Friday, September 25, 2009

Jadi & 3A (Listed at KLSE)

3A started its rally from 34 cents. It has not turn down anymore after this level. Jadi started the rally from 15 cents. Why I have selected this 2 counters be my today post?

Because, as your are noted I am happy walk around the shares firm. Today, in the shares firm has one good player talks about 3A and told us the major shareholders been accumulated more than 55% of total paid up. Other related parties also control some stake. He further told me the new factory situated at China started operating and contributed about 3 times better turnover than last year. The result will announce at next month and projected price maybe can reach 1.00.

At last, he ask my advice. My answer is simple, if everything is correct and factory in the first year running at 100% production capacity. It could be happen. But, I am just wondering how is going to absorb the capital expenditure and initial expenditure about 150 million. ( Factory investments cost about 150 million).

In this case, recall my memory about Fountain and Suremax. These 2 stocks initially given a lot of good news and stood at high price for long period. Finally the result is dilisting at KLSE. Personally, I do not like such stocks because there are monopoly by someone and allow certain people happy on that.

Last, they also told me, another stock going to move higher. That is Jadi. Is it true? Please keep your eye on. I really do not know.

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