KC, very interesting that most people only want to read stuff to affirm their opinions, they simply cannot accept opposing opinions, no matter how good are the underlying reasons. Well, I think we both welcome opposing views, because groupthink is very dangerous in investment. Young man if you don't know what it is you should look it up because it almost triggered a nuclear holocaust in the Bay of Pigs incident. Always seek opposing views, you may have overlooked something and it may save you from very grave mistakes.

Hahaha

Profit up yoy and also qoq, even though revenue dropped. Unfortunately Singapore went into the red. Pretty good result. What's the sell off about?

Keep it simple. Just park your money in export oriented stocks, furniture stocks, technology stocks or even EMS players. The steeper RM drops, the more money these companies earn.

Those who thinks that coke being a share holder is a sure win, I'm sorry to pop your happy bubble, coke is not doing good as well.

OTB, with all due respect to Mr Koon, I think it's a folly to compare VS with Gtronic and MPI. VS is not an electronics components manufacturer, its is more of a PCB and plastic injection EMS player. In my opinion, it doesn't require the technological expertise that the latter 2 demands. Also, Keurig is not doing well, and I don't think a cold drink machine will not be as popular as a coffee machine, simply because your soda do not have the coffee connoisseur factor. In other words, would anyone pay a couple hundred dollars for a machine to make coke? Still, VS has a wonderful run and it is wonderful profit. But in my opinion its core competency and prospect is a bit over inflated.

I've started diversifying into SGX and HKEX because I have no confidence in the UMNO led government. They will plunder the country dry, and each scandal just gets progressively bigger than the last. Shockingly, until this day, nobody has gone to jail yet for PKFZ. All my Bursa stocks are export related which benefits from the declining RM. I shun all stocks related to domestic consumption and I have positioned my portfolio to benefit from Malaysia's decline.

California. The strike went on for weeks. As a result the port was congested with ship trying to unload and nobody at the port to work. Even Neptune Orient Line listed in SGX got affected because their ships got stuck at the port.

The port unions have already reached an agreement with their employers not too long ago. Port activity will return to normal after all the congestion is cleared. Hopefully that will boost their revenue next quarter.

No matter how good VS is, they are ultimately just a contract manufacturer. The biggest of them all, hon hai, is valued at pe slightly more than 10. Using that as a benchmark, VS is more or less fully valued at the current price.

I felt I need to write something for those who criticise KC Chong's investment philosophy. Those who ridicule him for missing out on IFCAMSC or VS should understand anyone can make money from punting stocks. In fact, chartists or punters can outperform value investors by taking on higher risks. Does that mean KC Chong's investment philosophy is inferior or defective?

Hardly. Before the subprime crisis exploded, US banks were making extraordinary profits. But those profits come at heightened risks, i.e. lending money to folks with poor credit rating. Similarly, those who buy into talked-up stocks like IFCAMSC are also taking on heightened risks, i.e. IFCAMSC's Chinese venture will succeed despite the real estate slowdown.

Avoiding stocks whose valuation cannot be convincingly deduced, is a risk mitigation strategy. Sure maybe he will miss out on some great bulls, and he may even lose to punters in terms of return. But I am sure in the event of a market crash, KC Chong will sleep more soundly than those who buy "hot stocks".

Don't forget, Lynas, which is currently trading at less than 5 cents, was once the darling of ASX and nearly hit AUD 3 at its peak. Sure disciplined fundamentalists will probably not enjoy the exhilarating bull runs of the many great fashionable stocks, but neither will they suffer from the debilitating loss of wealth should things go wrong, as they invariably will.

As for me. I'm inclined to KC's philosophy. Investment is a marathon, not a sprint, I'm in for the long haul. I choose lower risks, even if it means drooling at other people's profit.

Take a look at Global Testing Corp listed in SGX, trading at near per 20. It does almost the same thing as KESM, difference is their focus is consumer electronics, and counts TSMC as their customer, whereas KESM focuses on the automotive sector. Valuation wise, KESM is cheap in comparison.

Apple had a massive quarter. China sales overtook US for the first time.

Apple just had a huge quarter. For the first time, China sales exceeded US sales. iPhone 6 and 6+ uses the A8 chip. The A8 chip is made by TSMC

Fronken's acquisition of TTES comes with a profit guarantee of RM4m per year for 2014 and 2015, which is around RM1.8m per year for Frontken's stake.

Thanks for the article KC, very informative indeed. I guess that's why more and more people just buy a low cost index tracking fund (as per Noby's comment) rather than make their fund manager rich.

Better yet, find a company that is growing quarter to quarter non-stop. Like Inari or Zhulian. Too bad Zhulian's record was broken by the coup in Thailand. Inari's record is still going strong, and looks set for another record quarter with incoming capacity. Unfortunately, its difficult to find a company like that.

