Does anyone here have experience to invest the EPF funds on their own... I found that JF Apex offers such a scheme with initial investment of RM10k min only.. but they charge 3% upfront (similar to unit trusts)... this is quite high considering that I m managing the stocks myself, why need to charge me 3% ? Also any management fee involved ? Any advice ?

kc do u do asset allocation ? how many % u invested in stocks ?

Based on The Edge weekly, Mega First is close to finalizing the concession with Laos authorities to build a hydro plant with 260MW capacity. The power plant is expected to be completed by 2017 and will generate more power than both its existing power plants combined.

kc, thanks for your datasonic recommendation.... make money frm your picks again...haha

flying....

oh ? RHB also covering this stock already ? no wonder la...

Very true comment, knowing when to sell can be harder than when to buy :-

During good times I am not overly happy because I don’t know when to get out, take profit at some point in time. During bad times I am naturally happier. Why?because that’s the time when a lot of good stocks are undervalued.

kc, realistically, would you always use a basic P/E of 8 ? Typically I would say the basic P/E should we the average P/E of the industry and its peers ?

kc, interesting method of valuation, whats your thought on dormant companies KLUANG or SBAGAN ?

cashpile keeps growing, free cashflow is very healthy... hope it will start engine tmrw !!

Dato Gan is accumulating instead of disposing
http://www.bursamalaysia.com/market/listed-companies/company-announcements/1376525

inwest88, suggest that you go get the book from Dynaquest Malaysian stock performance guide to screen for these gems... The book is concise and it contains a 1 page summary of qualitateve and quantitative analysis for most stocks in bursa. It is published 6 months..
The other way is to use fundamental scanners available online that scans for criteria like P/E, ROE and dividend yield.. this one is quite good... I found a couple here
www.klsescreener.com/‎

From a quick glance at the 2012 annual report, SEAL main revenue was derived from Penang Bayan City development which was recognized in 2012. This spike in revenue is unlikely to be repeated as based on the report, they do not have any more prime landbank like in Penang Island.. most of their remaining land is in Kedah...

The property development segment has become the main contributor to the Group’s financial results in the current financial year, with
revenue amounting to RM86.7 million representing 71% of the Group’s total revenue. The strong performance was mainly contributed
by Bayan City, Penang which generated RM80.7 million accounting for approximately 66% of the Group’s total revenue

The free cash flows does look good all the way back to 2009.... assuming we dont consider the recurring payments for timber concessions to be PP&E ? These payments for the timber concessions seems to be rather high compared to the revenue received from this segment... I m not sure about that... I ll leave it to KC to comment on that...

KC I ve been following your posts since Mar this year.z.. if I had not tried to time the market... I would be enjoying these kind of returns today... sigh... really lesson learnt...

KC really entertaining read.... hahahahaha....

thanks both for the explanation

KC, a question on bonus issues from Pintaras. In Pintaras' balance sheet for 2012 I did not find any mention on treasury shares. I looked for share buyback notices in Bursa and also found none. Based on Pintaras share capital of RM80m, where is the bonus share coming from ?

Trillion after all this accounting discussion, can you share your valuation analysis on CBIP ? I am interested to know.. Thanks !

Financial income could very well just mean net interest income...

My mistake... interest expense is allocated further down... anyway.. the rest of my points remain the same

Trillion the easier link that you posted
https://en.wikipedia.org/wiki/Earnings_before_interest_and_taxes

could be just a generic financial statement that doesnt include the associate/JV income...there is no mention of associate/JV income included in financial income.. Financial income could very well just mean net interest income...

It doesnt matter to me whether the profit from associate is considered financial income or not. It seems like the argument arises because of the location it is sitting in the financial statement...
The argument should be whether this income should be excluded in the valuation or not as some say its recurring and some say it isnt. I believe this is subjective and depend also on the % of contribution to overall EBT. Of course if you want to be more conservative, it may be excluded, there is no right and wrong in valuation.

Trillion, I went to this website
http://www.astrazeneca-annualreports.com/2007/financial_statements/notes_to_the_financial_accounts_group/note3.asp you posted and the finance income stated there is no mention of JV/associate under finance income

I googled financial income and most websites (US based ones) stated that financial income is basically EBT (Earnings before taxes).

http://www.google.com/url?sa=t&rct=j&q=financial%20income&source=web&cd=2&cad=rja&ved=0CC4QFjAB&url=http%3A%2F%2Fwww.businessdictionary.com%2Fdefinition%2Ffinancial-income.html&ei=PzQHUsjjB4iSrgfRhYCAAQ&usg=AFQjCNHmyL_cMI20mdctrz-jMkUgJWFLEw

Regardless, I think this is just a term. I wouldnt want to go too deep. But looking at CBIP income statement, lets look at EBT breakdown in terms of % o Associate/Jv profit contribution against the total EBT
2012 2011 2010 2009 2008
Associate/JV proft 9.52% 31.75% 19.98% -11.11% 12.52%
Other income 6.58% 6.81% 7.81% 3.90% 6.90%
Finance cost -0.88% -2.16% -7.09% -12.00% -9.09%
EBIT 84.77% 63.60% 79.30% 119.21% 89.67%
EBT 100.00% 100.00% 100.00% 100.00% 100.00%

