Sound advice KC. May I point out that it is Genneva Gold, not Geneva. The name itself should arouse suspicion that it is some sort of scam trying to legitigimise it's operation by pretending to be an operation from Geneva. Unfortunately greed took over for so many people and caution was thrown out of the window.

To rub salt into wound, more contracts are given. No punishment for delays, instead gkent was rewarded! I also want to play golf with the billion dollar man.

According to Bloomberg, Hon Hai Precision is valued at PER 9 currently. Don't play play, this is the manufacturer for Apple leh. Why so cheap? Well, they don't own the product, they don't own the technology, they don't own the patents. They are in short the muscle, and Apple is the brain. So what makes VS so special that it commands such lofty valuation? Can they do something other contract manufacturers can't?

I would love to buy a company like Scientex, but dislike the fact that property development now contributes the majority of the profit instead of their plastic division. It would be so much more appealing if property is not their core business.

HDD may not be in terminal decline, but it is not growing much either. The main reason is PC sales has slowed and even if there is growth, it is very sluggish. That's because more and more people are migrating to smartphones/tablets, and the latter does not use harddisk. Look at China, many new smartphone users have completely bypass PCs. So, while HDD may not be vanishing anytime soon, don't expect much growth either.

Would u buy a company whose management blatantly lie about its forecast? Good luck to those who do.

Much respect mr Koon for helping those in need.

Or cronies

Haha. But the Japanese can hahaha.

I have file a complaint with Bursa Malaysia using the text below. Whether Bursa will take action or shake leg is out of my control, but I did my part.

"In Minho's quarterly report for the period ending 31/3/2015, which was released on 29/5/2015, already 2/3 into the next quarter, the management states that "the group performance for the second quarter of year 2015 is projected to be SLIGHTLY LOWER than the first quarter of year 2015." In the subsequent quarter, profit dropped from RM12.6 million to RM2.7 million. I contend that the management of the company intentionally defraud investors by providing false and misleading forecast, thereby facilitating the sharp increase in share price."

I agree and therefore I also agree with your strategy, no cash no talk. Don't buy into all the non cash profits.

Maybulk dividend 1 cents per share gone ex on 28/5/15 = RM275

IQGroup dividend 4 cents per share gone ex on 26/6/15 = RM836

So, anyone who got a bit of spare time can just download the form from http://www.bursamalaysia.com/contact/other-complaints and submit. If you get enough people to complain, maybe Bursa will query the company, keep them on their toes.

My loss is only 3%, considered negligible, since my entry price is low, so I'm not particularly upset. I am angry though. Of course, anyone who kena cheated will feed angry. I'm filing a complaint because I want to play my part to make Bursa a better, and safer place for investors. After all, it just requires a bit of time to fill up a form. If you do nothing, then same shit may happen again because directors think they can get away with it. If you file a complaint and nothing happens, hey at least you played your part in trying to improve corporate governance in Malaysia.

Niamah. Im considering filing a complaint with bursa.

Frankly, I'm happier if they don't give dividend and pay back their USD denominated loan faster. That will boost their profit even more. I complain they give dividend. I don't want dividend I want profit!!

Lost of confidence, just like lost of confidence with Najib.

Slightly lower my ass. Management are a bunch of liars.

Thank u kc. For your selfless sharing.

Yes I fully agree. Pursue your passion, not riches. To be stuck in a well paying job you hate is still a terrible ordeal. Also, I believe none of Warren Buffett's children actually pursue what his dad does, and one of his son became a musician.

Good one kc. Mr market is mad indeed, even counters that benefit from ringgit depreciation got sold off.

KC, it's funny you admit that every time you write a scathing article about VS, the share price shoots higher. VS holders should be thankful to you for this article because for sure it will shoot higher on Monday.

But seriously, at this price, there is so much expectation on the stock that any slip up, such as a slowdown from Keurig, will send the share price crashing. VS holders should also note that the recent sharp increase in profit is most likely due to Keurig because Dyson has been a customer for years before that and it didn't really do much to VS' bottom line. If this observation is true, any sneeze from Keurig will affect VS badly.