Closing remarks on China. Yes everything you said above is true Calvin. However, naysayers have been predicting doom for China for years now, and I admit it is finally beginning to show. But, China is still very much a command economy, unlike a free economy where government has limited control over. The leadership in China is acutely aware of the collapse of the economic system, and this has prompted them to launch 2 massive initiatives to engineering a soft landing. 1) the silk road project, and 2) AIIB. These 2 massive projects, if successful, will mitigate the slowdown back home by exporting deflationary risk from overexpansion. Will it be successful? I don't know, only time will tell. However, when Western countries line up eagerly to be the founding members of AIIB, from Australia to England, in sheer defiance of US' pressure to isolate China, I see the cup as half full rather than half empty.

Calvin Tan, thank you for the solid fact driven reply. We need more content driven comment like yours in i3. You made my day :-)

Calvin Tan, for the most part, yes what you wrote is true. But despite the bull run over the past 2-3 months, Chinese banks are still dirt cheap. For example, BOC is only trading at PER of 6.6 with dividend yield of 4.7%. That's still near fire sale level even after a bull run of 20%. So, buying Chinese banks wouldn't exactly be a purely speculative endeavor. However, buyers should be aware that there is a lot of uncertainty on how the economic slowdown will affect the big banks as increasing number of loans go bad. The current valuation assumes that China is going to have a hard landing. Personally I am more optimistic of China's fate due to their huge reserves, so fundamentally I still think they are dirt cheap.

Really hate all these bullshit post. Want to share but don't want to share. Don't want to share then don't post. Just another annoying gimmick like those website that promise some hot tips but force you to subscribe first.

Well here are some free tips. Below are the discount of big 5 Chinese banks H-share listed in HK compared to their mainland A-share counterpart on 7/12/14 when I first started studying Chinese banks and the latest number based on Friday's closing price.

7/12/14
ICBC - 5.6%
ABC - 9.2%
BOC - 12.6%
CCB - 16.4%
BANKCOMM - 13%

10/4/15
ICBC - 1.6%
ABC - 15.5%
BOC - 13.4%
CCB - 14.1%
BANKCOMM - 14.6%

As you can see, the huge surge in price over the past 2-3 days has narrowed the gap considerably. Compared to 4 months ago, only ABC, BOC and Bankcomm have wider discount. ABC appears to have the widest discount.

The discount will probably never be eliminated entirely. The better, safer strategy is to bet that the discount will normalise to the same quantum in the past. For ABC, if the discount normalise from 15.5% to 9.2%, you can hope a 6.3% gain.

I don't need to be emailed, and I don't need to be thanked. All the best to those who are trying out HKEX. One final word of advice, be acutely aware of the forex spread imposed by your broker. That's usually the most expensive portion in your transaction cost of your overseas venture.

Well, Hevea don't have a strong presence in US, and their market is mainly Japan and China. On the other hand SHH's market is mainly US. If Hevea takes over SHH, they gain immediate access to US market, although both products are a bit different.

Thanks. Q1 has been great. Let's see if can sustain.

Congrats OTB, if u win this competition will u be giving your prize to no 2 - 4? U can't give your price to yourself right? ;-P

Thanks for the timely reminder that all irrational exuberance end in tears.

Expensive lah, PER approaching 20. Any growth catalyst other than the deal with Dyson?

If you want a really undervalued contract manufacturer, check out Valuetronics listed in SGX. PER 6.6, 52% of share price backed with net cash, dividend yield 7.6%. They manufacture LED lights for Philips.

If eps 10 cents is going to be their average quarterly earnings, rm4 would be really stretching it's valuation at per 10. Contract manufacturers typically don't command such high valuation. Hon Hai is slightly above 10 only.

Cnmc goldmine listed in sgx. Net profit margin 40%, roe 50%, about 80% of operational cash flow is free cash flow, per ttm 7, the edge fundamental score 3, net cash.

Fortunebullz: "Why buy 2k machine to brew coffee!" That is incorrect. Single serve coffee machines are intentionally priced very cheap, like RM150 for a Dolce Gusto, and I suspect it is sold at a loss, in order to hook consumers to permanent buy their coffee cartridges. Its similar to selling gaming console at a loss and making money from selling games.

Well yes if vs can just maintain their past 2 quarters, it's share price is still cheap with regards to eps. However, there is a reason why contract manufacturers are not highly valued. First of all, they subcontract their jobs and they don't sell the end product directly, therefore they are at the mercy of their customer. Secondly, they don't own the design nor the technology of the product, and so the customer can easily go elsewhere. Thirdly, the jobs they receive are often not complicated and can be easily replicated by another 3rd party with a bit of capex. Vs definitely seems to be in a sweet spot though. Good luck to all faithful, I was vested, but too bad sold just a day before osk's report came out, no thanks to the ceo's daughter disposing a million shares

Different industry lah. MPI is semicon, VS is a contract manufacturer. Contract manufacturers don't typically command high valuation. For example, the biggest contract manufacturer in the world, Hon Hai, is commanding only PER ttm of 11.

