Tuesday, November 13, 2018

Wegman: update on 3rd Q result.

Wegman announced their 2018 3Q result today where we can see their Revenue and PAT hit new high. 

As we mentioned before, the weakening Ringgit will be a boon for Wegman in coming quarter and this is shown in the quarter report today. 

So will this be the best result in 2018? BCF beg to be differs, assuming all things remain the same and the only variable will be the Ringgit then we will see the coming quarter to be different. Why?

If we were to see RM's performance, the "highest" USD vs RM is 4.1525. 

As we can see today (13/11/2018), we can see that RM is now trading at 4.1912. Assuming RM going to stay around this area for November and December (October is around 4.1845), then definitely Wegman going to perform better than this quarter. 

Last but not least, Wegman had submitted their warrant application last week to Bursa Malaysia. Could this be the Christmas present for the shareholders? 

Please always bear in mind that Big canon is not giving any buy or sell call, always bear in mind, Big Canon don’t give buy or sell call. Our articles only serve for education & sharing purposes. 

May all the HUAT be with us!

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Wednesday, September 5, 2018

Export stocks – Particle board counters

As we can see, Ringgit had hit its recent low where it 4.1455 this morning. We saw some export counter started to move yesterday.

BCF notice that a lot of exporting counters started to move, but the stock that move the most is actually Particle board counters. In the previous article, we mentioned that the particle board are facing lower average selling price which affect their previous quarter result, so what makes them move again?

Well, Big Canon believe the reason behind the move was due to the Typhoon Jebi. The typhoon had hit Japan quite badly where there are some houses and roof top got blew away by the strong wind. There are also reported injuries as well as death.

This had made me recall the situation when Japan had their worst hit from Tsunami, the rebuild had created a lot of demand towards the wood and particle boards. This had directly and indirectly causes the whole segment to rally.

This time round BCF believe the damage is not as bad as Tsunami, however, it does create demand as well. As a result, it is quite justifiable for the share price to move, but how much will it impact? That will remain mystery. So those who trade these counters, you may have to follow your trading plan and manage the risk. Let’s hope all is well.