@dusti - There are no goodies yet. But if you believe in the buy and hold strategy, you will be rewarded in the long term (Investing not speculating).

Currently, Sign's order book is roughly about 150mil, which is enough to cover for a year or two. However Sign is already in the process of tendering for few more projects, and one foreign project.

Stockraider you got a good insight on Superln. Congratulations.

@tan1868 - Yes, it's been a good ride.
Congratulations to all holders. Cheers.

Totally disagree. What kind of quality is this article?
The writer obviously have no idea what is the the concept Of Compounding Interest.
You can take the annual dividends and capital gains, then reinvest, rinse and repeat, instead of stacking them.

For a better read, go to:
http://www.investopedia.com/university/beginner/beginner2.asp

And yes, I agree that, market statistic is one aspect, company performance is another aspect. For example, even at such a low oil prices, there are still few O&G related companies that actually performs quite good. But how much will Inari affected by the slow growth of smartphone sales... Err... well like you say, the rest leave it to the luck, hahaha.
After all, an investment relies on 70% fundamental, 30% luck.

Anyways, I always appreciate your articles YiStock - Frontkn, Inari, Canone, they're always good. Please keep up with the writings. Cheers.

YiStock: "If you look at light asset companies like Scicom & MYEG, the EV/EBIT will definetely very high.. but because their ROIC is extremely high, people still willing to look at them. "
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"A Good Company Is Not Necessarily a Good Investment"

Second, is Inari still a good investment? When I first learned of Inari, it was trading around 2.20 (damn, I seriously should have brought it last time, what was I thinking?). But it is 3.70 now. So, is it still a good buy?

Not necessary.

According to gurufocus.com,
- The Graham Number for Inari, is RM 1.74 only.
- Margin of Safety (Earnings Based) using Discounted Earnings model for Inari Amertron Bhd is -25.42%.
- EV/EBIT ratio for today is 17.06

So is it still a good buy? Inari is no doubt is a good company, but at current price, is it still a good investment? Hmm... I'm more skeptical to invest in it.

About Scicom and Myeg, we must always compare apple with apple, and orange with orange. No doubt they are same in the technology market, but their field is vastly different. One is Semicon, the other one is more leaned towards Trading/Services. It's like for example, a PC repairman VS a coder.

One thing about Scicom, if you looked properly, it's cash is depleting, FCF is also decreasing, but that's another story we'll not look into it here.

Dear YiStock, thank you for your reply, and thanks for sharing your insight and reasoning. Below is my constructive comment from some studies of Inari. I hope you will it accept with an open heart. If you feel offensive, please ignore this comment.

YiStock: "ROIC+ EBIT/EV must be at the minimim of 20%. Anything above 30% i will consider to buy too if other quantitative criteria such as PEG or margin of safety and etc are fufilled. Also to look at qualitative aspect of business. "

"Wooa...when the whole world seem troubled by many issues, smartphone sales still recorded growth!!! thank god "
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"Price is what you pay. Value is what you get." - Warren Buffett

First, Buying into a high growth high valuation company always seemed exciting. However, we must first always ask ourselves this question - how sustainable is the growth?
To further understand this, please have a look at this.

https://en.wikipedia.org/wiki/File:The_Forces_of_the_Business_Cycle,_1922.jpg

So this raises the million question, yes smartphone sales still recorded growth, but how sustainable is the growth? If the growth is no longer as sustainable, is the company still deserve such high valuation? I'm not able to answer that as I'm no expert in the semi-con industry. I'll leave it to you guys tech experts.

This is one of the reason Warren Buffett never buys into many tech companies such as Microsoft, Netflix and Alibaba.

Gkent surged? Any freebies from the Budget?

No matter how others criticize you, you will always be respected as one of my gurus in investing.

To you KC:

"The Man in the Arena" - Theodore Roosevelt

It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.

YiStock, I've recently conducted some study into Inari.
One of my findings is that global smartphone sales growth has dropped significant recently. http://www.gartner.com/newsroom/id/3115517
Hence it may be better to stay more conservative.

On one note, Inari EV/EBit is now 17 if i'm not mistaken, which I'm not keen of.
The valuation seemed too high for me. What do you think about it?

It's not a disagreement with you about Inari, it's just a discussion.
And oh yeah, forget about the other comment of mine. I've done a wrong calculations and deleted it.

