Wang Zheng means “KING OF DOMAIN”
Wang Zheng is a manufacturer of baby nappies & adult diapers. These are unglamorous products nothing to shout about.
However, from past experiences, investing in unglamorous things do yield fantastic results.
Take Muda & Oka for examples. Muda is involved with recycling waste papers (Sampah) while Oka deals with drain pipes (Longkang). Longkang & Sampah? And now Wang Zheng’ baby & adult diapers (Berak?). What unpleasant stuff?
Yet they are making good monies for share holders. We bought Muda at 32 cents. Now Rm2.35 (Up 700%) and Oka at 35 cents (Also up 600% after bonus issue). So don’t look down on small unglamorous companies. So, Sampah, Longkang & Berak, though unpleasant, will make tonnes of monies for you.
These are the Salient Factors for Wang Zheng
(Don’t be confused with other China listed Companies in Malaysia. Wang Zheng is a 100% Malaysian Owned Company with all Existing Factories in Sungai Buloh & Rawang)
- GOOD MARGIN OF SAFETY. Selling at 76.5 cents with NTA of Rm1.06
- Rock Solid Recession Proof Business. Baby nappies & adult diapers are necessities of life.
- Rock Solid Growth – Forward P/E is only 8.5
- Rock Solid Prospects. Exporting 90% of its products overseas. And with strong US Dollar its profits will swell
- Rock Solid Balance Sheet. It has NET CASH POSITION OF RM100 MILLIONS. Or 55 cents per share.
- Rock Solid Shareholders. 88% of the Shares are owned by Top 30 Major Shareholders. So there is a very limited 12% free float. Better buy early while it’s still cheap before Mr. Market discovers it!
- Increasing dividends by the years. With 9.39% FCF (Free Cash Flow). There is surplus Cash for dividends.
- Wang Zheng – An undiscovered, overlooked, hidden gem of Great Value!
WANG ZHENG – KING OF DOMAIN OR FORTRESS
Fortify Your Investments And Protect Yourselves By Investing in WANG ZHENG Now.
China experienced Twice Limit Down Trading Halts after Crashing 7% this past week & Dow Jones collapsed over 1,000 points in just 7 days! 2016 looks like a very turbulent year ahead.
So Here You Are! A Stock for Safety & Growth in these tough times.
WANG ZHENG – CERTAINTY IN UNCERTAIN TIMES!
Note: Wang Zheng has Rm70 millions short term borrowings. But they are backed by Rm70 Millions “Trust Receipts” & Rm50 Millions in Receivables. Its receivables are from reputable pharmacies, hospitals & established supermarkets. So Wang Zheng has Net Cash & Debt Free Position overall. This is Rock Solid Safety.
CHEERS
Regards,
Calvin
Calvin latest comments on WangZhg
It is ironical that when Wangzhng was 76.5 sen when Calvin called for a buy many doubted & poured cold water on it. Now that MGO is offered at Rm1.14 Market punters have chased it above Offered Price.
Affin Hwang IB even come out to say that it is now undervalue & the Offered Price is unfair?
This same scenario happened when Calvin called for a buy on Perak Corp at 60 sen. Few bothered then. One day when Perak Corp already touched Rm3.60 (Up 600%) & Perak Govt offered to take Perak Corp private at Rm3.90 (Many came out to oppose it - saying tyhe Perak Corp is worth at least Rm4.50 to Rm5.00?) The irony & stupidity of it all?
When cheap?
People gave one thousand and one reason why you should not buy cheap. And when Price is chased to the sky? People gave the same excuse that Price should go even higher.
It is no wonder that 80% of Market Punters eventually lose monies in the Stock Market.
People are fearful because Others are fearful. People also get greedy when Others are greedy. This damnable crowd psychology work against our investment health & do damage to us - again and again.
Now Calvin thinks the entrance of Hong Kong New Shareholders was to capitalize on WangZhng efficiency & lower cost of production for its exports to China.
To chase up the Offer Price far above its intrinsic value is now too speculative.
You must remember that even in Malaysia - GIANT GROUP OF SUPERMARKETS & OTHER HYPERMARKETS are coming out with their own house brand.
There is no real "moat" in adult diaper making. So they can only compete on price. And pricing of WangZheng looked attractive at Rm1.14
If you expect too high a price do you think they will benefit from the takeovers?
Moreover, there are even other lower cost producing countries like Thailand, Indonesia, Vietnam, Myanmar & Cambodia - apart from Malaysia.
So Calvin thinks this is a clear case of being greedy when others are greedy.
We should heed the words of Sifu Warren Buffet when he said, "To be fearful when others are greedy and to be greedy when others are fearfully selling"
How many dare to buy WangZheng at 76,5 sen? How many greedily chased it to Rm1.70?
Further Note:
This week Calvin called for a buy on L&G (Land & General)
In the face of doubters & naysayers who dare to buy?
Regards,
Calvin the conrarian value investor
callmemaybe
conrarian ??
2017-07-10 20:53