if market crash somemore, hug also not enuf not to say hold. lol

lol

@Kutty

Price trade below NTA theoretically deemed as undervalue, but if u think deeper, it might not be the case. Food for thought for you

http://finance.yahoo.com/news/tiong-nam-frost-sullivans-2013-034300632.html

Sounds good but i think the market prefers its property development sector.

lol. nothing to do with VT, he is just the boss. haha

nice one bsn

QL is a capital intensive company. It spend a lot to grow the company and its doing decently for me. The profit margin for last two years is decreasing influenced by the rising of commondity price. However, if you look 10 years backward, the margin is increasing, albeit its still below 10%. It is a well managed company in which i believe its venture in vietnam and indo might be quite good.

I dont mind seeing BB keep commenting on AA, at least he is not insulting others

hope so

it is more than just tapering of QE now.

HJey, i wonder why ur TP @ 2.73?

post-election gap up almost close

CI almost touch on 200ema. Still trading? hehe

lol. james dont depend on mr ooi. after all its your investment, your gain or your loss. Learn from your mistake/success

this stock has good growth history,4 yrs CAGR > 20% for revenue, earning 4 years CAGR >30%, trade below NTA 2.30.

najib said mas wont be privatised

imba and yet so sarcasm

wow nice run, never expect.. perhaps somethings brewing. when do you read the news KC? Can you recall?

but still men want to marry? so all men are “fan jian"? haha

Peter Lynch's books also good.I think you might like it as well

@TD200740 After comparing between topglove and harta, harta is much more better, thats why Mr. Market has given it with higher P/E ratio. Regard to topglove, i have not much idea on the price to buy now. sorry cant help

Welcome guys

@td200710 what do you mean by TG shares?

"Today's analysts (banks and IBs) just sits in front of their computer and after keying some numbers, comes out with their magical target price" Well said, thats why we do not simply put in the data to compute the fair value. otherwise its really misleading

things just got serious now? hehe

oh ya i remember one of the Fat Cat most recommended stock, KNM, with extremely high TP of >100? opps i cant recall haha.

Hi kc, is investment in subsidiary considered as CAPEX?

"the person who never bothers to think about the economy, blithely ignores the condition of market and invests on a regular schedule is better off than the people who studies and try to time his investments,getting into stock when he feels confident, and out when he feels queasy." Peter Lynch

i tend not to believe SKP is undervalue. It had never been trading at high valuation too.

lol so dramatic

fundamental intact.Market overreacted to the one off loss.

What is the main selling products under pwroot?

everytime i enjoy reading his blog.

http://www.theedgemalaysia.com/business-news/247882-stocks-to-watch-genting-msia-bursa-kinsteel-perwaja-ta-ann-power-root-coastal-contracts-.html#.UfUXzaZwBYs.facebook

lol anyone read this news? power roots into film industry? lol

I wanna talk something about SKP resources, in which i happened to hold for some time and lastly i decide to realise my losses. Why?? Alright, first i need to admit until now i also not really understand the business for SKP, i do not know its competitive advantage as well. All that i know is it is very highly dependent on DYSON and its financial for the past few years is really good after i conducted my analysis through my own spreadsheet. If we look into the valuation, SKP P/E ratio is always trading at single digit even it posted double digits growth YOY,net cash,good OCF and etc. Does anyone wonder? Now the market is all time high and we can simply find any good stocks trading with high valuation,what makes you think that SKP is still trading at low valuation if it is so good? Do you think that you are the only few who found this "hidden gem"? IF we look into furniture industry, there are a lot of stocks which is financially sound but also trading in low valuation? I would think that maybe this is because of their cyclical business(i take this industry merely for illustration purpose). As for SKP, i believe there is still some reasons that the market do not fancy on it, maybe because of its main customer, DYSON is venturing into CHINA market as CHINA market is huge but not easy to success. Retailers like wal mart, tesco or parkson is not doing well there. So in picking stock, it is important to find a fundamentally sound company, but the business itself is rather important too. I would think that SKP business will remain stagnant unless DYSON can do well in China, which is highly doubtful as for now. Oh ya, the latest financial result showed marginal growth only. Just my worthless 2cents

what is so good with its business? Can share?

so envy

Welcome, this is coming from their IR.

fundamentally QL is good too,high growth potentail for the coming few years and possibility of margin improved from ILF division due to the slow down of commodity price.

Dear ooi, please be noted that this method of calculation IV has its fault and drawbacks, it shouldn't be just calculated from what you have.The quality of the inputs are very important otherwise what you get is far away from what might actually be.

