Comments on Asia Enterprise

For the benefit of those who asked my view on Asia Enterprise:

Market Uncle said...
Hi, Nice blog you have here.Asia Enterprises seems to ride well on the current oil and commodity bubble (increase steel demand from ship & rig building), kind to share your comments?
29/5/08 11:53 PM

Kit said...
Hi Market Uncle,
Thats a fair statement and the Co will continue to do well. I have the following points for your consideration:
1. Company not sexy, low profile hence no hype and no spike in share price. You will be disappointed if u are looking for quick gain.
2. Different sales mix has caused GP% to drop eventhough is still healthy. Market does not like any drop in GP% for any reason.
3. Increased sales to Indonesia will increase credit risk and currency risk. This is from my own biz experience.

So long as the above 3 points not accepted by Mr Market, we are likely to see ah pek performance in the share price. But one thing i can assure u is that the founder is a solid man. You can sleep well investing in this company. He is my FC good fren :) The daughter is taking over the helm slowly.
31/5/08 12:09 AM