Highlights

Investing Theory 6 - Intrinsic Value

Author: (70B-SAPNRG-3Yrs) Philip   |   Latest post: Thu, 14 Feb 2019, 6:06 PM

 

HOW CALVIN TAN CHUN CHUN CALL CONVINCED ME TO SELL PUBLIC BANK FOR SECRET STOCK - this thread will be locked for replies due to STOCKRAIDER pollution.

Author:   |    Publish date:


AND DONE. BOUGHT THE LAST STOCK DONE AT RM8.33. 

 

After having a short discussion with my wife and father in law, and taking a short holiday trip to JB. I have come to the conclusion that Calvin Tan and Koon Yew Yin is right. (even a broken clock gets it right twice a day).

We have decided to sell our entire stake in Public Bank (around 500K shares), and after weighing the opportunity costs, have gone all in in buying our entire stake in Petronas Chemicals, or PCHEM.

Why PCHEM?

 

 

 

 

This location here for the Pangerang Integrated Petroleum Center is one of the most guaranteed future growth drivers for PCHEM. Yes, the opportunity costs here are so bright and stable that it dwarfs the stability and quality of earnings that I could get from holding on to Public Bank. How So?

 

Why buy now? It has finally reached tanker transfer stage, with crude oil being deployed and stored at crude storage terminals. The final testing and commissionning procedures are underway, and expected production will be in the 2nd half of 2019.

If you were willing to buy heavily into JAKS just for the promise of a bad company now with a power plant in the future, how about buying a company today that does:

25% NET PROFIT MARGIN (Lowest cost producer in South East Asia, with cheap feedstock from PETRONAS, and now upcoming 50% from saudi aramco, insane profits spread compared to competitors at 11% LOTTE, 9.3% PTT Global Chemical, 3.8% Saudi Internation Petrochemical Co, Sinopec Shanghai Petrochemical 4.4%, BASF 7%, Dow Chemical (DowDuPont) 4.4%)

17.4 BILLION IN REVENUE 2017 ANNUAL AUDITED YEAR (This year estimated at 19 billion, what can we look forward to with with RAPID completion? Currently we have around 10.8 million MTPA producing around 9.7 billion revenue in olefin & derivatives growth. What happens when we go full production and add 3.3MTPA? how many billions of additional revenue growth?)

4.177 BILLION IN EARNINGS IN 2017 (yes, 4.177 billion in earnings. From current production alone, not including future growth driver. how many bursa companies do you know can earn that much in a year? If I had to give my 80 year old father in law and his daughter a good night's sleep every night I better choose something low risk, right?)

2.16 BILLION IN DIVIDENDS (50% DIVIDEND GIVEN OUT YEARLY) IN 2017 (How many companies can afford to give out 50% of their earnings as dividends and still grow as well? Well topglove does. But still, a super safe strong growing stock.

29 BILLION IN NET ASSETS, AND GROWING 19.5% ROE (You will never be able to pay liquidation prices for a wonderful company so dont even try. But buying a great company at fair prices? why not? Especially since you know PCHEM will get cheap crude oil from aramco and petronas, and the integrated and consistent power and water (from johor government at special rates) will guarantee further more pricing power compared to companies like lotte in johor) Has QL not thought you anything about the power of vertical integration in a basic market like poultry (CCK and layhong die standing at 200 million while QL becomes a 11 billion dollar company)

Imagine paying 67 billion for a company with 29 billion net assets and earnings of 4 billion every year. in 10 years you would have received 69 billion in value. Imagine what you will get with RAPID production?

MAJOR SHAREHOLDER PETROLIAM AT 64% You are really looking for a management that has the same mindset as it shareholders and keep shareholder value from doing stupid things. It really helps if the biggest shareholder holds a big stake and not prone to selling and buying and syndicate activities to cheat its shareholders.

 

Now, compare that with the competitors like PTT Global Chemical, Lotte, Saudi International Petrochemical Co, how will you invest?

WHEN YOU ARE MAKING MONEY, EVERYONE IS LAUGHING AND SMILING AND TELLING THEMSELVES, I MADE MONEY. WHAT IS THE RISK?

WHEN YOU ARE LOSING MONEY, THEN YOU START THINKING ABOUT THE RISK.

MANAGING RISK IS THE KEY TO EVERYTHING. WHEN WARREN BUFFET SAYS TO NEVER LOSE MONEY, HE DOESN'T MEAN LITERALLY DONT LOSE MONEY. WHAT HE MEANS IS YOU MUST ALWAYS USE THE LOWEST AMOUNT OF RISK TO RECEIVE THE HIGHEST AMOUNT OF GAIN.

PETRONAS CHEMICALS IS BASICALLY THAT: THE LOWEST RISK IN O&G INDUSTRY, WITH EXTREME STABILITY AND QUALITY OF MANAGEMENT AND A BUSINESS WITH A HUGE MOAT. BUT WITH PANGERANG RAPID COMPLETING THIS YEAR, IT IS CALVIN TAN CHUN CHUN CALL

HIGH RISK, HIGH REWARD?

LOW RISK, HIGH REWARD?

YOU WON'T KNOW WHO IS SWIMMING NAKED UNTIL THE TIDE GOES OUT.

I hope you learned something,

Philip

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Labels: PCHEM

Related Stocks

Chart Stock Name Last Change Volume 
PCHEM 9.03 0.00 (0.00%) 2,829,500 

  3 people like this.
 
(70B-SAPNRG-3Yrs) Philip Qqq3, that is a bit under the belt...

Please refrain from hurtful remarks like that. My post here is about pchem and it's pro and cons.

If possible let's all stick to that so we can gather concise information instead.
17/02/2019 3:06 PM
qqq3 (S = Qr) Philip > Feb 17, 2019 03:06 PM | Report Abuse

hurtful ......
===========

if he had sailang every thing into Xinquan, its good for me......
17/02/2019 3:14 PM
qqq3 Calvin.... I just watched Tudor in Netflix..... Catholic vs Protestants.... love seeing that.
17/02/2019 3:42 PM
lazycat ppbank less risky , pchem many mechanical parts , fire accidents , faulty , leaking etc , buy bjtoto better , recently police sent abroad to learn regulate online lottery betting , so i foresee lottery companies will get online betting license real soon , it is inevitable
17/02/2019 4:28 PM
Ron90 if u trust everything to calvin n kyy, sure die one day. must hv known that investment strategy for these 2 guys. ..calvin focus too much on paper, but market move based on sentiment and perception.... kyy pula worst.telling stories for his benefit...
17/02/2019 4:49 PM
qqq3 market move based on sentiment and perception....... the key...... that is the key....... very good
17/02/2019 4:53 PM
Apabagus wakaka very good philip,you went thru all my remarks and you cannot wait for my reply....again welcome to i3.....you seem so novice you think i3 n bursa is all black and white and have no gray area.
for your info,this id of mine is used to troll those fong siling n neoh soon kean wannabes...you are right,i do not show my stock picks.
why should i show,only those novices who cannot stand the slightest provocation will bare all...beware,someone may be tracking your ip address now as you have 30 mil....lol
17/02/2019 6:23 PM
leno I hope calvintaneng can explain what happened to PERISAI he promoted heavily once at 55 sen. (calvintaneng, still holding any PERISAI?)

in addition of MULPHA, BPURI, BJCORP, etc.
17/02/2019 8:59 PM
leno is this philip senyap-senyap disposing INSAS?
17/02/2019 9:00 PM
3iii >>>
Posted by Ron90 > Feb 17, 2019 04:49 PM | Report Abuse

if u trust everything to calvin n kyy, sure die one day. must hv known that investment strategy for these 2 guys. ..calvin focus too much on paper, but market move based on sentiment and perception.... kyy pula worst.telling stories for his benefit...
>>>


I like your second level thinking.
17/02/2019 10:43 PM
Sslee Dear 3iii and Philip,
Repost:
https://klse.i3investor.com/servlets/forum/600193622.jsp
Dear Kcchong,
You are spot on about quack quack quack. I remember posted the following comment to describe quack quack quack:
Synonyms: swindler, charlatan, mountebank, confidence trickster, fraud, fraudster, impostor, trickster, racketeer, hoaxer, sharper, rogue, villain, scoundrel. Informal: con man, shark, flimflammer;

qqq3 is the lowest of the low, the worst of the worse, horrible, distasteful, insane, disgusting, despicable, wicked and shameless person i3 have ever come across. Shame on you after you had promoted JAKS share with “Sailing” and “Margin Finance” and profited from it again and again from your “chong Ker” you still have the gut to show your face in i3, go and hide your face is some shithole.

