Posted by traderman > 2015-08-20 22:37 | Report Abuse

Because buy on rumor sell on news

Posted by albukhary > 2015-08-21 01:45 | Report Abuse

Good sharing, thanks.

Posted by JT Yeo > 2015-08-21 07:34 | Report Abuse

How companies can create value consist of 2 things, growth and ROIC. In this case, both companies have decent ROE, ROIC would have been higher because of the cash. But growth have been slow or flat so it would makes more sense to growth their revenue even at the expense of lower ROE/ROIC.

Posted by MMSSNew > 2015-08-21 07:41 | Report Abuse

Thank fof sharing. I make my cash do work... 23% annual return.

Posted by Ahbeng Beng > 2015-08-22 16:18 | Report Abuse

Merely buying a company that is expanding might not be a good investment. The key is whether or not the share price already factors in the company expansion plan. A company that is expanding, and everyone knew the company is expanding, the share price normally will not be cheap. Eg airasia, they are expanding their business regionally, people knew it, shares price already bloated make it a bad investment choice. Plus their strategy is budget airlines, even they become bigger, they will want to sacrifice their profit in exchange for greater competitiveness no matter how big they grow. So even they are expanding, their profit growth might not be as strong as revenue growth.

Posted by Yvonne Wanyoyo > 2016-06-22 20:03 | Report Abuse

thank for sharing ^^

Posted by maomaochong > 2016-06-22 21:57 | Report Abuse

航空業競爭很激烈的，東尼大大很努力想塑造AA成為名牌，可是其它的機票便宜，多少人會在乎品牌。當國際油價高，經營環境就會很吃力，AA的負債率蠻高的。東尼大大就好像明星，曝光率很強。不知道沒有東尼大大的AA，會是什麼面貌，嘻嘻。

Posted by iamsoonoob > 2016-06-22 22:20 | Report Abuse

hi ricky yeo,u say that roe and roic is important in creating value of a company.may i know your metric for these 2?must more than 15?if lesser,means it is not good?do we need to consider about its roa too?