There's no need to rely on insider news. Most of them are not true anyway.
If you're an insider, will you leak the company's internal info and get arrested or fired?
No offense, but food for thought, my friend.

Anyway, you don't simply pluck a TP from the sky. A simple calculation will land you the figure.
Buffett has said that he will generally pay 7x EV/EBIT for a good business that is growing 8-10% per year.
1) how much has the SIGN company grown?
2) how much is the current EV/EBIT? To make things easy, I've calculated for you, it's 7.

By solving question 1, combining question 2, you will get you answer. Cheers.

Fantastic. Breakout from the triangle. Cheers!

Wow... I was right. Didn't expect it so fast lol.

"Focus on the downside, and the upside will take care of itself"- Mark Sellers

If I'm not mistaken, "Ascending Triangle" chart pattern may be forming soon.

No offense, but remember this idioms "水能载舟，亦能覆舟" - Confucius.
In stock market, when things are good, you can say whatever you want.
But only when things gone south in the stock market, then only will you appreciate all the financials ratio and why they exist.

Before the dotcom bubble in US during 97`, many fund managers was betting big on technology stocks, ignoring financial ratios. But, by the end of 2002, many of the dot-com and telecom stocks had lost 95% of their value or more. Many never survived the tech bubble.

Any lao sai is actually still a good opportunity to collect.
USD/MYR still hovers around 4.10 - 4.20 level.

Similarly with Intelligent Investor, I agree with NOBY and JT Yeo's interpretation of the formula. Especially this:

"From my understanding, what Toby means by excess cash is - Any cash not required by day to day working operation. So in your example, you are correct, that 20mil is not considered as 'excess' if the business need all of it to meet the current liabilities obligation." - JT Yeo

I remember once asking Kcchongnz particularly about this "excess cash" issue. His reply was:

Posted by kcchongnz > Oct 3, 2015 05:47 AM | Report Abuse

"Excess cash is cash not required for the ordinary operations of the company. It can be just taken out without affecting the core business, and EV is about the core business."

So, I would agree more with NOBY and JT Yeo. Let's wait for KC's reply.

It's alright, currently it's damped by the Q4's weak earnings.
Once it enters into FY 2016, if they can deliver the results, we should see some SIGN of recovery.

Posted by paperplane2 > Oct 15, 2015 01:48 PM | Report Abuse

one thing u din check---PROPERTY SLOWDOWN!

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Are you perhaps blind? hmm...

Lenglui Connie, Uncle Ezra heard Elliott Wave is your forte. If you are free, do you mind to help uncle do an analysis on (7246)? Uncle is only so-so at Technical Analysis. Appreciate it.

PER, EV - check
PATAMI, EPS, EBIT growth - check
ROE - check
D/E, FCF - check

SIGN is Uncle Ezra's "sign"ature cup of tea - good financial ratios.
Despite the recent drop no thanks to weaker quarter, uncle thinks the orderbook & projects should still be able to withstand the challenging property slump in next few years.

Actually, if you read between the lines, I think kcchongnz's "myth busting" is actually directed at few different people, and a certain superinvestor is only one of them, haha.

Kcchongnz the "Bursa Myth Buster", I like the sound of it.

Posted by kcchongnz > Oct 13, 2015 10:23 AM | Report Abuse

Glad you like to read my articles. Some say they are boring, repeating. Some, even some seemingly very successful stock market players say fundamental investing won't work, or won't work alone, or even it works in the US, it won't work in Bursa, despite i have repeatedly explain the plausibility of its use, and even provided my own successful experience as published in i3investor a few years ago.

No, I am not frustrated, why should I? The disinterest about fundamental value investing in Bursa, precisely will still continue to provide us the good opportunity to earn extra-ordinary return from investing in the stock market in the long term, as this good opportunity is not arbitraged away.

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"Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas." - Paul Samuelson.

Value Investing is boring, and it should continue to be kept that way. Similarly to your articles KC, be it boring and repeating, keeping it that way is precisely fine.

Anyway KC, sometimes it's better to agree to disagree with others. I'm sure everyone has their own way of making money, be it FA or TA school of thoughts (punting not included, that's pure gambling). Arguing which is better is like the argument between Keynesian vs Monetarist which is better. There'll be no end to it.

I like Value Investing, but I also don't reject Technical Analysis. After all, there're two sides to a coin.

Hi Connie, you may want to have a look at this as additional information.

