Posted by donfollowblindly > Sep 14, 2017 12:39 PM | Report Abuse
Already said many times don't follow blindly KC Chong. If engineer can become stock adviser why must people study CFA or accountancy?

The problem with you is that you not only follow blindly in the stock market and lost hugely, you blindly talk nonsense.

What evidence you have that a good investor must be an accountant or must have CFA?

I have none of the above. See all the portfolios as established in i3investor, yes, all of them, either long or short term, make huge returns from the market.

http://klse.i3investor.com/blogs/kcchongnz/131801.jsp
http://klse.i3investor.com/blogs/kcchongnz/131584.jsp
http://klse.i3investor.com/blogs/kcchongnz/127935.jsp http://klse.i3investor.com/blogs/kcchongnz/128386.jsp
http://klse.i3investor.com/blogs/kcchongnz/127825.jsp
http://klse.i3investor.com/blogs/kcchongnz/127559.jsp
http://klse.i3investor.com/blogs/kcchongnz/127444.jsp

Posted by sense maker > Sep 12, 2017 11:41 PM | Report Abuse
As I wrote earlier under Sendai's thread, Sendai's fair value is RM0.30.


Anything about corporate finance and investing which comes out from sense maker is worth two thoughts.

Posted by Stock Kingdom > Sep 12, 2017 11:03 PM | Report Abuse
Wow, Low margin & yet extraordinary long payment term, very scary.


In construction works, payment usually takes about 3 months after work done. It involves submission of claims, certifications by consultants, issue of payment certificate by the architect, follow by payment by client.

If the receivables are so high for every quarter like that of Sendai, most probably there are problems such as below,

1) Client has no money to pay
2) 2) There are disputes in claims
3) Work delay and hence
4) Defective works and hence
5) Counter claim by clients
6) Arbitrations or long-drawn cour case

None of the above is favourable to the contractor.

Posted by 3iii > Sep 12, 2017 09:19 PM | Report Abuse
KYY bought into Eversendai at prices below 50 sen. The share price rose as he bought into this company.
Eversendai is facing a challenging time. I think its costs of doing business in the Middle East has gone up when the Saudi impose various difficulties on Qatar.


For an illiquid stock like Sendai, it doesn’t need a lot of capital to jack its share price up from 50 sen to RM1.70+, especially with concerted effort from other major shareholders. People who follow would have made a lot of money. That is provided they bought them before it was promoted relentlessly in public forums, and even in magazines.

Hence share price movement often has nothing to do with its value, especially in the short term, during which the stock market is a voting machine.

In the long-term, the stock market is a weighing machine.

manutdchampion has left a new comment on your post "Banging on Eversendai: Risk and Return kcchongnz":
still can hold sendai?my average price is 1.150 thanks.

It is a tough question as I have no idea what the share price will be tomorrow, in the next month, or the next year.

However, I think I have given you some analysis in this thread for you to make an informed decision

Good luck. You need it.

Posted by limhh > Sep 13, 2017 02:20 PM | Report Abuse
i am tire of managing downside, in bull market margin of safety seems useless, high continue to go higher. stock with margin of safety continue to stay as it is or even lower.


Then buy Sendai.

• It is an established company with reputable records in the construction of steel structures
• It has many years of overseas exposure
• It has a huge order book, with RM2.7 billion of jobs on hand, all over the world, especially in the Middle East, India and South-East Asia.
• It has a huge workforce of 15000 personnel.
• It is going to complete all the jobs at hand and on time as promised by the boss
• It has a major investor with deep pocket

The bigger fool theory does work once in a while.

Posted by sell > Sep 13, 2017 09:24 AM | Report Abuse
Pity those buying because of KC Chong promotion. Most of his stocks in bubble. Willow only worth 80 sen not more.


Interesting statement. But let us see the truth.

When I share my view that Willow was a good investment exactly 4 years ago, it was trading at 53 sen as shown in this link

http://klse.i3investor.com/blogs/stock_pick_challenge_2013_2h/35487.jsp

It is now RM1.30.

I have shared hundreds of stocks. How many other stocks in "bubble"? What is the percentage?