Also, hevea will benefit from cheaper glue price as a result of low crude oil price. Having said that homeriz may not benefit fully from strong usd as their leather import is priced in usd

Also, due to the competitive nature of investing, other investors are probably eyeing the same arbitrage opportunity as you. Meaning that there will be a surge of conversion and sale of shares, which will bring down the mother share price and reduce the arbitrage margin

http://money.cnn.com/2015/05/06/investing/keurig-green-mountain-earnings-stock-fall/

Zaid cannot lah. He gets too emotional. Last time he was in PKR what did he do? Throw tantrums when things don't go his way. He's more of a lone ranger than a team player.

KC, your writing on ROE, ROIC and EV/EBIT helped me understand that these metrics are better indicators whether a company has a moat. Thanks for sharing, learned plenty from you.

The first mistake China made was to encourage people to jump into the overheated stock market. The state have no business meddling in free market. At most, the state is responsible to deflate bubbles, not inflate it more. As such, the government now feel obligated to support the market using public funds. If it didn't asked people to jump in in the first place, the bubble wouldn't get so big and they don't have to save the retail investors now. It's a really poor judgement from the Communist Party.

"We don't know how low the price that Uncle Koon had bought in, so we cannot assume that Uncle Koon had pushed up the price."

Huh? I don't know what school of investment thought you came from, but for me and I think everyone else, ANY purchases push up the price, and similarly ANY sales push down the price. So it is not a matter of whether Mr Koon has push up the price, but rather a matter of how much the price movement is due to Mr Koon's buying.

Like I say, I bear no ill will towards Mr Koon. He can boast all he wants if that makes him feel good. I'm just questioning the logic behind attributing the success of an investment by the claimant who is also an aggressive buyer. Still, I hope Mr Koon good health and hope he writes more informative articles rather than these superficial ones.

No offence to you Mr Koon, since you are the significant shareholder for all 3 counters you claim credit for, and it is no small amount at 10%, don't you think your success is partly due to you buying up shares in these counters? I mean, these are small caps with limited liquidity, for you to collect 10% from the open market, your purchases are probably partly responsible for the fantastic rise in price. Isn't that a bit illogical then, that your boast is partly the result of your own action rather than the market's affirmation of your analysis? Having said that, here's a question, can you exit any of the 3 counters without a significant drop in price? I know the answer lah, I guess as much...

Bugis warrior unable to bully WSJ, so resort to bullying The Edge lorr.

Isn't there a saying, time is the best friend of an investor? :-)

It is a good undervalued counter. However, investors have to put up with volatile earnings. I had this stock long time ago, and was truly shocked it plunged into the red during the Thailand floods. Who would have thought that MNRB took up reinsurance policy there? Whenever there is a major disaster, like the Kelantan floods, there is always tremendous anxiety on the earnings of MNRB. I didn't like the volatility, and I am sure many others don't either. But I agree with you that it is deeply undervalued. When there is no major disasters, earnings is fantastic!

"Ah Jib will sue WSJ for US$250 mil" Sue? You sure? Have you read the Ah Jib's lawyer letter to WSJ? FYI, the letter asked WSJ to RECONFIRM their stand, as if WSJ hasn't already issued a public statement standing by their story. The lawyer letter has the word GUILTY AS CHARGED written all over it. Only a cornered thief will issue such a lame ass lawyer letter to buy time. Sue? Dream lah...

Bodoh. Malaysia bukan UMNO

Preaching margin financing to the mass public without a thorough discussion on worst case scenario is unethical and irresponsible. I know because my uncle lost his entire life saving in the 97 crisis. Thank u kc for speaking up even though u might have stepped on a few toes in the process

The speed of the collapse in both shanghai and shenzhen bourses is also due to excessive use of margin financing in both markets. A correction triggers margin calls which then causes force selling that drags the market lower thus triggering even more margin calls. It's a brutal self reinforcing cycle. Thoso who have no fear of leveraging should pay heed to China.

In FY2014, the profit margin from "investment related income" is 15% (RM3.7m from RM24.4m). Also, FYQ1 ending July typically sees a huge contribution from investment, presumably due to receipt of dividends. Over the past year, Magni has pumped in RM53m into investments, causing value of investment to more than doubled from end FY2014 at RM24.4m to end FY2015 at RM63.2m. All these points to a sharp increase in "investment related income" for the next quarter. With the anticipated income boost from investment, Magni should be able to do at least 15 cents eps next quarter, making it 3 consecutive quarters of 15 cents eps.

