Posted by calvintaneng > 2015-09-05 21:33 | Report Abuse

Another great lesson by KChongNz here!

I almost went in earlier on EPS but saw "insiders" selling.

Those who blindly chased earnings are trapped. Inventories have bloated to over 400%. The rotting steel inventories will soon turn obsolete and be written off. Insiders and Top Leaders have seen this coming. Madam Wong in particular has been selling and selling like no tomorrow.

The fish rots from the head. Now those who chase EPS have all been led astray. Success might soon change name to "failure".

Posted by chonghai > 2015-09-05 21:34 | Report Abuse

Excellent article.
Actually any company with capex consistently higher than depreciation is not a good deal.
Apart from capex, another place that is sucking cash flow is inventory. However,that is less common in klse.

Posted by citychew_1886 > 2015-09-05 22:08 | Report Abuse

Hi KC ,when will your next training class start ?

Posted by kcchongnz > 2015-09-06 12:23 | Report Abuse

Posted by citychew_1886 > Sep 5, 2015 10:08 PM | Report Abuse
Hi KC ,when will your next training class start ?

In order for the course to be more successful, it is ideal to have a good number of people participating. Learning and sharing in a group is more effective way of learning. I have quite a number in the list now, and hope that there are more people keen in the course to start a new one. Hence it depends on the response.

Most people want fish to be given to eat, not bothering if the fish is good or bad. Few are willing to spend time and effort to learn how to catch fish. That is precisely why good fishermen still have plenty of fish to catch in the water.

Posted by citychew_1886 > 2015-09-06 22:10 | Report Abuse

ok,so let us know when the number is enough. thanks.

Posted by chonghai > 2015-09-06 23:06 | Report Abuse

Kcchongnz, have you did an analysis on SAM or MAGNI before ?

Posted by Gheekong > 2015-09-07 01:40 | Report Abuse

Next Debtors? Good lesson.

Posted by kcchongnz > 2015-09-07 13:37 | Report Abuse

Posted by chonghai > Sep 6, 2015 11:06 PM | Report Abuse

Kcchongnz, have you did an analysis on SAM or MAGNI before ?


I have written an article on Magni in i3investor less than one and a half year ago here:

http://klse.i3investor.com/blogs/kcchongnz/51356.jsp

In summary, everything seems to be fallen in place for Magni then. It had:

1)It has high revenue and profit growth of 11% and 29% respectively. 2) More important, its ROIC was very high at 24% and increasing.
3)It has consistent good cash flow
4) Its intrinsic value then using discount cash flow analysis with very conservative assumptions was RM3.62
5) It is trading at RM2.69 then, and hence with wide margin of safety of 26% with the conservative assumptions above
6) its fundamentals have improved further from then on.
7) It has clean balance sheet with a lot of cash, a low risk investment.

I didn't know anything about SAM some time ago until a participant of my alumni blog alerted me of that. He made a good call on SAM with its high growth story; a story with earnings visibility and plausibility. I have read about its latest annual report and attracted to the story. PE is not cheap considering the dilution of ICUL, but with the growth, it is not expensive either.

This article below is good for your considerations, in my opinion. This guy knows much more than me.

http://klse.i3investor.com/blogs/undervalue/82224.jsp

Posted by odie88 > 2015-09-19 23:33 | Report Abuse

excellent article indeed from KC

Posted by chonghai > 2015-09-22 23:01 | Report Abuse

Kcchongnz, thanks for answering my questions in detailed.

Posted by kakashi > 2015-09-22 23:45 | Report Abuse

Hi Kc, how and where do you conduct your class? You can email me at kakashi123_hatake@hotmail.com

Thanks

Posted by Ben Gan > 2015-10-17 10:01 | Report Abuse

KC, Great article! You are the best among all the analysts I know of. Thanks for your unselfish sharing. I salute you!

Posted by kcchongnz > 2015-10-17 11:15 | Report Abuse

Posted by Ben Gan > Oct 17, 2015 10:01 AM | Report Abuse

KC, Great article! You are the best among all the analysts I know of. Thanks for your unselfish sharing. I salute you!


Ben, thanks for the kind words. Glad you like my articles.

You know I have been reading wisdom wise, or blisswise long before I started writing in i3investor.

And tell you a secret; I am no analyst, but just another individual investor like you.