R u selling wb @ $1? I m queing.

Hi, guy. What is the next TP? I feel so gud........today.

Earning is easy to fabricate. I did that quite often. When I need borrowing, I boost earning to impress bankers in the expenses of higher tax payment. When I don't need borrowing I keep earning as low as possible to save tax. If the bank officers can read financial statement in detail up to balance sheet and cash flow statement, I won't be able to get through so easily. Therefore, I believe balance sheet and cash flow statement are much more reliable than income statement. Notice that MMode' revenue is increasing. It is different from Zhulian's situation where revenue dropped drastically. What could have happened to MMode?

1. MMode MSC 5 years tax allowance is expired. Keeping low profit margin can save tax expenses.
2. MMode is in the process of flushing out competitors in the expenses of lower profit margin.
3. MMode is trying to achieve a turnover that is needed to satisfy mainboard listing requirement. Again, in the expenses of lower profit margin.

A great investor who I forgot his name once said that a company is worth all it's future cash flows discounted to the present value (pls help to rephrase my statement if I left some words). He and a few others also said that discount cash flow is the only correct valuation method. I believe them so I stay. MMode is sitting on 40million cash. It can venture into other areas to boost income easily. I could be wrong but I am willing test the theory. Good luck and I need it most.

Another QE? Pls provide link to the related infor. TQ.

Hi, Noby. Did you include goodwill on consolidation in IC calculation? I guess that's way you get ROIC 28%. Is it appropriate to classify goodwill as IC?
Ya.....I made mistake in market cap calculation. It should be 84.609mil instead of 94,371mil. This will lower EV/EBIT to 4.3x.

Net cash 24sen cash per share. That's mean it's ongoing operation only worth 28sen now. Still can drop further? Ya..Market is irrational. Anything can happen. Loss making co. can also be pumped high to the ceiling.

I think the problem with MMode is it grew drastically in the past three years. Ppl just put too much expectation on it. Just like a kid scored A+ consecutively but all in a sudden scored an A-. The parents just heart broken. An A- is still an A isn't it?

Thanks for your input.

@kun1971kun. Can consider walk away if u only have a few counters. This one can drag down your return significantly. I've 12 counters & 10 are very promising. I dun mind to give MMode a chance bcoz I can afford to.

goflykite. I assume u alr sold all your share. Why u so concern about this counter? Wat is your motive? U haven't got money so u dun wan it to hike too fast?

@Iching88. If 80sen there is no magic. At current price it is real magic. So simple also dun understand? Really pity u.

Magic formula by Joel Greenblaat:

Share price: 52sen
(all no. in thousand)
Total outstanding share: 162,709
Market cap: 94,371
TTM EBIT: 10,763
Minority interest: 0
Borrowing: 1,961
Excess cash: 41,696

Assume that we buy the entire company in open market, pay all it's debt & minority interest and pocket all it's excess cash

Enterprise value, EV = Market cap + total borrowing + minority interest - excess cash = 54,636

So, what is the annual return of this investment?

Earning yield, EY = EBIT/EV =19.70%

Is 19.7% good? Lets ask Warren Buffett. According to Warren Buffett, If we flip the EY formula; EV/EBIT < 7, we probably found a under valued investment. What is MMode's EV/EBIT?
1/19.7% = 5.08. Way bellow Warren's magical number 7.

How efficient is MMode's asset utilisation? We'll look into return on invested capital; ROIC

a.)Investment in associate: 586
b.)Development cost: 5,492
c.)Total Receivable: 11,666
d.)Inventory: 0
e.)Property plant & equipment (PPE): 9,392
f.)Payable: 2,399
Invested capital, IC = a+b+c+d-f = 24,737
ROIC = EBIT*(1-Tax rate) / IC = 37.14%

How good is ROIC 37.14%? Much better than ROE of the same percentage.

Ok, I got something to do now. Latter in the evenning i'll do discount cash flow on MMode to find it's intrinsic value.

The are the events end of next month:
suspend for trading for announcement. Listing to mainboard approved. 3rd quarter result very encouraging. Propose special dividend.

As a result of these encouraging factors:
share price sky rocketing. UMA is issued to MMode.

This is what happen to goflykite:
He feels too sorry for misjudging MMode. He totally miss the boat to wonderland so he goes fly kite in Holland.

