Koon Yew Yin's Blog
Summary of my investment talk - Koon Yew Yin
Koon Yew Yin
Publish date: Mon, 11 May 2015, 11:06 AM
Koon Yew Yin
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An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.
All materials published here are prepared by Mr. Koon Yew Yin
All materials published here are prepared by Mr. Koon Yew Yin
The Charity for refugees event is organized by Malaysian Finance Blogspot at Bentley Music Auditorium, Mutiara Damansara, Kuala Lumpur, on 9th May 2015. I was invited to give a keynote address on equity investment.
After having read the investment philosophies of Gurus like Warren Buffet, Benjamin Graham, Charles Munger, Peter Lynch and a few others, I would like to recommend you to read one book which covers all the famous Gurus called “Valuegrowth Investing’ by Professor Glen Arnold.
Most of the investment philosophies of these famous Gurus are not applicable in Malaysia because we do not have companies like Berkshire Hathaway, Coco Cola or McDonald which have long term competitive business advantage for long term investment, which we can buy to keep for our children and grand children. We have to select Malaysian listed companies stocks based on shorter term prospective.
As you know there are so many selection criteria such as P/E ratio, NTA, Cash flow, Company’s amount of Bank loan etc. From my long experience, I consider the most important selection criterion is profit growth prospect. As we have limited funds and there are about 1,200 listed companies, we can carefully pick and choose the few really good shares with exceptional qualities to invest.
My one golden rule for share selection
The company I choose must be able to make more profit in this current year than last year because when it announces a reduced profit in its annual accounts, the share price will most likely drop. If the annual profit is better than the previous year, the share will most likely go up. Of course the share price will continue to rise if it can continue to make increasingly more profit and reassuring investors that the company has very good profit growth prospect.
My largest holding is VS Industry:
I selected this electronics manufacturing company because it is so cheap in terms of P/E ratio, ROE and other criteria in comparison with the 2 famous leading electronics manufacturers in Malaysia as shown below:
Name Half Year EPS Half Year Revenue Share price P/E ratio
Globtronics 13 sen Rm 180 million Rm 6.10 23
MPI 23 sen Rm 670 million Rm 7.00 15
VS Industry 27 sen Rm 1,010 million Rm 3.96 8
VS has a total of 9 factories in Johore, China, Vietnam and Indonesia. VS employs 15,000 workers which is more than the total number employed by MPI and Globtronics.
Their largest customers are Keurig. Dyson, Sony, Sumsung, Panasonic etc. They have been in this business for 30 years.
My 2nd largest holding is Latitude Tree:
I selected this furniture manufacturing company because it is so cheap in terms of P/E ratio, ROE and other criteria in comparison with all the listed company shares I know.
Latitude Tree is the largest Malaysian listed furniture manufacturer. It has 3 factories in Johore, 2 factories in Vietnam and one factory in Thailand. 100% of its products are exported to about 20 countries for US $. Due to our Ringgit weakness, it has additional profit growth advantage as shown below.
Its 1st Quarter EPS is 17 sen and 2nd Quarter EPS is 28 sen totaling 45 sen for 1st half year. It has very strong cash flow without any bank borrowing. We can expect to see a better EPS for the 2nd half year. The total EPS for the year will be about Rm 1.00 while its EPS for last year was 56 sen.
On 13th Dec 2014, about 6 months ago, I gave a similar investment talk at Calgary Hall, Kuala Lumpur. Latitude was selling at Rm 3.50 and VS was selling around the about same current level. Many of the attendees who have bought Latitude wrote to thank me for helping them to make some money.
The share price of Latitude has been going up from Rm 1.00 to the current level of Rm 6.00 in the last 24 months.
What would be the reasonable price for Latitude if its annual EPS is Rm 1.00?
Our famous Mr Ooi Teik Bee agrees with me and he would show on the screen with his financial and technical analysis of VS and Latitude Tree to support my selection.
How to use Margin finance to improve your profit?
CIMB is offering loan for share investment at 4.8% pa interest. At that low interest rate, most of you should be able to pick stocks that give you a higher return. To use margin effectively is to use up to about 75% of loan limit to avoid margin call in case of serious market correction.
As you know all shares will not go up or down indefinitely for whatever reason. You must sell some of the shares you bought with margin loan when they have gone up more than 10% so that you have funds to buy during market correction. In this way, you will be able to improve your profit.
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Discussions
1 person likes this. Showing 50 of 54 comments
He wants to unload non perform VS,
so encourage people borrow money buy shares.
This is not investment,
this is gamble.
What a stupid suggestion.
2015-05-11 13:52
Sorry I'm just a beginner in term of share investment. May I know which is the easiest way for me to view any company's financial report? Probably any blogspot? Thanks
2015-05-11 15:39
KYY should do a portfolio for public like what Tong Kooi Ong did on the Edge. When to buy, when to sell, even if it is not the real one. At least we know what happen to other stocks that is promoted like JTiasa, Mudajaya, Insas, and everything else.
2015-05-11 15:43
How to use Margin finance to improve your profit? This is what KYY suggested if you want to improve your profit, use OPM. But this is definitely against my investment philosophy.
買股是為了增加生活情趣, 小賭怡情, 大賭傷身
不使用保證金融資,就能先免后顾之忧.
2015-05-11 16:16
After Jtiasa's case your reputation is pretty much down the longkang liao. Now wanna unload vs n latitude? I thought you say you will not openly "recommend" any stocks already?
2015-05-11 17:45
yes, yes I also think not so appropriate to say one thing and do another ! a bit shameful perhaps ....
