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