Our website is made possible by displaying non-intrusive online advertisements to our visitors.
Please consider supporting us by disabling or pausing your ad blocker.
liquidity is double edged sword, there need to be solid reason for the recent buyers to sell lower, unless those buyers are also margin accounts. then never ending margincalls until at least until QR solidify the fundamental status, or worst case the otherwise
So many UMA on PLCs in recent days ie. PTrans, MMAG, NexG, PJBumi. Looks like more on other PLCs with volatile (plunging) share prices when not fundamentally supported by valuations (PE, EPS, DY, NTA etc.)
actually if it is actually purely margin calls problem on these counters, then it is actually good chance to capture the ones with actual good fundamental, which in this case ptrans imo. those other dont seem to have good fundamental, but their shares prices also plunging somehow convinces me that margin calls can actually cause share prices to drasticly drops without any other valid reasons. which convinced me to reenter ptrans for another round
When most other stocks with 0% or minimal dividend yields, meagre profit and exceptionally high PE but market capitalisations in billions, their fundamentals cannot possibly be good. Highly speculative based on “irrational exuberance” trading.
avoid ptrans if you dont have it, daniel. if you have it, you should at least read the qr/ar and you will see some risks in there. just as you mentioned yesterday high pe high market cap, hence, its cleaning up time.
This is a rubbish company. Fixed asset RM1.3b but annual revenue only RM200m.
This is like I buy Myvi RM50k to do grab. But my grab gross income only RM8k or RM700 per month.
Maybe their fixed asset is inflated or not real.
I was wondering what causes the oversupply situation to the extend of triggering margin calls. The boss has been selling for some time and began selling aggressively over the last 2 months. Flipped through 2024 annual report and few risks: (1) ~70% of the top30 shareholdings are pledged shares (2) 95mil of the 180mil annual revenue came from 4 major customers and 3 major customers owed 75% of the total trade receivables
(3) high debt as Daniel mentioned and dividend funded by debt / sukuk (4) inflated pbt and cash flow due to high capitalization of finance costs. These are the few risks that should be taken into consideration; earnings quality risk, financing risk, capitalization risk. I am not familiar with ptrans but saw these from the 2024 annual report. Not sure whether it's the same rolling in the deep style for previous years.