Today when almost 800 counters crashed early in the morning NYLEX Stood Firm & Unwavering. Why?
NYLEX IS A STOCK OF ROCK SOLID VALUE. AND IT HAS GREAT GROWTH HIDDEN FROM VIEW.
Rock Solid Value? Great Growth Hidden From View? A Hiddem Gem? Are You Serious?
Yes! Why Not?
NYLEX - ROCK SOLID VALUE.
In The Book called "THE INTELLIGENT INVESTOR" By Benjamin Graham. The Most Important headline of Chapter 20 states,
"Margin of Safety as the Central Concept of Investment"
NYLEX is selling at 64.5 cents with High NTA of Rm1.65. A Huge Discount of 61% or over Rm1.00 (It Has Great Margin of Safety)
Why the Need for Safety in Investment? In real life we demand safety for many things.
Example: Driving up Genting Highlands. We make sure the brake is working properly. We are very concerned for the safety of our life and our loved ones. From time to time we hear of buses, cars, jeeps with faulty brakes making their descent from Genting. Then their brake failure! And the crash and lost of lives. All because they neglected the aspect of safety.
We also make sure our house has locks, safety alarm, remote camera. fierce dogs & even guards for our exclusive gated and guarded housing estates. Why? For safety of course.
We also make sure our money and valuables are kept safely in "Safe Deposit Boxes" both at home and in the Bank.
Then why are many so reckless when they come to share investment. The idea of being "safe" first is thrown to the wind. Thousands, tens of thousands, hundreds of thousands, even millions of dollars are invested in stocks without any thought of safety.
Not for Ben Graham - The Father of Value Investing.
The Central Concept of Investment is First & Foremost based on Safety or "Margin of Safety", to be more accurate.
What then do you liken with "Margin of Safety"?
Think of crossing a desert, a journey of 7 days. What animal except the camel could carry your loads across such dry and deserted lands? Ha! The camel has 2 humps which it store fat and water. So unlike other animals it can withstand drinking for 2 or 3 days without water. His 2 humps are the margin of safety that kept him alive while all the other animals perish with thirst.
So is a Company With Huge ASSETS BACK UP. THEY ARE "THE MARGIN OF SAFETY".
In emergencies these ASSETS COULD BE LIQUIDATED TO FEND OFF CREDITORS & PREVENT BANKRUPTCY.
Will NYLEX PASS THIS CRUCIAL TEST?
Let's SEE:
NYLEX Is 64.5 cents with NTA of Rm1.65. Selling at a discount of 61%.
Cent for cent, dollar for dollar in equal term would mean that
we should pay 64.5 cents Cash for 64.5 cents Assets. Ha! There is a Huge Surplus of Rm1.05 Spare Worth.
So We Are Paying 64.5 cents for Rm1.65 worth of shares!
And the EXTRA Rm1.05 "IS OUR MARGIN OF SAFETY" - The More The Merrier.
But go deeper and SEE clearer:
What are some of these Assets.
For brevity we look at just one Asset (please refer to 2015 Annual Report)
ASSET NO. 1
Factory
Nylex (M) Sdn Bhd..............................30,224 sq meter........Off & Factory................
Pesiaran Selangor..............................12,140 sq meter........Warehouse & vacant land................Total price: Rm18.961 millions
Section 15,
40200 Shah Alam, Selangor
Now let's calculate its worth.
30,224 sq meter + 12,140 sq meter = 42,364 sq meter.
Let's convert sq meter to sq ft = 42,364 x 10.763 = 455,963 sq ft
Now we get its cost per sq ft = Rm18.961 millions divided by 455,963 = Rm41.58
Here we are = The Land Cost of Nylex Factory is Rm41.58 per sq ft.
Now if you check the industrial leasehold land in Section 15 Shah Alam It is Rm250 per sq ft
WOW! Book Value Only Rm41.58 (Current Market Value Rm250 per sq ft)
So if Revalued NYLEX's Lands Will Go Up 600%
And that's land cost only. How Much are the Buildings Worth?
