Posted by vinext > 2015-10-03 06:02 | Report Abuse

1) here is the 3words that can make u rich, rmber "free cash flow"-warren B
2) in i3, i only read kcchong's writing
3) ppl regard me as very good in finance, kc chong by far is the best in FA,and right on money almost all the time in his writing,
if u dont know how to appreaciate his writing, ur mental n inteligence level have some big defects

Posted by yfchong > 2015-10-03 06:24 | Report Abuse

I have been I3 for leatning it almost 3 years oredi up to I do find KC always give his thinking cap and his taught on excess cash, FCF n mos is the best shield in bursa malaysia.

I always take his words head I win tail I don't lose much.

Posted by goreng_kaki > 2015-10-03 09:44 | Report Abuse

Paperplane2, look back your kindergarten level comments, I would like to say don't make your own shame here...

Did you really know Dyson got how many supplier in senai area? ATA, MEIBAN, FLEXTRONIC, VS ELECTRONICS (subsidiary of vs), and your skp.

You really think vs not taking dyson project before meh??? Dyson like to pulled down their supplier profit margin, this is well known between their supplier.

although Dyson is a US company, but they normally bill their supplier through Dyson Malaysia with a MYR transaction, (listen carefully, billed with MYR )
so sad to heard this right???do a business with US company but receive MYR payment.

This is not end of story yet, did you really know VS ELECTRONICS also supplier of your skpres by supplying the PCBA part to support dyson project, from my insider in VSE, skpres is increasing their order this recent month , mayb nothing special to you, but i have to tell you a main point, SKPRES pay VSE in USD!!!!!!!!!

Although Dyson give more order to skpres, but the most benefit is VS with a USD payment by skpres......... wakaka

thankyou SKPRES

Posted by Icon8888 > 2015-10-03 09:52 | Report Abuse

paperplane is famous for pretending to be a pro when he in fact knows very little

Just ignore him

Posted by BuLLRam > 2015-10-03 10:12 | Report Abuse

Kcchong..always appreciate your articles n point of views here...keep it up...

Posted by mhchai > 2015-10-03 10:15 | Report Abuse

paperplane2 gunna brain too much tats why he value Lfecorp at RM0.50, dont play play

Posted by kcchongnz > 2015-10-03 10:48 | Report Abuse

Posted by Probability > Oct 2, 2015 08:54 PM | Report Abuse
KC...this time your article has a lot of humor! he he..
keep it up :)
Ohh...its not easy to learn the fundamentals KC!
But all I can say is...once one learns and truly understands them.
U will never look at a stock w/o FA,
Its same like u r asked to drive your car blindfolded.


Great to hear that FA is useful for you. But do you really think "its not easy to learn the fundamentals"? Or it is because generally people are not wiling to put in time and effort to learn something that is so useful for their personal finance?

Fundamental investing always revolves around buying good companies at good price. You don't need to learn many things on how to measure a good company, and how to determine if a price is cheap or expensive. You must know the limitations of each measure is though. It always revolves around just a few things. So much so that this statement was made.

Posted by kcstone > Sep 24, 2015 09:34 PM | Report Abuse
“topic repeated dozen of times. only change title. boring. zzz”

Having said that there are many who dropped out from the course after two or three months. Yeah, no time, and busy on work.

Yes, it is not easy for most people because of work and other personal commitments and choices. But I think it is not because the thing to learn is difficult.

And precisely because of this, fundamental investing continues to work and not easily arbitrage away.

Posted by kcchongnz > 2015-10-03 10:54 | Report Abuse

Posted by saschl > Oct 2, 2015 10:06 PM | Report Abuse
Am just a beginner in Stock Market, consequently feeling very much carried away by this KC analysis and becoming very much confused and beaten down bec not sure if this analysis will have adverse effects on this counter or not. It sounds to me KC Chong's real agenda is telling people this is not a good counter to buy and its current price is overvalued! I regard the cursing words he put upfront in his write up is showing his contempt/jeering attitude towards this counter, bec how can a guru class like him would have missed out a counter if it has been regarded as good in his mind?
Also, find that his write up is beating around the bush too much, obscuring the jist of his whole write up which is?????? Still blur what really he wants to tell, sorry plse don't scold an amateur and substandard stock market goer like me, cheers!

