In Search of Excellence: Investing in good companies - kcchongnz

In Search of Excellence: Investing in good companies [PRKCORP] - Pass

Tan KW
Publish date: Sun, 11 Aug 2013, 11:30 PM
Tan KW
0 430,470
Original discussion on http://klse.i3investor.com/servlets/forum/900255072.jsp

This is an effort to collect the discussions and tidy up in a blog format.

Posted by kcchongnz > May 25, 2013 04:55 PM

Ben, I have a strong opinion that Perak Corp is not a good company. for one I doubt it has good corporate governance being a state-owned company. Its business is not durable because after selling the land, what else? What kind of growth would you expect? Its ROIC is pathetic at only 6%, way below the cost of capital. 

However I think it could be a great investment at this price. 

Good company?
Good governance No
Durable business No
Growth Neutral
ROIC No 6% Balance sheet Yes

Screens for investing
ROIC No
P/B Yes 0.4 <2.0 
PE ratio Yes 5.2 <20

 

 

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