Nextnation’s latest quarterly earnings per share for the period ended 31.1.07 of 2.5c are a 47% improvement of its previous corresponding period of 1.7c. Its revenue has improved by 60% to 28.217m from 17.592m.
Going on these figures on a conservative estimate, its annual earnings per share will not be less than 8.8c.
The company has a clean balance sheet with no borrowings. Earnings are on an upward bias. At the present price of 58c per share, the PE works out to be 6.59. This is much lower when compared to other
Chart-wise, the stock has been on a downtrend. I see support at 54c. This means the downside risk is low and there is good upside potential. The company is working on giving a bonus issue of 1 for 2.
As to why the stock has not performed so far, I think it’s because the directors are reluctant to let go off their shares or perhaps the big boys have not accumulated enough.
For those who are interested to know more about the company, click here.
The above commentary is my opinion only. You buy and sell at your own risk.
11 comments:
2 for 1? That sounds good. My girl friend got 40 lots... bought at 0.675 though :(
Faster go up... you all faster buy in.
2 for 1? That sounds good. My girl friend got 40 lots... bought at 0.675 though :(
Faster go up... you all faster buy in.
Ben,
Don't get me wrong. I don't love or hate any particular counter. And I have not written NextNat off yet.
Its in my shortlist - I look at the price movement twice a day.
Its just that it is in a downtrend - the distribution phase. Being a trader, I am reluctant to be exposed to a prolonged downtrend, it ties what little trading capital I have.
A 2 for 1 would be an excellent catalyst for the stock though, and definitely would break the downtrend. Thanks for the tip. I ll continue monitoring this counter for movement and make appropriate entries based on my trading style. Cheers!
Ben,
I believed the Bonus Issue (BI) is 1-for-2 announced on 27th April 2006 (a year on next month). Irrespective any BI is still catalyst on its price but the time lag to ex may have negate until further concrete actions. Would you be able to provide some advice on why some companies are able to take BI to ex earlier whilst some like Nextnat/Farm's Best/Dolomite are biding time...
Looking forward to your kind wisdom.
Many thanks in advanced.
Regret to say that I made a mistake. The bonus issue is supposed to be 1 for 2. That means for every two shares you hold you will be entitled to 1 share.
I have edited the statement.
Nextnation has to complete some private placements first at 58c per share. The BI will come later. This is what I understand.
As to why some companies are faster to complete the BI, this is an internal affair which is beyond me.
Nextnat has sent their application to SC to extend their private placement for another 3 months. It is still pending approval from SC. It is considered very very lucky if we can the bonus issues within another 6 months.
It remains a solid co with strong fundamental. However, a friend of mine who knows Mr Tey continues to warn that the price will be hardly move in short term.
This has been proven. So, please do not buy Nextnat if you are cant wait patiently.
fellow investor,
I new to this site but not new to share market. I just want to know what business Nextnation is in to?
I will jump in the counter when i know what kind of business their running? TA will be my the next step.
fellow investor,
I new to this site but not new to share market. I just want to know what business Nextnation is in to?
I will jump in the counter when i know what kind of business their running? TA will be my the next step.
ywt06, Thanks for the info.
Ikanbilis, Just click the link created at the bottom of the post, and you can read about Nextnat
The company was a victim of 1 person's agenda which escalated to another 1 persons pride. The former is Uncle Lim Seng Boon from AKN MTech, the later is Jeff Ooi from rubbishland. Read this blogger http://mobilebedsidenews.blogspot.com/2007/05/akn-mtechs-uncle-lim-man-who-kills.html
The company nextnation provides services to China and Saudi Arab, which has very strict requirement on SMS security, they would not risk their business for few ringgit scam. As the report provided by MCMC shows that all their accusations were either innocent technology error even Microsoft cannot guarantee error free, or end consumer own mistake. It's childish for anyone to speculate and make assumption like the stupid Jeff Ooi without knowing the actual scenario.
The company as seen from their announcements is moving away from low margin market like Malaysia to higher margin countries. Some mistake they may have made is growing too fast, where more business means more receivables. Some country they went may not be as good pay master as Malaysia, example China and India. In short run they may face cash flow problem. In short run, I don't see any super progress unless their investment paid off sooner. Just like the telcos, even Maxis has to delist themselves during the heavy investment period in India and Indonesia which shows ugly results at least 1-2 years. Not to mention a small telco supplier like Nextnation.
As for a mad dog like Jeff Ooi, don't know how much he got paid as many bloggers have asked the same question, people won project and increase revenue & profit he kept quite. Project finish & revenue & profit back to normal he question people's business down because of "him". Maybe partially true because of unstable period where telcos upgrading their "preventive system" provided NOT by AKN MTech, for sure many projects have to be delayed. As long the telcos are still upgrading (usually 6-9 months), definately those relied 100% on Malaysia market will have bad results. If this does happen, consumer should blame a psycho Jeff Ooi for slowing the technology advancement in the country. When do government be more tech advance to capture such non productive psycho damaging country image? Bangun Pak, masih tengah honeymoon ke?
My 2 sen from telco point of view.
Zul TM
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