For ease of reference, here are the links of most stocks I have shared.

http://klse.i3investor.com/blogs/kcchongnz/131801.jsp
http://klse.i3investor.com/blogs/kcchongnz/131584.jsp
http://klse.i3investor.com/blogs/kcchongnz/127935.jsp http://klse.i3investor.com/blogs/kcchongnz/128386.jsp
http://klse.i3investor.com/blogs/kcchongnz/127825.jsp
http://klse.i3investor.com/blogs/kcchongnz/127559.jsp
http://klse.i3investor.com/blogs/kcchongnz/127444.jsp

We love to hear from you.

"As you can see, giving out free convertible warrants to shareholders is like giving cash ‘Ang Pow’ to shareholders. Unfortunately, I know many companies including Lii Hen and Latitude Tree, with all the required qualifications do not issue free convertible warrants to benefit their shareholders."


This is a big investment myth!

There is no free stuff in investing, none at all!

One simply can't get more cake to eat, just by cutting it into more pieces. It is the same amount of cake.

Bonus issues, share split, "free" warrants, are simply part of a cake. Carrying out these corporate exercises is just like paying an expensive chef to cut the cake for you.

The difference may be the company carrying out these corporate exercises has to pay a fee to the investment bankers. The fee in percentage wise can be very high if the market cap is small.

So instead of "free", the company, and eventually, the owner of the company, that is you as a shareholder, is paying for it.

So there is no "Ang pow" from anyone, but instead, you give an "Ang Pow" to the investment bank.

That is also why,the management understand it and care about the interest of the company and the shareholders. Company like Latitude does not like to give "Ang Pow" warrants to the investment bank. Rather they keep the money, which belongs to the shareholders.

This is fortunate for the shareholders, not "unfortunate", in my opinion.

Posted by SenSeng Loh > Sep 10, 2017 08:13 AM | Report Abuse
Low PE and P/BV is one of the yardstick in picking a safe stock. Stock market is not static, it keeps moving up or down.Low P/BV stock is always safer when market down. First thing in investing is not to lose to much and anticipating of good return by holding on with the undervalue stocks


Fully agreed. But whether the share price will go up or not doesn't matter. At least there is someone sharing some real stuff, which, in my opinion, are good and accurate information.

Anyone may give constructive criticism, but laughing at him, that is senseless.

Posted by bursainvest12 > Sep 10, 2017 08:13 AM | Report Abuse
Cost of borrowing (5-6%) vs Cost of capital (10-12%).
From management's perspective, share capital is interest free and not burdening earnings on their KPI. Dividend is not mandatory.

Good points.

But as a shareholder, are you looking at your interest, or the management's interest?

If you care about management's interest, rather than your own interest, good for you.

If you invest in a company because you foresee the good future of the company,
1)would you care about the dilution of your interest?
2)Would you care about more people claiming on your future interest?
3) Would you care about having to share a piece of your cake, with a song?

If you are doubtful or know that the future of the company is not good, that it is good for you as a shareholder, as other fools are willing to share your losses.

But again, if this is the case, why are you still holding this share?

Very interesting article. I have many comments to make. Let me contribute the first one regarding the statement below.

"Shareholders must realise that this corporate exercise to get more cash is cheaper than borrowing money from banks."

How much bank charge for borrowing from a corporation? 5%, 6%?

If you invest in a listed company, what would your required return be considering the much higher risk? 10%, 12%?

When a company goes into bankruptcy, who gets the claim of the assets first? Hence which will demand higher rate of return?

Posted by donfollowblindly > Sep 9, 2017 12:33 PM | Report Abuse
Cannot make money from market lately so need subscribers money for sure money?

This article is to show the return the stock pick participants of mine would have made in the last one year, using the fundamental value investing methodologies. It is not about me. Whether I made money or not is personal, nothing to do with you too.

To tell you the truth, I am happier to see my stock pick participants making money, more than I do.

The article shows the links of three stock pick services, two in Bursa and one in SGX and HKSE. All of them made 30% or more for the last one year.

So do you think they sure made money or not?

So do you think they are happy joining my services or not?

Good analysis.

Right to the point.

Keep it up Fabien.

Frank,

Congrats. This is one of your multi-baggers. Your patience pays.

Posted by stockmanmy > Jul 23, 2017 11:56 PM | Report Abuse
yes...but People delete my answer
the real question is...........can a loser keep their winning positions?
paper portfolio with bluff money maybe can.


Do I keep my winning position? Since you talk about it, here are my winning stocks, now, right now! See who is a loser.