SEE if NYLEX's 20 over years old Assets are Revalued NTA Should Easily Cross Rm2.00? Rm2.50? or Rm3.00?
Any Real Estate Valuer in Shah Alam can help?
In any case THERE IS DEEP VALUE IN NYLEX's ASSETS!
Now Nylex has Assets!
Has Nylex Growth? Why earnings are miserable?
YES! OF COURSE NYLEX HAS GROWTH IF YOU KNOW HOW TO FIND IT?
Take a look at the latest quarterly report
From quarter to quarter
Total Net Net as Improved From Rm626.347 millions to Rm654.170 millions (Up Rm28 millions)
NTA has gone up from Rm1.56 to Rm1.65: An increase of 9 cents. Plus 2 cents dividend that means a 11 cents growth
11 cents growth for a share worth 64.5 cents.
It's a nice 17% Growth or P/E 5.86
Do you SEE what I SEE?
Never mind if we don't SEE Eye To Eye.
At Least DYNAQUEST CAN REALLY SEE! AND SO THEY LOADED UP.
What are you waiting for?
Regards,
Calvin
Good night
ZZZZzzzz....
GOOD MORNING,
It's almost 7am, Iskandar's Time
And Thought For The Day Regarding Nylex
On surface Nylex looks like a slow moving Plastic Stock. Not any more. Why?
Let me illustrate:
In Year 1992 I bought my First New Car. It was a Proton Saga 1.3 (12 Valve)
I drove up to Genting Highland with my family. Along the way I gave a ride to some friends. Ha! the car was packed with 7 people. Up up the car struggled up the mountain slope. It was a slow climb. The engine was under power.
I sold my Proton and bought a 2nd Hand Volvo 940 Turbo. Wow! Now got Turbo Power! Driving up Genting Highland was a breeze! What a change!
Yes! NYLEX was a slow boat. Not any more. Now NYLEX HAS TURBO POWER!
WHAT? What kind of power?
Power No 1
Falling Crude Oil prices. This Is The First Booster! All NYLEX Feed Stocks will cost less & less as Crude Oil Prices Fall lower and lower!
Power No 2
Fallen Ringgit. Nylex exports in US$. The Stronger the US$ the better the margin for NYLEX. See how furniture and glove stocks benefitted from strong US $
Power No 3
Ringgit weakened Greatly against the Chinese Yuan
Ha! Malaysian Products Now More Competitive than China made products?
NYLEX Will Make Inroads into many more countries. Now 25 nations & still growing!
Power No 4
Transpacific Partnership (TPP)
This one will add one more Turbo- Charged Power to Nylex. With tax reduced to zero NYLEX Can Beat Other Exporters to Canada, Vietnam, USA, Japan, Australia, New Zealand, as far as Mexico and Others
So here you go!
Like a Volvo with Turbo charged engine powering up Genting NYLEX NOW HAS 4 POWER TURBO.
NYLEX - GO GO POWER RANGER!
Further note
I have stayed in Genting Highlands more than 200 times. Never once I went inside the casino. I don't believe in gambling. So don't think wrong thoughts. Ok?
Have a nice and productive day.
Created by calvintaneng | Aug 23, 2024
Created by calvintaneng | Aug 22, 2024
Created by calvintaneng | Aug 03, 2024
any comment on NYLEX 1QFY16 earnings which has declined 42% yoy to RM1.71m?
2016-01-19 07:29
Fayetan,
Precisely market has misread Nylex's growth by looking at earnings decline from casaul reading that they have over looked this gem.
As I already pointed out that we must see the whole picture in totality.
Nylex growth is hidden in its NTA. NTA grew from Rm1.56 to a new high of Rm1.65.
Again we should not be concerned for one or two quarter growth if its long term trend is in tact.
Last time Kfima quarter to quarter result even show losses. Yet Kfima grew from 33 cents to Rm2.50.
Again look at Eg, Seacera & Hapseng - they revalue assets and booked them as profits. Nylex is hiding profits as assets. If Nylex want to follow them it can easily revalue assets and book them as profits, too.
So you must SEE the whole picture.