Johotin - New plant to boost F&B capacity by more than 25%
http://klse.i3investor.com/blogs/ss2020_vaInv/84291.jsp

PER - pass.
EPS growth - pass.
EBIT growth - pass.
ROE - pass.
EV/EBIT - not pass.
FCF - pass.
Current Ratio - pass.
Quick Ratio - pass.

"Sigh, it is hard to find people willing to learn about fundamentals investing nowadays." - kcchongnz

Dear Kc, don't worry, you're not alone. I share your frustration as well.
When I first started investing, a friend of mine once told me - "Bursa is full of people with gambling mentality, not investing."
I didn't really believe at first, but what he said was indeed true.
Even till today, I don't see many who really learn how to use fundamental analysis, instead tons of speculating and gambling.

However KC, it's rare but there's still people like YiStock, Frank, and many more who still adhere to FA. And many of us love reading your articles. Please do not give up, and continue writing more articles to enlighten us.

What a silly comment. Never drop 6.3% before doesn't mean it won't in the future.
Corrections and pullbacks are a norm in stock market. Without them, how can the share go new high?

Good performance.

Posted by kcchongnz > Oct 3, 2015 05:47 AM | Report Abuse

Excess cash is cash not required for the ordinary operations of the company. It can be just taken out without affecting the core business, and EV is about the core business.

So for me, excess cash is not only cash in the balance sheet, but investment in equity, investment in property for a non-property firm, investments in associates, JV etc.

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Thank you KC. Just to confirm, if I get what you're saying right, in my case it should be "Cash and Cash Equivalents" instead of "Cash and Bank Balances", right? Because it's not only cash in the balance sheet.

Mr Kcchongnz, there's something I would like ask regarding EV.

In the US, EV is calculate by:

EV = market value of common stock + market value of preferred equity + market value of debt + minority interest - cash and investments.

When translated to MY, it means:

EV = Market Value of Equity + Minority Interest + Debt – Excess Cash

Here's the question, when we speak of Excess Cash, do we refer to Cash and Bank Balances? Or do we refer to Cash and Cash Equivalents in Bursa?

Thank you for your time and explanation in advance.

Fantastic closing.

Valuation is a bit rich at this time, which most likely explains why the slight drop.
However, look past the present, but at future growth at the co. is what's more important.
After all, you don't invest based on present but the future.

Results was pretty good.
On simple glance, revenue went up by +53%, while net profit went up +39%.
Eps went up +40%.

Got it, it can be counted by reversing them.
Thank you Mr KCChong.

Agreed. With ringgit falling to new low, Hevea should continue to benefit.
Not to mention housing in US is recovering well based on annual statistics. Hevea should also be picking up more demands from Japan due to the recent bad flood.

It's possible to be dampen by market sentiment as market is drive by emotion.
However it should be a short term effect. In the long run, Hevea should continue to perform.

Hi connie, if you wished to know more about Fred Tam's outlook on KLCI, you may visit his facebook here (if you have a fb account):

https://www.facebook.com/fred.tam.142?pnref=story

If a company 100% directly under government also doesn't considered as part of it, then I don't know what to say.
Please tell that to Tony Pua that Prasarana has nothing to do with gov. take his complain to Prasarana and not Najib, lol.
And you're right, I should stop talking with you. It's a waste of time.

And paperplane, Syabas is a subsidiary of Puncak, which is glc but not directly under gov. So your point is invalid.

Just like Khazanah. When people speak of Khazanah, people think = Government.
Make sense right? If not, good luck to you.

Anyhow, there's no point in talking with you anyway.
You're not even invested but come here to talk bad and attack the forum.

No, it's directly under the government. So it's pretty safe to say can be considered yes.
Without the good relationship with government, you think you can get contracts from prasarana?

Paperplane, get YOUR facts right.

Prasarana Malaysia Berhad formerly known as Syarikat Prasarana Negara Berhad is a 100% government-owned company.

There's no need to be concern with Jibby.
Even if he got caught, without him in power, the contract will still run as it is awarded by the government itself.
And even w/o the contract, Gkent still worth more than that.

I think you're being extremely rude here. What fake account?
This is why I don't like i3 sometimes.
I'm not even replying you in the first place, was replying to soso9999.
Well, i'll just ignore you.

Haha, you better say this year lol.

It's only an estimate. That's why most likely won't be far off now.

According to http://www.klse.my/stock/3204.jsp should be on 17th.
So hopefully by this week they will announce it.