1) KESM bought at RM5+
2) JHM at RM1.20
3) Willow at 60 sen. Those bought at less than 40 sen sold already.
4) Padini bought at RM2.30. Those bought at less than RM2.00 sold already.
5) Magnitech bought at less than RM4.00. Those bought at less than RM1.00 sold already.
6)Vitrox bought at RM3.70 before corporate exercise. yeah this one sold too early.

Wlllow, Padini and Magnitech were bought using your so-called "20 century" strategy.

I can't simply write here because I will lose credibility from so many of my stock pick participants if I bluff.

So what do you have?

Posted by 稻田·* 片片绿青~粒粒芳香 > Jul 24, 2017 10:34 AM | Report Abuse
KC Chong sifu.. how are you?

I am good thank you. You are one of those who motivated me to continue to write. Thank you again.

Sslee,

You are one of the most impartial and respectable persons around here.

I hope (sincerely) you are right in your assessment.

By the way, normally I do not say something, which is not good, if I am unsure about it.

So in this case, I hope I am wrong.

Posted by stockmanmy > Jul 24, 2017 10:02 AM | Report Abuse
1 Go ask KC whether he kept any of the winners in his model portfolio with real money and real life.
bluff money and model i3 portfoli got la.
2. Dividend model so 20 century......that kind of strategy would have missed out on all great quality stocks of the 21 century. Go look into new technology stocks better la.

Since you asked, so let me tell you what I still keep

1) KESM bought at RM5+
2) JHM at RM1.20
3) Willow at 60 sen. Those bought at less than 40 sen sold already.
4) Padini bought at RM2.30. Those bought at less than RM2.00 sold already.
5) Magnitech bought at less than RM4.00. Those bought at less than RM1.00 sold already.
6)Vitrox bought at RM3.70 before corporate exercise. yeah this one sold too early.

Wlllow, Padini and Magnitech were bought using your so-called "20 century" strategy.

I can't simply write here because I will lose credibility from so many of my stock pick participants if I bluff.

So what do you have?

Posted by stockmanmy > Jul 24, 2017 02:31 AM | Report Abuse
raider / kc
very normal for people to write good things about shares they hold......nothing sinister there..........why must KYY be held to a different standard?
I think both of you are people of no morals.


Good. Lets talk about morality.

Some people here bought large amount of shares of certain companies. Then they came up to promote them furiously, even collaborate with other major shareholders, fund managers, syndicates etc to fry the share. They even encourage newbies and the naive people to borrow money, use margin finance, and sailang on the stocks promoted by them. To me, that is highly irresponsible and immoral, especially for some people who have some social standing in the society, because most people tend to follow them. Did they manage to drive Rolls Royce, or have most of them lost money, huge amount of money as a result?

There are plenty of trails in i3investor alone you can follow and make a judgment by yourselves.


I have written 291 posts so far in i3investor. Most of them trying to teach people the proper way of investing propagated by all the real super investors in the world and at home. I urge them to learn those skills. With those skills, they can avoid falling into the traps of the manipulators and syndicates.If they have followed my principles, I am very sure they would have made reasonable returns from the stock market over the last few years. Just look at those stocks I shared in my portfolios, and the detail analysis I have done and posted in i3investor over the last 4 years +. Just follow all the trails.

So, tell me, who are the "immoral" people mentioned by the loud mouth?

"Fred Schwed wrote a book called Where Are the Customers' Yachts? The title came from a story about a visitor in New York more than a century ago. After admiring yachts Wall Street bought with money earned giving financial advice to customers, he wondered where the customers' yachts were. Of course, there were none. There is far more money in providing financial advice than there is in receiving financial advice."

The above is the essence of this interesting book, "Where are the customers' yachts?"

Do you see anything, anything at all written here related to the title used?
All of them are just gibberish, all nonsense came out from loud mouth.


Read what he wrote and my comments:

A minority makes money from the stock market
The vast majority loses money in the stock market

ME: THAT IS TRUE, BECAUSE SOME PEOPLE BOUGHT SHARES FIRST, PROMOTE THE SHARES FURIOUSLY, GET THE OTHER MAJOR SHAREHOLDER, AND A COUPLE OF FUND MANAGERS TO JACK UP THE SHARE PRICE, AND THEY SLOWLY DISPOSE OF THE SHARES.

