TOTAL ASSETS= SHAREHOLDERS FUNDS + TOTAL LIABILITIES

ASSETS= Current Assets + Non Current Assets
SHAREHOLDER FUNDS= IPO Capital + Rights issue + Private Placement + Retained Earnings(Accumulated Losses)
TOTAL LIABILITIES= Current Liabilities + Non Current Liabilities

ROA is a good performance measurement of how well any company manage its total assets.

A company will organize, utilize and manage its total assets to grow its top and bottom line over time and in that process generate sufficient profits, free cash flows to invest further in improving its biz model and/or distribute as dividends to its shareholders.

To fund its investment in ASSETS that will yield future profits, free cash flows ..a company can utilize shareholders funds and/or Debt to invest in FUTURE ASSETS that can generate incremental future income, free cash flows for the company

A long term shareholder would like the company management to invest on improving its biz model to have better competitive advantage , grow its assets and consequently generate increasing ROA, increasing cash flows. AS long as any company has the capability to generate a return higher than its weighted average cost of capital, it should employ the cash flows generated through operations to invest in improving the competitive edge of its biz model..

If the company management has run out of ideas to generate better returns on the excess cash flows generated that can yield a return above the weighted average cost of its capital then the excess cash is best returned to its shareholders.

I will however place great emphasis and focus on the controlling shareholder's skillsets on the strategic planning, on strategic execution of its chosen strategy to empower further its biz model being a partner to Global brand leaders. As shareholder, I wish to see VS being in the top 20 EMS producers in the next 5 years!!

I will always put tremendous premium on the the strategic mindset of the controlling shareholder/shareholders that invest its free cash flows to improve upon its biz model that will empower it to earn increasing profits that result in increasing EPS...

It is quite simple biz strategy really....invest free cash flows to improve on its biz model that empowers the company to earn good cashflows that sustain its competitive advantage to earn increasing future EPS...

MoneyFace88, EVERGREEN can give VS a tough fight in the next 6-12 months...Why? Its controlling shareholder cum management had spend considerable money and time to empower its biz model that will in future sustain its competitive advantage cum sustains its EPS growth...

A NBI investment is akin to investing in Coca Cola, a company with very strong leverage on its brand equity riding on the economic domination of the whole world by the USA just after WW2. It is a no brainer investment..Coca Cola is quite addictive..hmm..what are the real product constituents in Coca Cola.,,does anyone really knows what goes into its product constituents??? .. Sometimes I do wonder whether it is the brand equity that sustains its growth or the addictive nature of the drink itself...of course a company that owns and sells a strong brand equity in an addictive product will add cash to its bank in voluminous amount..I too would like to invest in Coca Cola just after WW2 but sadly I was not even born then...

Rolling 4Q EPS = 1.99 cent/share...one pipeline transport barge and 1 MOPU still unemployed and incurring daily expenses. Had to postpone delivery of another drilling rig to end 2015 means additional future interest charge and additional depreciation at end 2015 and in 2H 2016...with no firmed up drilling contracts of the two future drilling rigs at hand...it looks like Perisai has a long way to go downhill and possibly run into potential cashflow deficit...likely potential cash call in the future...or risk being taken over for a song...

JT Yeo, OK accept and respect your views...however I have a different mindset and a different viewpoint...I use basic simple valuations and take decision on case to case basis...If there is an opportunity to make money based on my simple FA valuation which is confirmed by TA, I shall take it...Today the index had broken 1800...I have sold off major portion of my investment...still make money...hahahaha

NOBY,
Please advise what is your fair value estimate of VS in RM/share? TQ.

kcchongnz,
OK , thanks for your feedback.
The negative effects of VSIG is already reflected in VS current share price. VSIG has a negative impact on VS till now...not positive.

VS is a growth company and deserves a higher PE factor. With VSIG,I will impute a lower conservative PE of 12. Based on prospective rolling 4Q forecast of 45.1 cents/share, the fair value of VS= RM 5.41.

Based on this basic valuation, VS is currently undervalued.

Lets not argue waiting for the cows to come home when those who argue are not leading the cows home....hahahahaha!!