I no guru class, and I no contempt any stock, but merely sharing my thoughts. Missed out such a good counter? I have "missed" out many many counters, not only VS.

Beating around the bush? Still blur on what I am trying to tell? Is it my fault or your own?

No, I never scold anybody. Only myself often kena scolded. But it is okay.

Posted by duitKWSPkita > 2015-10-03 11:05 | Report Abuse

Great morning Kc Chonggggggggggg

How are you?????????

Got mid autumn celebration in Auckland?????

Posted by Icon8888 > 2015-10-03 11:07 | Report Abuse

we all envy KC

NZ air good

here air is like poison

Posted by duitKWSPkita > 2015-10-03 11:11 | Report Abuse

KC CHONG....waht is ur API over there????

Posted by paperplane2 > 2015-10-03 11:12 | Report Abuse

Haha. Like if you know a lot vs

Posted by Icon8888 > 2015-10-03 11:23 | Report Abuse

I don't know about VS, that is why I don't comment

I am more humble

Posted by duitKWSPkita > 2015-10-03 11:25 | Report Abuse

Icon8888...... U dont know and U keep quiet....Yes... U are humble indeed....

paperplane2..U know but U never comment... then U are also humble...

KC CHONG know and he humble slowly... He's also humble...

duit know but has yet to comment.... also humble...

good that we have 4 humble men in October..........
..............jz a joke .....

wish all happy weekend.......

Posted by paperplane2 > 2015-10-03 12:10 | Report Abuse

Duit, what are you buying?

Posted by duitKWSPkita > 2015-10-03 12:13 | Report Abuse

wao... paperplane2...

I m doing short term and most of time hit and run.... Got CPO stocks and everyday would have 2 hit n run counter.... no specific counters to keep...

Posted by paperplane2 > 2015-10-03 12:18 | Report Abuse

Hmmm. CPO recover a bit due to this El nino thing. But not for long. If crude oil low, soy low, forever CPO low...plus China spending slowing, CPO shld slow due to slow demand?

Posted by duitKWSPkita > 2015-10-03 12:27 | Report Abuse

paperplane2...........

I wont take things for granted... so still monitor closely ...

EL Nino is partial of the reason.... weak Ringgit will force China purchase more from Malaysia instead of Indonesia... This is a sellin point as well....

However, the crop figure like rapeseed and soyabean show slight decrease ......... again, unhearthening droughts in Papua New Guinea plus climate happen in Africa continent... CPO will have some room to grow....... for now with low edible consumption and cheap petroleum price.. CPO should be capped at RM2,800...........

Posted by Probability > 2015-10-03 13:17 | Report Abuse

"Yes, it is not easy for most people because of work and other personal commitments and choices. But I think it is not because the thing to learn is difficult."

agreed with the above KC.

Posted by odie88 > 2015-10-03 21:40 | Report Abuse

mr.market mood swings up high for VS, but eventually the pendulum will start again. good analysis by kcchongnz, thinking the way just like real business owner.

Posted by Newbhere > 2015-10-04 17:31 | Report Abuse

I think no one is perfect in investing. KC has his own reasons/points on VS valuations in the past. Just because the share price is being cooked and pushed up by the funds or institutions doesn't make it a fantastic stock right? Everybody has their own preference and risk appetite on whether to buy the stock or not. Whether the share price will go up or not, no one really knows right. High risk, high return yes? But if sudden major u-turn then at least considered the risk avoided right. So for those who invested that is their bonus and perhaps result of their effort (if they studied the stock).

KC, u should not simply admit you are "wrong". You have your own principles and method of investing, yes? So please remember that. What looks great and wonderful now, may not necessarily continue be so in the long term right? We are doing fundamental investing and must stick to what we believe in and not just buckle from our decision.

The above is my 2 cents opinion only.

