Qqq3, do you even need to ask should you trust the management? Just look at related party transaction. 70m every year for 'branding and IP' to corporate shareholder.

Pang, goodwill is an accounting plug. Because when you acquire a company with any amount above Net asset balance sheet is imbalance after consolidation without goodwill. Thus the sensible one would take goodwill as what it is, a number where accountant use to balance the balance sheet. So the statement that auditor approved is moot in a investing decision.

You guys are going to give the reason that he's using a low discount rate because he's forecasting cash flow conservatively? I only see flat 1.3b profit and no loss making year not even a drop in profit in his forecast, which is very common for a refinery especially if you forecast 10 years forward. And seriously? DCF for a refinery business? Stop trying to trick the gullible. My god

Hey man keep it up. I wholeheartedly agree on the part where you say DCF is not a justification to invest but rather a supplement valuation tool. Although there's a few thing I disagree ( who doesn't though ) but at least you seems like someone who is not trying to mislead others into financial ruin.

Is anyone really that gullible to believe the above thesis? A lower than risk free discount rate for a cyclical refinery business? How much are you bag holding or get paid so you would stoop so low and try to mislead the public?

Dont blame others when you lose money, educate yourself before spewing nonsense. The non sensical trading you see by EPF is because some part of EPF funds are externally managed where different fund manager make different decision under the EPF banner.

Imo you're under discounting in this dcf analysis. Why are you not using WACC or atleast klci average return but a 1 percent premium above risk free rate, I would have used an higher rate even for reits.

I didn't read their annual report but imho you should be more conservative especially if your words might influence others that are not that as well versed in finance compared to you.

Its very dishonest to compare Nestle and Amazon. Amazon is a company that changed the world and is churning out respectable growth whereas NestleM is a consumer staple. In 5 years time, Amazon doubled its revenue but NestleM only grow by about 10%.

Whats happening here is mere valuation expansion caused by few trigger. Inclusion to KLCI/MSCI index (mind you index tracker fund doesn't bother whether its a overvalued or undervalued once its in or out of an index fund manager have to rebalance without prejudice within a set of time stated in their prospectus), the buy sell contrast you see between local and foreign fund is directly due to that and the low popularity of index tracking compared to actively managed fund in Malaysia. Other than that we are also currently in a bull market.

You should compare valuation between Nestle SA and Nestle M, which you will see the ludicrousity f the current run.

Mind you I'm happy for NestleM shareholder which doubled their share value in one year, however that does not mean that NestleM is not overvalued and to deny that its dishonesty.