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