2015-05-11 18:23
Never buy shares through margin financing. The stock market is not a place to gamble but to invest prudently using one's excess fund not our hard earned money.
2015-05-11 18:27
Hahahahahaha...uncle Koon getting better kooning sohigh..the older he get, the more believable...charge RM200 to listen to him super ego stories, then recommend stocks he bought cheap last year. You don't have money take margin account loh...hahahahahaha. You think he is altruistic meh?
2015-05-11 18:28
Margin acc. is useful after a serious market crash but not when the market is approaching the end of bull run, I don't know how long this secular bull will last but I'll not use margin at this moment; in fact I'm keeping a certain % of cash now.
2015-05-11 20:15
never,never,never leverage.do not ever use margin to trade because it will always lose.a quote from a friend .The illusion of wealth without work.pls be very careful.
2015-05-11 21:46
If no money to buy at current high price from me, can borrow margin from CIMB at low interest 4.28%....when VS n Latitude hits RM10 then you will be very rich
2015-05-12 09:09
By then u can call yrself Cheras Warrent Buffet or Balakong Warrent Buffet etc...depends on where you are staying...
2015-05-12 09:10
self proclaim malaysia warren buffett..hahahaa...insulting alot of serious and great malaysia investor
2015-05-12 09:12
Self proclaimed Malaysian Warrent Buffet, self proclaimed Super Investor, kaki kong kaki song
2015-05-12 09:14
every year in Icap Investor Day, Tan Teng Boo quote Warren Buffet. Every year!
2015-05-12 09:39
Hahahahaha...self appointed Koon Warren Yew Buffet...also self promoting founder of Gamuda, Mudajaya...also self proclaim charitable person of they year...same story repeat for last 10 years....only jumping from one investment forum to another. Last time in i3 10/10 believe in him. Then reduce to 5/10. But now only 1/10....hahahahaha
2015-05-12 19:06
Ppls are not stupid la...."koon" ppl many times u think ppl still wan kena koon ah
2015-05-12 20:22
Uncle, If I loss my margin to buy VS & Latitude.
Are you helping me to pay my margin debt?
2015-05-12 20:35
Ur loss is his gain...dont worry..he will go do charity with the money he earn frm u..
2015-05-12 20:40
What makes koon koon to think that he could use the same trick to Cari makan in i3 again n again??hmmm.......
2015-05-12 20:40
Enough is enough. Having been conned in Mudajaya & Jayatiasa, once bitten twice shy. No more Latitude and VS for me.
2015-05-12 20:47
Hello truthseeker1,
This is my 4th time to write to you. Hope this comment find you well.
I was wondering why you have such a perception(been conned) from Mudajaya & Jayatiasa or Mr Koon?
I personally think that no any one of the three(3) parties have instructed/forced/obliged to guide/lured/seduced/implied you to buy in any counter. I have seen you expressed your frustration twice in this forum. May I ask should you need to revise your trading plan so you would have better risk management in future trading.
Please dont quote me wrong as I am not pointing at you or any party should accountable & responsible upon the mismatched investment outcome.
Trading is similar to any business with some difference in nature of activity. One should factor in( to adapt and accept) the gains and losses for the long run.
I hope in your next chapter of investment life there will be no "conn" vocabulary appears on ur thinking again. The conn word must not be applied after investment BUT SHOULD BE EVALUATED BEFORE THE INVESTMENT. bEFORE YOU decide your place order, ask twice and double check whether THIS IS FEASIBLE TO BUY and HOW HIGH THE RISK TO GET CONN ..............
Hope my feedback sound logic to you....
I am not sure how much is your largest investment before. If you are accountable for billions fund you would not rely on others but ONLY YOURSELF. Just share my experience here.
Posted by truthseeker1 > May 12, 2015 08:47 PM | Report Abuse
Enough is enough. Having been conned in Mudajaya & Jayatiasa, once bitten twice shy. No more Latitude and VS for me
2015-05-12 22:59
Learnt from mistake and avoid it in future. Dont fall into the same trap again n again, just because it's some VIP calling etc...
2015-05-13 08:25
typical loser, blame this blame that blame everything but the decision maker is you yourself leh. Want fast money, go genting or visit future billionare zhang jian la bro.
2015-05-13 17:18
Melvin G,
sound like U know wher is my No.1 Idol Zhang Jian.... he is my No.1 Idol leh....
I watch his video clips very often... I like his style....
do u mind to hint wher is he?
2015-05-13 17:19
murali...
wah?????????????? LPPL and PLP also can pakai here ar???
hahahahaha...............so creative everybody..Ichiban neh yok
2015-05-13 20:31
I really admire their talent..no everybody can PLP one...if he join umno can do better job than ahmad mazlan
2015-05-13 20:35
Just bcoz somebody is rich,he then deserved to be treated like god...no matter what they did??
2015-05-13 20:37
i feel like winning the world attention on the Internet forum
I am so proud
My friend also proud of me
2015-05-13 21:34
Sincerely I also follow his advice on jtiasa and mudajaya, but funny is why i didnt notice he mention lattitude or vs before this share shoot up.
2015-05-14 00:42
normally he will only tell you when he is about to sell or you will see share price already shot up at least 30% or some even 100%, then only he will start telling everybody
2015-05-17 23:26
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CS Tan
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
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Hahahahaha...old man very cunning....quiet2 not mention his Insas...until of course Insas already 3.00 then ask sohigh to buy using margin account
2015-05-11 11:38