2016-01-19 08:44
One more thing. Last time Supermax trailed behind Top Glove & Kossan. While both Top Glove and Kossan shares prices rose people complained about Supermax's under performance.
SEE I called for a buy on Supermax at Rm1.60
Supermax turned Superman and crossed Rm3.20 (Up 100%)
Like Supermax NYLEX is a mispriced stock
2016-01-19 08:48
Good morning to Leno the cute cat.
Nylex like Pm Corp are both selling at deep discount to NTA.
In Pm Corp case It Has Lots of CASH. For Nylex it has lots of ASSETS.
Cash can buy assets & Assets can be sold for Cash - Vice Versa
The bottom line is - HIGH NTA
2016-01-19 09:01
err ... wat is nylex total cash and total liabilities ? wat is latest quarter cash flow ? wat is nylex profit margin ? TQ.
2016-01-19 09:05
Please read all my posts. Answers all given. Clear on Nylex just like I did for Pm Corp. Just buy and hold tight
2016-01-19 09:07
Hi Guys!
Just sharing my thoughts,
When I first came to i3 Forum I recommended Pm Corp First at 15 cents in Year 2013 September 20. Pm Corp twice breached 36 cents (Up 100%)
After that I recommended by performing and non performing "Dead" Value stocks like Mulpha, Mp Corp, Jaks and others.
While Mulpha and Mp Corp remained "dead stocks" Jaks to my surprise, jumped from 39 cents to Rm1.20 (Up 200%)
WOW! Beyond my wildest imagination buying Jaks at 39 cents can make 200% in just one short year.
I FOUND OUT THEMATIC PLAY!
JAKS was the best stock for WATER THEME PLAY. Only Jaks has 6 feet diameter water pipes. So picking Jaks was a no brainer.
After that I started to focus on thematic play.
I started to THINK.
There was a Tour Company that did extremely well during the Asian Financial Crisis. How come?
Then I found the secret.
The Singapore Dollar was Still Very Strong even though currencies of Thailand, Malaysia, Indonesia were crashing left and right.
So this clever Tour Company organised "CURRENCY CRASH YOURS"
When Thai Bath Crashed against Strong SING DOLLAR They Organised Tours from SINGAPORE TO THAILAND.
They could even offer lower prices to beat all other competitors because THEY GET BETTER VALUE WHEN THAI BATH CRASHED.
They did the same when Indonesian rupiah crashed. Tours poured into Jakarta.
And When the KOREAN WON COLLAPSED THEY ORGANISED TOURS INTO SOUTH KOREA.
THEY WERE SO SUCCESSFUL WITH THIS STRATEGY!
So there is a Theme. A Thematic Play on Falling & Crashing currencies.
To be continued...
2016-01-19 11:23
After Jaks I found out Shale Oil from North Dakota will hammer all Oil & Gas Counters.
So I bought into Super Enterprize at Rm1.25
Oil Crash equals Cheaper resin for Super's plastic material
Super turned Supersonic and powered from Rm1.25 to Rm3.80 (Then taken private (Up 200%) This is Falling Crude Oil Thematic Play.
After Petronas Got Hit Govt Revenue Got hit. So GST!
I bought My Eg at Rm2.00. My Eg up Rm4.00 (100%) then split
To be continued,,,
2016-01-19 11:29
Ha! By following "On the Spot Trend" I found One Thematic Theme Stock After Another.
Pohuat (All furniture export stocks due to Fallen Ringgit against US Dollar)
Supermax because it was a neglected Glove laggard.
And now NYLEX! Falling Crude Oil. Falling Ringgit against US Dollar! Falling Ringgit against Renminbi! TPP!
So far so good. All just in time thematic stocks like Jaks, Super, My Eg, Pohuat & Supermax up 100% to 200%
Will NYLEX also go up like them
Hmmm?
It remains to be seen
So just WATCH
2016-01-19 11:35
Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥
NYLEX
JAN 2016 7.9 SEN PER SHARE
7TH MARCH 2024 24 SEN PER SHARE
2024-03-07 13:09
thesteward
good one
2016-01-19 00:07