The more comments we have on blaming, bitching, whining and childish naivety, the less people will want to post constructive postings that are analytical and objective. Eventually the whole forum will be full of "tomorrow will up", "end of this week will reach RM__". Whatever grouses you all have with Mr Koon, at least he post his buy calls based on logical reasoning. So grow up, those who complained they got conned sounds like Aunties who kena conned by "gores dan menang". Its the stock market for goodness sake, Mr Koon accepted no management fees from any of you, so it is every man for himself. To think otherwise is peurile and you all are better off putting your money in FD. And yes I see no problem with Mr Koon loading up on VS and Latitude before sharing his opinion piece. Another way to look at it is he's putting his money where is his mouth is. He received no management fees from you and its his discretion when and what to share. If you all are more obsessed with his intention rather than his reasoning, then please just buy Public Bank because there are plenty plenty of people in the stock market with ill intentions. I for one would like to read more constructive postings from Mr Koon.

Thanks for the research kc. My experience tells me the only time to invest in REIT is when interest rates are rock bottom and every other asset class is already inflated. This situation forces investors hungry for yield to pile into reits. Being supposedly conservative, they are often the last asset class to appreciate. This happened circa 2011-2012 in Malaysia and 2014 in Australia. Reits in australia returned in excess of 20% in share price appreciation alone last year. I made a nice sum from boustead REIT during this period, but otherwise I won't touch it.

Welcome to the party EPF!

R u all mad? Kyy is obligated to tell u when he sells? Did he accept fees from u all? Even your fund manager, whom u pay management fee, will not tell u when he buys or sells. Do your own research and grow up.

I never bitch. All opinions I form is mine and mine alone. If I form an opinion from reading kyy's it is still my opinion. If I lose money it is my own fault and no one else. And yes I agree with u trust no one and therefore if u want to play this game, make sure u do your research.

Btw, although I didn't buy mudajaya I have benefitted from kyy's sharing on the coal supply situation in India. I made triple on a 5 bagger company called Agritrade Resources listed in hkex. So, grow up and take some accountability for your own investment decisions. If u don't want to put in the effort, then please pay a fund manager to manage your money for u.

You know what all your bitching and whining remind me of? The illiterate auntie who got scammed in "gores & menang". Please lah, if a single posting from the great and mighty KYY can convince you to buy and in the process lose your panties, you should either retreat to buying index tracking fund, blue chip stocks or park your money in FD. Opinion takes weeks of reading to form. Opinions take effort, thinking and hard work. If you can form a bullish opinion just based on KYY posting, wow... I think you are playing Russian Roulette and good luck with your hard earn money.

Grow a pair down there boy. Nobody is obligated to tell you when they sell or when they buy. If you complain about losing money just because you read a post in i3 recommending you to buy, then its best you put your money in FD and don't invest anymore. Otherwise, grow up and stop whining about other people's intention. This is not your mommy's kindergarden u know.

Yes of coz, to con u to buy. That's why, don't follow blindly hahahaha

Welcome back sir!

More pressure on the ringgit next week. Thanks Najib. History will remember you as a murderer and a plunderer.

Please add 1500 inari-wb thank you.

Look, despite taking a hit of RM3.17m of unrealized forex loss on their USD denominated loan, borrowings actually went from RM88m last quarter to RM69m this quarter. That's pretty impressive cash flow if you ask me. Well, I'm glad market didn't recognise that and allowed me chance to have a second helping.

Inari dividend gone ex-yesterday. 2.3 cents per share x 12,000 shares = RM 276. *note: rights issue has not been credited so it should not be entitled to dividends.

Also, u obviously have no idea what is a pump and dump operation vs a continuous decline. There is no pump and dump for mudajya because it has been a continuous decline. So please go do a bit of elementary reading on investment before you come and do your infantile cry baby whining here. Otherwise, just shut up until you grow some pubic hair

Don't be a cry baby lah. Mudajaya's delay in power plant is due to a delay in approval by the Indian government. You expect KYY, who is no longer holding an executive role to be able to foresee it 2 quarters before it happened? U buy because of him u should take responsibility for your own decision. Did he put a gun on your head and force u to buy? Grow some pubic hair and stop whining like a 3 month old baby

CIMB's report is quite interesting for comparing Hevea to the timber industry rather than furniture industry, the former typically commands higher valuation. Particleboard is raw construction material and should be seen as less volatile than furnitures because its usage is more diverse. In fact, particleboard is interchangeable with plywood. As Cold Eye has noted, Hevea's business is very resilient because if particleboard price is poor, the company can always use it internally to make furnitures. The fact that Hevea's PER is less than furniture companies, let alone plywood companies, makes Hevea severely undervalued.

KC Chong, don't take the bait. I appreciate your sharing and your well thought out arguments. Unlike these idiots, I care less whether your stocks make money but more on the strength of your argument. Just ignore these idiots.

The RM 2 billion that 1MDB owes is as good as gone.