Attitude pre determines every thing already.
Winners have winner attitude
ME: WHAT ATTITUDE? WHAT ARE THE WINNERS’ ATTITUDE? NEWBIES AND THE PUBLIC EASY TO BE FOOLED, SLAUGHTER THEM?

Losers have loser attitudes
ME: WHAT ARE LOSERS’ ATTITUDE? CANNOT KEEP WINNERS? HOW YOU CONCLUDE THAT EXCEPT A LOUD MOUTH?

Cannot change that unless people change their attitude
3 ingredients to be hugely successful
- able to sailang and go for the kill (in the words of HK Value Cap)
ME: SAILANG WHAT? KILL WHAT? BASED ON WHAT TO SAILANG, TO KILL?

- can keep the winners
ME: WHICH WINNERS YOU HAVE KEPT? BUYING JAKS AT rm1.70+ WINNING? JACK JAKS UP TO rm1.70+ A WINNER?

- a blessed life
ME: THAT IS TRUE. BUT YOU MAY NOT KNOW WHO HAS A BLESSED LIFE, OR WHO HASN’T.

Posted by stockmanmy > Jul 23, 2017 11:33 PM | Report Abuse
KC is not responsible for KYY
KC is maths teacher with loser attitude
People with loser attitude can never make good money from stock market.



kc remains loser? You base on what to make that conclusion? Your panic moment? seX factor? Dynamite?

If you understand English, read these threads on the portfolios of stocks I have been holding, and check their returns, and evaluate yourself if I am a loser, rather than talking nonsense all the time. or is it you?

http://klse.i3investor.com/blogs/kcchongnz/128386.jsp
http://klse.i3investor.com/blogs/kcchongnz/127935.jsp
http://klse.i3investor.com/blogs/kcchongnz/127825.jsp
http://klse.i3investor.com/blogs/kcchongnz/127559.jsp
http://klse.i3investor.com/blogs/kcchongnz/127444.jsp

These are all established records in i3investors since more than4 years ago.

Posted by stockmanmy > Jul 23, 2017 11:24 PM | Report Abuse
kc chong
when I am 84 years old driving a Roll Royce...I will write a book and tell you all about it.

I am sure you will be "driving" a Rolls Royce then, or may be later. Just tell you children to do it before the time comes.

Posted by stockmanmy > Jul 23, 2017 11:14 PM | Report Abuse
do you remember IH 2016...market bad...KYY says he got margin call
People started saying KYY die,,,sure die.
well....KYY is not only alive but doing very well.......
losers will remain losers forever...and kC remains a loser.


kc remains loser? You base on what? Your panic moment? seX factor? Dynamite?

If you understand English, read these threads on the portfolios of stocks I have been holding, and check their returns, and evaluate yourself if I am a loser, rather than talking nonsense all the time. or is it you?

http://klse.i3investor.com/blogs/kcchongnz/128386.jsp
http://klse.i3investor.com/blogs/kcchongnz/127935.jsp
http://klse.i3investor.com/blogs/kcchongnz/127825.jsp
http://klse.i3investor.com/blogs/kcchongnz/127559.jsp
http://klse.i3investor.com/blogs/kcchongnz/127444.jsp

These are all established records in i3investors since more than4 years ago.

Posted by Powerstock > Jul 23, 2017 11:08 PM | Report Abuse
Power up your knowledge
Take calculated risk
Dare to take decision
SAILANG stock with real power up

Manny,

What knowledge do you have? Panic moment? seX factor? Dynamite investing? Sialang? Can elaborate ah?

How you "Power up" these Panic moment, seX factor, Dynamite, Sialnag? Can elaborate ah?

Calculated risk? What risks you are referring to?How you calculate your risk?

Dare to take decision? How you arrive at a 'decision"?

Sailang? You know those following you sailang in Jaks at RM1.70+ and Sendai at RM1.30+ have already got margin calls and lost their pants because of your hype?

You call that "Real power up" ah?

Posted by TrippleZ > Jul 23, 2017 09:48 PM | Report Abuse

Those that managed to emerge as winners after sailang will say stockmanmy is right. Those emerged as losers will say stockmanmy talk rubbish. There are always winners and losers in investment. No point arguing this subject.


But those who sailang following manny for Jaks at RM1.70+ and Sendai at RM1.30+ would have got margin calls and their shares forced sold off at <RM1.10 for Jaks, and <RM1.00 for Sendai would be licking their wounds now.

