The Invincibility Of IRIS
Despite being the butt of my sacarstic remarks and dark humour, Iris continued on its merry ways today after being released from being designated. Somehow for Iris, its more like being released from prison. Iris is like the woman your mother warned you about. Like smoking, drinking and womanising ... despite the warnings, many will succumb to the lures. Fast women, fast cars, fast money ...
Looking at their fundamentals, it is not exactly unattractive, at least there are some fundamentals - unlike Aokam or Fountain View. As for NTA, at least it is around RM0.20 (even though stock has shot up to RM1.15 today). As for 2006 PER valuation, though it might be close to 90x, it does not take much to halve it as the profits are miniscule to start with. If I am forced to look at the positives:
1) EBIT margin are steady at 14%
2) Potential for the company's electronic identity cards and e-passports contracts from markets such as Turkey, Somalia and Indonesia
Looking at the total paid up of 914 million shares, just the morning session today saw 75 million shares traded with buying support at every level totalling over 30 million should anyone really wants to throw shares at them. Looks like a cornered vehicle. Though it sounds absurd, but the bloody share looks to have a lot more upside now that its no longer designated. Plus the fact that the company have been scrutinised like hell, and the company's senior management giving in depth interviews in between ... this drama is far from over ... Buy if you must, but of course the risks are equally as high. Beware of the man with monkeys! (Read blog On "The Parable Of Vonage & Iris")