Posted by kcchongnz > 2015-08-20 06:01 | Report Abuse

Great article. Maybe it is better to have more of this type of article for investor to learn to avoid the pitfalls in investing rather than stock peddling.

Just some comments:

1) It pays to know a little more about financial statement analysis to see that ROE may not be a good measurement of goodness, especially when a company has a lot of debt. ROIC is a better measure. With the inclusion of non-operating income, ROE can straightaway be thrown to the dustbin.
2)P/E ratio may be a little too simplistic to measure price vs value. In this case, the non-recurring income and the heavy debts are not reflected. Clearly enterprise value will show that the stock is not cheap. Low NTA here also doesn't mean it is cheap, as I think the quality of the assets are very poor. Yeah, all packed in inventories and receivables.
3) It appears that the free cash flow mentioned here is not FCF, but cash in the balance sheet. They are different. I doubt, on average, the company has any FCF over the years. Yeah, not even cash flow from operations, forget about FCF.
4) without FCF, the dividend is also paid from borrowed money.
5) Investors will be "rewarded" with rights issues soon judging from the financials.
6) Is that important for the big boss even if the company is not performing? It doesn't seem so with such a fat remuneration.

Instead of just looking at growth in profit and P/E ratio, look for the above first.

Posted by RicheHo > 2015-08-20 07:26 | Report Abuse

Thanks for your comments, KC! :) I am learning from you! Your articles are great!

Posted by YiStock > 2015-08-20 09:33 | Report Abuse

Maybe to add a little from my point of view. Looking at the stagnant/ down trending revenue and profit for the past many years, we can immediate "skip" this company and don't waste time to look into this type of company。 坐吃山空type.

Posted by supernova > 2015-08-20 09:39 | Report Abuse

late wages payment

Posted by citychew_1886 > 2015-08-20 10:58 | Report Abuse

great article and good sharing...thanks so much Richeho and KC Chong,we really learn a lot from this type of sharing..

Posted by houdini > 2015-08-20 16:29 | Report Abuse

Very enlightening article. Please keep it up.

Posted by AC Gan > 2015-08-20 16:50 | Report Abuse

Grow & Share Together ( GST )..! Syabas RicheHo...!

Posted by RicheHo > 2015-08-20 19:50 | Report Abuse

Thanks everyone! It is a motivation for me! :) Let's learn together!

Posted by tonytonychopper > 2015-08-21 08:03 | Report Abuse

Nice article. Please continue to write. Appreciate it. Thanks.

Posted by matrix6050 > 2016-01-06 11:34 | Report Abuse

thanks for sharing

Posted by RicheHo > 2016-01-06 11:47 | Report Abuse

Welcome :)