In i3 we have “Lord of Queer” refer him as “You-Know-Who” who lost his kuku bird in a bet in i3 and since then become unspeakable evil, devoid of: manhood, conscious, self-worth, dignity, decency, shame and introspection he is roaming i3 luring his victim with PLP flattering before going for the kill and suck out all the blood from his victims.

For a man without soul, conscience and shame no written words (English, Chinese, Latin, France and etc) can hurt him anymore. The only way to hurt and shame him is to un-cloth him so that all in i3 community can see the naked truth that he is indeed without kuku bird

Rigid is death, flexible is life!
For heaven’s sake if you are suffering from ED/low self-esteem and yours soft and flexible kuku bird (if you still have one) cannot achieve a hard and rigid erection, don’t cry father cry mother in i3 like crybaby AlanNga. Go and see a doctor or no shame in trying the little blue pill to get back your rigidity/hardness and have a life.

Dear fake accountant qqq3,
I am very mean and cruel to you in order to be kind to all the i3 community by exposing you for what you are. You are a fake accountant, a fraudster, a backstabber, a bootlicker, an ass-kisser, a shameless manipulator and good for nothing low life parasite feeding newbie and even super-investor Mr. Koon with manipulated information for you owe self benefit.
By exposing you and hitting at your conscience, I am trying to save the i3 community from your bad influence/evil and if possible save your soul/conscience too if you still have one inside you. Now I can say for sure your soul/conscience is beyond saving.

I subscribe to the view/believe/theory “The only thing necessary for the triumph of evil is for good men to do nothing.” Edmund Burke. “To sin by silence when they should protest makes cowards of men" - Abraham Lincoln
So I call out qqq3 as “a fake accountant, a fraudster, a backstabber, a bootlicker, an ass-kisser, a shameless manipulator and good for nothing low life parasite.” So what have you qqq3 to say? Didn’t your teachers or parents teach you any manner to say "Thank you” for someone telling you your faults?

There is one King of PLP, King of double talk, King of backstabber, King of poison slanderer, King of jealously, King of low life, King of bullshitting and talk cock, King of dishonest, despicable, distasteful, disgusting and evil, King of chicken trader and king of shameless thick skin that can even put our shameless MO1 to shame.
Just wonder why he is still roaming in this i3 with no shame and continuous talk cock. You should know who this Kings of all the immoral and the worst of human being is. Please stay far away from him

I thought I had seen the last of quack, quack, quack with my posting: Dear Flinstones,
Your advice noted with thanks. I derive no pleasure and in fact feel sad that despite my attempt to save his soul and hitting hard at his conscious and even using reverse psychology of subjecting him to shame and turning the table on him by subjecting him to troll or fact on what damage he had done to those chasing high in JAKS and SENDAI as oppose to what he himself trolling KC and OTB with inflammatory and digressive, extraneous, or off-topic slanders.
I admit my attempt is futile and he will remain as what he is with no remorse and shame. He is now no-more my problems, as from now, I will not read any comments or blogs of “You-Know-Who”. He is in my past and I should leave the past in the past. He is now an invisible to me. I shall grow wise and move on.

Posted by CharlesT > Dec 25, 2018 09:26 AM | Report Abuse
Dunno why all u guys wasted so much of time in attacking qqq3..
Who cares
I wish everyone is as sharp as CharlesT able to see straight/right through who is qqq3. I can't help my self but to break my promise to Flinstone and forewarn respectable i3newcomer Philip and old timer 3iii when quack quack quack trying hard in PLP and using the butt of 3iii, Philip and Vitrox to whitewash his face as promoter of quality stocks. That is a last straw breaking the camel back. My thousand apologies to Flinstone in not keeping my word.

Thank you
17/02/2019 11:02 PM
qqq3 sslee

U do spend a lot of time talking about me....Is that good or not, I also don't know.....


ss...I already know u are weird , very weird long time ago....U have not disappointed me.......


by the way....how much u lost in Jaks, Sendai and Xinquan? U seem to keep blaming me for your losses......
17/02/2019 11:06 PM
Sslee Dear all,
I refer:
https://klse.i3investor.com/blogs/koonyewyinblog/185767.jsp
Based on our average selling price of 80 sen, our average purchase price of Rm 1.20 per share and our total holdings of 160 million shares, we have lost Rm 64 million. Coincidently this is the 64 million $ question many people have asked me. This is my most expensive lesson in my life.
This is how much Mr. Koon losses RM 64 million.

https://klse.i3investor.com/blogs/icon8888/184758.jsp
I started buying Jaks at RM1.17. Subsequently, I averaged down by buying several more batches. But for sake of simplicity, you can assume my cost is RM1.17. By selling at 80 sen, I incurred a loss of 32%. But Jaks makes up about 15% of my portfolio. This is what Icon8888 wrote in his blog.
https://klse.i3investor.com/insider/director/4723/11-Feb-2019/138697_2048698648.jsp
This is what self serving CEO ALP rewarded himself with 25,164,960 FOC JAKS share.

Tell me who had promoted JAKS with “Sailang” and “Margin Finance” day and night for the past two year. Has he shows any remorse and make apologies to those chasing high? No instead he is so proud of his promotion article and shamelessly telling all how he PLP “ChongKer”, front running him and make repeat profit again and again….. Why not? When I have the killer instinct…..

Posted: 11/12/2018 20:00
Truth be told...Jaks people are Wing Tek people....his father is KLSE goreng King......
Its all history now.
Posted: 04/12/2018 15:27
but not bad....I promote at $1 and $ 1.40...all on the way up to $ 1.80.....I never promoted on the way down....See...I chun chun....

Thank you.
P/S: I had said what needed to say. I do not wish to waste my time on quack, quack, quack. I do not hold any JAKS share hence JAKS is not my problem. The shareholder of JAKS had to make their own decision what is best for them.
18/02/2019 12:14 AM
qqq3 why? ss? the ghost of Jaks keep haunting you?

its ok...buy some now and make back some money......
18/02/2019 12:23 AM
(70B-SAPNRG-3Yrs) Philip Hi Leno, I do not buy penny stocks. I only own 5 stocks which I know well and can monitor properly. In my view I don't think the future of INSAS will be good, it may be a trading stock, but I no longer speculate on trades anymore since 2000.

Good luck Leno, you make 30% profit! Good job!
18/02/2019 9:09 AM
(70B-SAPNRG-3Yrs) Philip sentiment and perception is true, but pinned by earnings and fundamentals. Short time crazy wife, long term good cooking and childbearing and house cleaning and clothes washing.
18/02/2019 2:45 PM
stockraider Just like great insas hathaway mah...!!