So I have just taken some time to do a bit of desktop research..taking on the shepherd's role to lead the cows home...hahahahaha....kinda easy though...its a bit of no brainer as all info are available online..just need to dig it out...So here goes...

http://www.bloomberg.com/research/stocks/financials/financials.asp?ticker=1002:HK&dataset=balanceSheet&period=A&currency=nativ

TEV = Market Capitalization +Total Debts + Minority Interest - Cash

Market capitalization at yesterdays close price = HKD 965.4 Million
Cash= Cash + equivalents= HKD 81.3 million
Short term borrowings= HKD 223.9 million
Current portion of long term debts/capital lease obligation= HKD 31 million
Long term debt= HKD 195 million

Total Debts=Total Interest bearing debt= 223.9+ 31+ 195-= HKD 449.9 million


So TEV= 965.4+ 449.9-81.3= HKD 1,334 million

VS owns 44% of VSIG= HKD 586.96 million

Total issued shares of VS= 207,021,506 units

So the TEV of VSIG /share for VS= HKD 2.835 X0.465= RM 1.318/share

Just for the sake of discussion..If VS sells off its 44% stake in VSIG now, VS will receive about MYR 1.318 cash/share. So at current VS price of RM 4.27, the conservative value of VS should be RM 4.27 + RM 1.318= say RM 5.50/share.

So is VS current share price undervalued, fair price or overvalued???

IS CURRENT PRICE OF RM 4.27 ALREADY REFLECTING 100% OF VS TRUE VALUE???

Does anyone want to comment on the above???? hahahahaha

JT Yeo, Are you purely focused on seeking answers on justification of 32 % capital appreciation over past 10 years rather than focus on making money with VS ?? I have already made money riding on VS...have you???

Managing to grow the Biz is forward looking...Partnering Global Players and riding on Global players that results in increasing EPS will result in higher share price.....VS has delivered so far...the justification for me is the share price appreciation....that is enough....

Buffet never invested in Microsoft during its early days...what was the opportunity cost? Would Buffet performance be vastly improved if Buffet had invested in Microsoft during its early days??? Investing in Coca Cola was a no brainer as Coca Cola was riding on the rise of US world economic domination after WW2.

A biz that grows need all the cash flow it can generate to invest into its biz to improve further on its biz model to empower it to deliver higher EPS that results in higher capital appreciation. If you are looking for high dividend payout, VS may not be the stock of your choice... however if you are looking for higher capital appreciation, VS maybe a good candidate.

Is Partnering Global Players and riding on the growth of the Global Players a No Brainer biz for VS???

The controlling shareholder cum management had spent time and money to improve on EVERGREEN biz model to be cost competitive, responsive, improved delivery time and provide consistent quality products (MDFF and Particle board) and that had started to yield results starting Q3 2014 onward. The improved biz model will empower EVERGREEN to continue to improve on its EPS...as its future EPS grows..its future share price will also respond positively !!!

I will not be surprised if its future share price surpasses its all time high of 1.86 @ 23/5/2007

I buy VS biz model, its management competence, its biz strategy, the execution of its strategy...VS has performed to date...Partnering Global Players is the right strategy...

Quite an interesting discussion above based on VS past Financial Accounts. I would however primarily focus on VS biz model, its biz strategy, execution of its biz strategy as this is forward looking.

VS main strategy is to partner global leaders for its future growth. It has achieved that and will continue to do it better.

It had successfully made into the list of top 50 EMS (Electronic Manufacturing Services) producers globally from 2007 to 2013 as per 2014 AR and in that process had invested in advanced manufacturing facilities strategically located in Asia manufacturing hubs in Qingdao, Zhuhai, Hanoi, Senai and Jakarta.

VS employed a 3 pronged strategy to grow its future biz:
-Customer focused strategy in managing its resources to becoming a more pivotal partner to its customers
-Market focused strategy with continued focus on higher value added products in growth industries
-People focused strategy in nurturing talents for sustainable growth and innovation

Based on its rolling 4Q EPS of 45.1 cents, its PE based on market price of 4.17 is only 9.25.

To Fundamental investors or value Investors, I will like to leave a question for all of you to think and ponder through...The question is as follows:
- Is VS undervalued, fair valued or overvalued at current market price
- If VS in future managed to achieve an EPS above 45.1 cents, how will you value VS in terms of undervaluation, fair value or over valuation??

To TA investors, VS had underperformed the KLCI since 30/3/2015. However since 18/5/2015 it had started to outperform the KLCI as it had upward penetrated yesterday the upper Bollinger band with 10 days MA. When a stock starts to outperform the KLCI, what is the decision to take?? The 10 days MA Bollinger band on VS widens with upper line and middle line turning UPWARDS... Today VS price went even higher...Is this a technical signal to accumulate VS on any future weakness or to take a position at current price levels???

