Design Studio - exploded!

mokooi
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13 years 11 months ago #3786 by mokooi

Replied by mokooi on topic Re:Design Studio - exploded!

looks pretty disappointing to me... should trade lower from here on... toward 40cts probably ..

:side:

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mokooi
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13 years 11 months ago #3798 by mokooi

Replied by mokooi on topic Re:Design Studio - exploded!

talked to IR manager today.. nothing came out of the talk, gave standard answer which is equivalent to saying nothing... this cannot divulge that cannot divulge.. no figures, no forecast, no nothing.. shareholders will be sitting ducks.. can only hope for the best... 1Q results miss expectation... many uncertainties surrounding this co.. I think pretty much only one way for the stock to go.. DOWN..

hate to talk down the counter which I put 50% of my funds...

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Mel
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13 years 11 months ago #3799 by Mel

Replied by Mel on topic Re:Design Studio - exploded!

mokooi: which IR manager u spoke to? Name? tomorrow would u like to call the pretty Kim Eng analyst who had been issuing reports on Design Studio? Then tell us what you learnt,hor? Name is Pauline Lee paulinelee@kimeng.com (65) 6432 1453

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newbie123
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13 years 11 months ago #3801 by newbie123

Replied by newbie123 on topic Re:Design Studio - exploded!

Yup, Dello. U rite. I also called the IR manager and she gave a politically neutral answer which serves no help at all... Maybe, calling pauline would be a good alternative too... Anyway, mokooi, the nature of Design Studio\'s business is that it is a project-based contracts, which means to say that there will be some quarters which are good and some quarters which are on the average. It all depends on the commencement and ending schedule of the project. What u need to see is the total projects book order... Does the total book order for 2010 going to exceed that of 2009? if yes, tat\'s gd... according to the CEO comment in the quarter report, it seems like the momentum will pick up in Q2. so, Expecting Q2 to be strong...

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PKC
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13 years 11 months ago #3803 by PKC

Replied by PKC on topic Re:Design Studio - exploded!

We can blame the IR mgr for not revealing financially sensitive info, as that may potentially lead to insider trading. We have to see things in bigger perspective. No company can generate 3-digit profit growth consistently. DS\' last year result was exceptionally well, hence 1Q10 result was compared to high base. Moreover, Q1 is historically weakest quarter. The company has high NPM of about 20%, which means somehow they command a premium. They also have high ROE averaging about 30% for the past few years. The operating cash flow is also positive. Balance sheet wise, it\'s rock solid with current ratio (net current asset over net current liability)of about 3. It is also in net cash position. The only concern is on the litigation case. However, I have the feeling that the customer (a Dubai company) may be in financial difficulty and use this opportunity to squeze the supplier (DS). Most likely outcome would be settlement out of court. Prudential bought DS shares 2 times after this case surfaced in Mar 09. I\'m sure they have done their due diligence right! They are holding millions of shares in a relatively illiquid stock, so I am sure they intend to hold it for long term.

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mokooi
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13 years 11 months ago #3804 by mokooi

Replied by mokooi on topic Re:Design Studio - exploded!

most eloquently said. but the matter of fact is that DS shares price have been coming down since the litigation case is announced, consistent 2~3% drop everyday. yesterday a whopping -6.8% drop, that\'s wealth destruction at its greatest!! so what if the profit margins are good? so what if the cash is a lot? All this does not and is not translating to share price appreciation!!! i.e.: profits for small investors like you and me!! What is the management doing to arrest the persistent share price depreciation? Zilch!! I suspect more -ve news will surface, analyst (KimEng??) downgrade coming..? as for the pridential fund, many of us would like to think that these funds have done their due diligence, homework, or what ever you like to call it, but you\'ll be surprise how many behave more or less like \"amatures\", like you and me? fund managers = \"fun\" managers DS is a smallcap, small companies like these do not deserve to be rate at PE 10, at most only PE 8, discount that with a 25% margin of safety, you get PE 6. EPS estimation of analyst is 14cts for FY10, through in a huge pinch of salt, discount 30%, you get 9.8cts. 9.8 X 6 = 58.8cts don\'t look so great now .. huh?

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