Posted by Probability > 2015-10-04 20:35 | Report Abuse

aiyo...wrong in predicting la....but
not wrong in reasoning...

if you have bottle filled with 10 marbles
and told there is 6 red and 4 black inside
and you asked to pick one marble blindfolded
which color would u guess u had picked?
surely u will pick red mah? (unless u got bomoh assistance!)

if it did not turn out as per your reasoning
does it mean u are wrong? :)

Posted by zamsaham > 2015-10-05 21:18 | Report Abuse

aiyo apa bising bising kat sini?

Just buy and hold, better than FD.

We're here to make money, aren;t you?

Posted by soojinhou > 2015-10-06 18:07 | Report Abuse

According to Bloomberg, Hon Hai Precision is valued at PER 9 currently. Don't play play, this is the manufacturer for Apple leh. Why so cheap? Well, they don't own the product, they don't own the technology, they don't own the patents. They are in short the muscle, and Apple is the brain. So what makes VS so special that it commands such lofty valuation? Can they do something other contract manufacturers can't?

Posted by Ezra_Investor > 2015-10-11 22:51 | Report Abuse

"Sigh, it is hard to find people willing to learn about fundamentals investing nowadays." - kcchongnz

Dear Kc, don't worry, you're not alone. I share your frustration as well.
When I first started investing, a friend of mine once told me - "Bursa is full of people with gambling mentality, not investing."
I didn't really believe at first, but what he said was indeed true.
Even till today, I don't see many who really learn how to use fundamental analysis, instead tons of speculating and gambling.

However KC, it's rare but there's still people like YiStock, Frank, and many more who still adhere to FA. And many of us love reading your articles. Please do not give up, and continue writing more articles to enlighten us.

Posted by kcchongnz > 2015-10-13 10:23 | Report Abuse

Posted by Ezra_Investor > Oct 11, 2015 10:51 PM | Report Abuse

"Sigh, it is hard to find people willing to learn about fundamentals investing nowadays." - kcchongnz

Dear Kc, don't worry, you're not alone. I share your frustration as well.
When I first started investing, a friend of mine once told me - "Bursa is full of people with gambling mentality, not investing."
I didn't really believe at first, but what he said was indeed true.
Even till today, I don't see many who really learn how to use fundamental analysis, instead tons of speculating and gambling.

However KC, it's rare but there's still people like YiStock, Frank, and many more who still adhere to FA. And many of us love reading your articles. Please do not give up, and continue writing more articles to enlighten us.


Glad you like to read my articles. Some say they are boring, repeating. Some, even some seemingly very successful stock market players say fundamental investing won't work, or won't work alone, or even it works in the US, it won't work in Bursa, despite i have repeatedly explain the plausibility of its use, and even provided my own successful experience as published in i3investor a few years ago.

No, I am not frustrated, why should I? The disinterest about fundamental value investing in Bursa, precisely will still continue to provide us the good opportunity to earn extra-ordinary return from investing in the stock market in the long term, as this good opportunity is not arbitraged away.

Posted by paperplane2 > 2015-10-13 11:23 | Report Abuse

kcchong, can help do study on KESM?

I SAID RM16 much achievable they don't trust.
High depreciation is depreciation..........strong cashflow is main thing

Posted by Icon8888 > 2015-10-13 11:33 | Report Abuse

the last thing KC would like to do is to help you, after you bad mouth him last time

Posted by Icon8888 > 2015-10-13 11:33 | Report Abuse

learn some manners and maybe he will consider teaching you a thing or two

Posted by paperplane2 > 2015-10-13 11:35 | Report Abuse

he will proof me correct, TP 16 for KESM is achievable

Posted by Icon8888 > 2015-10-13 11:35 | Report Abuse

first of all, learn to show some respect first

nobody like to talk to rude people

Posted by Ezra_Investor > 2015-10-13 11:38 | Report Abuse

Posted by kcchongnz > Oct 13, 2015 10:23 AM | Report Abuse

Glad you like to read my articles. Some say they are boring, repeating. Some, even some seemingly very successful stock market players say fundamental investing won't work, or won't work alone, or even it works in the US, it won't work in Bursa, despite i have repeatedly explain the plausibility of its use, and even provided my own successful experience as published in i3investor a few years ago.