I shall focus on the right business model, the industry type it competes in, the right competent management structure to execute the biz strategy and the right entry price...the rest are secondary.

hahaha..optimuses alias multiple ids reliving through "sohai laugh die me" over and over again...no wonder needs multiple ids after sohai dying through laughter... lol lol

If it cannot close above 2.46 within next 2 days ...it will go down further.

Shaking out weak holders as expected after the recent gap up.......

bracoli, already allocated enough for MYEG during recent selldown...no need to top up...Todays volume had shrunken but price is steady and stays above Gap up candle...Gap up candle highest price was 2.55, Closing price was 2.53..If u want to top up, you can do so at these price levels..2.53-2.55

Other Technology stocks are starting to stir, move upward...

Yesterday's GAP of 2.55 to 2.56 had been filled this morning. Hmmm...Will this gap be a price support or price resistance. It's too early to tell...need another 2 days to confirm.

Consolidation not over yet...still in process of shaking out the weak hands...

The next financial result due 27 May 2015 will confirm whether it is ahead of its fundamentals, at its fundamentals or at a discount to its fundamentals....Top management cum controlling shareholder's focus on improving and empowering its biz model will propel its share price to hit an all time high in the future...

KLTEC peaked on 21/4/2015 and subsequently consolidated for 6 consecutive trading days. KLTEC had rebounded in the last 2 consecutive trading days. Consolidation for KLTEC is OVER and Technology shares will advance further and MYEG will follow in tandem...

Closed with a Doji....Looks like the shakeout will continue a while longer...

Shares changed hands from weak hands to stronger hands...

Classic shakeout this morning before it moves higher...

i3i2i1, TA system with Fridays closing cannot now confirm bullish mode as the TA indicators are ALL LAGGING INDICATORS... even with the strong finish last Friday the TA System indicators still give a bearish signal on MYEG.

HOWEVER CANDLESTICK Patterns are leading indicators... Friday Candle close with a very Special GAP UP candle with HIGH ENERGY with CLOSING PRICE >> OPENING PRICE implies that current downtrend is over and there is a high likelihood MYEG price will go higher next week.

MYEG GAPPED UP with CLOSING PRICE HIGHER THAN OPENING PRICE. This is a special high energy candlestick. Candlestick is leading indicator.

MYEG will attempt to challenge the 2.68 major resistance next week. This will be its 4th attempt and there is a strong possibility and good likelihood that MYEG will successfully break the 2.68 major resistance as any price resistance once challenged a few times will also break.

kcchongnz, Just google into BURSA website and you will find out that RETAILERS comprise of 50% of the monthly trading volume. There are different types of retailers and they comprise of ..the value investors, technical traders, speculators, proprietary traders,the operators..the skill-sets vary amongst the "retailers"...

- The professional proprietary traders and operators r very competent, nimble, agile, opportunistic stock movers and rely on Candlesticks, Price Volume actions to do intra-day trade. The stocks maybe good FA stocks or just pure "GORENG stocks"
- the competent technical traders rely on candlesticks, key lagging TA indicators and maybe some key basic FA info for confidence booster to trade
- the value investor like you will rely on their intrinsic valuation methodologies to trade
- and the speculators will just speculate, have great penchant for "GORENG " stocks

Stock market indeed has seasons..there will be winter, spring, summer and autumn stocks...each stock will be in different seasons at any point in time. When market goes up, by and large the retailers will make..the agony, pain and anguish starts when market takes a downturn and even most retailers will be hit even amongst value investors who did not cut out.

As you have rightly put it, Value investment is an art..the art is in the assumption that goes into deriving the intrinsic valuation. I will add one more caveat though...Value investment is also timing of entry just to get the best discount off its intrinsic worth...just wait for a market correction or a market crash to get big discount off its value ...the value is not in the price but the price may have significant discount off its value when the market corrects or when it crashes

johnny cash, If u r on ifca msc at early stage of uptrend, u can ride it further. China can be a major earnings booster but there is also the risk that goes with capitalizing on opportunities in the China market which needs no further elaboration as in the medium term the Chinese operators will have their way especially in IT sector and they know their local market better than a foreign upstart. Your less risk option and max profit potential is to go into uptrending stocks in early stage and ride the uptrend with it. The challenge now is to identify strong uptrending stocks at early stage ie. catch and ride the dark horse that will win the race for you.

