Highlights again .

(4) Mr. Tee told that FUTUTEC will doing business with CASH only, without debt. Because that gives FUTUTEC a superb profit margin. With the "cash" only business, we can expect there will be a healthy healthy cashflow kicking in

Cashflow = Hard Cash in company = Dividend

And a company with strong cash position won't tumble easily during downturn =D

sorry for the late reply. KPSB is what citylight describe for us.

The highlights :
(1) KPSB has no debt with orderbook of 2.3b.
(2) Issuance of 280M share at price of RM 1.14

The most important stuff :

(3) Profit guarentee of 150m for 3 years. - Dato Tee say Rm 200m cumulative profit is "sap-sap-water" for the future 3 years.

RM 200m / (280m new issuance share + 95m share cap+ 25m warrant conversion ) = RM 200m / 400m (roughly estimate) = RM 0.50 already on hand for the next 3 years.

still waiting for the KPSB injection news

With due respect sir, I dont think the financial analyst that you mentioned ask his follower to "avoid loan"...

I, myself interpret the analyst idea as "importance of cashflow - importance of generate enough cash for the operation and expansion and the payment of the debt , but not keep on depending on loan to achieve growth " .

Hihi ... drop lah drop lah... i want to buy more

lol ... relax .. it's NBI ... average down all the way ...

The thing that can gets FUTUTEC values higher is the synergism between their subsidiaries.

Property Development (maiden project)+ Kitchen + Lightning

Now with injection of KPSB,
Property Development + Construction + Kitchen + Lightning

Semua dia earn habis .

The guarantor guarantees 150m profit , for the next 3 years.

It means if the Kerjaya Prospek - the vehicle that they going to inject in , unable to attain a total profit of 150m , the guarantor will pay up the remaining sum of money as compensation.

If the Kerjaya Prospek attained 150m profit and above, then the guarantor will pay nothing.
So we are very very very fair to consider that 150m is already in our hands.

For conversion , 150m divided by 371m share, that will be around 40c profit already in hand.
This is shown in 1.13 , the day before announcement. Rally up to current price.

1.13 + 0.40 = 1.53 , at least.

Any price fall below 1.53, is an ABSOLUTE undervalue.

superb cashflow of a company may due to low cash deposit in bank. if there is high cash deposit in bank, the cashflow is usually bad, remember, cash is king during any economic downturn

________________________________

I can't brain this idea. Cashflow and cash in bank are 2 different thing.

Cashflow = The operating profit which presents as cash.
Cash in Bank = Part of the subject in current asset column.

A company can have good cashflow and good cash balance .
A company can have bad cashflow and good cash balance - but usually will deplete their cash reserve if they don't turnaround it.

Vice Versa.

Come come, Any dip is a buy ... hehehe , it's an no-brainer business with guarenteed 150m earnings over 3 years from the acquired company, with the basic 15m profit per year.

It will be 65m per year. With consideration of enlarged sharepool 371m , EPS will attained 17.1c per year..

The EPS of 17.1c is a "95% guaranteed" profit .... not to mention the bonus $$ from the property development kicks in ..

Yes ! Optimusprime, you are good.

These is the "cold" material I'm talking about.

Could you share more about position thingy ?
I'm eager to learn more.

To find a good soldier is one thing , to control and allocate the position of the soldier is another thing.

Cheers =P

Problem is , I myself aren't excel in that subject too... I'm still learning and probing the subject by trial and error method.

I would appreciate someone whom excel in this "portfolio management" to share some tips with the public.


______________________________________________________________
The reason I say money management is important because some investor enlightens me.

You could score a 150% gain in one counter (5% allocation) but your total portfolio might be in losing position because of the losing-performance of your largest holding.

I won't talk much about FA or TA in this forum.

There are a lot of pro sifu here. 在下不敢班门弄斧。

But I had to reject your term "The investment is most intelligent when it is most business like. Ben Graham"

To me, nothing beats money/portfolio management - one of the "cold" subject in investing

Oh sorry, it's not Magic Formula. It's Absolute PE Ratio Valuation.

http://klse.i3investor.com/blogs/kcchongnz/46422.jsp

Gotta read here.
I won't spit out something that doesn't exist... hihi.

lol, I thank Kcchongnz to introduce Magic Formula in the forum. Or else I won't know it.

I don't say that kcchongnz use PE to value a share.

tjhldg , do you think I am contra kaki ehhh .. you know me lah =P

If I am not mistaken, according to Magic Formula (Thanks for kcchongnz posting, or else I wouldn't know this formula), PE 8 is a reasonable PE for a company that grow at 0% annually.

ahahahaha, one support padini, one anti-padini .
It will be fun looking at the comment section.

*grabs popcorn.

Punters never learn ... want to throw money away please throw to charity lah ...

rise and shine babe .. it gonna wake up soon after challenging the high of the control bar.
Fundemendal wise I don't need to comment. I only know it is undervalued.

shit .. tjhldg is faster than me . always .. =P

I am wondering how they going to issue the share ? Directly issuance to mr tee will trigger mgo as he will hold larger than 90 percent of the sharebase...

Hihi. Issuance by right issue (i welcome this too , but need to sell my ass to raise cash lolx) ? Or placement to mr tee's friendly party ?