Based on above, we can see that the contributions from the Associates/JV are quite lumpy going up to 32% contribution in 2011 and even -11% in 2009. However, I hardly see this as one-off as the subsidiaries are involved in palm oil activities in which CBIP used to derive substantial revenue prior to 2012. Hence I believe that management is competent enough to know whether or not these associates are performing and aware about their profitability. I would agree with you that since it is not that transparent on how this income is derived, it would be hard to measure the effiency etc or predict future earnings from these associates. Even then, using ratios such as EBIT/EV and ROIC which exclude these items still show this stock as a value buy.. so I am not too concerned.. http://klse.i3investor.com/blogs/stock_pick_challenge_2013_2h/34444.jsp

Trillion, you post some valid points, however, there are other ratios that can confirm the value of the stock that such as EV/EBIT and ROIC which do not depend on net profit. I would double check ratios such as ROE and P/E that uses net profit against ROIC and EV/EBIT which uses EBIT before deciding on the value of the stock.

A sidenote on CBIPY :- An entity is defined as an associate when the investor controls between 20 -50% of the issued share capital.In the case of CBIP, its associates with less that 50% control are :-
Kumpulan Kris Jati Sdn. Bhd.
Bahtera Bahagia Sdn. Bhd.
They are mainly involved in the plantation and milling divisions.

i believe cold eye is a major shareholder in MBL as well based on the annual report

what i can see recently is that this stock tend to move up close to end of the month when they need to update the PN17 status... it will drop after that and then move up again... cycle...

haha... nola... me enter and exit a few times already... just wondering what you think about the prospects... still can punt or not...

hey KC, you still invested/punting in Maybank CW ?

KC, in your KFIMA spreadsheet for EPV, I notice you use this method to calculate the cost of capital

WACC = [(Market cap) / (Market cap +Debt) * 10% ] + [Total debt/(market cap + Debt) * 0%]

When this method is used, if debt is increased, you end up with lower cost of capital and a higher EPV value. Does this make sense ? A company with high debt to market cap ratio have a higher EPV ?

KC, mind to share what is your intrinsic value calculation for MFCB ?

looking at chart... after 4pm.... went straight down... looks like a upthrust and more weakness to come.. but definitely agree that long term prospects are good here...cheap entry to healthcare exposure.. might reenter if RM0.7 support can hold ! good luck !

wow sold at 0.79.... hope wont regret...

haha... wah if coastal hit RM 1 will be buying big time.. .take some time to read up what one of our forumers has written about coastal here...

http://klse.i3investor.com/servlets/forum/900285510.jsp?ftp=1

kc, thanks for the clarification.. anyway.. believe that we are both on the same page when it comes to Pintaras as a value and growth stock.

KC by having more people have a share of the pie, you increase the tradability of the shares. Of course there is no value added, but like I said its more on the liquidity. Berkshire Hathaway is a fund right ? In this case, the value of the fund is fully reflected in its NAV. If the value of its stocks it holds go up, then the fund price goes up as well.. just like our unit trust funds (open ended types) in Malaysia. There is no inefficiencies there... I might be wrong.. just my 2 cents.

KC, no arguments there when you talk about value... but bonus issues and share splits improve the liquidity of the share and makes it more tradeable.... and liquidity does play a part in getting a share noticed by more investors and even institutional investors.

could be another TDM... with construction sector getting the spotlight... the smaller caps will start getting unearthed... Just have a concern on the downgrade by Fitch recently which is causing the sell off today

Posted by kcchongnz > Jul 31, 2013 11:26 AM | Report Abuse

Hey now investment bank also starts to provide analysis for Pintaras already loh.

http://klse.i3investor.com/blogs/rhb/34075.jsp


kc congrats... finally this gem is unearthed ! Even the RM7 target price matches your intrinsic value you gave to me a while back !

inwest88, thats for doing the math... 31% in 1 day is still great or in 5 secs as iafx mentioned :) of course high risk as what I have read.... that s why i sold immediately...

in goreng land again ?

Sold immeidately...
Sold mother at 0.415
Sold warrant at 0.24

mother share down 3%
warrnat up 233%

You do the math... overall still make big time

should have subscribed more !

wow nice... sold all de... 200%++ profit just like that...

thanks KC. yes that makes sense.

KC,

Is it normal for dividends paid to minority shareholders > dividends paid ?? I see thsi in Mega First investment cashflow statements from 2009 - 2012. How come dividends paid to minority is higher when net income attributable to minority < common shareholder ?

Year 2012 2011 2010 2009
Dividends paid (17,616) (14,490) (12,049) (9,602)
Dividends paid to minority shareholders (30,566) (23,385) (26,184) (12,941)

KC, it will be great if you can share a summarized compilation of shares on your watchlist by ranking them according to your FA metrics such as ROE, ROIC, FCF, EV/EBIT etc...

yes.. good post... i ve also been reading up on volume spread analysis, a similar method used to track smart money movements.. The book by Tom Williams is a good starting point to understand this...

kc, what do you think about koon yew yin accumulating jaya tiasa .... read about it in Dali's blog... I dont think Jtiasa meets your criteria but just seeking some opinion...

exit all at 2.86 ... will reenter if break RM3 convincingly

could be due to pbbank report... but no real new news actually

anyone have tried withdrawal for direct investment into stock market ? I heard that Apex securities have a scheme that allow you to withdraw as little as RM10k start up. I know that Amara requires at least RM25k start up which is quite high

OK tqvm for the clarification