If the management distributes 2 sen div in feb after quarterly result release as promised, total up = 3 sen whole year = 10% div yield

Happy New Year KC. And thanks again for blessing us with your knowledge.

how much is 8 %? 0.008 sen?

How much is 10% div? 10 sen per share?

Even though the profit has decreased but the company still generating cash. FCF is positive and still paying dividend. Total liability has been decreased.

4 years never giv dividend. hard to believe they claim to be profitable

Thanks Mr Kcchongz. U have educated me to look at things at deeper perspective. I'll do more homework next time.

Did you average down on your LBS wa? Few months ago there was a story about the attractiveness of their landbanks. the share worth rm3-5. Since ex div the share has been in red until stabilised by sharebuyback and directors and other investors.

Mr Kcchongz,

Two of your stock picks, MFCB and Tien Wah have been sold down recently.
MFCB massively sold by one of the directors while Tien Wah sold by the Army Fund. Although the fundamentals seems has not been deteriorating, would it be the sign that insiders know something we don't?

Thanks kcchongz. I got what u mean. Crystal clear. Thanks again

Business risk: CENBOND’s business has high efficiencies with return of assets of 9.7% (>7%) and return of equity of 12.7%. Last year cash return (FCF/IC) is at 37% and average of last 7 years is 16%. Hence an arbitrary 10% discount is applied to its business risk.

Financial risk: CENBOND has a very healthy balance sheet with an excess cash of 64 sen per share. It has very little debt. Current ratio is very high at 4.3. Free cash flow is abundant at 7 times total debt. Hence a discount of 10% is applied to the financial risk.

Earnings visibility: CENBOND has stable and reasonable gross and net profit margin of 20% and 10% respectively. Its cash flow from operations averages about 140% of its net income. It has average free cash flow of about 8% of revenue. No premium or discount is applied to earnings visibility.

Hence the absolute PE for CENBOND is:

Abs PE = 12.8* [1+(1-90%)] *[1+(1-90%)] * [1+(1-100%)] = 15.5

Fair value of CENBOND= 15.5*0.16 = RM2.48

Dear Mr Kcchongz,
An arbitrary of 10& discount is applied to its business risk.
A discount of 10% is applied to the financial risk.
While no discount is applied to earning visibility.


How good is good and how bad is bad?
How exactly number of 10% is chosen? What if the business risk/financial risk/ earning visibility is high which number should I use?
Do you have a chart to refer to?
Thanks for your kind sharing.

ok. u sell to me please

So many ppl buying the shares. Something is brewing?

Thanks Mr Kcchongz for your kind sharing. The explanation with example is clear and magnificent. I am sure many of young investors here would benefit from your knowledge and experience.

Dear kcchongz,

I have only 9 months of investing experience. I would like to know what would a typical value investor do if the share price has fallen 50% (even if u bought it at steep discount to its intrinsic value) or more due to the fear and panic of other investors during situation like 911 or war maybe ( i mean those times in 2001 or 2008)? The bad situation might be a year or longer. If this situation happens it would be capital protection first or still value investing. Sorry that I didnt ask my question right at the first time.

Thanks for your sharing

Dear Mr Kcchongz,

Lets assume you have bought stock A with intrinsic value of RM6 at price of rm2.5. In an event of similar situation of Lehman Brothers or anything event similar to 911, the share dropped to RM2 and maybe RM1.5 in few months time. The economy might take few months, maybe years to recover.
Based on your experience, would you still choose to hold or average down, or wait patiently until the price breakeven?

ringgit higher today or lower?

Cant be sold down. 91 ppl 5mil volume support and cant goreng too, 60 ppl 7mil resistance. lol

too many sellers

Got ppl sapu all 0.155. left 900 units to hike to 0.16.

Our beloved pantech has taken his flight. Please board the plane asap

Buy insas= buy inari, ho hup and formis resources. U see those 3 up, Insas sure up

Ok. Thank you very much Mr OTB.

How about FLBHD? Director disposed shares as well

EPS 7 sen net cash at 0.36, possible 2 sen div next quarter, total up 3 sen a year. How much u think this share would worth?

What is the listing price of warrant? strike price at 0.35 means warrant not in value

Noted. Thanks a lot. Wish u a wonderful and prosperous 2014.

Mr OTB,

Would you include the figures of investment in associates or investment properties in the computation of cash & securities figure?

Thanks sifu Kcchongz and sifu OTB for the prompt reply.

May I ask few questions about the above valuations?

1.ROIC and CROIC should be > than what percentage to be considered investment grade stock? Should them be compared year by year or just looking at latest figure?
2. Should investment in properties and investment in associates included while computing figures for (Cash & Securities 57537) if they exist in balance sheet?

Really thousand thanks for your kind sharing.

Mr kcchongz,

Would you regard Focus Lumber FLBHD as a hidden gem?

Expected full year EPS to be 14sen, ROE around 11%
Graham net net value gives 0.85.
It has cash of 54230 and total liability of 11469.
What attracts me is the clean balance sheet and increased dividend payout from 6 sen a year to 8 sen this year.
It will achieve better profit as strengthening of USD will increase the selling price of plywood product.

What is your view on this?

deal no news jor?

what is direct stake?

In fact, he has been selling since november. maybe he knows something we dont?

Director selling. Check company announcement

directors still disposing

Mr OTB,
Has insas turned bearish? Many red candles accumulating last week. What is the support and next resistance?

Looking forward to as well =)

Monday ex date. lai lai lai

Any changes in mother share price after the issue of bonus warrant? can hng33 clarify?

You will never get to sell out this share. I queue for few months to sell dy.

seems like nobody cared about the 1 sen dividend

Friday high volume sure a lot contra Kaki. Tmr or thursday will up again

Many sellers

Kanger belongs to bamboo industry. FLBHD is timber

History repeats. Hold, believers, HOLD ON TIGHT. Hold until u see your investment in red then you fear then you sell and the share will rebound.

Hope so. drop like no tomorrow

lao sai

Our shareholding is diluted dude. imagine rm1 divide 5 ppl originally. then now have to divide with 10ppl. how much u get?

Looking for money to top up

What is certified JAS?