Hi nicole, just a sharing from the data i retrieved, which i think is very beneficial to the long term investors. Cheers :)

Due to the expansion of Hartalega at sepang which will be commenced on September 2013, will it lead to overcapacity in compare to global demands? How do the company view as more companies actually enter into nitrile production and the possibility of margin erosion? Hopefully you can shed some lights.

Your query refers to overcapacity?

there are 2 main products sold in the market ie natural latex gloves and nitrile or synthetic rubber gloves.
both have differing fortunes ie latex rubber gloves are a sunset product while nitrile rubber gloves are sunrise as there is a switching trend from latex to nitrile gloves due to:

I. protein allergy factor affecting natural latex gloves especially in Western world
ii. preference for lighter and thinner gloves for disposable medical exam gloves which is more tactile sensitive and use less rubber - natural latex gloves can only be made as light as 5 grams while nitrile gloves can be made as light as 3 grams because nitrile is a more durable product
iii. nitrile raw material is cheaper than natural latex raw material by about 20% while the finished product for both nitrile and latex glove are about the same price - today, price is not the determinant for buying choice but the functionality and nitrile has proven to be the more functional rubber glove

many latex glove makers only realized the switching trend towards nitrile in 2011 and are beginning to build new nitrile production lines substantially ie about 32 billion pieces capacity will appear in the next 3 to 5 years but fortunately this new capacity can be absorbed by the increasing demand for nitrile gloves ie the rate of demand growth is growing at over 20% for the next 2-3 years for a 56 billion market ie additional demand of 10 billion plus per annum.

the other matter is that despite claiming that capacity could be 32 billion in the next 3 years, this may stretch to 4 to 5 years instead due to delays in commissioning resulting from delays in obtaining approvals eg Topglove wants to increase capacity by 8 billion pieces by end 2014 but has only increase capacity by almost 2 billion - annually, Topglove increased its capacity about 2-4 billion per annum historically, so the 8 billion could be an overstatement.

the other matter if you notice is that despite increasing installed capacity, actual capacity has not really grown radically but only incrementally due to the cannibalization of nitrile sales over latex sales - the bulk of nitrile sales by major natural latex glove manufacturers are to their own existing natural latex customers who have switched to nitrile gloves due to hospitals preferring nitrile over latex.

but the downside to the increasing capacity is reduced selling prices which will crimp the topline and indirectly affect profit margins - hence, Hartalega is strategizing to sustain and maintain profit margins via:

I. reducing cost per glove by increasing our production line speed and hence improve productivity per glove
ii. adding new automation which will improve productivity per glove as it will reduce manual worker numbers
iii. reducing the defect rate per million and improving quality to reduce customer complaints as it will reduce troubleshooting time
iv. increasing skilled worker ratio through training and knowledge management
v. diversifying the product range to have more new features, types and also increase range of specialty gloves which command higher profit margin
vi. constantly seek new customers especially clients who are less price sensitive and more quality conscious and willing to pay a premium price for quality - this type of clients tend to be more loyal and long term

these are some of the strategies we undertake to maintain profit margins - we expect to maintain our profit margins above 20% for the next 2 years and when we undertake our major expansion plan to quadruple our capacity, we will expand our profit margins due to:

I. increased economies of scale resulting in more bargaining power to get lower prices for our supplies
ii. lower tax from capital allowance - we engaged Deloitte to assist us to legitimately reduce tax from current 22% to about 17-18%
iii. improved average production line speed from 28k pieces per hour for all lines to about 40k per hour - our highest currently is 45k per hour and we are working to improve to 47k per hour

any update on this company kcfan?hehe

crawler,sorry i dont get you well,can you elaborate? Thanks bro

crawler, why is healthcare going to outbeat plantation? Mind to share? Thanks

Datuk, what kind of steel is most demanding

Hi merzman, no worry haha, i have no doubt on you nor condemn on MAS. I speak out according to the fact and real figures. Basically i am just hanging here to pass my time and I believe cognitive bias will definitely affect one's judgement in investment, so taking others people ideas and make own judgement isn't it a good things too?hehe

lol merzman you must be kidding

lol my chart shown that it crosses down from overbought region but nowhere near oversold

sorry i mean business is intact.

don focus too much on price, if u look at its intact. dont worry too much

SKPR is heavily depend on Dyson, roughly 30% to 40% of their profit come from Dyson? If my memory serves me right