Yongnam Analysis
Just managed to churn out data from Yongnam's annual reports from FY09 to FY13. In terms of reading the financial statements for Yongnam based on their annual report for FY13, free cash flow amounts to -$54M, and their retained earnings also scaled back from $211M to $204M. All figures quoted are approximate figures only. But looking at their 3rd quarter of FY14, I think the company might be at its worst shape. I'm expecting the price of Yongnam to drop further. Using the P/E ratio, it stands at 41.171%. That is very high as compared to its peers, and also comparing to the previous FYs (such as FY12, FY11, and FY10) which hovers around 5 to 6. Really looking forward to their expected earnings result on 27 Feb 2015 (as according to bloomberg). This time round, I must attend their AGM to have a sensing on the management. If the management is as good as Cordlife and Marco Polo Marine, I may stay vested. This is because Yongnam's business in fabricating and supplying steel struts. And as far as I understand, steel struts need a certain level of quality and design. So to me, that is their comparative advantage. In fact, many of the projects which they secure is because of their comparative advantage. If there is any land development which requires such specialised traits, Yongnam tends to stand out. Another qualitative assessment is that Yongnam representatives are supporting roles as lecturers in BCA Academy. To me, to be recognised as a lecturer in BCA Academy, you have to good and recognised as a quality SME. So coupled with these arguments, Yongnam should be able to survive. Hopefully, the consortium work for the joint development for Hanthawaddy International
Airport in Myanmar can secure good deals.
Breadtalk - Trading
My first trade for Breadtalk isn't that fantastic as I exited based on cross-over signal. But if fact, the highest it went up to was $1.58. Should have considered that as an exit point. Nonetheless, I sticked to my TA signal. My friend shared with me that the U.S traders do not use TA as a tool to trade but use it as a way of confirmation of whether the executed trade was good or bad. So, TA is more like a post-mortem analysis. I'm not so sure how true or extensive this belief that the U.S traders have. Nonetheless, it might worth it to look for books on this.
