Monday, March 28, 2011

Carotec 0076 GN3 - avoid!

Carotec is under GN3 now which it means it is a financial distressed company. This is due to some cash flow problems existing in the company which leading to the Company defaulting on its principal and interest servicing in respect of certain banking facilities from financial institutions.

Due to its over expanding at year 2008, now the company cannot sustain cash flow to pay its debt. This is a serious mistake done by the management. The management is hoping the overall market can be recovered back and hence re-boost back its cash flow, however from its latest quarter financial report, it showed a huge drop in its revenue, from last year RM 46.6 million to current RM 10.4 million. It seems the business is getting worse now. How are they going to clear its debt?

In the same quarter report, the inventory and trade receivables are also showed a significant drop back. Cash in hand is RM 1.5 million, BUT current debt is RM 258 million! I am wondering why they do not want to declare bankruptcy straight away?

Avoid this share even it is given as free~ because if own this share, that means you are joining its boss to clear the debt! AVOID!!

Tuesday, March 22, 2011

What is good business and what is good managers?

Good business is this: It generates more cash than it consumes.
Good managers is this: They keep finding ways of putting that cash to productive use.

In the long run, companies that meet this definition are virtually certain to grow in value, no matter what the stock market does~

Wednesday, March 16, 2011

When will this Japan crisis end?

I foresee this radiation leaking will not end so fast as this is the first time human face this new problem same as petrol oil leaking by BP. It might take one or two months to settle down the problem however the world overall economy is still healthy.

This might be a great chance to accumulate Japan shares, however I think the market will continue the downturn again as the problem is still cannot solve now. This situation is same as BP, when the time oil leaking, BP share was selling like nobody business, but what is the share price now? it is almost 2 to 3 fold of the lowest price.

So keep the eye on the overall market, and buy in deep~

Saturday, March 12, 2011

Earthquake might boost Japan's economy

Japan GDP almost stay flat since 90 century, this is because there is no major development in their industry and technology. However Japan now has to rebuild their industry, infrastructure and so on, in the indirect way, will boost up the demand of infrastructure, raw materials, construction and related industries.

Their government need to allocate many money on the rebuilding, hence will take back all the money from oversea. In short term, Japan GDP will decrease and many money will flow back to Japan. However after rebuilding, Japan's economy will start to re-boost again, just like year 1945, after Japan taste a US nuclear bomb. Japan was growing after rebuilding. So, I believe they can do so in this time also.

Wednesday, March 9, 2011

Is it a help for 100% loan for salary RM 3k and below?

Salary RM 3,000
Cash in hand after EPF RM 2,670
Monthly installment for RM 220k house loan is around RM 1,160.
Which is 43% of your monthly salary. Is it the help from government or hell from government?

I do not think by cancel the 10% upfront deposit will help much for our nation youngest to buy their first house. This will only burden them by increase their debt.

Beside that, where can we find a house below RM 220k in KL and selangor area anymore?

Do something that help if not we will do "something" to help us~

Sunday, March 6, 2011

Run in the right direction~

If you want to learn run, 
please ensure you are on the right direction, 
else you better learn how to walk first..

Just discover this sentence and find it meaningful, 
so share with you all..

Thursday, March 3, 2011

Natural of direct sale company

1. Cash rich on hand but those money are no belonging to them.

2. Business revenue suddenly jump up then consolidate a few months after that, this is due to distributors tend to store up or use their own money to buy stuff in order to get higher commission or get higher rank.(a good direct sale companies should not have this kind of situation as they focus on their quality of products, not the marketing plan)

3. Revenue or member suddenly drop significantly due to large number of people leave the company and jump to another direct sales company.

4. No much assets as their main asset is human. If a direct sales company has too much asset, then you have to beware.

5. Cost of the product is only 10% of the selling price, 50% of the selling price will go to distributors' pocket.

6. When you see the members are getting less or no more growing, then its market is almost saturated already, unless the management change strategy, else there is no way to grow.

Tuesday, March 1, 2011

Latest action by RCECAP director~

Chew Keng Yong

22/02/2011  acquired  450,000 shares
23/02/2011  acquired  300,000 shares
24/02/2011  acquired  700,000 shares
28/02/2011  acquired  800,000 shares

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.