Posted by Intelligent Investor > 2015-01-30 10:44 | Report Abuse

Please do your own analysis. This is just a list of potential stocks but not a buy recommendation.

Please remember High Growth is not always equal to High Return?

http://intelligentinvestor8.blogspot.com/2014/10/high-growth-high-return.html

Posted by Kevin Wong > 2015-01-30 14:14 | Report Abuse

tq

Posted by jalanlabohan1999 > 2015-01-30 18:32 | Report Abuse

Keep posting keep good work.intelligent investor

Posted by calvintaneng > 2015-01-30 18:38 | Report Abuse

Another great stock is Kimlun. Just awarded another Rm80 million project.
Kimlun is on track to be another Pitaras Jaya.

Posted by Intelligent Investor > 2015-01-30 20:28 | Report Abuse

In my opinion, kimlum and pintaras jaya is not same.

Let's look at their profit margin and ROE for the pass 10 yrs.
http://www.klse.my/stock/result/financial/last10fy/9598.jsp#stockDetailDiv
http://www.klse.my/stock/result/financial/last10fy/5171.jsp#stockDetailDiv

PTARAS's profit margin is very high quality while KIMLUM is the other way round. And, PTARAS able to achieve high ROE with low asset turn over, low financial leverage and high excess cash. It is way above the cost of equity and owing to this it able to create value for its owner.

We need more time to see how's kimlum perform. But a merely 4% margin is very dangerous. It will be wipe out if there is any issue on the project.

Posted by vaentec > 2015-01-30 21:24 | Report Abuse

Intelligent investor , how do you screen growth stock out? do you use an app or did you do it manually?

Posted by Intelligent Investor > 2015-01-30 21:26 | Report Abuse

Hi Vaentec,

I use klse.my - http://www.klse.my/stock/screener.jsp?Type=S&T4QROE-1=12&L10FYAvailableYears-1=10&T4Q_V_LFY_EPS-1=30&T4Q_V_AL10FY_EPS-1=50&;

You can modify the criteria to suite your own taste

Posted by calvintaneng > 2015-01-30 21:52 | Report Abuse

In early days I bought Pitaras at Rm1.40 and kfima at 35 cents. Both were erratic. Later they performed well.
It remain to be seen how Kimlun unfolds.
In any case it will secure a good portion of supplies for Kl and Spore Mrt
And future Mrt of Iskandar, Penang, Melaka and other parts.

Posted by Intelligent Investor > 2015-01-30 22:01 | Report Abuse

Hi Calvin,

We have different risk profile.

Henry Blodget said "Sometimes it's helpful not to look at valuations too closely. Just blur your eye and say 'I see a big future for these stocks'."

But, this is definitely not suite my taste.

By the way, PTARAS did maintain at least 8% of it's margin on the pass 10 yrs. It is low but it is 2x kimlum margin of 4%.

http://www.klse.my/stock/result/financial/last10fy/9598.jsp#stockDetailDiv


http://www.klse.my/stock/result/financial/last10fy/5171.jsp#stockDetailDiv

Posted by truthseeker1 > 2015-01-31 11:33 | Report Abuse

AirAsia X request for right issue despite tumbling oil price which benefit them the most. Any chance AirAsia might follow in future?

Posted by calvintaneng > 2015-01-31 12:09 | Report Abuse

Yes Intelligent Investor,

Of course PTaras has better margin than Kimlun. But like the early days of Ksl which I bought at rm1.20 when Ksl bosses were hungry for growth I heard from banking sources that Ksl bosses waited for much needed cash before banking hall open for business.

See how hungry Kimlun bosses are. They kept buying back Co shares with own money plus securing project after project.

Everything rises or falls on Leadership.

To me Kimlun is an inspiring work still in progress.

Posted by Intelligent Investor > 2015-01-31 22:29 | Report Abuse

Hi Calvin,

I am just a small retailer. I do not have access to the company's mangement and I have limitation on forecasting the future.

I only able to play an armchair investor role and judge a company by checkout it's historical financial result.

I believe history doesn't repeat but it does rhyme.

Posted by Intelligent Investor > 2015-01-31 22:40 | Report Abuse

Hi Calvin,

High Growth might not equal to High Return. See http://intelligentinvestor8.blogspot.com/2014/10/high-growth-high-return.html

Return of Equity (ROE) reveal how much the company is making compared with how much it has invested to make that. The company is creating value for its owners if the ROE is higher than the cost of capital.

The ROE is equal to Net Income/Equity.
- ROE = Net Income/Equity
= Net Income/Sales * Sales/Total Assets * Total Assets / Equity
= Net Income Margin * Asset Turn Over * Financial Leverage

So, the question is does Kimlum able to growth is NP% from a merely 4% to increase the it's ROE, and create value to its shareholder?

Posted by Intelligent Investor > 2015-01-31 22:40 | Report Abuse

Below is comment from Mr. Chong on Kimlum from its recent post:-

the latest financial statement of Kimlun, its EY at 11.2%, passes my minimum requirement of 10%, but just. However, its ROIC fails as at 9.2%, it is below my minimum of 10%. Something is seriously wrong with Kimlun as its ROIC has been falling unabated from 30%+ five years ago to less than 10% now. This shows that whatever money retained has been earning lower and lower marginal return year after year which is below its costs of capital.

I disliked Kimlun more of its deteriorating margins, increasing debts and most of all, and extremely poor cash flows. It never has any free cash flow for the last three years. Its cash flows from operations were even negative for the last three years. However, this seems to be improving in the recent quarters, but I have long discarded this stock from My First Portfolio

http://klse.i3investor.com/blogs/kcchongnz/67653.jsp

Posted by calvintaneng > 2015-01-31 22:48 | Report Abuse

Yes Intelligent Investor,

In early days a company grows by competition. Margin is thin as the purpose is to capture market share. There will come a time when competition is wiped out. Then there will be pricing power.

See how Nestle's Milo destroyed one challenger after another.

When VICO entered the market it made huge inroad into Milo market share. Milo fought back by innovation and cutting prices while VICO made the fatal mistake of raising prices. VICO is a mediocre story.

But Mamee did pretty well by fierce competition with Maggie Mee.

I visited MAMEE Factories in Malacca to tender their Old Lorries. Very transparent bidding. They got very high prices. They use the office furniture till they look like antics.

MAMEE Later Became So Profitable they took it private.

Posted by ImCK > 2015-02-01 22:29 | Report Abuse

Why no mitrajaya lol

Posted by calvintaneng > 2015-02-03 08:59 | Report Abuse

POWERFUL FACTORS FOR A BULL RUN IN KLSE

1) With Interest Rates at 3.25% Good Through Sept 2016 There is No Better Place to Put Money than KLSE or Iskandar Landed Single or Double Story Houses

2) And With Oil Prices Finding a Floor Above USD 45 more Investors will Return to KLSE.

3) Latest News Confirmed that Dragi's QE have caused US Bulls to Sell Dow & Buy Eurozone Shares. Even HK Li Ka Shing also interested in Euro Equities.

4) It is only a matter of time before all Foreign Funds realise that MALAYSIA Is The Ultimate Investment Destination for Year 2015 & Rush Back To KLSE.

VERDICT:

Stay Fully Invested In KLSE. The next best investment is Single Story & Double Story Houses in Iskandar. They aren't building them anymore. All are building Condos in Iskandar. Some day Single and Double Storey Houses in Iskandar will be as rare as a white rhino.