Posted by (S = Qr) Philip > Feb 18, 2019 02:45 PM | Report Abuse

sentiment and perception is true, but pinned by earnings and fundamentals. Short time crazy wife, long term good cooking and childbearing and house cleaning and clothes washing.
18/02/2019 3:23 PM
3iii >>>
Posted by stockraider > Feb 18, 2019 03:23 PM | Report Abuse

Just like great insas hathaway mah...!!

>>>




Go to the thread on insas to post your promotions.

Please stop trolling.
18/02/2019 3:53 PM
stockraider What type of cock u r talking about leh ??

People are comparing alternative like airasia...bjtoto....but insas is still the best mah......!!

Posted by 3iii > Feb 18, 2019 03:53 PM | Report Abuse

>>>
Posted by stockraider > Feb 18, 2019 03:23 PM | Report Abuse

Just like great insas hathaway mah...!!

Go to the thread on insas to post your promotions.

Please stop trolling.
18/02/2019 3:56 PM
(70B-SAPNRG-3Yrs) Philip Yeah Stockraider, can enough? Everyday post same post. Are you trying to brainwash people or something? Please go other thread and post your insas Hathaway. I think everyone here gets the message and those who want to buy already done so. I won't put a single cent in your stock choices. Can you go find other people to disturb? You more lohsoh than choivo.

Even Leno INSAS bull cannot tahan you...
18/02/2019 6:45 PM
stockraider Despite Raider trying to be good to Mr Philip bcos raider agree to disagree but this Philip attitude is "very lansi" loh...this may invite allout war from General Raider loh...!!

"Yeah Stockraider, can enough? Everyday post same post. Are you trying to brainwash people or something? Please go other thread and post your insas Hathaway. I think everyone here gets the message and those who want to buy already done so. I won't put a single cent in your stock choices. Can you go find other people to disturb? You more lohsoh than choivo.
Even Leno INSAS bull cannot tahan you."

But philip is the 1 that talk bad of insas hathaway mah...!!

Posted by (S = Qr) Philip > Feb 16, 2019 12:52 PM | Report Abuse

Do you think I will so silly pump in his money now in stocks like Sapura and Insas?
Think a bit. Understand risk. Your concept of margin of safety means nothing if your management decides to invest in weird companies like biotech and fintech and failed investments.

Just read about this:
https://www.thestar.com.my/business/business-news/2015/06/27/insas-cre...
this was in 2015. Insas had 30% of inari, sold its shares to buy crap like numoni.
Where is numoni now?

Now insas buys biotech company sengenics. That buys biotech assets in brunei, of all places. Brunei where got any talent or growth in biotech. Doesn't that raise any question marks?

then your insas buys vigsys sdn bhd. this vigsys:
http://www.vigsys.net/
Would you even buy anything from this webpage? or their vigcash in mongolia?

How about this? This is also an insas subsidiary.
http://www.jcpacific.com.my/
Would you buy anything from this company?

How about this? This is also INSAS subsidiary.
https://www.iprac.com/
In the age of UBER and GRAB, when was the last time you rented a car in SINGAPORE?

How about this? This is insas franchise.
http://www.domecafe.com.my/
Can you name me off the top of your head where is your nearest dome cafe. Ask your kids if they have gone to dome recently? Old town? Starbucks? Which is more popular and with better products/marketing?

How about this? This is INSAS core business.
https://www.mnaonline.com.my/
Do a survey, ask yourself. When you buy stocks, do you even use M&A stockbroking services? Why not? Which do you trust more? Hong Leong? Public Bank? Maybank? If you as a INSAS shareholder don't even use your own products, what does that say about the company?

I could go on and on with the kind of bullshit INSAS buys:
On 25 July 2018, Insas Technology Berhad (“ITB”), a wholly-owned subsidiary of the
Group had disposed off 12,000 ordinary shares, representing the entire shareholding in
Vigcashlimited LLC (“Vigcash”), to Mr. Sanj Natsagdorj for a total cash consideration of
USD1,500 (“Disposal”). Arising from the Disposal, Vigcash ceased to be an indirect subsidiary company of the Group. Vigcash was incorporated in Mongolia on 7 December 2005 and its issued and paid-up share capital is USD10,000. The Company is currently dormant and the net asset value of
the Company is USD31.

Inari was a 1 shot lucky pony, that the dad bought. He is now retired, step down. Replaced by his son. Who is buying all of these companies with the money his dad earned. You see any future in these companies? Where is your margin of safety calculation in a son that uses all the goodwill of previous management to buy these crap?

U NEED TO UNDERSTAND PHILIP IS WRONG LOH...INSAS IS LIKE BERKSHIRE HATHAWAY THATS WHY THEY DO MANY BUSINESS MAH...NOTHING WRONG MAH WHEN THE BUSINESS ARE SOUND MAH...!! IF NOT HOW CAN INSAS MAKE SO MUCH MONIES WITH NTA RM 2.54 EQUIVALENT TO 65% OF PCHEM NTA LEH ??
19/02/2019 10:27 AM
(70B-SAPNRG-3Yrs) Philip dead cat bounce. Entire bursa market is undervalued. Bursa has been laughing stock for 4 years, so now that foreign investors fleeing from usa/china tradewar are investing in more stable markets like malaysia (after election, while other SEA incoming elections). You could throw a brick at any stock now and get 10-30 % short term.

The game starts after quarterly results out. That's when you see the trading stops and the investing begins.

Personally, no one knows what will happen tomorrow. But what I can assure to retirees is that PCHEM is the safest stock you can buy right now. It's gain may not be as exciting as buying derivatives and options, but I can guarantee you can sleep well at night.

5-10 years from now you can also sleep well at night.
19/02/2019 10:28 AM
stockraider Insas hathaway definitely a very much safer stock than Pchem....bcos there are huge margin of safety mah....!!

If u buy insas u can sleep much better loh...!!

Pchem has big risk mah.....!!

Posted by (S = Qr) Philip > Feb 19, 2019 10:28 AM | Report Abuse

dead cat bounce. Entire bursa market is undervalued. Bursa has been laughing stock for 4 years, so now that foreign investors fleeing from usa/china tradewar are investing in more stable markets like malaysia (after election, while other SEA incoming elections). You could throw a brick at any stock now and get 10-30 % short term.

The game starts after quarterly results out. That's when you see the trading stops and the investing begins.

Personally, no one knows what will happen tomorrow. But what I can assure to retirees is that PCHEM is the safest stock you can buy right now. It's gain may not be as exciting as buying derivatives and options, but I can guarantee you can sleep well at night.

5-10 years from now you can also sleep well at night.
19/02/2019 10:31 AM
stockraider WHY 3iii GOT INVESTMENT ANALYSIS TOTALLY WRONG LEH ??
BCOS HE HAS OVERLOOKED THE 'R' FACTOR MAH...!!

INSAS ACHIEVED 8 OUT OF 10 MAH

Posted by 3iii > Jan 27, 2019 08:15 AM | Report Abuse

ONE PAGE QUICK ANALYSIS OF A STOCK
An Aid to your Stock Selection
COMPANY NAME: INSAS
DATE OF ANALYSIS: 27.1.2019

For each question below, answer YES or NO

Criterias

Risk
1. Earnings to price (the inverse of P/E) is double the high-grade corporate bond yield. If the high-grade bond yields 7%, then earnings to price should be 14%. YES THE PE OF 6X GIVEN YIELD EXCEEDING 17% PA
2. P/E ratio that is 0.4 times the highest average P/E achieved in the last 5 years. NO...3iii GOT IT WRONG LOH THE HIGHEST AVG PE IS 17X.RIGHT ANS IS YES LOH...!!
3. Dividend yield is 2/3 the high-grade bond yield. NO
4. Stock price of 2/3 the tangible book value per share. YES
5. Stock price of 2/3 the net current asset value. YES

Financial strength
6. Total debt is lower than tangible book value. YES
7. Current ratio (current assets/current liabilities) is greater than 2. YES
8. Total debt is no more than liquidation value. YES

Earnings stability
9. Earnings have doubled in most recent 10 years. NO...3iii GOT IT WRONGLOH....INSAS EARNINGS MORE THAN DOUBLE MAH...ANS YES
10. Earnings have declined no more than 5% in 2 of the past 10 years. NO


If a stock meets 7 of the 10 criteria, it is probably a good value, according to Graham.

