Posted by acg_80 > 2014-06-05 18:06 | Report Abuse

very nicely done and insightful, thank you....dnt like insas thou as they are more into rewarding their own shareholders....if that changes then this is a good company with solid old world biz and tech biz mix.

Posted by johnny cash > 2014-06-05 19:53 | Report Abuse

so what rating are you giving to this stock,,trading buy or strong buy or long term buy or fast buy

Posted by gnat > 2014-06-05 23:46 | Report Abuse

I rate as HOLD. But I actually sold off. Sell in May and go away. Come back later.

Posted by stockoperator > 2014-06-06 10:50 | Report Abuse

Well, Johnny, it should be a trading Buy close up to IV.

Posted by sephiroth > 2014-06-06 10:52 | Report Abuse

management very stingy, first 9 months eps almost 20 sen, give 1 sen dividend ???????????

Posted by ksng0307 > 2014-06-06 10:57 | Report Abuse

why is it investment properties and from associates companies included in your calculation, i thought working capital only involve current assets and current liabilities?

Posted by stockoperator > 2014-06-06 11:38 | Report Abuse

Dear Ksng I always feel very funny about this method as if you invest in property or any profit generating hard asset then you are Not qualified as Net Net candidate? Why?

Anyway, i really have to remind myself to respect others investment style.

Posted by stockoperator > 2014-06-06 11:42 | Report Abuse

So it means all property companies should sell all their assets on hand in order to become Net Net candidate so that their share price will be fully valued?

Posted by stockoperator > 2014-06-06 11:50 | Report Abuse

OR the market is assessing that the management has no intention to give out cash dividend and company has no capability to earn Great profits then the share price and SO the cash on hand is also discounted?

Well, no offend to those who holds the company for trading or investment.

Posted by kcchongnz > 2014-06-06 12:43 | Report Abuse

Well done Intelligent Investors. More people seem to pay attention to value investing now.

The quality asset of Insas in cash and cash equivalent, ignoring others, is already worth RM1.44 per share, in book value.

I just like to add that the value of its associate companies is taken as the book value of just 134m as its balance sheet as at 31st March 2014. At RM2.77 on 6th June 2014 and its 36.44% holding in Inari alone is worth a market value of 500m, or a difference in value of 54 sen per Insas share. What about its 20% stake in Gleneagles Medical Center SB and 43.4% Melium Group. What are their market value?

I don't know but it does show that Insas is really undervalued, isn't it?

Posted by stockoperator > 2014-06-06 13:26 | Report Abuse

End of day KC it is net asset investing versus Business Value and good Business Practice.

Market is Big enough for everybody here as long as we are Consciously investing.

I know my mistakes of imposing certain values here while ignoring others.

Posted by NOBY > 2014-06-06 13:58 | Report Abuse

No doubt Insas is undervalued. But one thing to look out is how soon this deep value can be unlocked ? It requires some material event or activist shareholder to pressure management to change their ways but is it possible without high institutional ownership of the shares ?

Posted by sephiroth > 2014-06-06 15:51 | Report Abuse

kcchongnz, need yr assistance to check whether BRIGHT is a graham net net company. thanks

Posted by Intelligent Investor > 2014-06-06 16:06 | Report Abuse

hi sephiroth, why not you give a try and share your result with us?

You can refer to http://intelligentinvestor8.blogspot.com/2014/05/valuation-graham-net-net-negative.html or this article for the methods.

And, you need one more thing - the latest result from BRIGHT. And, here you go http://www.klse.my/stock/quarterResult/9938.jsp#stockDetailDiv

Posted by Intelligent Investor > 2014-06-06 16:06 | Report Abuse

hi sephiroth, the link should be http://www.klse.my/financial/quarterResult/153271.jsp

Posted by emperor > 2014-06-07 12:46 | Report Abuse

Hi, in yr nnwc calculation, where u get the figure for total investment
= 437896? Any master here can help? Thanks in advance.

Posted by Intelligent Investor > 2014-06-07 14:16 | Report Abuse

hi emperor, total investment is derrived from below figure

Investment Properties = 157,638
Associate Companies = 134,186
Investment 116,092 + 29,980 = 146,072
Total Investment = 157,638 + 134,186 + 146,072 = 437,896

All the figure was picked up from the latest quarter result - http://www.klse.my/financial/quarterResult/154014.jsp

Posted by emperor > 2014-06-07 16:16 | Report Abuse

Thanks for your guidance intelligent investor. Learn a lot from all yr posting, good job and I will follow closely.

Posted by emperor > 2014-06-07 17:11 | Report Abuse

Hi Intelligent investor, when calculating the nncw for short term investment,should we use the non current asset investment figure since it is short term?. Logically, shorg term investment are classified as current asset. Corret me if I am wrong. Thanks.

Posted by Intelligent Investor > 2014-06-07 20:34 | Report Abuse

hi emperor, all credit goes to kcchongnz. I am following his lecture to produce this writeup.

Graham original version of NNWC is NNWC = Cash and short-term investments + (0.75 x accounts receivable) + (0.5 x inventory) - total liabilities

You may refer to http://intelligentinvestor8.blogspot.com/2014/05/valuation-graham-net-net-negative.html for details.

For INSAS, I have taken some investment fron non current assets because I think it is liquid and shall able to convert to >= 100% of equivalent cash.

Refer to Mr Chong reply on the above, "I just like to add that the value of its associate companies is taken as the book value of just 134m as its balance sheet as at 31st March 2014. At RM2.77 on 6th June 2014 and its 36.44% holding in Inari alone is worth a market value of 500m, or a difference in value of 54 sen per Insas share. What about its 20% stake in Gleneagles Medical Center SB and 43.4% Melium Group. What are their market value?"

I believe it is very conservative for us to take in 100% of the investment value. Based on the market price, it should worth more than what it record on the book and this provide us a huge margin of safety.

But, bear in mind that valuation is more an art than science. And, there is no right or wrong. We have to do our own judgement and make the call.

Posted by euniceeng > 2014-12-01 22:33 | Report Abuse

May I know where to find the NOSH? Is not the same as share capital...

Posted by tc88 > 2015-02-04 18:41 | Report Abuse

Drop of 33% from RM1.2 to RM0.8 now.........what happen?