Posted by cheated > Jul 23, 2017 10:11 PM | Report Abuse
If you are not interested in FL why bother to create blog on 24th May 2016 only to buy it on 1st Jan 2017. Why your blog wasn't created on 1st Jan 2017?


My "blog" in i3investor was formed in 31st December 2013. I did not "create a blog" on 24th May 2016.

I have written and shared 291 articles, or 291 "threads" in i3investor. One of them was about Focus Lumber on24th May 2016. I have in fact share more of that before and after that, including one on 1st January 2017 for the stock pick in i3investor.

So, when I wrote about Focus Lumber has nothing to do with you.

No, I didn't buy Focus Lumber on 1st January 2017. By the way, when I bought it has nothing to do with you.

But if you were cheated buying Focus Lumber at RM3+ has nothing to do with me too.

Suck it up man!

Posted by cheated > Jul 23, 2017 09:56 PM | Report Abuse
https://klse.i3investor.com/blogs/kcchongnz/97079.jsp
So, you only found Focus Lumber which lost money, but did it?


I wonder what is the level of your English proficiency. Did you pass LCE english?

The post asked a question,

[Focus Lumber announced its first quarter 2016 results ending 31st March 2016 on 20th May 2016. Its revenue jumped by 77% to RM53.3m and gross profit doubled to RM14.9m as compared to the corresponding period in 2015. However, its net profit remains flat at RM3.3m compared to the corresponding period the previous year. When compared to the preceding quarter, net profit sinks by 69% from an EPS of 10.4 sen to just 3.2 sen.
As expected, the share price of focus Lumber sank by 33 sen, or 14% at the opening bell on 23rd May 2016. It closed at RM2.07 at the end of the day, for a loss of 11%, in just one day.

Is Focus Lumber worth investing with the steep correction of its price now?]


And you went to buy at RM2.07, and now you said you were cheated. OMG!

I3investor <service@i3investor.com>
7:58 PM (1 hour ago)
to me

stockmanmy has left a new comment on your post "The Incredible High Dividend Yield Investing Strategy kcchongnz":

people with losers attitude
people very scared of losing money or lesser winnings

they can never keep their winners.


How do you know they did not keep their winners?

Maybe instead of talking nonsense, try to learn from me here,

https://klse.i3investor.com/blogs/kcchongnz/115857.jsp

Posted by cheated > Jul 23, 2017 09:44 PM | Report Abuse
The way you replied meaning you really own FL? Why your blog above show you own none? That's why I said you are a cheat.


this post is about the few stocks posted in i3investor at the end of year 2015. there were only 5 stocks posted as summarized.

I have two more published portfolios in i3investor, plus one stock picks for my participants for the past one year.

For all the above, there are already about 30+ stocks.

I have already shown you the fantastic returns of those portfolios recently.

In addition, I have posted numerous analysis on hundreds of stocks scattered in i3investor.

So, you only found Focus Lumber which lost money, but did it?

By the way, whom you were cheated? Why do you come after me? How did I cheat you?

Posted by cheated > Jul 23, 2017 07:04 PM | Report Abuse
Why no FL Bhd? Bought above RM 2 now RM 1.73.


Come on,I have shared hundreds of stocks in i3investors. You can only name one stock which lost money? I am sure you can do much better than that.

Regarding Focus Lumber, how you know I bought at RM2+?

This post of mine shows bought at RM1.603 and it returned +7.87% in 7 months.

http://klse.i3investor.com/servlets/pfs/71070.jsp

Where did you see I bought at RM2+?

Posted by stockmanmy > Jul 23, 2017 12:08 PM | Report Abuse
cowards keep deleting my posts.
its despicable.
and Koon's approach to stock market is liberating....and it has worked for him.
kc...has your method worked for you?

Does my method work for me?
So have you actually read what I wrote about the return of my portfolios, all established records in i3investor the last few days?

Also please read this one just published.

http://klse.i3investor.com/blogs/kcchongnz/128386.jsp

The right way of showing if a method work or not should be showing published records of portfolios, rather just choose and pick a few that worked, but ignoring all those not worked. Is that right and fair?

wow, coming out to propagate "sailang", borrow money and use margin finance to sailang on Jaks and EverSendai by a respected person in the society!

Fantastic, Unbelievable, and incredible!!!!