If you're income oriented, Graham recommended paying special attention to items 1 through 7.

If you're concerned about growth and safety, items 1 through 5 and 9 and 10 are important.

If you're concerned with aggressive growth, ignore item 3, reduce the emphasis on 4 through 6, and weigh 9 and 10 heavily.


YES 8
No 2


3iii
4744 posts
Posted by 3iii > Jan 27, 2019 08:37 AM | Report Abuse

INSAS

Cash and equivalent. 882 m

Short term debt 321 m
Long term debt 201 m
Total debt 521 m


Account receivables. 544 m
Inventories 23 m
Account payable. 46 m

Retained earnings
818 m (2018)
734 m
560 m
491 m
407 m. (2014)


DIVIDENDS
6.630 m (2018)
6.630 m
6.630 m
6.630 m
6.642 m (2014)


Free Cash Flow
126.5 m. (2018)
(16.997 m)
1.447 m
7.051 m
5.127 m. (2014)
19/02/2019 10:34 AM
stockraider Posted by calvintaneng > Feb 1, 2019 10:25 AM | Report Abuse

To understand Insas just look at Icapbiz.
Icapbiz invests in Companies
So do Insas
Both Icapbiz and Insas have very good strong Nta. Insas has been growing far better than Icapbiz in Nav over the decade.
And Insas has very good future in Inari

Plus Insas has multiple types of business in real estate, car rental, f&b and above all

IT'S STOCK BROKERING ARM OF M&A SECURITIES

AND THIS YEAR KLSE WILL SEE LOTS OF IPOS LISTED. THAT MEANS MORE BUSINESS FOR INSAS See https://www.thestar.com.my/business/business-news/2019/01/31/bursa-mal...

INSAS IS SELLING AT INSANE VALUE OVERLOOKED BY MR MARKET

AFTER PRIVATISATION OF BJ CAP, HL CAP, KAF-Seagroat and HWANG INSAS WILL BE NEXT TO GO PRIVATE

SO ALL VALUE FUNDS SHOULD HAVE SOME INSAS IN ITS PORTFOLIO
19/02/2019 10:35 AM
stockraider Very good point loh...!!

Insas v icap.

1.insas more undervalue based on nta agst share price
2.Insas at lower PE
3.Insas pays div with yield 3%
4 Insas has shown higher growth
5.Insas is in the fore front of technology exposure with inari.
6.Insas business is active while icap business is passive.

INSAS HATHAWAY IS 2019 MSIA MARGIN OF SAFETY VALUE INVESTMENT OF THE YEAR MAH.....!!

Posted by calvintaneng > Feb 1, 2019 10:25 AM | Report Abuse

To understand Insas just look at Icapbiz.
Icapbiz invests in Companies
So do Insas
Both Icapbiz and Insas have very good strong Nta. Insas has been growing far better than Icapbiz in Nav over the decade.
And Insas has very good future in Inari

Plus Insas has multiple types of business in real estate, car rental, f&b and above all

IT'S STOCK BROKERING ARM OF M&A SECURITIES

AND THIS YEAR KLSE WILL SEE LOTS OF IPOS LISTED. THAT MEANS MORE BUSINESS FOR INSAS See https://www.thestar.com.my/business/business-news/2019/01/31/bursa-mal...

INSAS IS SELLING AT INSANE VALUE OVERLOOKED BY MR MARKET

AFTER PRIVATISATION OF BJ CAP, HL CAP, KAF-Seagroat and HWANG INSAS WILL BE NEXT TO GO PRIVATE

SO ALL VALUE FUNDS SHOULD HAVE SOME INSAS IN ITS PORTFOLIO
19/02/2019 10:36 AM
stockraider he potential MARGIN of SAFETY or the GROSS PROFIT on buying INSAS at 70% is even higher than the GROSS PROFIT MARGIN of Nestle selling milo mah..!!

Posted by stockraider > Feb 1, 2019 11:37 AM | Report Abuse X

What so complicated when u pay Rm 0.76 for a Rm 2.54 value leh ??

This is value investment mah....!!
19/02/2019 10:36 AM
stockraider Posted by stockraider > Feb 4, 2019 12:17 AM | Report Abuse X

Correctloh...Insas is better.

Insas hold 19% of inari based on current inari valuation exceed the whole Insas mkt capitalization. If inari share price to Rm 1.20 it still just equal to insas capitalization mah...!!

Insas Nta is Rm 2.54 v share price Rm 0.77.

Insas has a positive nett cash holding of Rm 300m.

Insas trade at a PE 6.5x loh...!!

Insas pays div yield close to 3% pa loh...!!

This is a very balance & complete margin of safety investment mah...!!



Posted by calvintaneng > Feb 4, 2019 12:10 AM | Report Abuse

Inari good

Insas better!
19/02/2019 10:37 AM
stockraider (Icon) What Is Investing ?
Author: Icon8888 | Publish date: Sun, 20 Jan 2019, 02:42 PM

On 23 December 2015, I wrote that investing involves holding on to stocks for long term to enjoy compounded return, other stock market activities are at best "trading".

However, recently I have been reading extensively about Investment Gurus' works. One thing that shock me is that very few of them actually hold stocks forever. Contrarian investor John Neff sold his stock within months if they registered good return. Even Joel Greenblatt (KC Chong's favourite) also indulged in short term activities.

As long as can make money with proper consideration of risk, it is valid. No need to hold long, long term only to be considered legitimate.

I hereby declare :
"Investing should not be defined only as picking good stocks and holding forever to enjoy compounded return. Buying an overlooked stock to wait for market to rectify mispricing and hence provides opportunity to cash out, is also considered investing. Even if it happens within few months.

Short term activities should not be automatically frowned upon. Anything bought based on careful evaluation of value and proper reasoning, and in the event that things turn sour, can be held until recovery, is considered investing.

Holding period is totally irrelevant."

THIS IS EXACTLY WHAT BEN GRAHAM SAYS MAH..U BUY CHEAP WITH BIG MARGIN OF SAFETY AND HOLD ON TO TAKE ADVANTAGE OF MR MARKET MAH, WHEN THE SECURITIES RERATE AND GO UP TO THE REASONABLE FAIR VALUE AS MR MARKET BECAME OPTIMISTIC, U SELL MAH....!!

MR GRAHAM, HAVE NEVER ENCOURAGE TO HOLD ON FOREVER MAH...!!
19/02/2019 10:38 AM
stockraider Insas investment strategy is not growth but fair value rerating due to insas share price huge discount to its fair value mah...!!

It is totally diff from Growth investment loh....!!

