Got the following comments:
- ronnie said...
Dear Mr Moola,Notion has been in the news lately. It is an engineering subcontractor that enjoys profit margins that exceed 20%. The people in the company must be engineering wizards because when work is outsourced, the profit margins are usually controlled by the customers. The input and output are controlled by customers. This is a major reason for outsourcing the work in the first place. Other investors familiar with this industry may be able to shed more light on this.
The other issue that puzzles me is why does the company buy back its shares in the millions and sell its shares aggressively?
Just for the record. Last blogged: Notion Vtec II
Issue 'then' was some decline in earnings + that 'Special Issues of Shares' issue.
Now.. present day, present time.
How now? Are you a trader or an investor?
If you are a trader, all it matters is the stock is IN the news and from the charts, it look as if there is some happening stuff. Whether it's good or it's bad, it's your own interpretation. Sorry I cannot guide you here.
But if you are an investor.
The past Special Issues of Shares tells you a lot of the company. Could you trust a company like this? It's like how could one invest or a be a business partner with parties you cannot trust? Does it make sense?
Now in regards the issues you are addressing.
- The people in the company must be engineering wizards because when work is outsourced, the profit margins are usually controlled by the customers. The input and output are controlled by customers. This is a major reason for outsourcing the work in the first place.
You doubt the margins. If you doubt it, why bother? Why seek to be convinced for the sake of it?
- The other issue that puzzles me is why does the company buy back its shares in the millions and sell its shares aggressively?
Again WHY?
Why is it doing stuff like this?
As an investor can you trust such a company?
If you cannot trust, why bother talking about value?
How?
Why the interest now? Should you be an 'investor' just because the stock is hot in the news?
How?
Sorry but I have no answers for you?
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1 comments:
If one is not sure, better stay put.
Everyone is praising this company, but one should also reassess its strengths which could also be the weaknesses as well. Pick example, the main customer is Nikon and WD. Can this be the concentration risk then?
Buying and selling shares using company funds is another efficient resource utilisation. But, FELDA is paring down its stakes. Can it suggest something the general public did not know?
But, like Moolah said, who care...only when one burn their pockets. Have luck!
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