Posted by rookie > 2014-05-22 18:56 | Report Abuse

Good analysis on Apollo and London Biscuit... but please also check on their PE... Apollo is good but it is priced in as it has high PE about 12x or 33% higher than LONBISC 9x

Posted by AyamTua > 2014-05-22 20:54 | Report Abuse

kcchongnz keyword? safety

Posted by AyamTua > 2014-05-22 20:58 | Report Abuse

safety of balance sheet = safety of investment. i understood kcchongnz now.
kikiki

Posted by 爱丽斯 梦幻世界 > 2014-05-22 21:07 | Report Abuse

eat black checker or eat choco rolls ?

Posted by AyamTua > 2014-05-22 21:09 | Report Abuse

choco. definately. look into EAH while eat choco.
mikikikiiiiii

Posted by 爱丽斯 梦幻世界 > 2014-05-22 21:13 | Report Abuse

http://www.hanyaw.com.my/group_products_Wafers_Cake_Apollo_page1.php

http://www.londonbiscuits.com.my/product/swissroll.html

Posted by 爱丽斯 梦幻世界 > 2014-05-22 21:14 | Report Abuse

both product also SWEET

Posted by cheongcy > 2014-05-23 09:49 | Report Abuse

Hi Rookie, have you ever wondered why Mr Market willing to assign a lower PE to LONBISC?

Still, its 10 over years of high PPE spending really make me uncomfortable. For the past 10 yrs, its PPE spending was 13% - 36% of its total sales. Can you imagine if you own a business, and for every RM100 you earn, RM12 - RM36 will go to the machine by default and your on paper operating margin was just 13% (min) - 25%(max - 10yrs ago)? And that does not include the finance cost which account for another 6% - 7% of total sales. Ok, fine, they bought so much PPE because they expect for higher growth in the future. But looking back at its ROE, it seems it is on the 'bearish' trend too. So, they spent high capex just for the sake of maintaining high fixed assets?

Well I am not going to guess or speculate what is management intention or whatsoever. Before we are clear of what is the "for some reasons" of the high PPE spending or sure that their PPE may reduce, as a cautious investor I shouldn't have put my money on this counter.

Posted by lmenwe > 2014-05-23 21:43 | Report Abuse

Dun forget the stupid acquisition the management had done in their past!

Posted by 爱丽斯 梦幻世界 > 2014-05-23 22:36 | Report Abuse

lmenwe, 'stupid acquisition'? u mean TPC by Lonbisc? If product need egg, just purchase the egg?

Posted by lmenwe > 2014-05-24 04:32 | Report Abuse

Yes. One even sell at a loss to QL but QL had successfully turn it around and make profit! This kind of quality also cry for foul for its low valuation. Lol!

Posted by 爱丽斯 梦幻世界 > 2014-05-24 05:22 | Report Abuse

lmenwe, not QL, shld be HL (Huat Lai Resources Bhd). TPC still PN17? last qtr make profits rdy:
http://www.bursamalaysia.com/market/listed-companies/company-announcements/1627365

Posted by lmenwe > 2014-05-24 16:14 | Report Abuse

i think is lay hong not this counter. I can't remember exactly. But where is ze moola had made a very detail comment on the stupid management! With them still on the board I will never risk my hard earn cash on them! MSC's stupid management is another classic example! Almost all their investment end up with losses!