Posted by qqq3 > Jan 23, 2019 05:05 PM | Report Abuse

will not be long before your Insas is a PE 50 stock......and without any path to growth..........guarantee.
19/02/2019 10:39 AM
stockraider Posted by Sslee > Jan 22, 2019 09:35 PM | Report Abuse

Dear Philip,
I quote, “You seem to be making the mistake that I am out to hunt down your beloved INSAS stock.” Make no mistake, I appreciate your different view and in fact I welcome it as I actually waiting to collect INSAS share at cheaper cost to me. But unfortunately when I present my case I need to speak the truth base on fact and figure contain in the annual report. Some of the very private information that I gather from my private meeting with newly appointed CEO, I kept it as P&C. I quote, “Insas is a founding shareholder of Inari 11 years ago and its original 51% equity interest in Inari has been diluted over the years primarily due to its IPO in 2011” how else to explain the INSAS Board capability in building up INARI to what it is today if not for the management prudent and foresight to spend few millions as seed money/burn rate (charge to P/L) to organic growth their business in different sector and working with renowned university and researcher to launch their patented products.

Also make no mistake, I am not out to hunt down your beloved “QL” I only present what is contain in the annual report as I feel even though QL is a great company but the current market price is too rich a valuation and perhaps you can relook into its valuation during the next quarter result and make you own decision whether you should cash out and invest in Nasdaq: STNE.

By the way I like to read yours and Jon Choivo articles as both of you are very well read and well versed in different methodology of investment and stock valuation, it’s a refreshing read. I thank you for contributing your articles to i3.

Dear 3iii,
I quote, “Your shareholder activism though admirable sadly brings about little results. You are better served by better companies with better management.”
My upbringing taught me to seek the truth and nothing but the truth and give voice to voiceless and fight for justices. My shareholder activism had result in INSAS paying an interim dividend of 2 cents and hopefully a formal dividend policy in this year. My questioning in Xingquan and CSL had result in SC calling the external auditor for questioning and the rest is history. My questioning in Hengyuan had help me to know the detail of Hengyuan business and the next AGM the board will face another round of hard questioning from me on Brent Crude oil pricing and CAPEX..

As of your question, “Would not it be better to attend an AGM where you praised the management for another great year of performance, take a few pictures with them and promise to see them again the next AGM?” My answer is not necessary since the company is already well run and manage, your words of praising would not add further value whereas your hard hitting and fact finding questions will make the board wake up, listening to you and you can see a sea change during the next AGM.

Thank you
19/02/2019 10:39 AM
stockraider U understand investment or not ??

Who say insas is lousy when it sit on more than Rm 300m nett cash with NTA exceeding Rm 2.54 per share and with div yield of 3% pa loh...!!

The pe of insas is about 6x mah n for the past 10 yrs insas has been making monies loh...!!

Nestle maybe good company but it has a very high handicapped with its overvalue share price with PE 50x loh...!!

Imagine u r a good tennis player...but u handicapped by playing tennis on a wheel chair....the chances of u winning may not be good, even when u playing agst average players mah...!!

Insas hathway is Ben Graham share picked jewel with very big margin of safety Mah...!!

This is investing. I take my investing very seriously.

I avoid lousy companies. In the long run, I am better off with companies with great businesses.

Given a company with poor economics and great management, the reputation of the company remains intact. Some businesses are just gruesome and generally will remain so even if the management are superb.

The opportunity cost of parking your money in a poor performer or loser is just too harmful for the finances of the careful investor.

If you have to be always actively prodding the management, that tells a lot too of the quality of the management and its alignment of their interest with the shareholders. For example, if the management embarks on cost cutting or cost efficiency, you should be happy and yet sad too. Why were they not cost efficient at all time?
19/02/2019 10:40 AM
stockraider How could u say timing the market leh ??
Raider just illustrate the opportunity u can get on insas on the space of 6 yrs based on margin of safety mah....which can match QL current good performance rising from rm 0.20 to about rm 1.35 over the period mah...!!

Raider bought insas at around 3 yrs later at Rm 0.45 based on margin of safety factor in 2012 at that time the nta was rm 1.40 and pe below 10x which was a very good buy mah..!!

Raider sold in 2014 for rm 1.20 when the nta was rm 1.80 and pe above 13x mah...!! There is no timing the market...just look at the margin of safety has narrowed u make good monies easily 250% gain over 2 yrs mah....!!

This is how margin of safety profitable buy stock following Ben Graham principle loh...!!

Today raider go back in at average rm 0.66 bcos again there is plenty of margin of safety for insas for raider to take advantage as insas financial standing had improved tremendously mah...!!

Ben Graham did advocate 2 investment method loh:

1. margin of safety investment taking advantage of soochai Mr market.

2. Growth stock investment mah...!!

Warren buffet use to practise margin of safety methods in fact his return is far more higher at average 80% pa in his earlier days, but he has evolved to buy hold quality growth large stock in the later yrs bcos he has grown & managing billion & billion of funds, which is not so suitable for him as margin safety investment, as more active attention is required in a way bcos it deal with many smaller caps and taking advantage of mr market mah...!!

This 3iii is confuse loh...he thought, buy hold growth stock is the original margin of safety investment which is really not loh, ben graham really prefer the insas way more loh..!! Especially for the beginners mah who have not much capital mah..!!

Raider say the best is to invest based on margin of safety but if u happen to stumble to any quality growth stock under this category, u just hold tight abit longer, if u r lazy u can hold forever too loh..!!

Posted by 10154899906070843 > Jan 16, 2019 07:52 AM | Report Abuse

Raider,
This is called timing the market. How do you know at what price to buy and sell? If like this kind of investing, you always Chun Chun right timing buy low sell high? Never lose money? Buy any stock also Chun chun? If you always 100% Chun Chun number like Calvin tan sure win why even bother buy stocks? Just go and buy Toto 6/47 sure Chun Chun kena!

I don't know how to invest like this. I always buy high, can never get it right every time. But what I can do is find the right stock, and follow up. Every quarter I top up. After salary top up. After company bonus I top up. After dividend in I top up. After commission in I top up. I can top up from 200k to 2 million shares in 10 years in ONE stock is purely on understanding the business growth prospects. I buy at the end of every quarter report at a price I think is fair.

This is real investing. Not some made up magic chart mirror.

You can do meh? Buy 200k INSAS low, sell high. But 500k INSAS low sell high. Buy 1 million low sell high. Is that even a feasible method? Your balls made of platinum?

Come on lah,

I've tried it your way. It doesn't work. Kyy does it your way. Look where it went in the end.

I've been in the market for almost 20 years.

I no longer do stupid, especially when I'm never lucky.

>>>>>>Do not get the misconception that value investment cannot get goocomparable return like growth stock QL and scientex loh...!
19/02/2019 10:41 AM
stockraider U use your brain n calculate lah...!!
The 19% insas hold inari is already equal to the whole insas mkt cap despite the reduce price of inari mah.....!!

On top that insas hold just cash alone is equivalent to rm 300m already more than rm 0.60 of the mkt cap of insas loh...!!

So inari down apa hal leh ....insas already very undervalue with big margin of safety, so apa hal leh ??

On top of that insas nta Rm 2.54 does not include the mark to mkt value of inari...bcos inari is value less than Rm 0.40 in insas book nta calculation loh...!!

If u based on mark to mkt value of inari u need to add another Rm 0.80 per share to insas book value loh...!!

Thats why inari share price drop insas tak ada hal mah...!!

This is no tipu loh...!!

Posted by trapped > Jan 17, 2019 08:54 PM | Report Abuse

Many trap here so must cheat?


trapped
26 posts
Posted by trapped > Jan 17, 2019 08:55 PM | Report Abuse

Why Inari down from RM 2 cannot up nobody admit? When Inari up many said Insas got gain why down time must tipu?
19/02/2019 10:42 AM
stockraider The beauty of Insas....!!

1.CASH IS THE KING- IF U BELIEVE....THEN U MUST BELIEVE IN INSAS HATHWAY A TRULY WARREN BUFFET STOCK LOH...!!

