KEVIN SCULLY: "Midas' good macro story hasn't flowed down to profits"

This article was recently published on www.nracapital.com,and is republished with permission.

KevinScully.a.9.13 Kevin Scully, executive chairman of NRA Capital.I WAS meeting an investor yesterday and we were talking about one of my favourite (currently under review) stocks, Midas.

The share had rebounded from low of S$0.25 and recently had an SGX advisory that investors should trade with caution.

After lunch we noticed that the shares had risen 3-5% and when I checked with its CEO Patrick Chew he mentioned that they had announced another contract.

The announcement is was that its associate company NPRT had won an RMB1.7bn Metro contract.

Midas has been wining contracts consistently for the last one and half years and its order book has swelled but what has been disappointing has been its decline in margins and the absence of it winning large high speed train contracts which enjoy better margins.

So the macro story remains good with the contracts but this hasnt flowed down to profits. I will review this once their latest results are released.

Recent story: OCBC neutral on impact on MIDAS of China's train makers' merger

Counter Name	Last	Change
AEM Holdings	2.290	-0.070
Best World	2.460	0.020
Boustead Singapore	0.945	-0.015
Broadway Ind	0.125	-0.003
China Aviation Oil (S)	0.905	-0.005
China Sunsine	0.400	-0.010
ComfortDelGro	1.450	-0.010
Delfi Limited	0.895	-0.005
Food Empire	1.280	-0.040
Fortress Minerals	0.305	-0.015
Geo Energy Res	0.300	-0.005
Hong Leong Finance	2.480	-0.010
Hongkong Land (USD)	2.830	-0.020
InnoTek	0.520	-0.015
ISDN Holdings	0.300	0.005
ISOTeam	0.042	-0.001
IX Biopharma	0.040	-0.005
KSH Holdings	0.255	0.005
Leader Env	0.050	-
Ley Choon	0.044	0.001
Marco Polo Marine	0.067	-0.002
Mermaid Maritime	0.136	-0.003
Nordic Group	0.310	-0.005
Oxley Holdings	0.089	-
REX International	0.138	0.003
Riverstone	0.790	-0.005
Southern Alliance Mining	0.445	-
Straco Corp.	0.495	0.010
Sunpower Group	0.205	-0.005
The Trendlines	0.069	-
Totm Technologies	0.022	-
Uni-Asia Group	0.825	-
Wilmar Intl	3.400	0.020
Yangzijiang Shipbldg	1.740	-0.030

Counter Name

Last

Change

AEM Holdings

2.290

-0.070

Best World

2.460

0.020

Boustead Singapore

0.945

-0.015

Broadway Ind

0.125

-0.003

China Aviation Oil (S)

0.905

-0.005

China Sunsine

0.400

-0.010

ComfortDelGro

1.450

-0.010

Delfi Limited

0.895

-0.005

Food Empire

1.280

-0.040

Fortress Minerals

0.305

-0.015

Geo Energy Res

0.300

-0.005

Hong Leong Finance

2.480

-0.010

Hongkong Land (USD)

2.830

-0.020

InnoTek

0.520

-0.015

ISDN Holdings

0.300

0.005

ISOTeam

0.042

-0.001

IX Biopharma

0.040

-0.005

KSH Holdings

0.255

0.005

Leader Env

0.050

Ley Choon

0.044

0.001

Marco Polo Marine

0.067

-0.002

Mermaid Maritime

0.136

-0.003

Nordic Group

0.310

-0.005

Oxley Holdings

0.089

REX International

0.138

0.003

Riverstone

0.790

-0.005

Southern Alliance Mining

0.445

Straco Corp.

0.495

0.010

Sunpower Group

0.205

-0.005

0.069

0.022

0.825

3.400

0.020

Yangzijiang Shipbldg

1.740

-0.030

Comments

#1 Leo Tan 2017-02-18 14:57

Kevin Scully, you said that Midas is one of your favourite stocks. two years down the road, this stock has done absolutely nothing. Your investors must be so pleased with your recommendation. Oh, you also recommended JEP. Oh dear, it is also doing dismally.

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KEVIN SCULLY: "Midas' good macro story hasn't flowed down to profits"

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