What is intrinsic value? 

Let's take 3 boxes of similar sizes. And within these 3 boxes are filled with different contents with 3 kg of equal weight but different substances... therefore different intrinsic value 

1) BOX A With 1 Kg of Sand. The Value is less the Rm1.00 

2) BOX B With 1 Kg of Canned Abalone . The Value is Rm300 

3) BOX C With 1 Kg of Pure 99% Soft Yellow Gold... The Value is Rm167,000 

NOW SINCE THESE 3 BOXES ARE SEALED WE ARE UNABLE TO KNOW THEIR INTRINSIC VALUE. 
IF WE SHOULD JUST LOOK AT IT AT SURFACE VALUE THEY ALL LOOK THE SAME. WEIGHT THE SAME. BUT DO THEY HAVE THE SAME VALUE? NO! 

This is where Research into the Contents inside the Boxes are so important as An Investor. 

So how? 

We Do Investigation by reading up the Annual Reports. The past history of the Companies. Its Cash in the Bank. And its Assets (Gold, Sand or Canned Abalones?) Its borrowings & liabilities. And from here we get ITS INTRINSIC VALUE 

INTRINSIC VALUE IS PART AND PARCEL OF LIFE EVERY DAY 

1) WE VALUE A CAR BY ITS PERFORMANCE, BUILT, SAFETY & BRAND REPUTATION. 
No 2 Cars are the same. A Mercedes is priced higher than a Proton or Kancil due to the Cost of Production & Intrinsic Value 

2) WE VALUE A HOUSE BY ITS LOCATION, ITS BUILT UP & QUALITY 
A Bangalow built in Bangsar on 1 Acre Land , KL has more value than A Kampung House built in Ulu Kelantan among the Abriginies or Orang Asli. They both have different Values on the 1 acre land size. 

3) THE SUPERMARKET HAS A WEIGHING MACHINE TO DETERMINE INTRINSIC VALUE 
Go to any Super Market. Pick up the 1 kg plus vegetable, fruit, meat or fish. 

They all have different prices. Salmon is more expensive than Ikan Kampung, 1 Kg mau sang wang durian is more expensive than Durian Kampung. And Beef is more expensive than chicken. 

Now the weighing scale also show up. I kg? 1.35 Kg? 3 Kg? 4.8 Kg? 

You are charged per Kg and down to the Very Gram on the Weighing Scale. 

FOR WHAT? 

FOR THE ACTUAL VALUE YOU ARE SUPPOSED TO PAY? YOU DUMMY!!! 

If No weighing scale you can argue only by guess work? 

So here in i3 Forum our Friend KcChongNz helps you to find Value. 

He doesn't tell you to buy or sell stocks but show you the status or Intrinsic Value of the Stock. 

NOW COMING BACK TO THE WORLD's GREATEST SPECULATOR, TRADER OR GAMBLER. Whatever name you might call him 

JESSE LIVERMORE DID NOT CARE TO KNOW WHAT IS BEHIND THE COMPANY HE IS BUYING INTO. WHETHER IT IS A KG OF SAND, OF CANNED ABALONES OR GOLD. SO TO SPEAK. 

HE SAID HE HAD NO IDEA WHAT IS THE BUSINESS OF THE COMPANY HE IS BUYING. AND HE DOES NOT BOTHER TO KNOW 

ALL HE IS INTERESTED IS IN THE TICKER TAPE 

SO HE READS THE TICKER TAPE FOR ITS MOVEMENTS 

BY SO DOING HE SEES A MOVING TAPE HE JUMPS IN AND RIDE IT UP. THEN SELL IT. AND WHEN HE SEES THAT THE TAPE IN REVERSAL WITH NO STRENGTH ... HE SELLS IT. AND MANY TIMES HE SHORT SELL IT. 

HA!! THIS IS GAMBLING THROUGH AND THROUGH!!! 

SO IN JEESE LIVERMORE INVESTMENT WORLD VIEW INTRINSIC VALUE DOES NOT MATTER. 

A KG OF SAND CAN BE BIDDED UP TO RM167,000. AND A KG OF GOLD CAN ALSO BE BIDDED DOWN TO RM1.00 ACCORDING TO MARKET TRADERS OR GAMBLERS!!! 

THIS IS MADNESS!!! 

Christian Standard Bible (Ecclesiates 9:3)
This is an evil in all that is done under the sun: there is one fate for everyone. In addition, the hearts of people are full of evil, and madness is in their hearts while they live; after that they go to the dead.

MADNESS IF YOU APPLY TO REAL LIFE 

WOULD YOU PAY RM300,000 for A KANCIL? OF COURSE NOT! 

AND WOULD YOU SELL A NEW MERCEDES BENZ AT RM28,000? OF COURSE NOT 

HA!!! YOU CANNOT FIND IT IN REAL LIFE BUT BARGAINS ARE FOUND ALL THE TIME IN THE STOCK MARKET. IF ONLY YOU APPLY INTRINSIC VALUE APPROACH!! 

SEE HOW PEOPLE SCOOPED UP PUBLIC BANK AT 80 SEN & NESTLE AT RM11.60 DURING PANIC DAYS OF 1997/8. 

DR NEOH SOON KEAN CALLED IT "THE BARGAIN OF THE CENTURY"! 

In his Book about Stock investment in Malaysia & Singapore. 

He mentioned how stupid people overpay for OCBC Bank at RM50,000 in those earlt days. You can buy 2 houses with Rm50,000 in those times. SO OCBC was totally overvalued then. People pay for it Way Above Instrinsic Value!!

And someone told Dr Neoh he just bought IDRIS at Rm8.00 

Dr. Neoh got a shock why he could pay for the rubbish IDRIS at Rm8.00 

SO HERE in i3 Forum Calvin had warned about IFCA (If Fall C (die) Ah) at Rm1.50 

NancyTang in defiance to Calvin's warning even bought 300,000 shares of IFCA at Rm1.50. 

IFCA gone up from 7 sen to the dizzying height of Rm1.87. Only to Crash back Limit Down 3 Times to 25 sen. 90% of the people chasing IFCA were wiped out!! 

SO THIS IS MY WARNING 

LEARN TO INVEST BASE ON INTRINSIC VALUE RATHER THAN GAMBLE 

IF YOU INVEST LOOSELY YOU WILL IN THE END LOSE OUT!!!

WARM REGARDS

CALVIN TAN, SINGAPORE