Jameskuwe: Koh Bros bought back another bunch of shares. Small quantity. All at 21 cents. Anyone can conclude that 21 c is the support price. No one can be sure if the Kohs will like to eat shares at a higher price. So, there is limited downside and ... big? small? upside.
Joes: something is definitely brewing with Koh Bros, otherwise they won't spent millions to buy back their shares. Can u explain s I am not too familiar with construction counters: who do most have negative cash from operations? how do they make money if thats the case?
Hmmm... Koh Bros didn't do any buyback yesterday and the day before. As I noted in an earlier post, my concern is that Koh Bros will not help to push up the stock. It's 21 cents or nothing for them. Like that how?
eventually the market will sit up and take note. in the long run, price will appreciate. patience needed. fundamentally healthy company. but can u tell me why most construction counters have negative cash flow from ops yet they can survive.
James-san, if you turned the clock back a year, you would be reading Koh's financial statements glowing with very positive cashflow from operations to the tune of S$41 million for FY2010. It was negative cashflow in FY2011, tho.
Which construction counters are you referring to? Nowadays, Koh Bros, Tee Int'l, Lian Beng, etc are not pure constr counters. They have morphed into construction-developer plays which could explain their erratic cashflows.
Just checked Koh Bros income statement. out of 12 years, 6 have negative cash flow from ops. In the last 7 years, only 2009 and 2010 were positive. I guess by construction counters, i mean construction/developer/property management/engineering counters, like Lian beng, Sim Lian, Chip Eng seng, Yong Nam, Hock Lian Seng, Tuan Sing, Low Keng Huat OKP, etc. In terms of positive cash flow from ops, only Lian Beng, Hock Lian Seng, hong fok and OKP have favourable positive net cash in the last 6 years.
