Posted by kcchongnz > May 29, 2013 03:15 PM | Report Abuse X

Posted by faberlicious > May 28, 2013 11:13 AM | Report Abuse 
bro kcchong, how about taking a look at Gkent ? Profitable every year,pays a dividend ,healthy balance sheet. Do you think its a good company to invest in? 

The topic discussed in the investment strategy in this thread is about a good company. So is George Kent a good company? 

George Kent involves in the water industry in Malaysia for a long time principally in manufacturing and marketing of water meters, fittings, fiberglass panel tanks and a variety of hot-stamped brass products and components. It certainly has its niche in the market. If i remember correctly, it even got a package of LRT construction recently based on its political connections though they have no experience at all in that field. Umm it relies on political connection to get big jobs like that and of course they would sublet out the work to some Chinaman companies to execute the work. Not really my kind of contractor. I prefer contractor who has its own expertise to secure jobs, good margin jobs and execute the work and have control over everything. The company which straight come into my mind is of course Pintaras Jaya. 

Nevertheless, below is my assessment of GK. Not too sure if it is a good company although it meets the ROIC and cash flows requirement, but certainly it is not expensive to buy this stock. However the strategy here is to invest in good company and check to ensure the price is too high to invest. Hence for me, I will let this go. 

George Kent a Good company?
Good governance No
Durable business Neutral
Growth Neutral
ROTC Yes 13% >WACC 
Balance sheet Yes
Cash flow Yes

Screens for investing
ROTC Yes 13% >WACC 
P/B Yes 1.0 <2.0 
PE ratio Yes 8.6 <20