Posted by stockmanmy > Jul 22, 2017 10:55 PM | Report Abuse
ricky
I seek comfort and decision making based on quality of the stuffs and on the charts , not on the PE ratio.....with wide variations......

ME: WHAT QUALITY? HOW YOU DEFINE IT? WHAT STUFFS? ON THE CHART, WHAT CHART? WHAT ABOUT THE CHART? WHAT "NOT ON THE PE RATIO"? WHAT VARIATION? HOW "WIDE"? WHY WIDE? SO WHAT?

try that....the point is...we cannot know every thing.

ME: TRY WHAT? WHAT IS 'THAT"? CANNOT KNOW WHAT? WHAT IS EVERYTHING?

Posted by donfollowblindly > Jul 22, 2017 11:44 AM | Report Abuse
I don't see kc chong very quiet. Many times he praised himself very good but when asked how rich is he why stop? Also cannot name single counter his name appear in annual report.


I do not do self praise as self praise is no praise. I shared my investing methods and strategies. I try very hard to propagate fundamental value investing in view of educating the public on the "right" path of investing. I have written a total of 290 articles published in i3investor to do that. What have you contributed to give you the authority to make personal attacks?

I used my established portfolios with records published in i3investor to show proof that the methods and strategies in value investing works. It is up to you to examine the methods and strategies, and the evidences presented whether it works. It is not about how good I am, but the methods and strategies.

Yes, I am not rich and my name never appears as a major shareholder in any annual report. You have posted this comment scores of times.

But is that relevant if one is good or not in investing?

Perhaps for shallow people like you, who worship rich people, lick their booths, no matter how they gain their wealth, behave.

Our society has deteriorated to such an extent. Pity.

Posted by stockmanmy > Jul 22, 2017 02:56 AM | Report Abuse

when people put valuations in the top and in the center of their findings instead of spending the time to look for quality companies, quality investments...when people starts using esoteric formulas to value a share neglecting even its quality they usually find themselves with a hand full of low PE, high NTA stuffs of low quality.

put quality in the center and right at the top..in most cases, investment performance will improve almost immediately.


You have written thousands comments to criticize my investment method and strategy. You went nuts everywhere in i3investor each time you saw anything I shared in i3investor, and at the same time, PLP someone purportedly rich.

That is perfectly fine as you have every right to behave how you want to behave. It is a democratic country here. It is perfectly fine if you can pinpoint what is wrong with my methods and strategies and articulate clearly that people can at least catch a little ball what you are trying to say and propagate, with examples of your own success story. Do you have any?

You talk about quality company. I have deliberated what a good (quality) company is with my yardsticks. Did I look at low PE, high NTA first in my articles? All the time I look at quality first before looking at valuation.

What is your yardsticks of a quality company? A company which has been losing money most of the time a quality company? A company which has never paid a sen of dividend a quality company? A company with management which has never shown to take care of minority shareholders' interest a quality company? A company someone has bought a lot of share and telling everyone to buy too a quality company?

Or just because a company is having some projects, but also having a lot of projects before but had been losing money most of the time because of all those projects, a quality company? Or a company whose boss said they are going to make a lot of money in the future, but haven't shown so, a quality company?

You have no clue on what a quality company is, period. But that is alright to keep it to yourself. Don't go and simply criticize others without any sense. You spammed the whole forum.

"Esoteric" formula? What "esoteric" formula did I use? Please elaborate what "esoteric" formula I used, but first read carefully what I have written and understand them first before opening your loud mouth.

Posted by stockmanmy > Jul 21, 2017 10:37 PM | Report Abuse
I like this article a lot...focus on the word quality.
http://klse.i3investor.com/blogs/kianweiaritcles/128335.jsp
======================
this kind of post also get deleted by cowards.


You like this article so much? Do you understand it, by just a little bit?

Is value investing about buying cheap stock, low PE ratio, low price-to-book only as the only damn thing you understand?

Read what the article you "like" so much. It is about buying quality company by Charles Munger, and you "like it so much".

But that is what i have been writing about; buying quality company. But I add an additional requirement; buying quality company at reasonable price, better still cheap price.

And why each time i write about buying quality company at reasonable or cheap price, and you start to talk about all the non-sense about "dynamite investing", 'sailang", "penis moment" etc.

And you called yourself a senior retired accountant?

So now do you know why others are so fed up of your all these nonsense and deleted your posts?