2. SUP SUP SUI INSAS GENERATE SUSTAINABLE PE ABOUT 6X BEATING AEONCR WITH PE 12X BY A MILE.

3, INSAS PAYS 2 SEN DIV...THIS DIV YIELD EVEN BEAT NESTLE N QL DIV YIELD BY A MILE LOH...!! U NEED TO UNDERSTAND WHY NESTLE & QL CANNOT EVEN PAY DECENT DIV COMPARE TO INSAS LEH ?? THIS IS BCOS THESE SO CALLED GROWTH STOCKS WITH PE ABOVE 50, CANNOT GENERATE GOOD CASHFLOW, THEIR PROFITS ARE STUCKED IN EQUIPMENT, DEBTORS AND INVENTORY WITH SUBJECT TO IMPAIRMENT, WHEREAS INSAS MAKE ITS MONEY IN CASH N JUST SUP SUP SUI LOH.....!!
19/02/2019 10:42 AM
stockraider U NEED TO ASK THIS VERY INTELLIGENT QUESTION WHY INSAS IS MUCH SUPERIOR THAN MOST OF THE BLUECHIPS & GROWTH STOCK MAH ?? :

Posted by stockraider > Jan 18, 2019 08:19 PM | Report Abuse X

U ask yourself what type of earning power ??
When Nestle earnings yield is less than 2% pa based on PE above 50%...even u put monies in fixed deposits u get an earning power of 4% pa mah....!!

If u buy insas got earning power as Pe less than 10x...earning yield already exceed 10% pa mah...!!

Margin of Safety for those who are invested in Nestle, DLady, PBB, Petdag and HEIM, as explained and taught by Benjamin Graham, the father of value investing.
:thumbsup: :thumbsup:

In the ordinary common stock, bought for investment under normal conditions, the margin of safety lies in an expected earning power considerably above the going rate for bonds.

Over a ten-year period the typical excess of stock earning power over bond interest may aggregate 50% of the price paid.

This figure is sufficient to provide a very real margin of safety— which, under favorable conditions, will prevent or minimize a loss.


stockraider
9093 posts
Posted by stockraider > Jan 18, 2019 08:31 PM | Report Abuse X

U need understand what is real earning power loh...!!

Insas ROE only 4% pa....but based on rm 2.54 u generating eps of Rm 0.10 pa loh....!!

so if u buy insas at rm 0.70 u r getting yield of 14% pa....this is what we call earning power loh...!!


stockraider
9093 posts
Posted by stockraider > Jan 18, 2019 08:49 PM | Report Abuse X

Nestle ROE very terror 120% pa with NTA of Rm 3.00 it generate earnings of Rm 3.60....but u need to buy nestle for Rm 140.00...so ur earnings yield is less than 2.6 % pa loh...!!

Now u compare nestle 2.6% pa v insas 14% pa, u ask who got more earnings power leh ??
Of course Insas mah...14& pa warnings yield even kindy student understand 14% pa is more than 2.6% pa mah..!

But growth proponent may argue, nestle have growth woh ??

Raider ask very logical question loh...how much growth & for how long nestle need to grow from 2.6% pa to catch up with insas yield of 14% pa even, if u assume insas has no growth at all loh...!!

The answer is very long and very uncertain when nestle can catch up mah...!!

An english old saying a bird in hand is better than 2 in the bush mah...!!
Insas yield is already there with 14%pa...now u want to speculate nestle yield 2.6% pa can catch up, but when leh ??

Thus insas has definitely has higher margin of safety than nestle loh..!!


Posted by stockraider > Jan 18, 2019 05:59 PM | Report Abuse X

The beauty of Insas....!!

1.CASH IS THE KING- IF U BELIEVE....THEN U MUST BELIEVE IN INSAS HATHWAY A TRULY WARREN BUFFET STOCK LOH...!!

2. SUP SUP SUI INSAS GENERATE SUSTAINABLE PE ABOUT 6X BEATING AEONCR WITH PE 12X BY A MILE.

3, INSAS PAYS 2 SEN DIV...THIS DIV YIELD EVEN BEAT NESTLE N QL DIV YIELD BY A MILE LOH...!! U NEED TO UNDERSTAND WHY NESTLE & QL CANNOT EVEN PAY DECENT DIV COMPARE TO INSAS LEH ?? THIS IS BCOS THESE SO CALLED GROWTH STOCKS WITH PE ABOVE 50, CANNOT GENERATE GOOD CASHFLOW, THEIR PROFITS ARE STUCKED IN EQUIPMENT, DEBTORS AND INVENTORY WITH SUBJECT TO IMPAIRMENT, WHEREAS INSAS MAKE ITS MONEY IN CASH N JUST SUP SUP SUI LOH.....!
19/02/2019 10:43 AM
stockraider Thats why i m saying u r not that smart loh...Mr long loh...!!

If u buy insas even if no growth say u get 4% yield pa....but u pay rm 0.70 for rm 2.54 worth of assets mah...!!

Thus rm 2.54 x 4% pa ur return is rm 0.10 per share loh...!! Rm 0.10 per share profit on insas agst ur investment cost of rm 0.70 already got yield or return on investment of 14% pa...so u chinchai already got 14% return every year loh...!!

So there are 3 potential gain on insas if u buy cheap mah;
1. The discount of rm 2.54 for rm 0.70 u already save rm 1.84 per share
2. U getting fixed about 0.10 cashflow...that give u yield 14% pa.
3. There is some potential for earnings growth loh..!!

Compare QL
For Ql u get less than 1% pa div yield & PE 50x....that will require about 50 yrs to 1000 yrs to get back ur capital...yes u can rely on growth but how much & how long it require to catch up with insas leh ??

For all u may know....it will never catch up loh...!!

Conclusion
Insas value is already there mah...!!

For QL u hope ur value can grow & grow to catch up with insas loh...!!
But insas already there & far ahead of u mah....!!
19/02/2019 10:44 AM
stockraider This fellow Mr LONG don understand the dynamics of value investment & margin of safety loh...!!

Put it this way warren buffet advocate...the 1st tenet of investment is not lose mah...!!

If u buy insas at Rm 2.54 with its strong fundamental with cash per share Rm 0.70 per share & NTA rm 2.54 per share can lose meh ??

So if u buy insas u r very safe & comfortable mah....just the cash alone is already equal to the share price mah....!!

So people may claim value trap ??
Raider ask what value trap leh ??
U get div yield of 3% pa n with compound growth rate of 12% pa mah...!!

It is buying overvalue counter like QL at rm 6.80 with PE more than 50x and, where this co can only afford symbolic div of less than 1% pa...that is where raider see is a big potential value trap loh...!!

Just like Top glove suddenly crash 50% from pe 45x to 24x....slashing the share price by almost 50% loh...!!

QL share has this danger of falling & crashing suddenly just like top glove loh and sifu calvin is right to warn mah..!!
19/02/2019 10:45 AM
stockraider Correctloh...there are many way to skin a cat mah....!!
There are many ways to make monies mah..!!

U say insas no good....but raider has been making 100% return based on value investment buying insas at rm 0.45 n selling for more than rm 1.00 loh.....!!

Today insas financial is even stronger with cash Rm 0.70 per share & Nta rm 2.54 and it selling for almost for free at Rm 0.705 mah...!!

What u has been arguing with me, is as if QL cannot crash like top glove, but if u speak to diehard supporter 2 mths ago, they will talk like u too mah...!! See what happen to topglove ??

Posted by 10154899906070843 > Jan 14, 2019 12:14 AM | Report Abuse

Stockraider storytime and real world application are very different.

