Thursday, September 12, 2024

Waterfall to avoid : LCTitan

 morning ... one of the largest IPO back then was LCTitan ... 


LCTitan : Just notice that it is under RM1 ... a penny stock now. oh boy, losing money big-time for many QRs ... let me check the previous IPO price and its market cap. 


Here ... the QRs ... losing so much of money, so many quarters ... how can a company operates with such losses? It is not sustainable ...either then hv to cutloss ... reduce costs etc. 


So, it is a RM16bil IPO ...wow ... IPO price was RM8 ... need to do some adjustments to dividends.


So, the IPO is RM6 plus ... and now trading below RM1? 

Those stuck up there will never recover, cutloss could be very painful ... blame it on high-cost of productions ... blame it on currencies or demands or what-have-you ... it doesnt work if the company continues to lose money!! 

SAY NO TO INVEST in losing money companies

One more thing, the debt/cash = EXTREMELY HIGH above 12 level. ... how are they going to pay off their debt?!! 

NO WAY. no touch. 

Good luck getting stuck ... always buy by checking the FUNDAMENTALS and also put a cutloss if we are not going to INVEST/AVERAGE DOWN. Most of the time, the prices of stocks will NOT go back to the peak... forever?

TEH

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