kcchongnz,
your comments here had piqued my curiosity...hahaha..you seem to enjoy the staged theatrics in KNM forum...there is a real possibility these "theatrical forumers" are paid actors or possibly operators to entice interest in KNM stock...sorry..I am not enticed at all by these theatrics and always give it a miss...

when you have got into any strong uptrending stock at a low price and you r convinced of its fundamentals and the price action upwards is supported by improving fundamentals , then it is better to just hold it and ride it up until it exceeds its intrinsic worth or its earnings start to disappoint. if you want to maximize further on your profits on the same stock on its way up then you need to rely on TA to exit at relative high and re-enter at relative low. maybe it is better to focus on other good FA stocks that is undervalued rather than time in and out on the same stock...

when there is a top deviation, better get out if u r already owning the stocks(sell 50%, 75%, 100% at prices of 2.74 to 2.86 ..its up to you) before the price plunge sharply. you can wait for a suitable time to re-enter...no need to be like a sohai holding and riding the stocks down, feel the tension, anguish and the intense pressure to hunt for other stocks to cover the loss...when the price of MYEG is low enough, just go in and buy...i wont buy stocks when i see a top deviation and once I buy at off its relative low , i also hold just like u also want to hold. I will only hold stocks when it performs i.e its price goes up . I am still holding my EVERGREEN which I got it at its low in 3rd quarter 2014. I increased my position again 2 days ago...

Todays's strong close was just a rebound off its lows and despite its strong showing today, MYEG is still in downtrend.

2.68 is a formidable resistance for MYEG to punch through and to stay above in order to resume its uptrend. It tried previously on three occasion to overcome the 2.68 resistance but failed and subsequently retraced. Maybe it will be successful on its 4th attempt next week.

We need to see its performance next week whether it can successfully overcome and stay above the 2.68 resistance to resume its uptrend.

You r just too superopinionated, too super egoistic to notice what Pruce Volume action had been happening right in front of your eyes looking into the stock screen..you r blinded by your own weakness....lol lol.

It is important to develop an open but flexible view of stock investment... also be quick n nimble....don't be a prisoner of your own views n your call.....Plse learn from this experience....lol lol

Alphajack, Y you don't have a good understanding of technical trends? If you had a good technical understanding, u would not have ridden the trend down. It was bearish for a while now since it peaked n top deviation was detected some time ago.....the gap up today at opening supported by strong momentum was a Strong technical BUY signal...

WTI Oil future hit a new high just now @USD 58.9.....this is good for UZMA n good FA oil n gas stocks for the medium to long term

Rebound has started today. Will reverse trend above 3.07...

Good to accumulate abt this + or - price level n wait for rerating in 2H 2015

Buy abt this price level n hold n u will be OK lah. FA is OK...

Hahaha...don't worry fellow investors of MYEG, the next IB Financial Report on MYEG will recommend a SUPER STRONG BUY and revise TP UPWARDS due to 100% FWPR...Congrats to those that took profit earlier before the downtrend began and re-entered yesterday or even this early morning....well you guys are smiling unlike one super opinionated cum egoistic and super "PUI" spitter investor called alphajack who is still sulking...still licking his wounds....just like a small boy... LOL LOL

alphajack,
The fact of the matter is, you are still in a LOSS with MYEG and still nursing your LOSS..Is that right??
Just in case you do not know, I am already in the money with MYEG..I can sell now and make a handsome profit...but can you do so today ....sell now and make a profit in MYEG...lol lol

alphajack, U have demonstrated to yourself and to everyone here that your biggest hurdle in investment is that you find extreme difficulty in controlling your emotions...Please control your emotions and you will become a even more successful investor...lol lol

Alpha Trader, When the OPENING price GAP UP with high Volume from yesterdays close @2.29 and continues UPWARD with strong momentum , it is a TECHNICAL BUY as the price is factoring in the fundamentals as the morning progresses....lol lol

Posted by Alpha Trader > Apr 30, 2015 11:24 AM | Report Abuse

sell is technical call, but today is rebound, buy not sell, use fundamental when rebound, not technical

The Next IB Analyst report will recommend a STRONG BUY with HIGHER TP..lol lol

alphajack, hahaha you really "pro" to ride MYEG down to have loss of RM 100,000 with all your financial analysis....wow..u really love the thrill of riding it down...but i love the thrill of riding the stock up ...erm ...not riding it down and for that I do in the theme park for some excitement ..but not for thrill though....lol lol

You may think you are 100% right in your analysis but it is only a relative right..Mr Market had voted down your analysis...lol lol