No, I am not frustrated, why should I? The disinterest about fundamental value investing in Bursa, precisely will still continue to provide us the good opportunity to earn extra-ordinary return from investing in the stock market in the long term, as this good opportunity is not arbitraged away.

----------------------------------------------------------------

"Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas." - Paul Samuelson.

Value Investing is boring, and it should continue to be kept that way. Similarly to your articles KC, be it boring and repeating, keeping it that way is precisely fine.

Anyway KC, sometimes it's better to agree to disagree with others. I'm sure everyone has their own way of making money, be it FA or TA school of thoughts (punting not included, that's pure gambling). Arguing which is better is like the argument between Keynesian vs Monetarist which is better. There'll be no end to it.

I like Value Investing, but I also don't reject Technical Analysis. After all, there're two sides to a coin.

Posted by paperplane2 > 2015-10-13 21:37 | Report Abuse

Kcchong can proof me correct I tell u ! Tp rm16 kesm much achievable!

Posted by kcchongnz > 2015-10-14 17:51 | Report Abuse

Posted by paperplane2 > Oct 13, 2015 11:23 AM | Report Abuse
kcchong, can help do study on KESM?
I SAID RM16 much achievable they don't trust.
High depreciation is depreciation..........strong cashflow is main thing

One of the course participants of one of my online courses has made a detail fundamental analysis of KESM just a few months ago when it was RM2.83. He knows much more than me about KESM. See if he can help you.

KESM is cash rich which makes it appealing, besides a plausible growth story. But RM16 when it is trading at RM4.27 now?

"When you locate a bargain, you must ask, 'Why me, God? Why am I the only one who could find this bargain?'" - Charlie Munger

Posted by xyxy8 > 2015-10-14 18:31 | Report Abuse

Read this if you are losing confidence in VS:

http://klse.i3investor.com/blogs/koonyewyinblog/84192.jsp

Posted by paperplane2 > 2015-10-15 01:35 | Report Abuse

Can show us or share with us? Kcchongnz?

Posted by paperplane2 > 2015-10-15 01:48 | Report Abuse

"When you locate a bargain, you must ask, 'Why me, God? Why am I the only one who could find this bargain?'" - Charlie Munger

Posted by paperplane2 > 2015-10-15 01:52 | Report Abuse

Not just me notify this kcchongnz. OTB, rosmah, etc all identify this stock also. I just want your view on cash flows.
I saw high depreciation, but also high staff benefit. Pro can con here.

Posted by kcchongnz > 2015-10-15 08:22 | Report Abuse

Posted by paperplane2 > Oct 15, 2015 01:52 AM | Report Abuse
Not just me notify this kcchongnz. OTB, rosmah, etc all identify this stock also. I just want your view on cash flows.
I saw high depreciation, but also high staff benefit. Pro can con here.


High depreciation is because of its high capital requirement in its business. More important, over a period of few years, is there positive FCF? Is its recent high capex justifiable?

The answer seems to tilt towards the affirmative. But still the future is uncertain and unknowable.

The difference between KESM and V.S are:

1) KESM is a net cash company whereas VS is net debt. A safer company to invest in. In investing, and as a "small investor", I care more of downside than the upside.
2) VS appears to earn higher return on capital now. But its cash flow is not pretty. Anybody just brushing off the peril of persistent poor cash flow, in my opinion, doesn't understand it.
3) KESM was cheap when it was selling at RM2.83 a few months ago when it was first written by a course participant of mine. It has gone up by a lot since then. Notice nobody peddles this stock then and now and tell you buy buy buy except some noises? You have to judge by yourself and make your own decision if the price is still cheap.

Always remember, even a good company is not necessary a good investment. It depends on the price. If you have bought Microsoft, one of the greatest companies in the world in early 2000, you may still be losing a substantial amount of money.

Posted by paperplane2 > 2015-10-15 08:43 | Report Abuse

tht's what I don't understand. Their biz shld be light assets required for tech company. Yet they need so high impairment yearly.
Also, after impaired, assets still there running right, unless they sell it. But even sell it also got money right.

Posted by paperplane2 > 2015-10-15 09:02 | Report Abuse

KCChongnz, how you define Capex? capex is very subjective things....

