KEVIN SCULLY: "Midas' good macro story hasn't flowed down to profits"

This article was recently published on www.nracapital.com,and is republished with permission.

KevinScully.a.9.13 Kevin Scully, executive chairman of NRA Capital.I WAS meeting an investor yesterday and we were talking about one of my favourite (currently under review) stocks, Midas.

The share had rebounded from low of S$0.25 and recently had an SGX advisory that investors should trade with caution.

After lunch we noticed that the shares had risen 3-5% and when I checked with its CEO Patrick Chew he mentioned that they had announced another contract.

The announcement is was that its associate company NPRT had won an RMB1.7bn Metro contract.

Midas has been wining contracts consistently for the last one and half years and its order book has swelled but what has been disappointing has been its decline in margins and the absence of it winning large high speed train contracts which enjoy better margins.

So the macro story remains good with the contracts but this hasnt flowed down to profits. I will review this once their latest results are released.

Recent story: OCBC neutral on impact on MIDAS of China's train makers' merger

Counter Name	Last	Change
AEM Holdings	2.370	0.030
Best World	2.460	-
Boustead Singapore	0.945	-0.015
Broadway Ind	0.133	-
China Aviation Oil (S)	0.920	-0.005
China Sunsine	0.420	0.005
ComfortDelGro	1.480	-
Delfi Limited	0.895	-
Food Empire	1.260	-
Fortress Minerals	0.300	-0.005
Geo Energy Res	0.305	-0.005
Hong Leong Finance	2.500	-
Hongkong Land (USD)	3.140	0.020
InnoTek	0.550	0.030
ISDN Holdings	0.305	-0.005
ISOTeam	0.044	0.001
IX Biopharma	0.042	0.001
KSH Holdings	0.250	-
Leader Env	0.047	-0.004
Ley Choon	0.045	-
Marco Polo Marine	0.067	-
Mermaid Maritime	0.139	-0.001
Nordic Group	0.305	-0.005
Oxley Holdings	0.088	-0.001
REX International	0.133	-0.003
Riverstone	0.795	-0.020
Southern Alliance Mining	0.430	-
Straco Corp.	0.485	-0.025
Sunpower Group	0.210	0.005
The Trendlines	0.067	-
Totm Technologies	0.022	-
Uni-Asia Group	0.820	-0.005
Wilmar Intl	3.470	-0.030
Yangzijiang Shipbldg	1.740	-0.010

Counter Name

Last

Change

AEM Holdings

2.370

0.030

Best World

2.460

Boustead Singapore

0.945

-0.015

Broadway Ind

0.133

China Aviation Oil (S)

0.920

-0.005

China Sunsine

0.420

0.005

1.480

0.895

1.260

0.300

-0.005

Geo Energy Res

0.305

-0.005

Hong Leong Finance

2.500

Hongkong Land (USD)

3.140

0.020

InnoTek

0.550

0.030

ISDN Holdings

0.305

-0.005

ISOTeam

0.044

0.001

IX Biopharma

0.042

0.001

KSH Holdings

0.250

Leader Env

0.047

-0.004

Ley Choon

0.045

Marco Polo Marine

0.067

Mermaid Maritime

0.139

-0.001

Nordic Group

0.305

-0.005

Oxley Holdings

0.088

-0.001

REX International

0.133

-0.003

Riverstone

0.795

-0.020

Southern Alliance Mining

0.430

Straco Corp.

0.485

-0.025

Sunpower Group

0.210

0.005

The Trendlines

0.067

Totm Technologies

0.022

Uni-Asia Group

0.820

-0.005

Wilmar Intl

3.470

-0.030

Yangzijiang Shipbldg

1.740

-0.010

Comments

#1 Leo Tan 2017-02-18 14:57

Kevin Scully, you said that Midas is one of your favourite stocks. two years down the road, this stock has done absolutely nothing. Your investors must be so pleased with your recommendation. Oh, you also recommended JEP. Oh dear, it is also doing dismally.

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KEVIN SCULLY: "Midas' good macro story hasn't flowed down to profits"

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