Care to explain which part of the understanding is incorrect? Do you mean the share prices or business dynamic is dropping?

good keep going

I dont seems to understand that why there are so many ppl that talks about things like "stocks investing is a big fish eat small fish world', 'once institutions sell their position, you go down with it' or 'I am not loaded enough with $$$ to move the market'.

These are the mentality that prevent one to become a super investor. Let's get this straight, you invest because a particular stock has a sound and solid business behind it, the share price appears to be undervalued, there is a reasonable margin of safety and the odds of losing money is relatively low. With this in mind, you don't need to worry what the majority shareholders are doing, and you dont need $$$ to move the market because you dont need it.

You are RIGHT not because everyone agrees with you nor because everyone disagree with you, you are RIGHT because your reasoning is right, because your facts are right! That is what all that matters.

Get real, investing is not witchcraft or something superficial, it is not about guessing what others are doing. Go read some books about some famous investors, read their quotes, their thinking etc. It is like romance, it is better to go and understand that person like what does he/she likes, he/her goals and view of life etc than reading 100 books about horoscope or fengshui.

Personally I think in investing, learning from mistake is one of the most critical element. There are a lot of dumb here, especially when people buy on rumors. It doesn't matter whether you make money or lose, as long you buy into rumors and buying blindly, you are dumb, and your return can be better than mine. Im not saying fundamental is superior to TA but honestly all TA told you is the volume and price history thats all. TA doesn't tell you anything about the business (I know most short term trader dont give a damn about the business), industry etc. To me, that is as close to buying blindly as it can be.

@ houseofordos, Ive also done a DCF on Scientex, coupled with a few others valuation, my estimates for IV is somewhere between RM7-10. I was waiting for a RM4.50 entry point but just won't go down lol.

Tguan has a very similar business to Scientex. Even excluding property business, Tguan profit margin is lower. Then again they dont really compete with each other as they export to quite different countries.

No offense, but I think your answer makes investing sounds so easy and risky

The verdict is so simple here: There is no right and wrong answer here
KYY is entitle to express his opinion here and list out his reasons, but it is YOU, that should do your homework if it is undervalued instead of buying blindly. Regards to R Sawit, some ppl here felt betrayed after KYY promote the stocks and dispose it after it risen for 50%. First, it makes perfect sense if after rising 50% and KYY felt that Rsawit is fairly or overvalued, he has every right to sell it. Second, If you did your homework & bought R Sawit based on INTELLIGENT HYPOTHESES, CORRECT FACTS & SOUND REASONING, you don't even have to worry if KYY dispose all of his shares the very next day, because if you bought it at undervalued price, eventually reversion to mean, the price will ultimately traded back close to it's intrinsic value. Therefore the whole argument is irrelevant.

can i ask how come my avg buying price is RM2? Previously bought at Rm3, avg price should be Rm2.55, anyone know?

Hi Kcchongnz & digiuser016, I think currently the co im looking at most have been covered by kcchongnz, such as cenbond, kfima, mfcb or homeriz. Some others high on ROC are Magni-Tech which I kinda like at the moment; Fibon, Pestech & Mudajaya looks attractive although I haven't look at the ROC consistency, only the most recent year. SKPRes is the gorilla.

Kcchongnz, thanks for the answer. Greatly appreciate it.

I just have a general question that I wish to get your opinion. I have been searching for small cap companies which has high ranking on magic formula and ROIC. However when I look into these companies ,although they have high ROIC but their profit has been growing extremely slow or stagnant for a few years. Perhaps these companies only invest in maintenance capex but not growth capex I am not sure, and Buffett also seems to love these kind of companies that doesn't really grow but generate plenty of FCF. And indeed all these companies are piling up on cash and have strong FCF. My question is that from your view point, if these companies does not pay out dividend and with little to no growth, do you think consistent high ROIC with ultimately have a positive effect on the share price itself? Thanks a lot.

Hi Kcchongnz, just to clarify how did you get the ROIC of 22% for cenbond? Are you using the formula as in NOPAT/(Total assets - Cash) - (Non-interest bearing liabilities) or other formula calculation?

the only thing that will turn the co around and increase share valuation is cost cutting. And the biggest cost lies in salary, where it's employees are heavy unionized. The CEO does not have the guts to tackle the hardest problem but choose to look into other area i.e. F&B etc where cost reduction only have minimal impact on bottom line. Perhaps one day the co will successfully turnaround, but I think your money doesnt worth for that one day, if it ever comes. For those that think 30 sen is the lowest (0% downside, 100% upside), your prediction is as good as predicting the weather of next month or predicting you will make money in the casino before looking at your cards.

really curious why everyone buying this counter expecting dividend? Tuneins is a young and growing company, what is the point of giving you div when the money is better to plow back into business for growth. Div only happens to companies that is in matured business or business that can general more cash & earnings than it can reinvest back to maintain or grow the business.

the only concern ive is their account receivables growing really fast, as most of their business are from other lions lol which are having problem with debts, but at least they are paying interest for the late payment. If the acc receivables can be reduce, that will do wonders to the bottom line

@ alex so when anything falls, it become lousy. You dont seems to have alot patience, not suitable for you.

drop is a good thing, you should buy more when it drops.