Many investors bought INSAS at rm1, rm0.9, 0.8 and proceed to hold for 3-5 years with paper losses using your EXACT same thought patterns. This has been done since 2015 every year sometime brings this up. At the same time you can buy inari, high PE growth stock and do very well for yourself. Or you could have bought QL and do even better for yourself. The point is all your idea of nta and margin of safety is useless if you don't know the business. You can have rm15 nta and it would mean nothing to you as a minority shareholder if you cannot have stock performance or dividend growth. It is worse when the majority shareholder or fund managers also does not share your confidence.

The only reason this escapes you is the single fact that no one including yourself stockraider is willing to pay rm1.5 or more for INSAS.

Why? Why are you not willing to pay 1.5 for a stock you so firmly believe is worth rm3. Please tell me that. Just a simple answer to a simple question. I know it is worth nta rm3. I do know value investing, I know you are trying to buy cigar butts lying on the ground. And yes there is a significant margin of safety, if you paid 1.50 you will get 100% profit if INSAS sells at nta.

You know why? just because INSAS is undervalued, has wonderful nta does not make it a wonderful company. If investing is simply just a ratio of nta, then it would be very simple to make money in the stock market.

But it is not.

Same opposite reason, you did not invest in topglove, QL, public bank and yinson because you think painting is only about 3 primary colors.

As long as PE entire than 30, it is immediately a bad stock.
19/02/2019 10:46 AM
stockraider Remember this investment maxim mah...!!

Posted by stockraider > Jan 13, 2019 03:06 PM | Report Abuse X

RAIDER AGREE SHARE IS CHEAP FOR A REASON LOH...!!

BUT U MUST THEN ASK THE NEXT VERY INTELLIGENT QUESTION, IS IT CHEAP FOR THE RIGHT REASON OR CHEAP FOR THE WRONG REASON MAH.??..!!

IF IT IS CHEAP FOR THE WRONG REASON U MUST BUY LOH....BCOS PEOPLE DON UNDERSTAND THE BIG MARGIN OF SAFETY THERE LOH....SO WE MUST BUY BIG BIG IN FACT VERY BIG LOH...!!

IN A WAY INSAS HATHWAY CURRENT SHARE PRICE AT RM 0.705 IS A VERY BIG OPPORTUNITY MAH...!!

Insas hathway is like berkshire hathway same same mah....!!

Insas will be rerated very soon loh....!!

Don miss this wonderful opportunity loh....!!

Insas has the positive points;
1.It has Huge margin of safety with NTA rm 2.54 v share price rm 0.705.
2. It pays good div of rm 0.02 given div yield close to 3% pa slightly better yield than nestle loh...!!
3. It has nett cash of Rm 300 million giving it, cash per share of rm 0.70, in fact if u buy insas now at rm 0.705, u almost getting the whole insas for free loh..!!
4. Insas has unbroken 10 yrs track record of making profit between rm 0.06 to rm 0.30 per share.
5. it hass 10 yr compound rate of return of 12% pa growing its nta from rm 1.10 per share to rm 2.54 per share loh...!!
6. The business model of insas is like warren buffet berkshire hathway very impressive but unlike berkshire, it is minus the expensive share premium u need to pay in the case of berkshire loh..!!
7. Insas is really msian berkshire hathway loh....in simple term u may call it insas hathway loh....!!

Posted by 10154899906070843 > Jan 13, 2019 01:14 PM | Report Abuse

Well said. When a stock is cheap, look for the reason a stock is cheap.

If a stock is cheap for a temporary reason, then it becomes value investing.

If a stock is cheap for a permanent reason, then it becomes a value trap.

When you look at the situation if INSAS, you come to the question:

When can I reasonably expect the temporary undervaluation of INSAS to be resolved to it's proper price?

If your answer is I don't know when it will resolve, how it who will resolve it, or why would they?

Then you are better off not owning INSAS.
19/02/2019 10:47 AM
stockraider Mr Long,

U R talking rubbish, this a start up no track record loh...!!

Look carefully at insas hathway 10 years of uninterrupted profit with compound growth of 12% pa mah....selling for almost for free mah..!!

U understand value or not ??

Insas is a truly a msian berkshire hathway it has shown growth good time & bad time just that msian don know how to evaluate mah...!!

Just look at the amazing growth track record of value creation of insas

Sept 2018- Nta rm 2.54

Dec 2017..Nta rm 2.49

Dec 2016 ...Nta Rm 2.18

Dec 2015..Nta Rm 1.96

Dec 2014..Nta rm 1.82

Dec 2013 nta..rm 1.71

Dec 2012 nta ..rm 1.51

Dec 2011 nta..rm 1.38

Dec 2010 nta...rm 1.22

Dec 2009 nta ..rm 1.14

Now if u look at the above over 10 yrs...insas has been creating value with growth every yr without fail with gain of rm 0.06 to rm 0.30 per yr without failed mah...!!

For the 10 yrs insas equity has grown from rm 1.14 to rm 2.54 per share an amazing rate of return growth exceeding exceeding 12% pa loh...!!

Posted by 10154899906070843 > Jan 14, 2019 10:06 AM | Report Abuse

Haha finally, I was wondering when somebody would come over and promote FINTEC as the new INSAS.

Look! It is an incubator with 200 million in assets selling at only 42 million.

It's nta is crazy!, It's got lots of cash, it owns well running pubs and bars in KL and it does everything from biotech, to oil and gas to many many things. Including fintech.

They are doing esos for 0.10 cents, and it's been snapped up by all it's staff!

And some more share price is only 0.07 cents. How wonderful!

The margin of safety for this company must be brilliant.

And if I sell my QL shares I can get 25%-30% of this wonderful company!

Best thing is, it's revenue for record quarter is 2 million, but gain from sales of marketable securities which they don't need to pay income tax have them a net profit of 40 million! Isn't that wonderful? 2000% margin.

Stockraider, what now you want? Got nta, got depressed share price. This stock with at least rm0.30 cents!

Buy buy buy!

P.s. this is pure sarcasm. The reasons not to buy FINTEC is even more apparent than the reasons not to buy INSAS. Those who are not smart enough to value stocks should stop recommending them.
19/02/2019 10:48 AM
stockraider LETS BE HONEST LOH....!!

HOW COULD INSAS HATHWAY BEING TERRIBLE WHEN HE GROW THE SHAREHOLDER EQUITY VALUE BY COMPOUND RATE OF 12% PA FOR THE PAST 10 YRS FROM RM 1.10 PER SHARE TO RM 2.54 PER SHARE LEH ??
IN ADDITION IF U CHECK FAMOUS BERKSHIRE HATHWAY IT ALSO BEEN GROWING AT THIS TYPE OF RATE....NOTHING SPECIAL MAH...!!

THE OTHER ISSUE OF INSAS IS THAT ITS LOW DIVIDEND PAYOUT DESPITE HUGE RETAINED EARNINGS, IN WHICH GENERAL RAIDER ALSO AGREE LOH..!!
HOWEVER THIS ISSUE HAS BEEN IN A WAY ADDRESS WHEN INSAS PAYS RM 0.02 DIV EQUIVALENT TO SLIGHTLY BELOW 3% PA YIELD BASED ON SHARE PRICE OF RM 0.675 LOH...!! THIS YIELD IS COMPARABLE & SLIGHTLY BETTER THAN NESTLE DIVIDEND YIELD LOH...!!
PUT IT THIS WAY INSAS HATHWAY HAS A 3% DIVIDEND YIELD PA WHEREAS BERKSHIRE HATHWAY DON PAY ANYTHING, IN A WAY INSAS SCORE BETTER THAN BERKSHIRE IN THIS AREA MAH....!!


Insas hathway is like berkshire hathway same same mah....!!

Insas will be rerated very soon loh....!!

Don miss this wonderful opportunity loh....!!

