Friday, May 17, 2013

Freight-WA may be interesting if its risk you are seeking

I have looked at Freight Management's results for the 1Q 2013. It seems that the company is on track despite the reducing gross profit margin. You can see that the company is still trying to grow with controlled investment into some of the areas. I have liked the company for its asset light business as compared to some of the other logistics companies.

However, another play which can be possible is the Freight-WA. Its exercise price is RM0.97 and expiry is sometime around 2017. Current parent price is around RM1.35. With the warrant around RM0.39, it is close to in the money with about 4 years of holding.

Warrant would be good if you have a good feel of the company moving forward. If the company trends the other way however, you can potentially lose all your money. Its higher risk, for those who like that.

4 comments:

Anonymous said...

Felicity

Timecom revenue increase 64% (133m vs. 81m); pretax profit from core business increase 200% (31.4m vs. 10.2m)!. However, dividend income from DIGI reduce 57% (8.3m vs. 19.4m), resulting net profit increase by 23.3% (36.1m vs. 29.2m)

However, Timecom Q1 result if compared to previous Q4 result seem down sharply EPS: 6.30sen vs.15.94sen. However, we must analysis in greater detail in which there is other one off gain from tax benefit in last quarter. The actual detail is as such:

Q1 2013 vs Q4 2012

Revenue increase 9% (133m vs. 121.8m)

pretax profit from core business increase 63.4% (31.4m vs. 19.21m).

Dividend income from DIGI reduce 313%% (8.3m vs.34.3m),

One time tax write back benefit (nil in Q1 2013) compared to (39.8m in Q4 2012)

In summary, Q1 result show that Timecom is getting its core business namely voice, data, data centre growing consistently and capable of self sustain earning compared to previous rely on income from DIGI dividend.

Ariff Shah said...

Yet to see you include Freight into your portfolio. Or is it already veested in a different one?

felicity said...

Hi Hng

I think at last for the last few years Timecom at least can say that they can be departed from Digi at least for half the stocks it holds. Over the next few years due to the need for bandwidth, i think Timecom will be a good stock. It will light up more fibre, make more money and I think the management of Timecom can do it

felicity said...

I have Freight the parent.