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This lower profit is under the strict scrutiny of f Nexia SSY auditor. I am sure the new auditor will be very strict to make sure that whatever KPMG highlighted items are all well justified and any questionable items will do provision to writeoff or write down.
Hence, SD is now cleaner than most other listed company.
With the write off and impairment and is still profitable. This is consider a good QR .
@Alfonso, the key difference is in the lower GP margin of 11.3%. 11.3% is still reasonable. The problem is in the "Corporate expenses and consolidation elimination amounted to RM121mil. I believe something have to be done to reduce this.
Light, in risk management, we study the potential upside or downside. The catastrophic situation (mean like Enron) is definitely not there now. But the price have drop from this yr high of RM2.09 to RM0.305 (85% drop). To me this drop is considering overdone.
The potential upside is huge. Just be going back to RM0.60 is about 100% gain.
What if RM1?
If it drop to RM0.20 whereby it is no likely, is about 33% drop.
Conclusion, I am betting on 100% upside with a unlikely lower 33% drop.
Finally got someone like sandy giving a good point ! Not just like other come out yells the sky gonna drop ! As I said , the one that start buying now is the one that know the risk , of coz they have they own thought ! Keep arguing doesn’t make the thing comes better ! Do ur own risk management !
Wish such bad cash flow and trade receivables, I still think the risk is high. Maybe good for short-term trading for bad for long-term investment as of now.
sandy roxy
Rise in USA and EU share is just a temporarily rebound after consecutive days of losses. hahaha. Coming nxt few weeks, we still have many events that may shake the market, e.g. release of Fed FOMC meeting minutes, US Payroll data, imminent Bond Tapering,...
Im nt saying market will be bearish forever, but at least recent weeks, stocks will still see some pressure
Hoo, you are right. Stock market is just always as challenging. Never stay constant. Important is to stay on top of the risk and opportunity and ride on them. Cheers!
Most of you here have forgotten something... The latest QR is still categorised as 'have not been audited', this means the QR is released by the company itself, it is different from an AR/ SIR which is audited by an assigned external audit firm... Hope you guys are aware of it
Exactly, that is why I believe last QR result SB has a lot of freedom to do a lot of write down & provision to make sure that the SIR report will be clean.
With this the following qtr could be normalise back. These are all speculation.
Kuen, no matter the report is audited or not, this is not the concern, imagine if u r under investigation, will u dare to go commit another crime ? no logic what
Arman. .you high on ketum or what...?..Chairman n MD buying. .n buying..If i GOT 1 BILLION..I ll buy all ...serious ..Once in a lifetime cheapest sale...
Yeoh, what weed u smoke? bcause u suka gamble , thats why u dont have 1B and you're not going to have it one fine day in future bcause u are just a gambler, either all in or pergi holland..... A gambler like u will never have more than 500k assets on hand... mark my word
let it be la.. see chart pattern enough liaw.. no need to be haters.. shark push also see chart pattern ma.. although Monday may be questionable if can fly or not since no tail on top the candle. lol
back to the fundamental question. If you think SERBADK is a good company, on what basis? Fundamentally strong for long-term investment? Or strong for short-term trading only? I only agree with the latter.
Serba's prospect:-
1. Short Term - good return as is currently undervalued and owner's confidence in the company. Also EY's SIR report coming out soon.
2. Mid & Long Term - depend on Oil price
and renewable energy sector expansion.
Sandy:..short n mid term ..looks Very good..Is $1 T.p..too little to project For Valuation? Mind you..no losses..future potentials high..Abe..cyclical meaning oil is high in price/barrel n shortages now. Buy!
For long term investment, serba's cash flow from operating activities is almost the worst. Revenue high but cash dapat sikit je. Almost relying on financing activities to fund its daily operation. Is it really good enough? This problem has persisted for long.
i think oil n gas industries..is not like retail ..cash..This industry needs time..on going projects. .tens of billions in the pipeline..Oil IS KING NOW. .i.e post pandemic..Super prospects. .
Kuen, since 2 groups of auditor is at Serba, i.e. EY and Nexia SSY. I believe the QR is more prudent. Should have a lot of provision and writedown (be it cost or revenue) to make sure that EY's SIR report is showing positive report.
This are just my view. only time can tell what is right.
Sandy, Yes, good ways to increase cash flow by reducing inventory & trade receivables. But these two items have been on the super high side too for long..hahah. They should have done it early if they want to win investors confidence
Yeoh Chang Hup, high commodity prices do not directly increase their revenue, Serbadk is not directly extracting or producing oil. The provide engineering services to support oil extraction & production. Oil price now is high due to its limited supply. When supply limited, production activities decrease, guess what then?? haha.
Hoo,Law of economics, ..there IS A STRONG correlation bet High Oil prices and corresponding oil related counters..ABSOLUTELY 100%..oil companies Will spend more to service equipments to raise productivity!
Yeoh, to raise supply/productivity or not is decided by OPEC leh, not suka hati those companies. haha. But i dont disagree with u. Current oil supply is only temporary and can change anytime. What's important is that, Serbadk should decrease their trade receivable and increase cash flow, only value investors will have confidence in them in near term..
Yeoh, still holding. There are unfavourable news by Bursa. Anyway, cannot do much as still suspended. Karim should gather all their form information and explain to the investor before submitting QR before lifting from Suspension.