Insas has the positive points;
1.It has Huge margin of safety with NTA rm 2.54 v share price rm 0.705.
2. It pays good div of rm 0.02 given div yield close to 3% pa slightly better yield than nestle loh...!!
3. It has nett cash of Rm 300 million giving it, cash per share of rm 0.70, in fact if u buy insas now at rm 0.705, u almost getting the whole insas for free loh..!!
4. Insas has unbroken 10 yrs track record of making profit between rm 0.06 to rm 0.30 per share.
5. it hass 10 yr compound rate of return of 12% pa growing its nta from rm 1.10 per share to rm 2.54 per share loh...!!
6. The business model of insas is like warren buffet berkshire hathway very impressive but unlike berkshire, it is minus the expensive share premium u need to pay in the case of berkshire loh..!!
7. Insas is really msian berkshire hathway loh....in simple term u may call it insas hathway loh....!!

Posted by 3iii > Jan 13, 2019 07:38 AM | Report Abuse

INSAS


NET PROFIT (,000)

90,369 [2018]
180,511
77,973
92,483
160,684
64,468
10,699
102,365
60,893
57,097 [2009]

Total earnings from 2009 to 2018 = 897,542,000


Dividends (,000)

6,630 [2018]
6,630
6,631
6,635
6,655
8,831 [2013]
-
-
-
- [2009]

Total dividends distributed from 2009 to 2018 = 42,011,000

Total Retained Earnings from 2009 to 2018 = 855,531,000


From years 2009 to 2018:

Incremental growth in earnings 33.272 m
Retained earnings 855.531 m
Returns on retained earnings 3.89%.


Conclusions:

Insas is a terrible company in allocating its capital when compared with BERKSHIRE HATHAWAY.

Shareholders of Insas should agitate for more distribution of its earnings given the poor return on retained earnings.
19/02/2019 10:50 AM
stockraider Why raider post insas story in this socalled Calvin Tan Chun Chun thread leh ??

1. This Calvintan says Insas is a chun chun stock mah...!!

2. To counter Philip bad mouthing of Insas here loh...!!

3. Philip says this is Pchem thread...but he use Calvin Tan Chun Chun call mah...nothing here says PCHEM thread mah....!!

Thats why it is ok for raider to post INSAS here loh...!!
19/02/2019 10:56 AM
stockraider Despite Raider trying to be good to Mr Philip bcos raider agree to disagree but this Philip attitude is "very lansi" loh...this may invite allout war from General Raider loh...!!

"Yeah Stockraider, can enough? Everyday post same post. Are you trying to brainwash people or something? Please go other thread and post your insas Hathaway. I think everyone here gets the message and those who want to buy already done so. I won't put a single cent in your stock choices. Can you go find other people to disturb? You more lohsoh than choivo.
Even Leno INSAS bull cannot tahan you."

But philip is the 1 that talk bad of insas hathaway mah...!!

Posted by (S = Qr) Philip > Feb 16, 2019 12:52 PM | Report Abuse

Do you think I will so silly pump in his money now in stocks like Sapura and Insas?
Think a bit. Understand risk. Your concept of margin of safety means nothing if your management decides to invest in weird companies like biotech and fintech and failed investments.

Just read about this:
https://www.thestar.com.my/business/business-news/2015/06/27/insas-cre...
this was in 2015. Insas had 30% of inari, sold its shares to buy crap like numoni.
Where is numoni now?

Now insas buys biotech company sengenics. That buys biotech assets in brunei, of all places. Brunei where got any talent or growth in biotech. Doesn't that raise any question marks?

then your insas buys vigsys sdn bhd. this vigsys:
http://www.vigsys.net/
Would you even buy anything from this webpage? or their vigcash in mongolia?

How about this? This is also an insas subsidiary.
http://www.jcpacific.com.my/
Would you buy anything from this company?

How about this? This is also INSAS subsidiary.
https://www.iprac.com/
In the age of UBER and GRAB, when was the last time you rented a car in SINGAPORE?

How about this? This is insas franchise.
http://www.domecafe.com.my/
Can you name me off the top of your head where is your nearest dome cafe. Ask your kids if they have gone to dome recently? Old town? Starbucks? Which is more popular and with better products/marketing?

How about this? This is INSAS core business.
https://www.mnaonline.com.my/
Do a survey, ask yourself. When you buy stocks, do you even use M&A stockbroking services? Why not? Which do you trust more? Hong Leong? Public Bank? Maybank? If you as a INSAS shareholder don't even use your own products, what does that say about the company?

I could go on and on with the kind of bullshit INSAS buys:
On 25 July 2018, Insas Technology Berhad (“ITB”), a wholly-owned subsidiary of the
Group had disposed off 12,000 ordinary shares, representing the entire shareholding in
Vigcashlimited LLC (“Vigcash”), to Mr. Sanj Natsagdorj for a total cash consideration of
USD1,500 (“Disposal”). Arising from the Disposal, Vigcash ceased to be an indirect subsidiary company of the Group. Vigcash was incorporated in Mongolia on 7 December 2005 and its issued and paid-up share capital is USD10,000. The Company is currently dormant and the net asset value of
the Company is USD31.

Inari was a 1 shot lucky pony, that the dad bought. He is now retired, step down. Replaced by his son. Who is buying all of these companies with the money his dad earned. You see any future in these companies? Where is your margin of safety calculation in a son that uses all the goodwill of previous management to buy these crap?

U NEED TO UNDERSTAND PHILIP IS WRONG LOH...INSAS IS LIKE BERKSHIRE HATHAWAY THATS WHY THEY DO MANY BUSINESS MAH...NOTHING WRONG MAH WHEN THE BUSINESS ARE SOUND MAH...!! IF NOT HOW CAN INSAS MAKE SO MUCH MONIES WITH NTA RM 2.54 EQUIVALENT TO 65% OF PCHEM NTA LEH ??
19/02/2019 10:59 AM
(70B-SAPNRG-3Yrs) Philip Can you just go away? Please start your own thread so people can reply to you. You are just drowning other people's post and posting recycled information just for your own enjoyment.
19/02/2019 2:35 PM
(70B-SAPNRG-3Yrs) Philip No one wants to declare any war with you. No one cares about you or your existence. No one is interested in replying your message. I think thanks to you from now on all further blogs I do I will disallow posting of replies.
Very low class speculator. Totally zero temperament to be an investor. I highly doubt you invested 200k in INSAS. Since when is investing a competition?

Bye kid. I will stop replying you at all from now on.
19/02/2019 2:47 PM
(70B-SAPNRG-3Yrs) Philip edited title. this is not an insas thread. please stop posting insas here and polluting pchem discussion. please post elsewhere.
19/02/2019 3:14 PM
titus Wah lau stock raider, u spamming other ppl tread ah? If the information you share is good also become no good a'dy la. I read the 1st 2 and then wah lau, see so looong.....i skip all the way down. So hard sell for wat? Share not moving? Have some patient la. For insas is not immediate like Pchem. Fast, 4-6 yrs loh. Long, wait 10-15 yrs loh....sure up 1
19/02/2019 3:17 PM
Choivo Capital Ok PCHEM is interesting.

Your reasoning seems to make sense. However, would be great if you write them out in full, with the numbers etc.

Thanks in advance.
05/03/2019 12:46 PM
stockraider Put it this way loh...despite Philip desperation promotion of Pchem, Raider bet this Pchem stock is a so so investment cannot even beat speculative sapnrg if u bet 1 yr loh...!!

Don believe just mark raider words loh...Pchem Rm 9.19 v sapnrg rm 0.315 and check it over 1 yr on 4-3-2019 loh.....!!
05/03/2019 4:17 PM


 

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