Posted by paperplane2 > 2015-10-15 09:06 | Report Abuse

Also, one thing I don't like is the high staff benefit, wiping lots of profit there.......I think it can breech RM6 if it can show consistent profit over next few quarters. Yet, can this be sustainable, I am not very sure.

Posted by paperplane2 > 2015-10-15 09:08 | Report Abuse

for comparison, I think it is more apple to apple if you compare Elsoft vs KESM, as they both have similar business right?

Posted by Icon8888 > 2015-10-15 09:10 | Report Abuse

Ha ha ignorant ignorant

Posted by kcchongnz > 2015-10-16 13:50 | Report Abuse

Posted by paperplane2 > Oct 15, 2015 09:08 AM | Report Abuse
for comparison, I think it is more apple to apple if you compare Elsoft vs KESM, as they both have similar business right?


Your question is just like some people always asserting that V.S Industries, which has an operating margin never in history of more than 10%, must have the same market valuation as Globtronics which has an operating margin of 21%.

Elsoft's operating margin is 43% whereas KESM's operating margin is only 7%. Do you see the difference in their business model?

Just goggle and see what they are doing you will understand.

Posted by Icon8888 > 2015-10-16 13:59 | Report Abuse

I don't know how someone can buy into a stock without knowing what the company does

KESM and Elsoft have similar business ? Laugh die me

Posted by Money Face > 2015-10-21 22:37 | Report Abuse

KC, stop talking cock lah. When V.S was 3.80, you said this stock not good, blah blah, blah, write articles with sophisticated analysis. After Share Split , now 1 share is 7.60. Please don't write article as if you want to share your knowledge to educate people for free. Your ultimate objective of writing so many things is to entice people to pay you money so that you can use it to invest and make yourself richer. Luckily I didn't listen to your nonsense and sell V.S

Posted by kcchongnz > 2015-10-22 13:27 | Report Abuse

Posted by Money Face > Oct 21, 2015 10:37 PM | Report Abuse
KC, stop talking cock lah. When V.S was 3.80, you said this stock not good, blah blah, blah, write articles with sophisticated analysis. After Share Split , now 1 share is 7.60. Please don't write article as if you want to share your knowledge to educate people for free. Your ultimate objective of writing so many things is to entice people to pay you money so that you can use it to invest and make yourself richer. Luckily I didn't listen to your nonsense and sell V.S


"Talk cock"? Please see this statement just published in i3investor.

Posted by coolio > Oct 22, 2015 11:58 AM | Report Abuse
KC, please keep doing the good things you are doing now. I know you will just ignore those annoying sound out there, you know your quality.
I just want to take this opportunity to say thank you again because recently I have achieved 7 figure in my investing journey...hehehe.. Thanks for your investing methods, no 8 wonders in the world is really amazing!


and please visit my most recent post below and see all the comments here.

http://klse.i3investor.com/blogs/kcchongnz/84797.jsp


And don't forget to read this article which was specially dedicated to you and I have yet received any response from you on the questions posted to you yet.

Oh yeah, please do read the comments in this article dedicated to you if you haven't, and if you have, read it again.

Posted by geary > 2015-10-30 13:36 | Report Abuse

People who has too high IQ can't forecast or project the growth or decline of a particular business model. They fall in love with the stock past fundamental, free cash flow and zero debts. If u want to earn a decent 4 to 5% in stock market, u better go n buy government treasury, corporate bond, time deposit, etc. That was why Newton lost his trouser after the South Sea company bubbled. He fell in love with companies he invested, because of yesterdays high ROE, ROTC, EPS and cash cow companies. Turnaround seldom turns! The future earnings growth prospect is the only way to earn high capital return. U need to thoroughly investigate like a detective, fully understand its business model. U use your areas of competence, make it simple for u, be convicted when u found your future wife. U make your decision, if u don't make decision u don't make mistake. Uncle Buffett also made mistake, you only have to do few things right, as long as you don't do too many things wrong.

Posted by godhand > 2017-11-09 16:59 | Report Abuse

how do u compute cffo year 2015 & net capex 2015 & 2015