All newbies, take heed of the wise words from KC Chong. Treat market with respect, because financial crises ALWAYS come like a thief in the night. It will always be unexpected. Even with their fancy degrees and doctorates, very few economists foresee the collapse of the subprime mortgage in 2007. Don't get yourself in a situation you cannot recover from if a black swan event happens, and always expect it to happen once of twice in your lifetime.

In my opinion, both tools are contradictory. You buy using FA because stock is cheap, you buy using TA because stock has gone up, making it expensive. It's fine in a bull market when after stock has gone up, it is still likely to go up some more, thereby validating claims that TA+FA works. How about in a bear market, where stocks drop over an extended period of time where false breakouts are aplenty? Would anyone dare to claim TA+FA works in a bear market? Both methods are inherently contradictory, let's see if those who sing praises of FA+TA dare to fish at the bottom.

Cash is still king after all hahaha!

I have to disagree with you. Hevea's private placement was a a very poor move for shareholders. It was issued at a discount even though the share price is trading at half its net asset value! Sure, I forgave Hevea for shafting me, and I still like their business model and have made plenty of money in spite of the private placement. But let's not pretend private placements at a discount to share price is any good to minority shareholders ok. If management is sincere and business is good, I'm sure minority shareholders would gladly subscribe to the rights issue, like how Inari treat their shareholders. Hevea is a great turnaround story, but let's be objective and let's not sugarcoat the dilution of earnings to retail shareholders. If the company is so damn good and the management is so assured of the value of the company, the private placement should be issued at a premium, not a discount. But of course, no company ever treat their minority shareholders that good.

Mr Ooi,

Last Friday Shanghai dropped more than 4%, fortunately it was followed by an equally massive 4% increase on Monday. Would you advice those on margin financing to cut loss on Friday? Would your chart be able to predict both swings? Is it ethical to encourage margin financing to the mass audience in a mad market fuelled by liquidity?

Otb, u know your risk, but does the mass market know their risks? Is it responsible to encourage the use of margin financing to the mass without proper warning of the dangers. I think it's unethical to preach about it without discussing a worst case scenario, yes like those years in 1997-98 even u yourself admit u won't use it.

Thanks kc, for putting a wise word of caution to especially newbie investors out there. Until one experiences the full brunt of a catastrophic event, most will still think the stock market can be tamed with charts.

Other people are just impatient, they want to make money fast fast. I believe that market is inherently unpredictable. Charts don't tell you anything about fundamental and systemic shifts in the market. Did any chartists or analysts successfully predict the fall of crude oil price from $120 to $50? None, zero, zilch. Investors are safer respecting the volatility of the markets rather than trying to tame it using charts. That's my opinion. Black swan event may be rare, but it can be catastrophic.

I am with KC Chong in advising against the use of margin financing. I know people who lost everything in the '97 Asian financial crisis. For those who thinks that they can time the market to pull out in time, think about Black Monday where market plunged 22% in 1 day. In an even like that, nobody can escape in time. And if you think 22% is bad, remember the stocks Uncle Koon recommends are second and third liners and therefore likely to plunge even more, maybe even 40-50%. In those catastrophic event, margin financing can destroy your entire wealth. I know people who lost their entire retirement savings in the '97 crisis. If you want to be able to recover from a catastrophic event like this, its best not to touch margin financing.

Mr Koon, with all due respect the remark against KC Chong is punching below the belt. KC's articles are analytical and unbiased and accusing him of "discouraging" others to buy VS is uncalled for. While most people do not have the intellectual motivation to engage in deep analytical studies of financial report, why do you pour cold water on people like KC who do? As a philanthropist who sponsors students, don't you think you should welcome dissenting viewpoints based on sound logic, or would you prefer to surround yourself with sycophant like UMNO? You have enough cash to influence the share prices of small cap stocks, don't you think that challenging others like KC who may not have the financial muscle you have is a bit infantile?

Inari dividend gone ex-yesterday. 2.1 cents per share x 13,500 shares = RM 283.5