@fortunebull i suppose your switching here and there strategy and doubling return should allow you to best Warren Buffett's record and wealth very quickly

@ MK Chng like to know what is your main reasons for invest in this? I was doing a net-net screening - Net current asset = [Cash + (0.75*Acc Receivables) + (0.5*Inventory) - Total Liabilities] and found this company. Just current asset only is enough to pay off all the liabilities and still worth a net current asset RM2.50 per share against Rm1.20 market price.

just my take, I can be wrong. From my understanding, plantation and timber companies operate in an extremely challenging commodity business and one that require very heavy CAPEX. ROE for JTiasa has been around 1-4% since 2008, yet JTiasa is pouring a lot of money in CAPEX thus having negative cash flow for most of the years. This can be a potential value destruction over the long term, however I have not checked if marginal ROC is higher than marginal WACC.

speculation, speculation,speculation, speculation, speculation, speculation, speculation, speculation,

if MAS turnaround the share will go up, but the questions are:
1. You say time will tell, so exactly when? Will anyone have to patience to wait for the unknown?
2. Turnaround required either because of few factors, namely macro factor: aviation industry or micro, company itself, change in management. Macro, aviation has not been doing extremely well, especially the traditional full frills airlines. That's hard to forecast, but on the micro, has the management have what it takes to turn it around?
3. Last question, what is the trade off cost BETWEEN INVESTING YOUR TIME ON ANALYZING MAS & ANALYZING SOME SOUNDLY MANAGED COMPANIES THAT ARE GOING UPTREND?

Car racing are always more exciting to watch when the driver managed to pull off a drift from that small dirt road snaking the edge of the cliff, compare to a car running alone on a super huge empty road. But who will you choose?

@ metalmonk - yes if MAS turnaround the share will go up, but the questions are:
1. You say time will tell, so exactly when? Will anyone have to patience to wait for the unknown?
2. Turnaround required either because of few factors, namely macro factor: aviation industry or micro, company itself, change in management. Macro, aviation has not been doing extremely well, especially the traditional full frills airlines. That's hard to forecast, but on the micro, has the management have what it takes to turn it around?
3. Last question, what is the trade off cost BETWEEN INVESTING YOUR TIME ON ANALYZING MAS & ANALYZING SOME SOUNDLY MANAGED COMPANIES THAT ARE GOING UPTREND?

Car racing are always more exciting to watch when the driver managed to pull off a drift from that small dirt road snaking the edge of the cliff, compare to a car running alone on a super huge empty road. But who will you choose?

Here is my take why SKP looks enticing.

1. Cash flow - You buy this share at 10 cents cash per share, so you're buying this share for 20 cents only, free money.
2. No/Minimal debts - Cash is useful if full of debts but not this co, it won't go bankrupt unless armageddon.
3. Growth - Consistent growth in revenue and profit over 10 years except year 2009, you don't find a lot of this kind of companies
4. Slow company? - I checked that the share price is about 7 cents in 2009. Which means if you hold it till now, thats a growth of about 500% in 4 years. Maybe you can beat that trading hot shares. I don't know.
5. Excerpt from Peter Lynch's book "$20 stocks with $2 per share in annual cash flow has a 10-to-1 ratio, which is standard. A $20 stocks with $4 per share cash flow gives you 20% return on cash, which is terrific. If you find a $20 stock with sustainable $10 per share cash flow, mortgage your house and buy all the shares you can find. This co is standing at 33% cash flow return.
6. Personally I prefer the price not to go up so I can accumulate every year cheaply and watch it explode.

Alex not everyone are like you goreng minded

well if the revenue and the profit of the company keeps growing, and if its down by 30%, just sapu everything you can

why would anyone want to invest in money losing company in the hope that it will 'turn around' ? dont understand

U must mean the chart is hatching not the business

Wats the reason to buy?

What justification is there to buy a stock with PE of 87?

PE of 53, what justification to buy this share?

Relax bro, everyone has their way of investing. Just like some ppl say taekwondo is better than other martial art, this phone is better than other etc so it is subjective. In the end as long you get what you want in life, thats all matters.

If my stock apps is correct, this counter has pe of 99-100, what is the justification behind to buy this share?

i am curious to know if MAS hits RM0.01 would everyone think "Mortgage your house and put everything you have!" or "get the f*** out of here"

@ mcbaomc - because everyone is putting their emotion into playing stocks. People love the excitement. Emotion + stocks = die now

For anyone that says "now already xxx price, cant be lower than this anymore' - that is similar to playing a roulette of going red 4 times and throw everything in for the black to open

@ charity - depends which stocks you are buying, but you are right, if your goal is to buy and sell, buy and sell, it is all playing with fire and greed.

clob1997 is correct, there is no need to evaluate fundamental because MAS is a rotten company, everything is driven by market sentiment that is precisely playing with fire. Remember if you lose or make profit on MAS, remember it is someone else in this post that took your gain or losses.

Whoever is looking at MAS is: 1. Playing with fire 2. Greed