The caveat of avoiding red chip listed in Bursa should be very clear now. It was already very clear to me a few years ago after the experience of Xingguan, HBGlobal, and many experiences in SGX and the US markets.

Just avoid and don't even look at their financial statement.

For other stocks, good to invest in low PE stocks, but if that is your strategy, invest in a basket of them. and like you have said, check with other things such as cash flows.

stockraider,

Isn't this statement in the article stated that one must avoid all red chip companies, despite of whatever they say in their financial statement?

"The caveat is you must first avoid all red chips and companies with suspicious financial reports."

Thanks stockraider for your comments

I just write my reply in capital letters for the purpose of differentiating stockraider's comments and my comments.


Posted by stockraider > Jul 16, 2017 09:39 PM | Report Abuse

The above KC comment is shallow and miss some very important facts of PE investing loh...!!

Also KC comment of HEAD i wins and tail i don lose is highly misleading on users or PE investor loh...!!

THE ARTICLE IS ABOUT DESCRIBING INVESTING IN A BASKET OF LOW PE STOCKS AS A VIABLE INVESTING STRATEGY BASED ON STOCKS PUBLISHED IN A MAGAZINE 5 YEARS BEFORE THAT AS THE PORTFOLIO HAS HAD EXTRA-ORDINARY RETURN OVER THE BROAD MARKET. THERE WERE JUST FACTS. NOT SURE WHY YOU SAID MY COMMENT IS HIGHLY MISLEADING.

KC cited counters like Xinguan, Msports agst Pe investment....but raider like to highlight if u take the test of xinguan on magic formula, Graham net net cash invesment and net net tangible assets...u also get the same positive results of positive buy loh...!!

IN THE COMPUTATION OF RETURN OVER 5 YEARS, XINGGUAN, MSPORTS WERE IN NEGATIVE RETURN AND HENCE THE COMMENTS WERE, NOT ALL LOW PE RATIO STOCKS HAD GOOD RETURN, BUT SOME WERE BAD. THESE WERE FACTS AS COMPUTED BY ME, AND NOT MY COMMENTS.

Thus it is not a fair comment if u say Pe investor fail to detect a lemon when other value matrix also fail loh...!!

DID I SAY THIS?

Why raider refute KC leh ??

Bcos this type comment...is very damaging to Ben Graham value investment theory of taking advantage of Mr market loh..!!

ON THE CONTRARY, MY COMMENTS IN THE ARTICLE WERE

"This means you would have done very well investing in boring low PE stocks 5 years ago. The caveat is you must first avoid all red chips and companies with suspicious financial reports. One must know how to separate the chaff from the wheat, by close examination of the financial statements, especially the balance sheets and cash flow statements of those companies. Otherwise instead of making extra-ordinary return from investing in bursa, you end up losing your hard earned money speculating in lemons as shown in this link:"

Posted by weijun > Jul 16, 2017 10:02 PM | Report Abuse
Hi,Mr Chong. May I know how you calculate Enterprise Value (EV)? Thank you in advance.

EV = market cap + MV of total debt + MV of minority interest - excess cash - non-operating assets

Posted by Flintstones > Jul 14, 2017 07:37 AM | Report Abuse Boring.This guy keep churning out his old glory days to boast. Sort of like liverpool fc who kept talking about the trophies they won in the 1980s but nothing in the last 20+ years.

This post is about sharing of a successful investing strategy which worked and continues to work consistently. Obviously it has to have some established long-enough record to show personal experience that it truly works.

If you also have a successful strategy that works, and show us your record that it works, we would love to read too.

So appreciate your unselfish sharing too, please.

Doing quantitative investing by buying a basket of low P/E and P/B stocks may provide you a better return as shown in academic research.

However, we are small retail investors with limited fund. We have to select just a few stocks carefully. Buying these few stocks basing on P/E or P/B is not a good idea, as the "E" and even "B" means many different things.

You may rfer to the following link

https://klse.i3investor.com/blogs/kcchongnz/63417.jsp

By the way, few investors read those lengthy academic research reports.



Posted by anonboy > Jul 12, 2017 10:55 PM | Report Abuse

The stock is not science, but stocks with a low P/E or P/BV tend to outperform the market. This fact is supported by many academic papers.

