Posted by Christine Goh > 2014-08-02 15:05 | Report Abuse

:D

Posted by ccs999 > 2014-08-02 15:16 | Report Abuse

Thanks Mr Chong.
One thing that always confusing me is when should I sell my stock?
Should we sell our stock when the stock price is above the intrinsic value? If I am not mistaken, the said intrinsic value should belong to it minimum company value right? Please advise. Thank you.
Regards,
Chua

Posted by kcchongnz > 2014-08-02 15:37 | Report Abuse

CCs999,

Intrinsic value is the estimated value of a company or its stock. It is not the "minimum" but a fair value.

Please note that this "intrinsic value" is just our estimate and it changes as time goes by depending on the business of the company. It may go up if the business improves more, or down if the business deteriorates.

I will definite sell if the price exceeds the intrinsic value as I can use the proceeds to buy other undervalued stocks.

Posted by stockoperator > 2014-08-02 16:15 | Report Abuse

Ha, Looks like KC wants to sapu the market in good times and bad times.

Beware of stocks turnover ya.

Posted by calvintaneng > 2014-08-02 16:19 | Report Abuse

Peter Lynch sapu over 2,000 companies by his Magellan Fund. Market is not static. It goes from undervaluation to overvaluation and then back from overvaluation to undervaluation again.

For some stocks Peter Lynch bought and sold 3 - 4 rounds.

Posted by stockoperator > 2014-08-02 16:30 | Report Abuse

Calvin, nothing is good nor bad. If you are good, then do it 10-20 rounds.

Stock turnover can also be different companies due to different strategies.

Ultimately, It might lead to trading and bad market timing.

Posted by stockoperator > 2014-08-02 16:53 | Report Abuse

Why not the best of both world?

An balanced approach in between, Company which is cash rich and asset rich, Good Business Value and business earning prospect, at fair value preferably slight discount.

Having said this, I thought of Keck Seng again.

Posted by kcchongnz > 2014-08-02 17:02 | Report Abuse

This is the second time you mentioned about Keck Seng.

I hope I got time to do it one day. Actually I hope one of my students can do it for you.

Yes, a number of them can do it now.

Posted by johnny cash > 2014-08-02 19:17 |

Post removed.Why?

Posted by stockoperator > 2014-08-02 20:32 | Report Abuse

TQ KC. I think it can be a good case study.

I sold off earlier as not agreeing with their management style. You know stupid egoistic people like me always think that we have higher value than others.

But after converse in this forum and reflecting, I think i can accept so many different style of management, opinion, investment style and so on. At least respect the way they do business and other people opinion.

Posted by tonywong8 > 2014-08-02 21:22 | Report Abuse

TQ KC. I bought some Pmetal 2 year plus ago at around Rm 1.70. Lately the price shoot up very fast from Rm 2.2 and when it came to Rm3.50, I fear that the price will turn around and my profit will erase. So, my decision to start selling from Rm 3.50 to 3.72 for 50% of the share to lock in the profit. However, the share keep going up and when it touch Rm 4.50, my feeling told me that I have enough profit and start to liquidate another 50% from Rm 4.51 to 4.80. The share continue to go up to Rm 5.80 yesterday. I am please to make good profit from the share. KC, is my investment strategy ok? If you are in my position, what is your strategy? TQ

Posted by tonywong8 > 2014-08-02 22:02 | Report Abuse

KC, I also made quite a lot during year 2010 and the market turn around after then, what I made was eroded. This time, I try not to go into same situation, to reduce impact on my investment in case of market turn, I started to buy YTLREIT from my liquidation of Pmetal shares at average price of Rm 0.92. I had received first dividend of 2.08 cents a month plus ago and going to get the second dividend of 2.4848 cents by end of the month. I intended not to go into buying any shares from now onward until market corrected significantly and keep Ytlreit for dividend. KC, am I in the right strategy? Or what is your advise? Thank you.

Posted by kcchongnz > 2014-08-02 22:50 | Report Abuse

tonywong8,

I really don't know what is happening in PMetal. About a year ago when it was trading at about RM2.00, somebody asked me about it and I looked at its performance and financial position, I got scared and I didn't even think of buying it even at RM1.00.

It had low return of capitals, extremely poor cash flow and a terrible balance sheet. Everything is against my principles to invest in such a stock.

There must be something I don't know about its recent or future development. What is so good?

What I don't know i don't touch. That is my strategy.

Posted by tonywong8 > 2014-08-02 23:05 | Report Abuse

KC, thank you. May be I am lucky.

Posted by kcchongnz > 2014-08-03 07:13 | Report Abuse

Posted by tonywong8 > Aug 2, 2014 11:05 PM | Report Abuse
KC, thank you. May be I am lucky.

tonywong8,

That statement of yours above will determine the success of your investment in the future. You have great future in your investment.

How many people who have made some money in the stock market say that they are lucky? Most of them will brag about how savvy they are in investing, a classic case of cognitive bias of overconfidence.

I like people read and provide me with feedback on this article below:

http://klse.i3investor.com/blogs/kcchongnz/45226.jsp

Posted by stockoperator > 2014-08-03 14:02 | Report Abuse

I would say High share price would boost company profile and ease investor concerns and boost bankers'confidence and thus company have easier access to financing needs and can also leverage further on financing needs.

it is seen as last resort of company to turnaround their fundamentals. I remember Mr Koon has written the importance of share price in the capital market in relates to its fundamental and investors' confidence and further financing needs not too long ago.

Posted by stockoperator > 2014-08-03 15:11 | Report Abuse

It is not surprising this company goes on financing again or share issuance or placement based on High share prices again.

Posted by stockoperator > 2014-08-07 22:42 | Report Abuse

Should we pay a Billion in market value for a Billion in valuation? Some are very very happy to pay a Billion for a Billion.

Better still when they know the value is Rm 1 billion and market is selling them at half price.

What happens if you know that the company is Only earning Rm 10 million and most asset are in receivable?

Do we even want to know why a Billion asset is only earning Rm 10 million a year?

I think before we think of paying a Billion in market value for A Billion in valuation, we should examine the followings:

1) Quality of asset such as Balance sheet;
2) Quality of earning power and cash flow;
3) Quality of management such as operational margin;

Not Doubt. Some of them will perform very well thereafter.Some of them will not.

Just be more Conscious of knowing what happens.