GFM: 200% potential with mind boggling outstanding orderbook $$
When I perform my trade, I will make sure that I do understand the business and its potential. Be clear on their vision and mission, understand their business (at least on the surface level), deep dive on their challenges faced, and any potential focus/prospectus ahead.
Trust me, its not rocket science. You just have to spend some time looking for the right info available online. The keywords here are "right info available online".
Let's look at GFM and why at this point of time, and why it catches my attention...
What's their business?
GFM's core business is in providing Facilities Management ("FM") services, which includes both hard and soft service offerings such as civil & structural, electrical systems, landscaping, plumbing and mechanical systems, amongst others.
Fundamentally, the company is in just an average performance with few indicators are showing good and bad objectively:
- The company was last traded at 19cents (penny stock)
- EPS 0.36 (OK)
- NTA: 0.23 (undervalue)
- ROE: 1.57 (not so good)
- PE Ratio: 52.78 (not so good)
- Financial: Positive net profit since 2016, with concern on last quarter result showing lower profit.
- In term of its shareholder, the chairman itself has been actively buy back its shares showing buying interest
So what's good here?
If you refer to their financial report, there is one catchy statement here
“GFM executes Groups outstanding orderbook of RM1.29billion, as at December 2019.” If you dont understand the finance word of orderbook, that means the record that the company keep for the order received yet to be paid. In simpler term, their outstanding payment to be received is RM1.2billion!.
That is majority comes from one of its subsidiary KP Mukah Development which provides long term earning visibility with stable consistent income for the remaining 16 years of concession tenure until 2035.
Technology
GFM services together with its subsidiaries provides e-commerce solution and develop e-market place for local and international enterprise catering for various industries. Its marketplace provides various products including automotive parts, components, medical, health, biochemical products, furniture, rubber, plastics, consume electronics machineries and much more. The company also offers internet seach engines which operates in Malaysia, Hong Kong and Republic of China.
Technically based on chart, healthy pullback happening now at 0.19. Still very cheap!
Trust me, its not rocket science. You just have to spend some time looking for the right info available online. The keywords here are "right info available online".
Let's look at GFM and why at this point of time, and why it catches my attention...
What's their business?
GFM's core business is in providing Facilities Management ("FM") services, which includes both hard and soft service offerings such as civil & structural, electrical systems, landscaping, plumbing and mechanical systems, amongst others.
Fundamentally, the company is in just an average performance with few indicators are showing good and bad objectively:
- The company was last traded at 19cents (penny stock)
- EPS 0.36 (OK)
- NTA: 0.23 (undervalue)
- ROE: 1.57 (not so good)
- PE Ratio: 52.78 (not so good)
- Financial: Positive net profit since 2016, with concern on last quarter result showing lower profit.
- In term of its shareholder, the chairman itself has been actively buy back its shares showing buying interest
So what's good here?
If you refer to their financial report, there is one catchy statement here
“GFM executes Groups outstanding orderbook of RM1.29billion, as at December 2019.” If you dont understand the finance word of orderbook, that means the record that the company keep for the order received yet to be paid. In simpler term, their outstanding payment to be received is RM1.2billion!.
That is majority comes from one of its subsidiary KP Mukah Development which provides long term earning visibility with stable consistent income for the remaining 16 years of concession tenure until 2035.
Technology
GFM services together with its subsidiaries provides e-commerce solution and develop e-market place for local and international enterprise catering for various industries. Its marketplace provides various products including automotive parts, components, medical, health, biochemical products, furniture, rubber, plastics, consume electronics machineries and much more. The company also offers internet seach engines which operates in Malaysia, Hong Kong and Republic of China.
Technically based on chart, healthy pullback happening now at 0.19. Still very cheap!