Opps sorry. See wrongly. It is another counter. This few days used to see red. Kind of uncomfortable seeing green. Hehehe.....

Hevea is gud but his brother Latitude even better. 8%++hike.

U too conservative. I'll "pok" another round. Before Chinese New Year sell half. 50%invested 50%reserve thereafter.

flytothemoon. Since u have so much cash not invested i recommand my 2 other winners to u. MMSV & KSL. "e chi pang"!

Yessss...Baby! Up Up Up!!!!!

Lai liao! May be by the end of the month can sell some wb at $1.3. Hehehe.....

Those bought yesterday @3.9 arl made 8.9% gain. This counter is really fast.

Why only up kena UMA but dowm no UMA?

This baby never let me down.

Hi, TCB. Is the bear going to stay for long or it is just passing by?

@limayseng. Nobody know how long the bear will stay. Everyone has different background & commitment. Your statement is unfair to some ppl.

You are an "old wild boar".

Not only short sell. Panic selling, forced selling are all happening now. A forumer said he sold everything bcoz can't handle the pressure.

Latitud survived for the past 8days. Today also become the bear's prey.

Every counter keep heading south. The bear will not walk away without tasting flesh. May be walk away is a good choice. Too late for me to walk away now.

When this is over i'll chage my investment stategy. 50% invested 50% reserve. Limit no. of counter < 10. Too many counters top up also dun see much effect. This bear gave me a very good lesson.

Anyone has an idea when will this little bear walk away? All my money get stuck. I fear that my plans for next year all KIV.

Dun forget to buy from me at $1.3 next month. Ok...

I must have bought it from u....I top up at $1 yesterday. Shit!!!

Totally agree with you. In time of uncertainty our investing criteria shift from high earning to high liquidity. MMSV is the combination of both! It high growth is financed by it's own equity! What a gem!

We are the owners of a money printing company. The shares in our hands represent ownership, not just the $figure shown in computer screen. If we look at it this way then we will feel easier in market correction.

We are the owners of a money printing company. The shares in our hands represent ownership, not just the $figure shown in computer screen. If we look at it this way then we will feel easier in market correction.

I believe this is a correction, not crash. Will look for the best price to top up.

1hr 50min before USA market closed. DOW dropped 400. Just wonder what 1st class ah pek stkoay will do tomorrow morning. He bought at $1plus & will make handsome profit even selling at current price. His holding power is astonishing. Many ppl never heard about KSL at the time he bought this stock. Will you sell? By the way, I m not too worry or sleepless. I just woke up to pee.

Hey, guys. We still get dividend. We are the owner of a business. Our money doesn't vanish just like that :))

There is nothing we can do. Whatever investing philosophy is meaningless now. There are great investors who claims that they have sold everything weeks ago. There are also great investors who say they haven't sell a single share till now and they are unlikely to sell during bad market. I am prepared to keep all stock in fridge for a year (hopefully not that long). Good stocks will rebound. Tomorrow will be the end for lousy stocks. I still believe MMode is good stock.

More ppl will receive margin call. More force selling ahead.

F22. I dun think those are fake sell. They are forced selling. Trading houses will reduce the margin cap in volatile period. They could be more selling ahead.

Keep the losers sell the winner or the other way round?

What should we do now, KC. There is nothing we can do about the counters that loss. Too late to cut loss now. We can protect our profit of the counters that still showing profit before they turn to losses. Shall we sell for gain?

kkng0819kk Ini kali la betul betul boleh masuk dan tunggu durian runtuh
15/10/2014 17:28

Next year on the same day you will say the something again but it would not be $3.41. It would be much lower. Look at the historical price. I m not talking nonsense.

At least we still got an Ace in our hands. Good Q report a month from now. I'll hold.

Tomorrow better dun turn on the computer. No eye see.....

5367 lots queing at $3.98!!!!

Is something going to happen tomorrow? Ppl are selling like there's no tomorrow.

Hi, all respected ah pek. Any idea why all counters experiencing last minute sell down?

flytothemoon. How much did u said u made in 2day? Hehehe.....

Why so quiet? In this circumstance experts' views is most valuable. Not during uptrend! During uptrend any idiot can give opinion.

This time jarak liao.

New low again? Still refuse to wake up?