Yes it's time and best time to consider RGB (0037) again ! Why ? Many obvious reason will be list down when you finish reading it.
RGB is a very unique company in Malaysia as the only Slot Machine maker and service maintenance company which already quite well known in trader eye as used to be invested by COLD Eye the famous Malaysia Investor.
Let this article tell you how much more business potential for RGB as RGB recent great sales are coming from CAMBODIA ! (quarterly report mentioned INDOCHINA, assume to be VIETNAM, CAMBODIA, MYAMAR)
http://asianews.it/news-en/Casino-boom-in-Cambodia:-+-53-per-cent-in-2018-only-45865.html
However we usually don't explain on how the business too detail as we like to put fact on table and let them talk themself.
First for most, quarterly report : (READ BELOW closely STRONG INFO EXPOSED !)
Very obvious, we can see RGB have making very good improvement recent years, and latest quarterly result even post quarterly new high at RM 11.9 million net profit !!
This is not enough right? Why ? Because we have doubt for coming quarterly result. That's already solved because we know how to interpret information as below:
The news above mentioned that highly confident that profit before tax for full year can hit RM 40 million profit before tax.
Let us just assume lah, if really RM 40 million profit before tax, then coming February quarter can post what result?
Just minus RM 40 million whole year to the announced 3 quarter which is :
RM 40 mil - RM 13.2 mil (3rd quarter) - RM 8.8 mil (2nd quarter) - RM 6.7 (3rd quarter) = RM 11.3 mil for coming quarter result.
Minus TAX should at least have RM 8-9 Million net profit which is way better than last year only 6 million !
50 % increase !!
Not enough?
It's nett cash company with roughly RM 0.055 cent per share !
So definitely a safe and healthy company !
Source : HERE
The company servicing department already in planing to list IPO in HONG KONG ! And it will be this year ! This will confirm unlock the company value further as IPO in HONG KONG definitely get very good valuation !!
Good enough and lets look at the price chart, has it low enough? Should we chase ?
What?? Weekly chart also show Technically it's still at bottom because of recent trade war and bad sentiment? Such good opportunity to buy at bottom, risk reward seems to be great !! Set cut if break RM 0.19 and potential upside target at least 5 time of cut loss which is RM 0.25 !! Lose 1 cent and win 5 cent ! Wow !
What about daily chart ?
Even more obvious that RM 0.205 sideways breakout with volume ! It's a good early bullish sign that still not yet up too much ! There is a gap at RM 0.25 at September 2018, could it be a big hint this bull wanna fill the gap very soon? Its definitely a yes to us !
As a conclusion :
1. RGB already posting strong solid result over years.
2. Cambodia, Vietnam CASINO all boom and increase over the year.
3. RGB income can be recurring due to servicing so no risk running out of sales.
4. RGB service department going to IPO in HK.
5. RGB price still at bottom and just almost turn up.
6. RGB is a net cash per share RM 0.055 cent company with very little debt.
7. RGB doing unique business that no much competitor in Malaysia.
My own personal "hope" for short term price to reach RM 0.25, mid term hope RM 0.30.
