment bank target may change upward or downward; change is the only constant. if you have faith in it's prospects, keep your average low near it's NTA. you get to ride it's trend, stay long and collect dividend. capital appreciation is a bonus. just my opinion.
you are welcome, eng hock. imo - do consider to exercise zero cost averaging by locking in some profits if you intend to stay long and enjoy it's dividend. a safe level would be near it's 30% margin of safety at 0.58 cents. Good luck.
hi eng hock, it was 0.63 cents as of last week. sold the free wb and some of the mother shares to reduce my avg price. it's 0.55 cents now. lesser qty, lower gains, but lower holding cost which allows me to withstand the price fluctuations. I will further reduce it if the price goes beyond its valuations from my perspective or add if it goes below its intrinsic value as long the fundamentals remains the same. that's just my plan and best to follow your own plan. hope it helps.
hi Sean, we can continue to exchange opinions at our usual commentary board :) else, we will bombard the commentary here with lots of discussions. anyway, have you researched the topic that I shared to you? we can use n2n as example. hope you will spend some time doing so as (1) you get to understand the model and apply it (2) don't take my words as it is (3) you can also share it with your friends if you find it useful.
I am using both dcf and ddm to determine the intrinsic value. often, ddm is used for dividend stocks. set 15% as my preferred rate of returns. different individuals have different preferred rate of returns.
Good evening Cheng, you guys can continue to comment here without worries. I'm keen to increase my knowledge and i believe these are beneficial for other readers as well :)
you are welcome, Sean. focus on ddm first as dcf is quiet difficult and since your favourite is dividend play. for n2n, assuming rate of returns of 15%, and tp of 0.93 cents by Aminvest to be achieved by next year, and a dividend of 0.02 cents per year, the intrinsic value for n2n by ddm imo is 0.74 cents. 2018 announced a 0.04 cents div and I am using 0.02 based on 5 yrs avg. hence, when it is selling at or below it's intrinsic value for a dividend stock, it can be considered for entry.
noticed that price has rebounded from the low of 0.70 cents. if you have initiated a position, do exercise zero cost averaging to bring down your avg price to its intrinsic value if you intend to stay long and collect dividend. higher div payout and capital appreciation along the way will be a bonus.
from a fcf perspective, I had a quick look at it's annual report, and 2017 recorded approx $33M fcf and 2018 recorded approx $15M fcf which is a sell signal by May 2018 when the annual report was released. latest qr showing -ve fcf and good to monitor the progress quarterly. technically, seeing double bottom at 0.70 cents. a retracement will bring it down to 0.78 - 0.74 cents region. hence, the idea to bring down avg cost to the region will have minimal impact.
from a dcf perspective, if n2n can achieve it's previous fcf of $33M by next year through the asia trading hub platform, continuous growth from it's hong kong operations, total 597 million shares, 3% perpetuity growth rate, discount rates of 9%, imo - the per share value can go up to $1.05. a 30%, 40% and 50% margin of safety for a safe entry will then be at $0.74, $0.63 and $0.53 cents. these are just my opinions and could be wrong. do exercise your own due diligence and monitor it's financials
Good to focus on your work. there is always opportunity, just need to do homework upfront and wait. after entering, it's waiting again and managing the positions which doesn't use a lot of time. you can use this app to set the alerts for counters that you have analyze for entry and exit with remarks. use the alert options. hope it helps.
thanks, eng hock. Just following my own plan and minimizes the risk. I am still looking forward for Homeriz to achieve it's valuations as shared previously. Just need to monitor it's financials which is trending healthily right now. Just my opinions based on preset assumptions and could be wrong. I am also hoping that the pros targeting wb will work hard to support mother share and bring it closer to its valuations. win-win for them and all shareholders of Homeriz :)
Thz Cheng, i find your way of analysing is very impressive and effective. Atleast for me. I watched different way to analyse, is either too complicated for me and hard to apply.
I will bro, thanks for all the teaching.
you are welcome, Sean. your method of looking at dividend yield is a good one. ddm is just a different way to look at it from the same perspective but with added factors. research about it and we can exchange opinions again.