In Search of Excellence: Investing in good companies - kcchongnz

In Search of Excellence: Investing in good companies [YEELEE] - Fail

Tan KW
Publish date: Sun, 11 Aug 2013, 11:34 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 26, 2013 01:16 PM

Is Yee Lee a great company? Is it a good investment? 

Yee Lee has a durable business. It is trading at very attractive valuation too as shown below. My main problem is its very low margin and ROIC. So for me I will pass. 

Good company?
Good governance Yes
Durable business Yes
Growth No
ROIC No 7% >WACC 
Balance sheet Yes

Screens for investing
ROIC No
P/B Yes 0.7 <2.0 
PE ratio Yes 8.8 <20

 

 

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