I noted that I have been getting constant hits and referrals to the posting Comments On Success Transformer.
I believe I really should clarify more.
First thing first. I am seriously not a financial advisor and I really do not know if a stock will go up or down. Meaning to say, I really cannot guarantee if you could lose money if you follow what I post on this blog.
OK?
Secondly, that posting, Comments On Success Transformer, is NOT a recommendation. I was merely replying to a request made by blogger MaxWealth88.
Anyway, my points once more...
1. Success Transformer, had indeed done fantastic since listing but one needs to point out that the last three fiscal year, Success Transformer's earnings has gone up another level, thanks to its subsidiary, SEB.
2. now the subsidiary is to be listed. Do I like listing of a subsidiary? NO. Why? A company can easily list and delist its subsidiary. Risk is (a) you do not if it will happen (b) you do not know when it will happen (c) and if it does happen, you do not know if the privatisation price is fair or not. From a long term investing perspective, I believe this is not fair that such an option exist. (Yeah, need I be reminded that in a capitalist world, nothing is fair?)
That's my opinion why I don't like listing of a subsidiary. Of course, it's my personal dislike. You do not have to follow what I like or don't like. More so, I could always be wrong! :D
3. Again from a speculative perspective, yes from a trader/speculator perspective...
- .... Naturally the hope is, once Success is listed, both Success and SEB could trade higher. That's the hope, that's the objective.
And I do think many believe there is justification in such a strategy.
Is it wrong? Well, who am I to judge and say that such speculation will not work? And to be honest, let me say again, I do not know. Yes, the market is not mine and I have no idea what the market will or will not do. So sorry again if I am to disappoint you.
Let me repeat again what I wrote back then.. if this is the sole reasoning you are buying this stock, perhaps you could be extremely hardworking by digging out information on recent listing of subsidiaries in the market.
Did such a strategy work out?
Ok?
Posts
3 comments:
Dear Mr Moola,
Success is an excellent investment by many measures, PER, net profit margin, large amount of csah generated, good corporate governance, etc. It may however remain an excellent investment for a long time unless the company improves its investor relations. On a score of one to ten, its IR is about two. Unlike Supermax, Notion, JAKS, Green Packet, etc, there is no research coverage of Success. This is puzzling. Perhaps its time for the MD of Success to start making "friends" with analysts & financial journalists.
Dear Ronnie Babe,
If you think Success is good, that's all that's important.
You do not have to convince me at all.
I don't like the listing of subsidiary either. One for financial consolidation and another for stake controls.
If the subsidiary really good, why let the fat water out? Going back to the listing reason, why one list their stock? Is it time to reach out to liquidity or cash out?
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