In order to success in investing, we mustn't look at EPS , shareprice, equity, blah blah blah. We also need a trustworthy management.

FUTUTEC fullfills all the criteria.

Lol... i have no TP for this target. Just hold this company for 2 years (expected matured phase ) then you shall see your reward.

Why people keep on asking TP ? Lol you think rm 4 as tp ? If you factor in the increase of 233 percent share base to pay Tee's brother Kerjaya Prospek rm 4 still can reach ?

With current price with injection of KP already market cap pproaching rm 700m . You want rm 4 means the counter in 1.5 billion

lol, talk c**k , see who is buying recently ? Retailer ? or Local Institution ? and the effect ?

CFTrader Asking TP is just like asking how long a people will live...
16/03/2015 16:52

I don't know how to TP, but I know it's intrinsic value ain't no this low ...

Cheap cheap sales for a good counter .. wew ..

CFTrader You can wait for 3 years to see your house built, sign S&P, and obtain the key, but you can't wait for 1/2 year to see the merger ?
Oh my ...
14/02/2015 20:58

lol .. what are you trying to achieve ?

Issue contract, ask government to secure 1MDB credit lah.
After all najis = finance minister = MoF = 1MDb semua kasi you lah.

lol ... are you kidding me ?
I thought this was educational purposes, now it's a promotion of a counter ?

Base on the cashflow, I know that this company is well managed.
But too much uncertainty ahead.

1. Renewable sector - turnaround ? or not ?>
2. ISIB - also another uncertainty.

My policy is expose to minimal risk as possible first.

Icon888 . You dont need to do all the cffo or dcf stuff. If we see potential, we will quantify it by ourself. We are not leechers.

Im just demand for a screenshot of cashflow.

lol ... RNAV is just comparison of price with your neighbour only.
Your neighbour sell Double story terrrace @ 750k , doesn't mean you can sell at the same price.

And .. I doesn't have intention of saying you should accept Rm 2.50 that offer.

When you buying a share, you are buying it's asset... and business...
My NNWC valuation gives RM 2.47/share, which i put 75% x investment property in the value.
Why I put 75% of investment property value ? That 25% value as a buffer area.

So they are buying your business with RM 0.03 ...

Do you own math.

Most of the people will only finding the way to achieve Maximum ROI.
This year they earn 100% .
Next year they earn 85%.
The next next year, wipe out 80% of the portfolio.
What do they left ?

Learn how to survive at forest is much more better than finding the juiciest lamb .... You never know that there will be hungry packs of wolf approaching you from your six...

Stay alert. Watch your back. Then you will survive.

CASH ... is also one of the position, other than BUY and SELL...

What the people here discuss are capital management...
It is a higher level of discussing than discussing the value of stocks or what...


You can have 1 single position DSONIC that gives 1000% return but overall portfolio are in loss..

You can have 10 losing position that have 5% loss per trade, but all the trades are migitated by 1 single winning position.

That's The wonder of POSITIONING / CAPITAL MANAGEMENT.

Icon888 Bro, you always lack the most important stuff in these kind of industry.
Cashflow.

At least you print a screenshot of cashflow for us to determine in someway:

1. Was the earning REAL earning ? When I'm saying real, it's Real Hard Cash ?

2. Dividend ... Was that paying from the earning due operation or like Maxis, paying dividend by using debt ? Was the dividend sustainable ? Or the dividend amount is better to repay debt ?


IMHO, we can dig tons of info from cashflow, alone. P&L statement ? to me, that's just bonus =P

People are so ignorant that think Oil price down will lead to more profit for airline.

Those who are claiming fitch will cause havoc in AAX or other things that can affect AAX are bullshit.

In short term, stock market is a voting machine.
In long term, stock market is a weighting machine.

Since you guys insist on Long term, what AAX can do to increase RPK ?
Oh no, not RPK , it's PPK ... if RPK increase but LPK increase also die.


When oil price hike, they surcharge oil.... so not much issue.
When oil price down, they cancel the surcharge... in what sense it can be benefited from low oil price ?????

There are some group like GxxxxPxxx that promote AAX , AIRASIA during downtime...

bargain ?? You better put your money in F.D. lah...

tjhldg, you apa pasal always hehehe sini sana ?
ada show lagi ? kikiki

lol ... don't category all the i3investor traders as one ...
Our level is higher than this ... we wait until the apple rippens...

lol, where is the people who say hold and add Instacom for years because of good FA ?

I last time warned when it is hovering at 23c-25c

there is a reason for the 80/20 rule still apply to here...
The smart ones will know what I am trying to say.

Lol ... all th dead punters finding reason to comfort themselves ..
So lame to ask PPL buy n keep it ...

Asking TP is just like asking how long a people will live...
cjterk, TP of your life ?

Hehehehe ... sitting at 35% profit ...
and it was my 2nd largest shareholding in my portfolio =D

tell that to Hippo.

holding steady at 1.48 area ...

Who want to sell down to 1.45 ... there is one fund ready to eat your tix ... kikikikiki...

Jesus Christ, this counter have a darn strong FCF generation power.
Harvest Gor, you sapu a lot liao kah ? hahaha