Posted by anonboy > Jul 12, 2017 11:08 PM | Report Abuse

There is a famous paper on the Cross-Section of Expected Stock Returns written by EUGENE F. FAMA and KENNETH R. FRENCH.

Cross-Section of Expected Stock Returns
http://onlinelibrary.wiley.com/doi/10.1111/j.1540-6261.1992.tb04398.x/full

Posted by anonboy > Jul 12, 2017 03:27 PM | Report Abuse
The P/E of Dufu is less than 8.

P/E is too a simplistic valuation metric. There are too many things which can go wrong in this "E".

Look for goodness first, then "cheapness" with better valuation metric, or a combination of metrics.

Posted by Bizfuneng > Jul 12, 2017 09:14 AM | Report Abuse
Sifu KC, why Coldeye has moved away from his previous 5 metrics and re-established his strategy on growth as new metric? Is it enhancement from previous ones? What are the changes adpoted with this new metric?

As hissyu2 mentioned,same as all other investors, ColdEye continues to learn, improve and transform. He replaces growth as a metric and discards Book value as he thinks or probably experienced that growth is a better predictor in share future return than book value. I find that is often true too.

But just bear in mind that growth is the future growth, and it is an expectation, rather than a predictable outcome.

Good article.

You have actually done a "thorough" analysis of the potential of AGIBS in the future for Ajiya and hence in my opinion, is not really a pure "speculation" in the context of Ben Graham.

Benjamin Graham will never "actually suggested the readers to set aside a portion (the smaller the better) of their capital in a separate fund to speculate". What he said in Intelligent Investor is "If you want to try your luck at it (speculation), put aside a portion..."

May be he knew we Chinese like to speculate.

aseng,

Ok, I agree with you.

I did agree with you that your calculated risk is low risk, didn't I?

I did emphasize that one shouldn't take high risk and hope for high return. But that is not saying you are taking high risk. It is a reminder to the public not to take high risk and risk losing a lot of money.

Posted by aseng > Jul 11, 2017 06:19 PM | Report Abuse

If dare not lose, then the best strategy is not to play share trading

ME:YES, NEVER"PLAY SHARE TRADING". IT IS SPECULATING AND I HAVE ALREADY TOLD YOU IT IS A LOSER GAME.

certain amount of risk is a must and we called it a calculated risk or good risk .

ME: IS THERE SUCH THING AS "GOOD" RISK?
CALCULATED RISK IS NORMALLY "LOW" RISK.

remember the cheap price of a great stock never wait until you are ready to buy with full certainty to win
be fair to he newbie to tell the truth, never over emphasized,even though believe your strategy is the best or the safest

ME: NO, I NEVER OVEREMPHASIZE. YOU DON'T HAVE TO TAKE "HIGH" RISK TO GET HIGH RETURN. YOU CAN GET HIGH RETURN FROM LOW RISK INVESTMENT IN STOCKS.

NOTE THE WORD "HIGH".

Posted by wltan22 > Jul 10, 2017 02:26 PM | Report Abuse
"Take care of the downside and let the upside takes care of itself"
Well said, KC, with that thinking will save you a lot money in Bursa


Absolutely. In investing, we do not want to lose, or at least try not to. If we don't lose, any other outcome will be good.

Where go people want to take high risk (and likely lose a lot of money), and hope to have high return.

Hope is not a good investment strategy, is it?

Posted by wonderlust33e > Jul 9, 2017 11:52 PM | Report Abuse
good article.
you don't have to prove to anyone. your record is the prove.
kc, do you still like focus lumber? do you have a target price? thanks.


All I can say Focus Lumber doesn't have an exciting business, but investing in its stock would be very safe, looking at its balance sheet and the past performance, and the industry in general.

Remember my motto of investing?

"Take care of the downside and let the upside takes care of itself"

Posted by John Lu > Jul 9, 2017 07:38 PM | Report Abuse
Kcchong...please let me know which stock to buy now and hold 3 years to get 300%?


This is a classic example of a speculative mindset. I am not sure if you are so naive, or just try to be funny. I guess it is the latter, knowing a little bit about you.

Anyway, for the benefit of newbies,

Try fathom this. If I can correctly forecast a particular stock can make 30% for the next one year, do you think you are the chosen one?

do you think this stock will remain as a stock to have 30% upside for the next one year?

So remember this. There ain't no tooth fairy in Bursa. Or, there is no such big frog jumping all around.